Entrepreneurship thrives in stable, friendly business climate

by Ashvini on October 10, 2012 · 2 comments

in My Personal Thoughts

Great architecture marvels of India such as Taj Mahal and a number of magnificent forts, palaces and temples were built in the times when there was a relative stable ruling environment.

Countries where people are not much worried about about basic needs such as food, housing and clothing are the ones that are most innovative. I found this really interesting report here. It talks about how the topmost countries in the list are best innovators because they have stable governments and sound business climate. Good education , broadband penetration and technical skills of the workforce were also sighted as the primary reason.Taj Mahal

I do not say that innovation does not happen in parts of the world that are poor or are plagued by uncertainties. But a series of innovations that improve productivity and add to the overall wealth of the society can happen only if the country has a stable political and business climate .

In the example above I talked about Taj Mahal. It took artists some sixteen years( add five more years to the completion to perfection) to craft the magnificent piece of architecture.  Stable nature of political regime and patronage by the rulers ( of artists and their creativity) helped to create it.

A number of such heritage monuments are there because of patronage from the kings and queens who loved and encouraged arts. One more example is the beautiful design of the old city like Jaipur where rulers allowed talents to flourish and innovate. ID-10038603

Implication for entrepreneurship

Individual entrepreneurs thrive all over the world , regardless of the political climate. However it is often easy for entrepreneurship to thrive if the business climate/politics is not suited to free enterprises. Government’s help cannot be wished away. In fact a lot of industries owe their success to friendly government policies.  Creating incentives for entrepreneurship, easy registration of business ,maintaining law and order are functions of the government, in addition to either creating or facilitating things such as broadband penetration, road construction, electricity, water supply etc.

Individual effort will definitely triumph over everything else but a little help from rulers may also help. To have a thriving entrepreneur ecosystem, everyone and everybody need to do their bit.

Image courtesy of [image creator name] / FreeDigitalPhotos.net

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{ 2 comments }

Adrienne October 10, 2012 at 7:45 pm

My Mom and I were talking about the beautiful architecture just last week Ashvini. How it’s so beautifully built with not even half of the machines and equipment that we have today. Not that this is what your post was about but as I was reading it made me remember our conversation and that she was definitely right.

I probably would have to agree with you to some extent. I mean if you’re here to build an offline business and really need the aid of the government or any other financial backing then having a stable “climate” is crucial. Like now in the US with the economy the way it’s been for the past several years it’s not always easy to take that plunge. Financial institutions are freely loaning funds these days so when all things are calm, they definitely have a much better chance.

Interesting question though, thanks for bringing this one to light.

~Adrienne

Ashvini Kumar Saxena October 16, 2012 at 12:54 pm

Hi Adrienne,

I think world is in a very bad shape today with USA and Europe facing financial turmoil and India facing enormous corruption. It is very hard to do something that is worthwhile when often the survival is at stake. I am not in favour of too much governance interference as it is not helpful at all. Also I do not want to wish away government support because in its absence , businesses cannot survive or get a free and fair atmosphere.
I believe a benevolent government that takes care of other fundamentals and allows business to thrive is the right approach( balanced).
Thanks again for adding to the discussion. Your inputs always add valuable insights.
Give my regards to your mom :). Hope she is doing great :).

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