Here is part two of my interview with Rafiq Dossani , an expert on Indian Affairs, executive director of South Asia programmes at Stanford University. His latest book on India "India Arriving: How This Economic Powerhouse is Redfining Global Business", provides us with insider's view of what is happening in India.
1. Can you talk about the entrepreneurs in India, are they different from US/UK entrepreneurs? What lessons can each learn from each other.
In terms of the ability to take risk or plan ahead, the entrepreneurs of India are similar to their western counterparts. The difference between them is in: (a) project management. Indian entrepreneurs tend to be less comfortable with teams and delegation; they also are weak in global project management skills. (b) small business has historically been dependent on large businesses to survive, such as fulfilling a vendor relationship to a large business client. The concept of a small business supply chain is still new to India.
2. What are some of advantages of doing business in India rather than China?
The quality of professional services is far better in India. There is also a greater respect for the rule of law, for example, in the protection of intellectual property.
The other main advantage/disadvantage is that India has a better developed civil society. If civilian organs like the media or unions can be managed, they offer excellent leverage for marketing or recruitment. On the other hand, if not managed well, they can be obstacles.
3. Is the legal industry in India open to doing business with smaller/medium sized law firms?
The legal industry in India lobbies hard (and, so far, successfully) to prevent western law firms from opening up in India. This forces the western law firm to collaborate with an Indian partner. Yes, they are open to working with the small/medium law firm.
4. Can you give me a couple of examples how how India is redefining global business?
In certain fields, such as software, doing without Indian vendors is not thinkable. In other fields, the localization of business to the cities and small towns and away from the large metropolises, is a very interesting trend that has led to the provision of very cheap, efficient outcomes. The obvious example is cellphone services, where 6-8 providers compete in each location. The outcome is the cheapest phone service in the world. India adds 3.5 cellphone users per second, well ahead of China.
5. Are the opportunities only for large and medium sized firms? What if the small firms want to do business? Where do they start?
Large firms are no longer the driver of the Indian economy. Since the reforms of the 1980s and 1990s, SMEs drive India's growth. My advice is to pick a field which is not dependent on superior infrastructure but requires superior talent; and which does not depend on economies of scale to thrive but on upgradation of human capital within the firm (i.e., the potential for a steep learning curve)
A very big thank to Mr. Dossani for being so generous with his time.
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