WIN's Entrepreneurial Initiative -- An Invitation
Worldwide Indian Network
win at neu.edu
Fri Oct 20 20:18:52 UTC 1995
This is an invitation from the Worldwide Indian Network (WIN)
to all Indians to explore with us the possibility of developing
effective and successful businesses. Our goal is to lay the
foundation of an organization within WIN that will facilitate
communication and collaboration among people of varying skills
and resources. We intend to foster an entrepreneurial spirit
among participants leading to the formation of new business
enterprises.
During the past half century, Indian politicians have talked
themselves into oblivion. Nevertheless, in each election they
continue to get mandates from the people to lead the country in
the same direction. Meanwhile, Japanese workers have built an
industrial marvel from a heap of ashes. Today, Japanese
productivity is 12 times that of India, and its per capita gross
national product (GNP) is 105 times greater.
Following Japan's example would be a good way for India to
industrialize herself. We have the main ingredient -- India has
the second largest reservoir of trained manpower in the world
(behind the United States). What we seem to lack is an
entrepreneurial tradition which enables us to take risks, and a
spirit of cooperation which will make teamwork possible.
Henry Ford is the idol of many businessmen; 66 million people
around the world drive Ford cars every day. Conrad Hilton is
another idol of many businessmen; 110 thousand people around the
world sleep in Hilton Hotels each night. What we do not know is
how many Fords and how many Hiltons failed to realize their
ambitions. Statistics show that 6.0% of start-ups in the United
States fail in the first two years. And only 62.4% of new
businesses are still in existence ten years later. We
definitely don't want to fall into the wrong side of that
statistic.
To this end, we need an organization that will bring together
individuals with complementary skills and a common interest in
establishing businesses. Unless one has the right combination
of technical and managerial skills along with a sufficient
amount of money, the odds are against successfully establishing
a solo business. If one has technical and managerial skills but
lacks financial resources, one will need an investor to support
any potential venture. At the same time, investors and venture
capitalists need to draw upon people with technical and
managerial skills.
In addition to the satisfaction we entrepreneurs would
achieve for ourselves in establishing businesses, we would also
contribute something to our country. The formation of
businesses creates jobs; in turn, the creation of jobs fuels
economic growth and prosperity. A healthy economy can relieve
the misery and anguish of people by providing them with decent
jobs and can enable them to prosper by offering affordable goods
and services.
Productivity -- efficiency or output per person -- will
definitely take an upward turn once we form businesses. First,
when a person owns his own business, he will be completely
committed to its success: he will have a heightened sense of
responsibility, he will allow himself no excuses. Moreover, a
creative person, when working for someone else, is not always
free to explore his own sense of creativity. As a business
owner, that same person is free to decide the best way to
accomplish his objectives. He will then act with creativity,
good judgment, and with full awareness that the success of his
business depends primarily on his efforts.
Consumers have an enormous amount to gain if productivity
improves. Efficient production leads to better goods at lower
prices, and lower prices mean people can have more: more food,
more clothes, more leisure, more variety, more of everything
money can buy.
Each time the Government of India has devalued the currency,
the leaders(?) have come up with a very persuasive argument for
the illiterate masses: "Exports will improve substantially,"
they claim. But the facts prove otherwise. From 1979 to 1993
the rupee has lost three-quarter of its value -- it has
depreciated from Rs 8.076 to Rs 31.364 to a dollar. During this
period the cumulative current account deficit of India amounts
to $64.11 billion. In the same fifteen years, the yen has
doubled in value -- it has appreciated from Y219.140 to Y111.198
to a dollar. Japan's cumulative current account surplus for
this period amounts to $764.47 billion. What the demagogues in
India fail to realize -- or lack the courage to face -- is that
the key to improved economic conditions is PRODUCTIVITY. Only
when productivity increases, do employment, incomes, and exports
rise. Productivity growth is the engine that drives the long-
run improvement of living standards.
Two kinds of investors -- those who invest their skills and
labor, and those who invest their money -- will compose this
organization. Hopefully, each participant will contribute both
kinds of investments.
Those who invest their skills and labor will benefit in many
ways. First, they will eliminate the middleman -- the employer
-- and receive the total benefits of their labor. If the
employer pays an employee one dollar he does so only if he makes
at least two dollars out of the employee. Moreover, because the
entrepreneurs will be their own bosses, they will derive greater
personal satisfaction from their work, and they will have
control over their own destiny.
The investors of money will also benefit in several ways.
They will receive a higher return on their savings. If a bank
pays 5% interest, it is certainly making at least that amount
for itself. By eliminating the middleman -- the bank -- and
investing directly in businesses, the investors receive the full
benefit of their savings. Furthermore, they will own a portion
of a business, rather than simply giving money over to a bank
for the bank to invest. Thus the investors will have direct
control over their money.
Finally, the channeling of funds from individuals who have
savings to others with productive investment opportunities will
be a tremendous boost for the economy and to the parties
involved in the exchange. Each investor will have the great
satisfaction of knowing he is promoting the economic success of
India.
If you are willing to help your fellow Indians in forming
businesses, please send an e-mail to win at neu.edu. Use the word
BUSINESS in the subject line, and your e-mail address (in small
letters only), home zip code, full name and telephone number(s)
in the body using the following format:
bhalder at lynx.neu.edu : 02128 : Mr Biswanath Halder H617-567-0667
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