Need of Agri-Business Incubation  for  Technology Commercialization  & Rural Development  By Dr. K. K. Sharma Head Agri-Bu...
Rural poverty in India <ul><li>Persistence of poverty is largely related to poor growth performance of national economies ...
The Situation <ul><li>Growth in India has been disproportionately concentrated in industry and services </li></ul><ul><li>...
Entrepreneurs can solve big problems <ul><li>The most difficult problems in the world do not have obvious solutions </li><...
Entrepreneurship creates positive change Entrepreneurial Efforts Employees Consumers Shareholders Government General Econo...
Micro and small enterprises are the key, but receive the least support Entrepreneurship Type Synergy w/ Rural and Semi Urb...
BUSINESS INCUBATOR-DEFINITION A Business Incubator may be defined as an organization which offers a range of business deve...
What is  Technology Business Incubation? Technology incubators nurture hi-tech start-ups and present a technology-oriented...
EVOLUTION OF BUSINESS INCUBATORS 1970s  1980s  1990s  2000+ SME Dev. Centers Science Parks Industrial Estates <ul><li>Busi...
Evolution of Basic Characteristics of Incubation Models <ul><li>Public & Private </li></ul><ul><li>Non Profit & Profit </l...
Benefits of Technology Business Incubators TBI <ul><li>For tenant companies:   </li></ul><ul><li>access to resources </li>...
Catalytic Factors for Technology Incubation <ul><li>Society open to innovation </li></ul>Policies &  legal framework for T...
Investment access to capital
Need for Agri-Business Seed Capital <ul><li>70% of people depend on agri-sector </li></ul><ul><li>Non existence of agri ve...
<ul><li>Early-stage' venture capital as well as ‘Agri-Business' focused venture investment is highly deficient </li></ul><...
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Need of agri-business_incubation_for_technology_commercialization_&_(nx_power_lite)

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  • Mr Juan Miguel Luz, President, International Institute of Rural Reconstruction, guests and dear friends, I thank the International Institute of Rural Reconstruction for giving me this opportunity to speak on “ Making technology pay off for rural enterprises: Managing the human resource requirements for enterprise development in rural areas’. This presentation will be illustrating how the Institute I head, the International Crops Research Institute for the Semi-Arid Tropics, goes about empowering the rural poor with its wide array of technologies that facilitate rural enterprises.
  • Need of agri-business_incubation_for_technology_commercialization_&_(nx_power_lite)

