<div>A study conducted by The Lemelson Foundation reveals that India’s entrepreneurial space falls short of its potential due to the fragmented nature of networks and knowledge systems coupled with gaps in financing and technical support structures.</div><div><strong>By Simar Singh</strong></div><div><br>Focusing on initiatives and inventions that create a positive social impact, are environmentally responsible and financially self-sustaining, the report claims that while India was an early entrant in the growing global movement towards impact-driven entrepreneurship, it fell short of making the best of its potential somewhere.</div><div> </div><div>“In spite of the numerous university curricula, business competitions, and enterprise incubators anchoring the sector, Indian entrepreneurs still struggle to transition their ideas from compelling concepts to viable businesses,” it says.</div><div> </div><div>Undertaking a field study to examine the impediments in the country’s “impact ecosystem”, Lemelson observed the broad network of existent businesses, funders and intermediaries that enable a social enterprise. During the course of this exercise they realised that, “networks and knowledge platforms in India are fragmented and weak” and that there are “numerous financing and technical support gaps’ which are making it difficult for invention-based enterprises to find investors and mentors, particularly at the business’ early stage of development.</div><div> </div><div>One of the study’s key findings is that there is a disconnect between the expectations of entrepreneurs and investors, with investors often shying away from putting in money at the blueprint or the development stage, where monetary backing is direly required to kick the idea off the ground.</div><div> </div><div>Instead, investors, behaving cautiously, prefer coming in at the validation stage which is when the product has already been created.</div><div> </div><div>Titled ‘Catalysing Capital for Invention: Spotlight on India”, the report makes recommendations to fill ecosystem, financial and capacity gaps that adversely affect the mobility of impact based enterprises in the country. It suggests the development of an early stage grant facility, the creation of an affordable capital fund, the establishment of a fund to finance intermediary services such as helping in the raising of capital and investment attraction, and facilitating access to financial expertise through targeted mentorship.</div><div> </div>
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