WHAT DO YOU THINK?

WHAT’S YOUR TAKE?

Those of us who have read Drucker will recall his statement that it is entrepreneurship and innovation that can take an organization or a country on the growth path.

WHAT’S YOUR TAKE?

Keeping this in mind I seek inputs from readers on some issues that I am raising here.

I have been carefully observing the economic social and other critical aspects of our country . I often make inter- state comparisons purely from the standpoint of understanding why some states prosper and others don’t.

Take for example my home state of Tamilnadu. One recent news report perturbed me. When the Tata Nano plant was evicted from West Bengal a few other states tried to get that project to their own territories. The Tamilnadu CM was asked if he had contacted Ratan Tata about this with a view to getting the project to Tamilnadu a state that is often called the ‘Detroit of India’. The CM replied ‘Ratan Tata has not contacted me’.On the other hand stories circulate about how Narendra Modi personally rang up Tata and offered all clearances in two days —this I believe is true and Tata jumped at the offer. The rest is contemporary history

Another report told us about how a Chennai tycoon had an appointment with Modi at 3 pm at the latter’s office. Exactly at 3 the CM came out of his room, received the tycoon warmly and in an hour he had received all the assurances he had sought. The tycoon says that it was only after this meeting that Modi had his lunch –at 4 pm! On the other hand this tycoon says that even if he has an appointment with the Tamilnadu CM at 3 pm for a donation to the ruling party the CM keeps him waiting for several hours.

My train of thought requires taking this further. Why is it that since liberalisation some parts of India have produced several big and successful businesses and magnates while Tamilnadu has at best thrown up several small and mid scale entrepreneurs ? Few TN based companies are talked about by stock market circles and analysts . Hardly any TN company is coveted by investors in the secondary market. This despite the known strengths of this state-educated productive manpower, fine law and order conditions, an able administration, good infrastructure except maybe power, access to a good port, excellent connectivity to other cities and overseas locations etc.

In raising this question I am not keen to be seen as a Tamil critic. My intention is to invite responses from people far more learned than I can ever be. I seek to understand the obstacles. Just to initiate the debate I propose that there seems to be a psychological barrier, an aversion to risk taking, a tendency to think within limits and not to challenge these limits, a tendency to be easily satisfied etc I am merely speculating and invite researched opinions on this subject.

By the way I prefer that we avoid the kind of ‘researched’ articles that I see in the front pages of papers . For instance the front pages talk of the ‘sea change’ brought about by Nitish Kumar and how suddenly Bihar need no longer be considered the sick man of India. All that you have to do is to read the truly researched articles in more serious journals to read that Bihar will stay a part of the ‘Bimaru’ group for maybe a hundred years from now –barring major sustained changes. In the parameters that matter Bihar is far from redemption whereas Tamilnadu acquits itself creditably. . This is no to take away anything from the sincere attempts being made by Kumar. I seek to emphasize that the path out of destitution and towards equitable growth is long and arduous and innovation and entrepreneurship are part of that path.

One provocative thought –is it possible that the path chosen by TN of several small and medium businesses is actually better than the path that throws up big magnates?

Some readers may not be aware that in developed countries like the US it is small businesses that generate the bulk of employment opportunities.

K.R.RAVI