India’s population is largely held up by an informal economy where the microentrepreneur is central to growth. What does it take for a microentrepreneur to succeed and grow? This series for Entrepreneur Magazine India will show empirical data and provide constructive frameworks for India’s one billion that seek to turn our frameworks from inside out to outside in.
One of the very first steps of successful entrepreneurship, in any context, micro or macro, is to envision new possibility. Possibility of something that has not yet been created; something that adds a new dimension or element to the status quo; and every so often, something fundamentally different that topples an old paradigm and ushers in a whole new era of capability.
This requires a trick of the human mind to span multiple timescales at once. To stand in the present, reach into the past to access one’s accumulated knowledge and experience, and churn this into something that looks beyond to the future. This is perhaps one of the most remarkable feats that distinguish human beings from other species. To imagine a new context and future is certainly not sufficient to guarantee its realization, but without it the … Read More »
Less than 50 million people are employed in the formal economy. That’s less than 5 percent of India’s population. What this means is that most of the country operates in the informal economy and most are by definition ‘poor’.
When we speak of the formal economy, which accounts for almost all of our GDP, we often throw around terms like value creation, entrepreneurship and job creation and the like. But when it comes to the majority of India’s populace, we flip the paradigm to ‘income generation’ and ‘livelihood creation’ and use this interchangeably with micro-entrepreneurship, which it is not.
It may seem logical, that after all, poverty is the lack of income and most of India has little of that. So, it is best to rush out to generate some income to feed yourself. Except that it’s not.
The wealth of a … Read More »