Similarities and differences between US and Indian entrepreneurs

[Ceres]

VCCircle has published the first part of an article discussing the key similarities and differences between US and Indian entrepreneurs.

Here are some of the highlights:

In the US, one takes it for granted that upon incorporation and perhaps a small angel round, one can move into an office and have the basic utilities function 24x7. In India, on the other hand, if one is able to raise some initial funding, moving into a facility is a non trivial task, not to mention the infrastructure issues. Whether it's dealing with landlords who change the terms of the contract after the contract is signed, to greasing the palms all along the way to get everything from network connectivity to electricity, getting a business up and running is tougher in India than in the US.

In the US, entrepreneurs often think about a global impact or reach from the get go. They may not roll out a product or service globally from the very beginning, but the aspirations and the long term plans, more often than not, include global expansion. In India, thinking global is much more the exception than the rule. That may be due to the non-IP nature of most Indian ventures where competing on the global stage may be difficult, the fact that the Indian market itself may be large enough or a laser focus on making the company successful at a national level before even thinking about international expansion.

I thought hiring and retaining talent was a tough task in Silicon Valley, until I came to India. The challenge is far greater for Indian entrepreneurs I think than for their silicon valley counterparts. The Indian entrepreneur has a double whammy: 1) often there is little to no sense of loyalty within the employee base, and 2) irrespective of the company's financial health or overall milestone achievement, there is an inherent expectation of a year-end bonus and a salary increment, often at ridiculous double digit levels. In the US, there are virtually hundreds if not thousands of example of wealth creation through equity ownership or options in companies that had a great exit.

It's interesting to read about the different expectations and challenges US and Indian entrepreneurs face. I look forward to reading the second part of the article once VCCircle publish it.

Here's where you can find article:

http://www.vccircle.com/columns/investing-india-vs-silicon-valley-part-i

 

[Ice]

Interesting read, there; thanks! It definitely does appear to be a lot harder to actually run and maintain a business over in India as opposed to here in the US. I'm not saying that it is a piece of cake to open a run a successful business anywhere, it just seems a lot harder to do that in India due to some of the limitations that have been noted in the article you posted.

 

[Ceres]

Mohanjit Jolly of VCCircle has now published part 2 of his article on investment in India Vs Silicon Valley. I found it to be an insightful article.

A big shock to me as I started learning more and more about doing business in India was the fact that from a business perspective, India is not one country, but a conglomerate of several different mini countries, each with not only its own set of languages, traditions and very different way of conducting business. While in one part people tend to be more aggressive and business minded, another is more laid back and easy going.

Some regions can be higher integrity in terms of honoring contracts and partnerships while others could care less about contracts. In one particular area, telemarketing might flourish while in others face to face feet on the street is the only way to make a sale happen. The US also has its nuances from one part of the country to another, but those differences are more magnified in India.

http://www.vccircle.com/columns/investing-india-vs-silicon-valley-part-ii

 

[domainerin]

nice read

 

[petrelli]

Hmm interesting read but the articles seems to be very biased in the favour of Indian entrepreneurs as opposed to the American ones.

But an interesting article all the same.

 

[myinvestorsplace01]

Thank you for sharing useful information. Did affirmative action and labor unions make this nation great or did the US entrepreneur? Can anyone share their opinion in it.