    1. 1. Need of Agri-Business Incubation for Technology Commercialization & Rural Development By Dr. K. K. Sharma Head Agri-Business Incubator
    2. 2. Rural poverty in India <ul><li>Persistence of poverty is largely related to poor growth performance of national economies </li></ul><ul><li>It is still mainly a rural and agricultural phenomenon where most of the poor depend on the rural sector for their livelihoods </li></ul><ul><li>800 million poor living on less than $1 a day </li></ul>
    3. 3. The Situation <ul><li>Growth in India has been disproportionately concentrated in industry and services </li></ul><ul><li>Rural and semi-urban India is lagging behind that are afflicted with poor infrastructure, low levels of education, lack of literacy, besides several social & economic problems </li></ul>Source: Economic survey of India
    4. 4. Entrepreneurs can solve big problems <ul><li>The most difficult problems in the world do not have obvious solutions </li></ul><ul><ul><li>They require creativity and tenacity </li></ul></ul><ul><li>Entrepreneurs have the necessary traits: </li></ul><ul><ul><li>Vision </li></ul></ul><ul><ul><li>Determination </li></ul></ul><ul><ul><li>Resourcefulness </li></ul></ul><ul><ul><li>Creativity </li></ul></ul><ul><ul><li>A willingness to change direction when necessary </li></ul></ul>
    5. 5. Entrepreneurship creates positive change Entrepreneurial Efforts Employees Consumers Shareholders Government General Economy <ul><li>Great opportunities </li></ul><ul><li>Greater income </li></ul><ul><li>New products, services </li></ul><ul><li>Increased wealth </li></ul><ul><li>Additional tax revenue </li></ul><ul><li>Reduction in social benefit need </li></ul><ul><li>Secondary and tertiary creation of opportunities </li></ul>We need to unleash the power of entrepreneurship on the problems facing rural and semi-urban India
    6. 6. Micro and small enterprises are the key, but receive the least support Entrepreneurship Type Synergy w/ Rural and Semi Urban India Individual / Microfinance <ul><li>Flexible, meets local requirements </li></ul><ul><li>Demonstrated ability to scale numbers of individuals </li></ul><ul><li>Microfinance an established and growing industry </li></ul>Micro and small enterprise / informal sources <ul><li>Can provide value added employment to multiple people </li></ul><ul><li>Only need one entrepreneur for multiple increases in income </li></ul><ul><li>Flexible – tailored to local market and infrastructure requirements </li></ul>Large markets / mainstream venture capital <ul><li>Can mobilize crores of rupees quickly </li></ul><ul><li>Brings most sophisticated business experience </li></ul><ul><li>Commercial venture capital entrenched in India </li></ul><ul><li>Limit to impact </li></ul><ul><li>Skills of great entrepreneurs not dispersed to others </li></ul><ul><li>Diminishing returns with market saturation </li></ul><ul><li>Hamstrung by lack of capital and business building support </li></ul><ul><li>Scale requirements limit flexibility </li></ul><ul><li>Limited understanding of rural and semi-urban India </li></ul><ul><li>Rural and semi-urban India unlikely to be attractive currently </li></ul>Dis-synergy w/ Rural and Semi Urban India Micro and small enterprises are the best current option for entrepreneurial development in rural and semi-urban India
    7. 7. BUSINESS INCUBATOR-DEFINITION A Business Incubator may be defined as an organization which offers a range of business development services and access to small space on flexible terms, to meet the need of new start-up companies. The package of services offered by a business incubator is designed to enhance the success, growth rates and professionalism among the incubating companies
    8. 8. What is Technology Business Incubation? Technology incubators nurture hi-tech start-ups and present a technology-oriented variant of business incubators <ul><li>hands-on management assistance </li></ul><ul><li>access to financing </li></ul><ul><li>business and technical support services </li></ul><ul><li>shared office space, access to equipment </li></ul>Incubators provide: Business incubation is a dynamic process of business enterprise development. Incubators nurture young firms, helping them to survive and grow during the startup period when they are most vulnerable.
    9. 9. EVOLUTION OF BUSINESS INCUBATORS 1970s 1980s 1990s 2000+ SME Dev. Centers Science Parks Industrial Estates <ul><li>Business Incubators </li></ul><ul><li>Affordable Space </li></ul><ul><li>First Generation </li></ul><ul><li>Innovation centers </li></ul><ul><li>in wall+ Affiliates </li></ul><ul><li>Sectoral+ Services </li></ul><ul><li>Second Generation </li></ul><ul><li>International Enterprise </li></ul><ul><li>Centers </li></ul><ul><li>Convergent services including VC </li></ul><ul><li>Third Generation Business Accelerators </li></ul>
    10. 10. Evolution of Basic Characteristics of Incubation Models <ul><li>Public & Private </li></ul><ul><li>Non Profit & Profit </li></ul><ul><li>Business & Technology oriented </li></ul><ul><li>Equity & Fees for services </li></ul><ul><li>Objective: Develop professionalism in the companies </li></ul><ul><li>Technology Focus </li></ul><ul><li>Public & Semi Public </li></ul><ul><li>Non profit </li></ul><ul><li>Business Oriented </li></ul><ul><li>Equity for Services </li></ul><ul><li>Objective: Reduce time to market </li></ul><ul><li>Technology Focus </li></ul><ul><li>Public & Semi Public </li></ul><ul><li>Non Profit </li></ul><ul><li>Community Oriented </li></ul><ul><li>Fees for Services </li></ul><ul><li>Objective: Reduce cost of starting business </li></ul><ul><li>Mixed Use </li></ul>2000+ 1990’s 1980’s
    11. 11. Benefits of Technology Business Incubators TBI <ul><li>For tenant companies: </li></ul><ul><li>access to resources </li></ul><ul><li>reduced risk & time to market </li></ul><ul><li>improved business skills </li></ul><ul><li>For government: </li></ul><ul><li>economic development </li></ul><ul><li>new jobs & taxes </li></ul><ul><li>social benefits </li></ul><ul><li>For corporate sector: </li></ul><ul><li>technology acquisition </li></ul><ul><li>investment choice </li></ul><ul><li>social responsibilities </li></ul><ul><li>For R&D community: </li></ul><ul><li>research commercialization </li></ul><ul><li>interaction with industry </li></ul><ul><li>additional income </li></ul>
    12. 12. Catalytic Factors for Technology Incubation <ul><li>Society open to innovation </li></ul>Policies & legal framework for TBIs & enterprises <ul><li>Financial support system </li></ul><ul><li>for TBIs & enterprises </li></ul><ul><li>Cooperation framework of TBIs </li></ul><ul><li>Support activities of incubators </li></ul><ul><li>to enterprises </li></ul>
    13. 13. Investment access to capital
    14. 14. Need for Agri-Business Seed Capital <ul><li>70% of people depend on agri-sector </li></ul><ul><li>Non existence of agri venture capital in India </li></ul><ul><li>Agri biotech gaining predominance </li></ul><ul><li>Global Biofuel demand </li></ul><ul><li>Contract farming for better economic of scale </li></ul><ul><li>Rapid technology advancement in the area of GMO & agri inputs </li></ul><ul><li>Need for value added production to high demanding consumers </li></ul>
    15. 15. <ul><li>Early-stage' venture capital as well as ‘Agri-Business' focused venture investment is highly deficient </li></ul><ul><li>There is negligible early-stage VC activity in India </li></ul><ul><li>The first part of the last decade – initial learning, regulatory framework evolving </li></ul><ul><li>The second half of last decade-Mixed results with IT services positive, but with dotcom busts. </li></ul><ul><li>Currently most of the focus is on large private equity deals, primarily as a knee jerk reaction to the dotcom bust </li></ul><ul><li>Existing fund management team less likely to launch early stage agri business funds </li></ul><ul><li>Credentials are more suited to large private equity deals </li></ul><ul><li>Have no operational experience </li></ul><ul><li>They have no agro technology experience </li></ul><ul><li>Size of investment that VCs have made in agri business have been typically more than $3-5Million </li></ul>Able environment for early stage Investment in agri-business
    16. 16. Thank you

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