Entrepreneurial Ecosystem for Tier II citiesVIVEK PAWAR

TIE HUBLI

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

Thank You !

11

Backup Slide DETAILS

12

13

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.

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Examples of E-Ecosystems

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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

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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

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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