|
What is the scope of entrepreneurship
in IT?
The IT industry is basically driven by an enterprising spirit
& the ability to take risks. In this industry, skill &
ability to execute are of paramount of importance. These traits
are needed even to seek an employment opportunity in an IT
unit. There is nothing like a ‘Safe Job’ in the
IT industry. This industry works on the Silicon Valley’s
mentality of ‘Hire & Fire’ and Darwin’s
principle of ‘Survival of the Fittest’. ‘Perform’
or ‘Perish’ is the rule of the game here.
Against this backdrop, experience & prior business background
are not of importance for starting an enterprise. Model of
the ‘startup business’ is very common. Most successful
companies such as Microsoft, Oracle, Novel, Citrix and Indian
companies such as Satyam, Wipro, Infosys, Mastek, HCL and
others are also examples of entrepreneurial successes.
What is the typical characteristic of IT Entrepreneurs?
IT entrepreneurship is driven by innovation. It is not a Zero
capital game, but the capital requirements are far smaller
than other businesses. One need not have a plush office, high
capital infrastructure. You can operate out from your bedroom.
Matek, Infosys all started from one Bedroom flats.
But your vision as portrayed by your website has to be innovative
& world class. Your mobile phone & email ID is what
is required for business.
How Much capital is needed to
start an IT venture?
Freshers must put in survival capital for
24 months. This mainly includes salaries of essential staff
(not sales people, they must earn their salaries), initial
setup costs, marketing expenses & cost of building ideas.
You can use bank loans to buy physical assets such as computers,
furniture & software. But no bank will finance the working
capital for a startup IT venture. Most banks will also ask
for Surety & Guarantors for the loans.
If your operation is of agency or stock & sale then more
capital will be needed. These businesses have to also worry
about technology obsolescence. Software product development
needs great ideas, design ability & smooth and sleek development.
I have seen great products built in areas such as textile,
cotton yarn stock management etc. There is always scope for
new ideas in IT industry. There is nothing like all products
built & no more scope for computerization in IT.
Dil Mange eMore is the Mantra in IT!
IT applications are like music or a piece of art.
There is always room for something different, better &
world class. No one should feel everything best is done &
nothing more is remaining. This is where IT entrepreneurs
can pitch in.
What are the Sources of Finance
for IT Entrepreneurs?
Personal or own hard earned money is one important resource.
There is no replacement to that. Bank finance can be used
for buying assets. But all working capital needs such as salaries,
marketing, development costs etc need to be raised from equity.
Morale of the story is very clear. People
with great ideas but 0 capital can not become entrepreneurs
unless they partner with trustworthy rich people who are willing
to invest in their risks.
There are thousands of examples in India
& overseas wherein middle class professionals have become
successful entrepreneurs. This is difficult in capital intensive
old economy style businesses. Prior experience as an employee
is desired for contacts, marketing innovation etc. A small
% can hope to straightaway become business people.
What are the
Areas for IT entrepreneurship?
Hardware & Network maintenance (hot demand from corporate's)
Sale & Service of IT products
Development jobs / projects
Localization of products as per Indian conditions / requirements
IT enabled service
Training in rural & semi urban areas in local language
Cyber cafe
Implementation of projects & free lancing.
Can IT business be done Part Time?
An IT entrepreneur cannot do part-time entrepreneurship. Either
you DO IT or DON’T. In teaching as a consultant or technical
copy writing such possibility may exist. But you can’t
build an enterprise on a part time model. |
Awards 
