Entrepreneurship Development in Odisha
Odisha can effectively promote and develop broad-based entrepreneurships, and with a special emphasis on technology business entrepreneurships – high value entrepreneurial ventures based on sciences, technologies, engineerings, internet/web, virtualization and their commercializations.
New TBE is the activity of a technology entrepreneur (commercializer) who converts new ideas into businesses through high-risk based new venturings such as: pre-start-up/start-up company, virtual firm to create new organizations and/or new ventures within established corporations. TBEs are being applied to the commercial entrepreneurship and social entrepreneurship sectors.
Entrepreneurship development is equated with leadership development & entrepreneurial management development by managing people, ideas, innovations, technological and managerial processes.
Odisha is an “emerging brand” in India and the emerging state is trying to re-position itself by leveraging developments in infrastructural, industrial, educational, socio-economic, human resources, information, entrepreneurship/MSME, natural resources management and TBEs can play important roles in transforming the poor developing state into a developed state in the future.
Types of Technology Business Entrepreneurships
The following types of TBEs can be explored and developed within Odisha that can add value to new businesses/industries sectors:
-Invention (Discovery, R&D, Intellectual Property, Patent, no prior art, first to discover, invent &file)
-Innovation (Jugaad, Copy-Cat, Reverse Innovation, Reverse Engineering, Open Networked Innovation)
-Licensing of technology-transfer-development-commercialization
-Technology Product Development (commercial/prototype, semi-finished to finished products)
-VirtualTechnology (new technology/business discovery/innovation)
-Technology Business Services/Solutions, Contracts, Business Technology (small/large organizations)
-Marketing/Trading/Salesof Technology Products (smart cell phone, consumer technology gadgets, pharmaceuticals, biotech-biopharma-vaccine-diagnostic, Genetically Engineered foods/fish/seeds)
-Technology commoditization, synthetic technology, technology combinations
-Social Technology (Platforms, Social Networks)
-Corporate New Venture (CNV), intra-preneurial new ventures by established companies
Top-10 Technology Business Entrepreneurship Development Sectors for Odisha
1. Information and Communication Technology (ICT): IT, Software, Mobile Technology, Technology Services-ITES, BPO, KPO, Internet, Web, Small Business Technology
2. Biotechnology (Biopharmaceuticals, Health/Medical Biotech, PlantBiotech, Lifesciences)
3. AgriTech – Food & Nutrition, Herbal/Medicinal Plants, Nutraceuticals
4. Green Technology (bio-diversity, bio-resources, sustainability, environment, waste-management)
5. New Materials and Minerals (natural/synthetic, bio-engineered, nanotechnology materials, bio-plastic)
6. Bio-Energy (Bio-Fuel, Bio-Diesel, Bio-Gas, Bio-Petrol)
7. Animal Agriculture, Dairy Health, Food Animals, Transgenics
8. Education Technology: Advanced Learning Systems, Internet/web-EduSystems, virtual classrooms
9. Low-cost manufacturing technology (up-stream, down-stream, CMO)
10. Technology commodities, utilities and industrial technology
Organizations promoting/developing various types of entrepreneurships in and for Odisha
GoO – Team Odisha (IPICOL, IDCO, IDCOL, OCAC, Depts-Industries, S&T, IT, MSME)
GoO – Department of MSME
GoO – Department of Science & Technology (Biotechnology Unit)
KIIT-TBI (KIIT University-Technology Business Incubator), Bhubaneswar, Odisha
Konark Knowledge Park Private Limited (KKPPL), Special Purpose Vehicle (SPV) Company, developer-Bharat Biotech, Hyderabad. Biotech/Pharma/Knowledge Park at Andharua (65 acres, Rs. 100 crore project, PPP). Within this park, Biotechnology Incubation Center (BTIC by GoI DBT) registered as non-profitSociety for Development of Biotechnology (10 acres, Rs. 10 crores).
Proposed two more Biotech Parks, one at Deras, Khurda (Industrial Biotech, 200 acres) and other Marine Biotechnology park (50 acres) in Ganjam district.
