School of Entrepreneurship

Introduction

• Discussion on a different school of entrepreneurship that is vibrant but often ignored.
• Importance of recognizing informal businesses and their contributions.

Unorganized Sector Overview

• Significance of the Unorganized Sector:
  • Contributes 50% of India's GDP.
  • Provides employment to over 90% of the workforce.
  • Performs better than organized sectors in various metrics.

Key Metrics of Comparison

1. Return on Investment:

   • Unorganized sector has higher returns per square foot compared to large shopping malls and organized businesses.

2. Equitable Distribution of Profits:

   • Street vendors keep a greater share of profits compared to expensive restaurants.
   • Costs are distributed fairly across the supply chain in informal businesses.

3. Decision-Making Empowerment:

   • Street vendors can make quick decisions and provide discounts freely, unlike large corporations that have long bureaucratic processes.

4. Adaptability and Product Mix:

   • Street vendors quickly adapt their product offerings based on seasons and festivals, showcasing high entrepreneurship.

Entrepreneurship in the Unorganized Market

• High level of entrepreneurship exists in street markets, often dismissed as unorganized.
• Unorganized sector demonstrates effective supply chain management and planning without formal training or systems.

Employment Opportunities for All

• Unorganized markets provide equal opportunities for all demographics, including the disabled and marginalized groups.
• Street vendors cater to diverse customer bases efficiently.

Anecdotal Evidence

• Street Kid's Lesson:
  • A story about a street kid providing valuable management lessons about persistence, target audience, and customer relations.
• Successful Examples:
  • An example of a street vendor selling wheatgrass juice and offering free neem juice as a CSR initiative.
  • An old lady selling khakra increased her revenue through simple marketing advice.

Youth Employment Crisis in India

• India faces a significant challenge with a growing youth population and job scarcity.
• Informal sector is crucial for creating jobs as traditional corporate jobs decline due to automation and AI.
• The need to build cities with heart and opportunities instead of just smart cities.

Proposals for Change

1. VC Fund Concept:

   • A proposal to create a VC fund that invests in the unorganized sector, helping small businesses grow through mentorship and resources.

2. Educational Integration:

   • Involving youth in local businesses as consultants to provide practical experience and foster entrepreneurship.

3. Leveraging Ex-Servicemen:

   • Discussion on the untapped potential of ex-servicemen who could contribute significantly to entrepreneurship if given proper roles and opportunities.

Conclusion

• Emphasizes the need for a shift in perspective towards the unorganized sector as a legitimate and vibrant source of innovation and job creation in India.
• Calls for a collective effort to recognize and support entrepreneurship in informal sectors.