Musings of an intermittent entrepreneur!

Hey all,
First, sorry for not being able to post for a while - School and Spring Term 1 is back in vengeance and bleak economic conditions are adding to the already packed schedules.

In any case, here's an insightful post from a very dear friend and colleague of mine - Vijay Nandakumar, on the topic of 'Entrepreneurship in India'. Vijay is a budding entrepreneur and have had a very interesting experience with starting and leading his venture in India from scratch. A dynamic leader with significant expertise in variety of topics in healthcare industry - from procurement and distribution to clinical development operations. Before starting his MBA at Duke, Vijay was a Development Technologist in the Clinical Immunology department of Mayo Clinic. Here you go!

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Entrepreneurship in India is a mixed bag, at least from my experience. While it is fairly simple to form an organization (It does not take a huge investment to register yourself as a corporation), the real challenge is in growing and sustaining it. In short, it is difficult to make money in India unless you understand the way the country functions. India, as many may be aware is a land of contradictions. You have bipolarity in almost every imaginable way. Case in point; tremendous GDP growth paralleled by an equally vicious growth in poverty levels and unemployment. A land with a rich cultural history yet increasingly imitating the west. Hugely talented national sports teams yet under performing at every available opportunity. You see where I am going. This contradictions creeps in to the corporate world too. The institutional structure that is in place to protect businesses is solid yet the ground reality is nothing short of shocking. Inspite of these contradictions, India has marched commandingly in the 21st century and is heading to be a power to reckon with. While the nation has also evolved to encourage entrepreneurial activity at some level, I strongly believe that there are still a few fundamental pillars that need to be addressed for entreprenuership to blossom completely.

The main blocking agent for entrepreneurship in India is the lack of good practices for innovation management. While there is no dearth of ideas, most die for lack of resources. There is not a well organized venture capital or invester society that actively scouts for innovation. While this trend has started to change, this area is still highly fragmented. The awareness and success of VCs and Angel investors hold the key for evolution of entrepreneurship in the country. The other major downer is the lack of strict IP protection. This scenario must change for India to develop as a knowledge powerhouse at the global level. Addressing these two issues at the deepest level will start the ball rolling in the right direction.

There are also a few idiosyncrasies that will do better with a change. Unlike other industrialized nations, India has a very unique political landscape that somehow manages to limit the institutional framework to theory. It is people in power, rather the "current" people in power (There are hundreds of significant political parties in India) who set the rules. The problem is that the government just sets the policies and does not proactively take part in the construction process. The troubles for an unlucky entrepreneur can start right from the minute he/she steps in to a government office to start the incorporation process. Not that all government officials are corrupt or inefficient, but the system in its entirety is broken. The young and budding entrepreneur can be made to go in circles to get one's firm incorporated if the governing official does not get what he wants above and beyond the regular fees. Assume that you are lucky and either got to work with one of the few upright officers or had the resources to muster enough cash to get through the process. The real deal starts now. How do you sell the product or service. The key to success in India is simple. It is the proverbial "Network". As with many Asian cultures, business in India is driven largely through personal-level interactions between the related players. Thus, it pays to investing in time to develop the critical networks that are essential to succeed in the country. Its network or bust.

Having said that, entrepreneurship in India has been largely growing in the past decade. The government has started introducing self-employment help schemes and there has been a rapid expansion of "Special Export Zones" that has fostered the manufacturing sector. Also, the increasing foreign direct investments (FDI) has contributed to more entrepreneurs to come out of their shells. The awareness of entrepreneurship is also at an all time high with news channels carrying programs on budding entrepreurs in the nation. CNBC's "Young Turks" is one such program that tracks the success of people who made their own destiny and serves as an inspiration for aspiring entrepreneurs. In summary, the picture looks just right to indulge in an own venture in India and with the world becoming increasingly flat, the opportunities will only grow.

India should make the right moves to protect and foster her entrepreneurs. Why? Just ask China!

--Vijay.
vijay.nandakumar@fuqua.duke.edu

Podcast: Fuqua Alum starts an urban sportswear brand in China !

Its been sometime since our last posting, but we think the wait is probably worth it because of this amazingnly interesting story. In this post, we bring you the story of Renee Hartmann (Fuqua' 05) who co-founded Eno Sports, which is an urban sports wear brand targeting the 18-25 year old urban Chinese customer. Eno sports is a successful sports brand with 12 stores across 4 cities in China.

Starting company anywhere in the world is a tough job, but to do it in the context of another country, economy and culture makes it even tougher. To uncover how Renee was able to pull off this amazing feat, Ferol Vernon (Editor of the CEI newsletter)and I did a podcast interview, in which Renee talks about everything from raising capital in China to running meetings in Mandarin !

We're sure you'll find this story both interesting and inspiring, so check out the podcast here.


-Karthik.

What are Micro-Multinationals ?

