September 27, 2005

"Why risk a start-up when MNCs pay such high salaries?"

Rajesh Jain's has posted on a topic that I have heard several times from other entrepreneurs and VCs.
(I had a discussion) with a US-based venture capitalist of Indian origin who had an interesting take on the problems with entrepreneurship in India. He made four points.

First, salaries in India will rise faster than cost of living which would make it unattractive for employees working with the international majors to quit and create or join a start-up. Second, even the ones who are venturing out seem to be more focused on services than products. Third, the few in the products area seem content OEMing their creation to the market leaders rather than taking them on with full stacks. Finally, Indian companies lack vision to think big and global. I agreed with him on all four counts and added one of my own. It is well nigh impossible to do a tech, product-oriented start-up because angel and early-stage funding is simply not there.

The post also features interesting comments from other entrepreneurs and wannbee entrepreneurs.

Arun Natarajan is the Founder of Venture Intelligence India, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of TSJ Media's Venture Intelligence India newsletters and reports.