Washington State India Trade Relations Action Committee (WASITRAC), USA
Next Fifty India (organized by WASITRAC)
Invest Bhubaneswar (Odisha/Intl))
TiE Bhubaneswar Chapter
NROFC – Non-Resident Oriya Facilitation Center (BBSR/Odisha)
Works in liaison with the NRO Cell of Government of Orissa (http://www.nrofc.org/)
TEDx Bhubaneswar (USA/International)
Entrepreneurship Cells of academic/institutions/universities based in Odisha (XIM-B, IIT-BBSR, Others)
Invest Odisha –by The Odisha Society of the Americas, Inc. (OSA, USA/Canada). OSA-IO/Odisha Development is planned to be organized during OSA Annual Convention held in different cities in North America (Foci: Higher Education, Information, Entrepreneurships (social/business), art/culture/heritage and development exchanges).(http://www.orissasociety.org/osaftp01/index.htm)
Sources of Private Investments in Support of TBEs in Odisha
(a) Personal & Private (P&P)
(b) Family & Friends (F&F)
(c) Angels (Private Angel Networks) – need to be established
(d) Pre-Seed/Seed Capital Fund (need to be established)
(e) Venture Capital (VC) Fund/ VC Firms (formal, equity-based, need to be established)
(f) Banks and other financial institutions (traditional financing)
(g) Private Equity (large ownership based private investors, not described)
(h) Hedge-Funds (not described)
(i) Corporate New Venture Investments (not described, need to attract large corporates)
(j) GoO-GoI-Private Sector (through PPP or joint-venture)
Government (GoI) Agencies for soft-money fundings for TBE Development in Odisha
National Science & Technology Entrepreneurship Development Board (NSTEDB)
TIDE (Technological Incubation and Development of Entrepreneurs), Dept of IT, GoI
MSME Incubator Program, Dept of MSME (http://msme.gov.in/)
TePP (Technopreneur Promotion Program), DSIR, MST, GoI (http://www.venturecenter.co.in/tepp.php)
TDB (Technology Development Board), DST, GoI (http://www.tdb.gov.in/)
T-TBI, Technology Commercialization Facilitation Agency (TCFA), TREMAP Program, DST
Technopark Technology Commercialization Facilitation Agency (T-TCFA)
BIRAC (Biotech Industry Research Assistance Council), A Govt of India Enterprise
Biotechnology Ignition Grant Scheme (BIG)
Biotech Consortium India Limited (BCIL), Promoted by GoI/DBT/Financial Institutions
Comprehensive Entrepreneurship Development Program (CEDP) in Biotechnology
Department of Biotechnology, Ministry of Science & Technology
Small Business Innovation Research Initiative (SBIRI)
http://dbtindia.nic.in, http://www.dbtindia.nic.in or http://www.sbiri.nic.in
Biotechnology Industry Partnership Program (BIPP), DBT
Biotechnology Industry Partnership Programme (BIPP) An Advanced Futuristic Technology Programme (ATS) to support Discovery and Innovation in Industry
Department of Scientific & Industrial Research (MS&T, GoI), http://www.dsir.gov.in/
Council of Scientific and Industrial Research (CSIR), http://rdpp.csir.res.in/csir_acsir/Home.aspx
CSIR – Technology Led Entrepreneurship / Corporate Entrepreneurship
CSIR Tech Company, (http://www.csirtech.com/)
Department of Health Research (http://dhr.gov.in/schemes.htm), Ministry of Health
Department of AYUSH (http://indianmedicine.nic.in/), Ministry of Health
Indian Council of Agricultural Research (http://www.icar.org.in/), Ministry of Agriculture
GoI Advisor to the PM – Public Information Infrastructure and Innovation (http://iii.gov.in/)
TBE Firms (IT/BT sector) in Odisha
In the IT sector, there are various TBE firms started in Odisha with international linkages. Tatwa Technologies, Luminous Infoways, AuroIN, 5Elements, AP Arts Group (AP Arts International, http://www.aparts.org/about/, AP Infoarts Pvt Ltd, Aprant Technology), Business Intelligence Professionals (http://thebipros.com/index.php) are some of the growing IT companies.
In the BT sector, Imgenex India Pvt. Ltd, Biotech Ayur Pvt. Ltd and few other bio-firms are in Odisha.
KIIT-TBI has incubatees (total about 10 new ventures) in both ICT and BT space.
The Konark Knowledge Park/BIC is expected to incubate larger number of incubatees and start-ups.
The inventors, innovators, copy-cat manufacturers, accidental entrepreneurs or professional-turned-entrepreneur (professionals those who change career directions at some point of their careers to become entrepreneurs) may pursue the above entrepreneurial pathways for developments in Odisha and India with international implications.
