Chennai, 7th November 2019: Pioneering the first of its kind mass entrepreneurship survey in India, TiE Chennai and Global Alliance of Mass Entrepreneurship (GAME) joined hands with Poornatha to conduct a survey focussed on mass entrepreneurs across Tamil Nadu. This unique study is first of its kind by a private entity which is aimed at getting an in-depth understanding of the working, financia knowledge, challenges and mind sets of mass entrepreneurs. Mass entrepreneurship refers to the millions of local businesses that typically hire five or more people and serve local needs in every community. These businesses could range from a beauty salon, small eatery joints, electronic and a motorbike repair shop or a food caterer.
The study looked at broad understandings of the Micro, Small & Medium Enterprises (MSMEs) in Tamil Nadu which has emerged as a highly vibrant and dynamic sector of the Indian economy over the last few decades. The survey was conducted by harnessing the power of the student community from nine colleges across 21 districts in Tamil Nadu. Over 450 entrepreneurs were surveyed by the college students, who were approached by Poornatha and Entrepreneurship Development & Innovation Institute (EDII) for presenting a detailed document explaining the objective and expectations from the survey.
Laid out below are some of the key findings of the survey:
• Mass enterprises are stable job providers: the average age of businesses surveyed was 13 years with about 50% of them being at least 10 years old
• Among mass enterprises, manufacturing firms are a key opportunity, typically employing more people than the service industry, generating more revenue per employee, and having less informality.
• Minimal digitisation of accounting and poor cash flow management is common and possible barriers to accessing finance amongst the mass entrepreneurs.
• Accounting, managing finances & statutory requirements are the areas that majority mass entrepreneurs need support
The study also evaluated the participation of women workforce and it was found that most women seem to enter business only after 35 years of age, unlike their male counterparts. Only 39% of entrepreneurs had some form of formal education in business and commerce at either school, college or diploma level, while the majority did not have any formal education. This highlighted the urgent need to make policy interventions to provide specialized courses in commerce and entrepreneurship from school days and a revamp of existing syllabuses to match the real world businesses requirements.
Commenting on the occasion, CK Ranganathan, President, TiE Chennai said, “In India, MSMEs are playing a crucial role by providing large employment opportunities especially in rural areas. The study findings will enable us to create meaningful interventions for mass entrepreneurs by developing comprehensive and structured service packages, creating job opportunities and student engagements in the larger scheme of things.”
Tamil Nadu has been the hub for MSMEs to flourish owing to the favourable policies of the government which has positioned the state to be third in the country in terms of no of MSMEs who produce a wide variety of products in almost all sectors.
Speaking about the survey presentation findings, Madan Padaki – Co-Founder, GAME India, said “Mass entrepreneurship contributes significantly to the economic and social development of the country by generating large employment opportunities. Through this study, we have attempted to capture in detail the challenges and opportunities in the MSME sector in Tamil Nadu, while also highlighting mass entrepreneurship as a possible career opportunity for our youth.”
Bharath Krishna Sankar Founder & Chief Mentor, Poornatha, based out of Madurai said “The nature of work and its role in society is changing in ways like never before and at a speed which was never imagined. Therefore, it is very important and a need of the hour that the students of today are ready to take on the jobs of tomorrow. We conducted this study through students so that they get an idea about the challenges and opportunities within the entrepreneurial eco system, which in turn will also help them to become job creators instead of being job seekers.”
From the findings of this survey, it is clear that technology could play a vital role in providing solutions to the challenges faced by entrepreneurs, due to the large extent of Smartphone and internet usage amongst mass entrepreneurs.
About TiE Chennai: TiE Chennai is an active chapter with 175+ Charter Members and over 600 Associate Members. Based out of the South Indian city of Chennai, this chapter seeks to foster the spirit of entrepreneurship both within the city as well as the larger state of Tamil Nadu. Through independent events as well as partnerships, the chapter holds multiple events every month, looking to inspire, mentor and educate local entrepreneurs. Charter members, Entrepreneurs, Business Leaders, Venture capitalists and Government representatives often collaborate to present success stories and business opportunities as well as know-how on raising capital, networking, etc .TiE Chennai has been one of the top performing chapters globally since 2014. This recognition stands testimony to the consistent high performance of the chapter across parameters including regular high quality events and membership growth.
About GAME: GAME aims to be the enabling platform that establishes a common understanding of what works and catalyzes change in the ecosystem to speed up the time to maturity. At GAME we believe that the youth, especially those between 14 and 29, and women will help deepen the roots of ME in India. It is the bedrock of stable economies as it meets the needs of communities, while providing employment at the local level.
About Poornatha: Other than the infrastructure, enabling conditions and incentives, the ‘know-what and know-how’ on owning numbers and handling people is a major need of the MSME entrepreneurs. Poornatha aims to fill this gap by partnering with entrepreneurs in creating an overarching eco system to enable them gain confidence in decision making and create and maintain a culture of trust. Poornatha is a founding member of Michigan Academy for Developing Entrepreneurs along with William Davidson Institute and Zell Lurie Institute of Entrepreneurship which aims to bring best practices across the world for MSME entrepreneurs.
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