Indian state makes Indians entrepreneurial, as to overcome basic constraints and succeed with what we have we have to innovate and improvise. This article will describe how the Indian Family Business and its entrepreneurial spirit play an important role in India’s growth.
In recent years, entrepreneurs have faced countless obstacles in the business environment. Extreme harassment from tax officers was an issue that was addressed in the budget. “Our government would like to reassure taxpayers that we remain committed to taking measures so that our citizens are free from harassment of any kind,” – Nirmala Sitharaman. The government is now determined to empower Indian society, digitally. Introducing investments, technology, employment and seed funding for ideation and development progress.
Crucial moves were also made to defer tax payment on employee stock option plan (ESOP) by five years. This is the best way to entice young start-ups to retain their talented employees during the initial years of business. Now taking more risks when performing on a large scale is
possible.
Objectives of enterpreneurship.
•Help reduce the unemployment problem
• Surmount stagnation issues
• Boost competition and growth of the business
The Indian entrepreneurial spirit can only develop and grow if the Indian economy continues to grow on a sustainable basis. The risks to India’s continued growth are terrorism, political corruption/stalemate, non-inclusive growth that focuses only on the urban rich, and stalled reforms. What then is India’s risk premium?
As the investment cycle strengthens, foreign businesses can invest in India independently or through partnerships. The businesses factor the political, economic and family risks in their analysis. From an academic’s perspective, the businesses can either decrease the expected cash flows or increase the discount rate to reflect risk premium, though the adjustments are complex. However, I view investments in India as a strategic decision. Below I discuss the risks and my understanding of them.