Student/Youth Technology Innovators/Business Entrepreneurs from Odisha
Micro, Small & Medium Enterprise (MSME)-based TBE &GoO/GoI/International Organizations
Government of Odisha:
The GoO has created a new Department of MSME during May 2012,and allocated with a start-up budget of Rs. 52.50 crores to promote MSM Enterprises within Odisha. The State has been organizing international MSME trade fairs, developing MSME clusters, and offering professional training programs in MSME (www.orissaentrepreneursmeet.org/ew2011.pdf).
While traditional MSME entrepreneurships, businesses and trades are growing in the state, an MSME-based TBE Model in conjuction with Technology Business Incubators, Technology/Knowledge Parks may facilitate TBE development in the State.
The newly formed MSME Dept. has set its vision to promote competitiveness of MSMEs in the state. A high level meeting was held under the chairmanship of Chief Secretary wherein Principal Secretary MSME presented the blue print vision document of the department. Discussions in the meeting covered that Department has started new initiatives for having collaborations among various Central Govt agency, PSU and Corporations for an integrated approach towards promotion of MSMEs.A Mega Food Park at Rayagada has been sanctioned by Govt of India which will be implemented with support from IDCO and MITS group. The department is also developing draft State Export Policy of Odisha. Available data shows OSFC has disbursed over Rs.13000 cr. to 28000 numbers of entrepreneurs mostly for transport, hotel, hospital and agro based industries. No specific data is available on T(B)E funding by the state MSME. It was decided that OSFC will be a member of Team Odisha for promotion of MSMEs in industrial clusters and industrial parks. The department will organize a fortnight long MSME fair each year from 1st Jan, 2013 for providing marketing support, sourcing of technology and business development. It will also partner with SIDBI. The proposals for introduction of a single window system for MSME export and establishment of Raptani Bhawan in proposed World Trade Center. The department has also been advised prepare a Plan of Action for 12th Five Year Plan. Institute of Entrepreneurship Development-Bhubaneswar is part of the institutional system, for training, promotion, investment scenario development.
To competitively position Odisha within India, it is suggested that GoO`s MSME Dept. may consider to closely work with GoI and some of the above mentioned organizations in support of technology entrepreneurship development. Also, as discussed earlier, the MSME Dept may partner (through PPP model) with some of these groups to create an Odisha Venture Capital Fund to support through seed capital fundings, soft loans, low-interest loans to technology oriented emerging entrepreneurs, innovators, inventors, students, faculties, scientists and engineers and technologists, pre-start-ups and start-ups that are formally incubated within the incubators and/or parks. This model may be useful to create a technology business entrepreneurial eco-system within Odisha State. The GoI`s Departments (MSME, S&T, Industry, IT) have been successful in various regions within the country by creating seed-funds and propagating technology/business innovation and incubation funds through PPPs.
Thus the State may pursue the following opportunities:
– create TBE incubators, parks, promote academe-industry technology transfer, nurture high potential ideas through incubators, and that may graduate to parks or pvt facilities.
– support private, society, non-profit, PPP based incubators for MSME TBE development, a highly emerging business models in developed countries being adopted into developing countries.
– traditional entrepreneurial sectors, trading, copy-cat manufacturing, turn-key project may not use the TBE model other than a service and financing, and to separate TBE from traditional entrepreneurship.
TBE Infrastructure Development in Odisha:
Both GoO and GoI through PPP and/or investments in private sector may leverage TBE in Odisha.
The GoI TBI model through PPP partnership with regional institutions such as KIIT-TBI is promising on high potential incubations and spin-offs, particularly in bio-technology and ICT sectors
A TBE Promotional Company, a state public corporation, or a private company or a PPP entity may specifically facilitate MSME-based TBE ventures. Based on the business model, this firm can take equity in prospective TBE ventures to be set up between Odisha and national/international regions. Other resources: TBE Angels Networks (pre-seed, seed capital funding), TBE VC firm, mentoring, advisory, networking and incubation opportunities for prospective entrepreneurs who may be interested in setting up startup TBE firms; organizing TBE symposia and to arrange visits of established large and medium sized companies. State may target to develop 10-12 high-impact TBE startups per year, based on sectors.
GoO Policy Papers for TBE Development:
Earlier, GoO has prepared MSME development policy draft (2009), entrepreneurship development policy drafts, IT Policy Paper, Biotechnology Policy Paper (2005), State Bio-Diesel Policy (2007), State PPP Policy, IPR Policy, Team Odisha Draft and Investment Policy. Technology Entrepreneurship oriented policy drafts need to be updated to create nationwide competitive policies and international marketing of Odisha for attracting TBE investments.