Startups are increasingly setting up operations globally, whether its a technology startup that has its engineering team in Israel/India or the latest cleantech energy startup, which markets its products in Japan/Germany...startups are going global ! We thought we would explore how these new startups or shall we say "Micro-Multinationals" are pulling this off. So, we will be hosting Trevor Loy, Managing Partner, Flywheel Ventures at Duke's Entrepreneurship Week on Nov 19th from 2:45 to 4:00 pm. One of Flywheel's investment thesis' is that they invest in startups in the US, but have global footprints (Miox, Lingotek, 4Blox etc). So Trevor, is uniquely qualified to talk about this new phenomenon. Details of the event are below:



Event Description: As part of the Duke Entrepreneurship Week we will be hosting a talk by Trevor Loy, Managing Partner of Flywheel Ventures on the topic - "Micro-Multinationals - The emergence of startups with Global footprints".

Why should you attend ?
- To learn about why startups are going global
- To learn how to tap global talent and markets for your startup.

Who will be speaking ?
A few highlights of Trevor's background are:

• Founding member of several VC backed startups (Roxio, Conexant and
• others).
• Board Member, National Venture Capital Association
• Founding member of the Stanford Technology Ventures Program.
• Three engineering degrees from Stanford.

When and Where ?
Date: November 19th
Time: 2:45 pm to 4:00 pm
Location: McClendon Auditorium, The Fuqua School of Business

Trevor's a great speaker, so drop in(no fee to attend the E-Week) and I'm sure you'll find this talk interesting.

Get ready for Entrepreneurship Week at Duke!

Hello all,
Just wanted to share with you all an exciting event that is coming up at Duke next week - Entrepreneurship Week! This event is one of the best Entrepreneurship Weeks in the world with events scheduled throughout the week ranging from visiting local start-ups and VC firms in RTP area to Elevator Pitch Competition (Duke Start-up Challenge). For additional details check out @ Entrepreneurship Week!.

Unleash! it: A collaboration platform for entrepreneurs across the world!

I thought a great way to kick-off this blog would be to have entrepreneurs and start up enthusiasts across the world to collaborate and solve business/start up challenges. I came across exactly such a forum on the Global Entrepreneurship Week's site called "Unleash! it", which is officially defined as an “open-source innovation community, that connects companies to entrepreneurial talent around the world. Any company can present their own challenge and it can be about anything - from how to save money in their supply chain to coming up with a new product or service." So, check out the challenges here and see if you can help budding entrepreneurs with their challenges and in return you could probably get some help for your own start up !

Welcome!

On behalf of current students, faculty members, alumni, and the Entrepreneurship and Venture Capital Club (EVCC) at The Fuqua School of Business, Duke University, it is our pleasure to announce the launch of our new blog - "Entrepreneurship and Venture Capital: At home and abroad".

"Why" - you may ask are we starting this blog. Our answer is simple: we would like to share with Fuqua, Duke and the broader audience about what is happening in the Entrepreneurship and Venture Capital space across the globe. The blog’s global focus is all the more relevant given Fuqua’s recent global initiative to be present in China, India, Russia, London and Dubai. Furthermore, over the long term, some of these locations will host entrepreneurship related activities, so we thought it is only fitting that we get started on educating ourselves about what is happening in the entrepreneurship space across the globe.

Though simple, there are specific themes that we hope to cover in this blog. This leads us to the question of "What" we want to share with you and in turn learn from you. Firstly, we’ll share various entrepreneurship related activities that Fuqua and Duke will be hosting throughout the year in the US and at our planned campuses around the world. Secondly, we believe that the entrepreneurship and venture capital landscape in the US differ from those in countries such as China, India, Israel, Brazil etc. So, we hope to share information about how entrepreneurs in those regions start and fund their companies. Finally, the student community at Fuqua and Duke is very diverse and some of our students have started companies, which are truly global in nature, so we’ll share those entrepreneur’s stories and advice.

In order to make this place worth your limited reading time, we hope to tap, quality sources of information that we come across. Secondly, we’ll ask our brilliant research focused faculty to draw on their research and share their thoughts on the latest trends in entrepreneurship across the globe. Finally, we’ll ask our alumni who’ve made Duke a top-5 university for entrepreneurship and venture capital to share their experiences of starting and funding entrepreneurial ventures.

We are very excited about how entrepreneurs around the world are changing the way business is done and we hope to share their stories and learn from them. We would like to also state that this is a student-run blog and thus thoughts shared here are purely that of fellow Fuqua students. Finally, in the spirit of openness, we request you to share any information that you think can go on this blog.

So, please contact Karthik.Meda (karthik.meda@fuqua.duke.edu) or Tarun Thakur (tarun.thakur@fuqua.duke.edu) if you come across a great piece of information that you think future entrepreneurs can learn from!

Thanks,
-Karthik Meda & Tarun Thakur