Post on 27-Mar-2019
Overview
Who am I to talk?
Models of success (World, India)
What is Entrepreneurial Ecosystem (E-E)
Summary
2
What is my experience?
Hubli situation 2006 only 1 Embedded systems training start-up but No high Tech company
High Attrition due to 98+% engineers migration every year
Typical problems of Tier II / III cities in India
BVB College situation in 2006 No company on campus.
All Students jobs for application software (Jawa)
Not even in top 10 in Karnataka
3
BVB campus Incubation has 45+ High Tech companies
BVB has enabled over 500 new High Tech jobs to the region’s economy
100+ Technology startups in Hubli-Dharwad (TiE, Deshpande Foundation, BVB Colege)
No Industry in Hubli-Dharwar so far has created engineering jobs as much as BVB Incubation companies
2013 student starup gets Unitus funding competing with startups from IITs and IIMs
Where we are today ?
Essential aspects E-Ecosystem
5
CultureCulture which nurtures, enables and supports
Entrepreneurship is most critical for eco-system Entrepreneurs are appreciated and supported over jobs
Experimentation is encouraged
failure is celebrated or not looked down upon
Sharing ideas, problems and solutions.
Mentoring is accepted norm.
Access
To market
(Local/
Global)University
As
Catalyst
Early
Stage
Capital
Talent
Supply
Mentoring
& Support
Govt
Policies
Culture
Challenges other than funding!
Mind set Product will speak for itself
Customer likes the idea
Product – Business Model - Solution looking for problem
Problem selection : Innovation for innovation
o Need to look for “Hair on fire problem”
Confusion between customer and user.
Cost of sales too high to sustain
Mentor vs customer/network/director
6
Challeges other than funding!
Confusion in Profit vs cash-flow
o Importance of cashflow is not understood
Pricing based on cost rather than value
Talent availability
Frugal R&D
Many many more…..
7
Support from Education Institute
8
Industry Oriented Talent Willing to startup or join startup
Frugal R&D
Descrete Life support Only for teacher customer supported models
Access to Entrepreneurial Eco-system Branding of Incubation is second to Startup Branding
Startup early success or closure is most critical
Access to accelerators, funds, mentors etc
Early low risk Market access Getitng first few dates with customers
Having some success with customers
……………………………………………………………Many more
Access
To market
(First Date)
Access to
E-EcoSystem
Descrete
Life support
Talent
Supply
Descriminate
Life support
Frugal
R&D
University
Incubation
Policy Initiatives for spurring Products
Investment 100% investment in Strategic Areas for Country
Market Access
Test and reliability labs
9
Summary
Right business model is critical
Learning from experience is more critical than getting it right first time
Innovation and Frugal R&D increases success probability
Trained talent through intern or any other model is critical
10
What is it ? Research
Identify the right problem to solve
Coordination between Industry and Academia
Productization compatibility of the research result
Training
Employability
Faculty development for ESDM
Focus on Hands-on/ Product Development
Incubation
Biz Plan competition (Early Stage funding)
Accelerating (VC Funding , M&A)
Existence of 3 Tiers of Entrepreneurs
14
Research
ETRI
Myths or Facts: (HBR, Forbes, …)
Strong ecosystem means there are more and more start-ups. False. Strong ecosystem linked to economic progress and Quality job growth.
Financial incentives(Tax) for Early Risk investments for start-ups stimulates the ecosystem False. Most successful Angel investors in California, Boston, IAN etc are for profit companies.
Strong ecosystems needs strong entrepreneurship education. False.
Top three challenges: access to talent, excessive bureaucracy, and early stage capital. True.
15
Entrepreneurship Ecosystem: Myths or Facts
Job Creation primary objective of Entrepreneurial Ecosystem False.
Banks are irrelevant for the entrepreneurship ecosystem because they don’t lend to start-ups. False. Banks help financial markets mature and have indirect impact. Valuable for later stage
Tech companies
Large corporations stultify entrepreneurship ecosystems as they prey on entrepreneurs… False. Corporations are important customers/channels for start-up entrepreneurs
To/Fro flow of Talented executives feed into entrepreneurial success.
16
Entrepreneurship Ecosystem: Myths or Facts
It is necessary to establish incubators for strengthening ecosystem False.
Entrepreneurs drive the entrepreneurship ecosystem mainly. False. There is no one driver for ecosystem. Entrepreneur is one of many components….
Strong entrepreneurship ecosystems needs strong entrepreneurship education. False. No data that formal education improves entrepreneurial success. It’s helpful but not
critical.
17
Examples of E-Ecosystems
18
USA – Stanford University : Pioneer for ESDM startups
Taiwan – Industrial Technology Research Institute (ITRI)
Korea – Electronics & Telecommunications Research Institute (ETRI)
Pune – IT < 100 crore in 90’s to >3500 crore in <15 years.
Tirpur Textile Hub: 90% of Cotton knitware export from India. Rs. 20,000 Crore export
ETRI Korea
Industry Technical Research Institute , Taiwan (ITRI)
ITRI is a non-profit R&D hub
Started in 1973
Crucial role to transform labor intensive economy to High-tech industry
TSMC , UMC and many more originally conceptualized in ITRI & then spun off
Employs 5000+ employees
Produced 140 CEOs till date
Integrates Research for productization , training and incubations
19
IESA Proposed ESDM Model
Education – (KLE Tech University) High Quality Teaching
Produce Industry ready Talent
Research – (KLE Tech ESDM Research Cluster) Industry Consultation
IP / Publications
Innovative Products/Companies
Industry – (ESDM Hubli Cluster) Incubation
Funding/Infrastructure
Create Jobs
ESDM Research
ESDM Industry
(Incubation)
Education
2. Industrial IP
3. TrainedFaculty
1. TrainedManpower
© 2016 Linkez Technologies Private Limited, Hubli
Essential aspects E-Ecosystem
21
Talent Supply Industry employable trained manpower supply critical for
scaling
Risk/Early stage capital availability Local fund and support at early stages most critical
Policies and less bureaucracy Easy Policies and procedures to start, run and close companies
critical Early
Stage
Capital
Talent
Supply
Policies
Essential aspects E-Ecosystem
22
Mentoring and infrastructure support Mentoring and ready infrastructure helps entrepreneurs
focus
University as Catalyst Industry oriented Research, Training
Enables tech entrepreneurs
University
As
Catalyst
Early
Stage
Capital
Talent
Supply
Mentoring
& Support
Policies