(Ref: excerpted page 15. ENTREPRENEURSHIP DEVELOPMENT)
15.1. The current industrialization being witnessed in the State provides tremendous
opportunities for the growth of entrepreneurship. Focused efforts shall be made to
promote the spirit of entrepreneurship amongst the youth of the State so as to harness
the inherent talent amongst them.
15.2. The Institute of Entrepreneurship Development. Orissa shall be further strengthened
and helped to evolve into a center of excellence in the field of entrepreneurship
development. The institute shall be accorded priority while undertaking entrepreneurship
development programs and training programs for Govt. schemes as well as
entrepreneurship development programs of the private sector.
15.3. Institutions of National and International Repute shall be encouraged to set up their
branches in Orissa by providing necessary infrastructure and other support to augment
the entrepreneurship development efforts of the State Govt.
15.4. Science & Technology Entrepreneurship Park (STEP) shall be established at various
locations in the State by involving technical institutions, preferably in a PPP mode. The
State Government shall partner with the upcoming Indian Institute of Technology,
Bhubaneswar and the National Institute of Science, Education & Research (NISER).
Bhubaneswar to set up science and technology entrepreneurship park and also
endeavor to avail Govt. of India assistance for the same.
15.5. Incubation centers for new entrepreneurs shall be set up at strategic locations in the
State preferably in association with existing reputed institutions such as CIPET, CTTC,
XIMB, NSIC, KVIC etc. The Business Incubator Scheme launched under National
Manufacturing Competitiveness Program of the Govt. of India for support toentrepreneurial and managerial development of MSMEs. shall be effectively utilized forthe purpose.
Government of India:
GoI has established Ministry of MSME in New Delhi. The GoO MSME Dept. may consider to connect with the Foundation for MSME Clusters India, and possibly propose MSME Foundation to consider to set up a zonal office somewhere in Odisha. Yes Bank and ICICI Knowledge Park (Hyderabad) has partnerships with MSME Foundation and we hope Odisha State may tap into such possibilities. MSME Foundation has established various models to promote MSME based entrepreneurships across India.
West Bengal has emerged as the leading state in generating jobs in the small and medium enterprises (SME) sector while Odisha stands fifth in the country in this respect, a study released (July 2012) by the Associated Chambers of Commerce and Industry of India (ASSOCHAM). In Orissa too, this sector has done well over the past couple of years. The indigenous initiatives of the Orissa Govt to encourage the MSMEs drew attention even from the GoI. The reason why the Orissa Govt cannot just overlook MSME’s on its way to state development is because of the fact that it is through the growth of rural economy only, that benefit truly trickle down to the grass root level of the socio-economy.
Few decades back UN System`s orgs: UNDP/UNIDO/World Bank developed the idea of small industry/business development. Western advanced countries with robust pvt sector presence, and created the small business development concept and all types of entrepreneurship got associated with that, and the idea trickled down to international regions, country levels, state levels. GoI adapted the scheme through UNDP-India programs. After that wave of things, UNIDO ITP/Investment Technology Promotion component from Vienna/Austria, through UN channels along with WB`s investment schemes at country levels initiated focus on developing countries oriented activities. India got a large number of projects and has become successful in various sectors, such as: generic pharmaceuticals, biotechnology, agro/foods, info tech sectors, communication/telephone area. Then came the capacity building institutions to create networks and strengthen the associations to promote MSMEs. ITP makes investment and technology business proposals for the MSMEs in India through joint ventures and partnerships. Advanced regions: Singapore, South Korea, metropolis in India, Taiwan created modern infrastructures. Then the technology industries emerged such as: knowledge sectors-ICT, IT, software, biotechnology & genetic engineering, new materials, nanotech followed by globalization. The specialty sectors could not use the older small industry platforms, and they needed incubators, tech parks, knowledge parks, research/science parks and new venture based investment systems, starting from angels through, seed funds and professional VC and corporate investments and various complex partnerships. When UN/WB`s micro-finance system worked for various sectors, particularly in developing countries of the world, and following globalization, micro was attached to small industry/small business. Then following computers, IT, web, internet, social network revolutions, the micro (individually developed ideas) became powerful to turn small but powerful ideas into big global businesses.
