Pros quit jobs to start a biz venture

I see myself setting up my own business venture.” This has been the standard reply to the question, “Where do you see yourself 10 years from now?” by many a young professional. For years, though, the answer was a mere platitude because few dared to live out their dream. But not any longer.

Today, more than ever before, Indian professionals are increasingly quitting their jobs to chase the rainbow. Unlike the eighties and the and the early nineties where most of big business was constituted by old wealth like the Tatas and Birlas, the past 10 years have seen a whole breed of first generation entrepreneurs storm their way into the top echelons of Indian business. This has provided role-models and inspiration to scores of young Indian professionals.

Satya Narayanan R, chairman, Career Launcher, who started his own firm more than 10 years back after quitting a successful career at Ranbaxy says,”Today’s leading companies have emerged, not from established business groups, but from entrepreneurs — be it Sunil Mittal in telecom, Narayana Murthy in software, or Kishore Biyani in retail. This has increased confidence in entrepreneurship and diminished the allure associated with big business groups.

“Successful role models apart, entrepreneurship has also been given a fillip by the fact that, unlike in the past, an entrepreneur is no longer looked down on if his business venture is unsuccessful. Hungry, talent-starved companies are more than happy to welcome entrepreneurs back into their fold and even place a premium on their entrepreneurial experience.”

“Companies are more than willing to hire a person who is capable and has the required skills. In fact, they like it if the person has an entrepreneurial streak,” says Arun Das Mahapatra, managing partner, Heidrick & Struggles. Entrepreneurship is an asset that becomes even more valuable in a booming economy.

Increasingly many corporate observers believe that to reach its full potential India needs ambitious entrepreneurs a lot more than efficient managers. Rishi Navani, founder and managing director of Matrix Partners, believes that this is a time when entrepreneurs are more than welcome. Says Mr Navani, “You don’t have to be crazy to be an entrepreneur any more. Even if your venture fails, there’s a booming job market out there. So to that extent the risk is much lower.”

Besides the risk aspect there were other constraints that aspiring Indian entrepreneurs faced in the past like raising funds, getting professional guidance and few backers for unusual ideas. Today with the deluge of private equity into the country an entrepreneur with a good idea and the ability to take the risk is less likely to see his dreams die because of a cash crunch. Private equity also offers guidance to young entrepreneurs in their quest to reach the next level. And lastly as Anand Sridharan, director, private equity at Bessemer puts it: “This time the growth is more broad-based and new start-ups are coming up in almost all sectors. Unlike the earlier period between '99-01, when a lot of money was burnt in only internet ventures.”

While economics has had a large part to play in more and more professionals walking down Entrepreneurship Street, there is a significant cultural change that has made this possible well. Success stories like those of the Infosys founders have changed the perception that doing business in India is not a very savoury experience. Today more and more professionals believe that being ethical and building a world-class enterprise are not mutually exclusive. Says Mr Narayana of Career Launcher, “People recognise that just because you are a businessman it does not necessarily mean that you are unethical.”