Entrepreneurship in Indian Society

 Entrepreneurship in Indian Society

In India, there is a peculiar Joint Family Structure, which has been a source of success of many Indian businesses. But that success has been possible due to economic liberalization in India. That success will continue, only if the reforms continue and if the risks that could derail the growth due to terrorism, political corruption, stalled reforms and growth that focuses only on the urban rich, are tackled well by the Government.


(i) The pre 1990 period – For the old business houses, success had come from the close-knit joint family structure that fosters family values, teamwork, tenacity and continuity. Under this structure, generations lived and worked together under one roof. Wealth from the businesses supported the joint family by providing a social safety net for members. In the structure, businesses and families were intertwined though they were also distinct entities with separate rules. Hence, survival of the family became synonymous with the survival of the business. Prior to the decade of 90s, Indian business success was a function of ambition, licenses, government contacts, and an understanding of the bureaucratic system. Decisions were based on connections, rather than the market or competition. During this era, entrepreneurship was subdued, capital was limited and India had very few success stories.


(ii) The post 1990 period – In 1991, the Indian government liberalized the economy, thus changing the competitive landscape. Family businesses, which dominated Indian markets, then faced competition from multinationals, which boasted of superior technology, financial strength and deeper managerial resources. Thus, Indian businesses had to change

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