Odisha and International Entrepreneurships
The State business delegations consisting of GoO/TO and Private Sector are pursuing international business linkages with the following countries such as: USA, Canada, China, Taiwan/Odisha-Taiwan Connect- Road Ahead, Singapore, Japan, Europe and Middle East.
Odisha’s Bhubaneswar Region – an Emerging Knowledge Hub in India
Bhubaneswar-Khurda-Konark-Cuttack Corridor, is emerging as a Knowledge Hub in Eastern India.
TBE ventures are knowledge-based industries. Thus, an emerging knowledge hub can impact the developments of TBEs in Odisha. To become a knowledge hub, Odisha needs to find out what types of knowledge it had created (historically), and what type of new knowledge systems it may create now and in the future. Knowledge stake-holders may promote a knowledge culture or society as knowledge is a creation of human mind. Also, computers can synthesize and create new knowledge, based on the computational applications. Innovation may come from anyone, anywhere, however, specialized research technological innovations/inventions/products typically come out from the R&D laboratories where people work to either find and/or develop new knowledge for basic and applied applications. What type of innovative TBEs may be quickly developed in Odisha that can help in the development of Odisha and enhance the regional economy?
Knowledge Networks can be used to develop TBEs:
– Innovative PPP-based Knowledge Alliances among the (proposed) GoO Innovation Council and GoI National Innovation Council and Private Sector.
– Identification of knowledge sectors (academics and business) based on core/comparative competencies.
– Virtualization of knowledge (Blue Sky Innovations) in support of nationalization and globalization.
While various countries have "first to file" patent system, USA a globally dominant player in intellectual property and patents still has "first to invent" system. US Government’s PTO in cooperation and disagreements with the corporates will overhaul US patent bill (already has obtained 95-5 vote by Senate) and move into the first to file system, because of litigation/lawsuit complexities by individual inventors and patent trolls by IP firms, universities, institutes and private companies. Corporate India, because of Indian patent law, still heavily practices process patenting (although signed in favor of product patents over 10 years back), and bypasses the international patent laws. Odisha needs to reposition and reinvent itself to be a new and emerging center of innovation in India, and internationally and (Odisha) must create certain core competencies, competitive advantages, comparative advantages, socio-economic advancements, deep research and technological activities, entrepreneurships, products, services, solutions, attractive communities and various other resources, particularly suitable infrastructure, quality human resources, and peer reviewed systems, while being developed as a Knowledge Hub, through investments in sophisticated knowledge infrastructure. Ernst & Young (E&Y), the global consultancy is Odisha State’s Knowledge Partner and advising the State in knowledge, technology and new business sectors.
Value proposition by technology business entrepreneurships in Odisha
TBEs can create new type of value chains in Odisha. Not always, and not all types of sectoral businesses are built through innovations and inventions. TBEs can provide competitive strategic advantages.
The commercial value and social value creation can create impacts in the following development sectors:
1. Commercial Business For-Profit Entrepreneurships: different types and sectors, as discussed before.
2. Social Business Non-Profit Entrepreneurships: Social Ventures, Social Health (promoting health & wellness, preventive health, predictive diagnostics healthcare, a social network can promote healthier and longer living), Social Technology, Social Networks, Social Marketing.
Strategies for the Government Sector &Private Sector for TBE Development
1. GoO sets up a consultative/advisory process for emerging TBE development in Odisha
2. GoO’s Team Odisha, IPICOL, IDCO, Industries Dept, S&T Dept, MSME Dept to set up TBE unit
3. Strategy Development for MSME-based TBE Model
4. Proposed Odisha Venture Capital Fund (OVCF) to invest in TBEFund (TBEF)
5. TBE Eco-System Development through Private-Public-Partnership (PPP) Model
The future prospects are the development of emerging TBE sector in Odisha. It seems that for the Indian advanced or emerging States like Odisha, political leadership and political entrepreneurship (entrepreneurial politics, policy entrepreneur) may leverage the entrepreneurship development, along with TBE in Odisha through a political will and government support. The Odisha State looks forward to developing technology business entrepreneurs and entrepreneurships that can produce new ideas, innovations, technologies, products and services (Brands from Odisha) for the international markets.
About the author: Dr. Amiya Nayak (PhD, MBA) is a generalist, biotechnology management consultant, advisor, expert & founder entrepreneur (Biotechnology Network/BioTechNet) and with interests in intrapreneurship, entrepreneurship, new venture, virtual company, private-public-partnership and America-Odisha business development. Email: firstname.lastname@example.org