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January 14, 2007

"Base of entrepreneurial pyramid is not very strong" : Ashish Gupta

Ashish Gupta, Managing Director of Helion Ventures, has written an interesting article for ET-Corporate Dossier pointing out the missing pieces in the Indian entrepreneurial ecosystem. (Unfortunately, no online link is available to the article.)

For example, tech-entrepreneurs in the US build in an environment of company creation that makes available hundreds of mentors, best-in-the-world talent, sophisticated attorneys who understand company creation, a large pool of ready customers, and so on. While the pace of evolution is faster it will naturally take sometime to bridge this gap in India.

The number and quality of entrepreneurs are increasing at a breathtaking pace. Many more senior executives are willing to leave their jobs and start companies. Similarly a lot of people who are willing to leave their jobs and start companies. Similarly a lot of people who are recent graduates are willing to take the risk. However, even now most "mid-level" professionals are unwilling to take professional risk. Further, while many people are keen to start companies, most are still not keen to join a start-up. Thus, the apex of the entrepreneurial pyramid is developing quickly but the base to support it is not developing as fast. this will create many start-ups that are unable to scale.

Arun Natarajan is the Founder of Venture Intelligence, the leading provider of information and networking services to the private equity and venture capital ecosystem in India. View free samples of Venture Intelligence newsletters and reports.