TiE- the global entrepreneurial organisation, and KPMG in India, released theirinitial study today- measuring the ‘Entrepreneurial Confidence Index (ECI)’in 10 states within India. Based purely on the perceptions of the entrepreneurs, rather than any factual analysis of the factors consideredand measured, the study intended to be the first step in a proposed annual exercise- to identify theelements involvedand benchmark the development of a conducive entrepreneurial ecosystem across India.

This first study has thrown up some counter-intuitive conclusions, which may prove surprising:

– Entrepreneurs in general,find the underlying entrepreneurial ecosystem ‘moderately acceptable’ that is just the passing grade

– Despite the poor state of physical and soft infrastructure in most states in India, the entrepreneurs surveyed found the existing status ‘moderately to generally acceptable’

– Expectations varyacross states with entrepreneurs from states generally considered to be leaders in entrepreneurship, expecting more from their ecosystem and thereby holding the state to a higher standard

– Entrepreneurs starting new businesses are happier with the ecosystem as compared to those who are in the early stages of developing their business

– While most of the survey respondents were from the Services Sector, the entrepreneurs from the Manufacturing Sector were morebullish about the state of the ecosystem.

At the same time, some widely held assumptions were reinforced:

– Risk Capital is still not available in the desired amounts

– Governance issues and local environment in the ecosystem get failing grades.

Both TiE and KPMG believe that the general confidence in the Indian economy and the belief that ‘things are moving in the right direction’ have been reflected in the perceptions ofmany of theentrepreneurs. These entrepreneurs have given their geography 'the benefit of the doubt’ and rated them higher than the existing reality. Also, since Indian entrepreneurs are accustomed to onerous rules and regulations, controlled economy and structural constraints; their expectations from an enabling entrepreneurial ecosystem may be significantly lower thantheir international counterparts.

However, both TiE and KPMG feel that this study is the first step in terms of setting up a baseline not only for measurement of perceptions, but also for identifying the expectations of entrepreneurs. Thiswill allowthe Central and State Governments to take pro-active steps to enhance the entrepreneurial ecosystem in the country. As TiE and KPMG endeavor toexpand and refine this study in the future, in terms of coverage (adding new states and more respondents) and metrics (both the criteria and degree of granularity), we will also attempt torecognise and measure the actions ofGovernments in improving the ECI in their respective geographies.

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About KPMG:

KPMG is the global network of professional services firms of KPMG International. KPMG member firms provide audit, tax and advisory services through industry-focused, talented professionals, who deliver value for the benefit to their clients and communities.

The member firms of KPMG International in India were established in September 1993. KPMG in India has offices in Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Kolkata and Pune and services over 2,000 international and national clients. The firms in India have access to more than 2,500 Indian and expatriate professionals, many of whom are internationally trained.

About TiE:

The Indus Entrepreneurs (TiE) is one of the world’s largest not-for-profit network of entrepreneurs and professionals, dedicated to the advancement of entrepreneurship. TiE helps budding entrepreneurs by way of advice, guidance and assistance from successful and experienced entrepreneurs and professionals through programmes that cover education, inspiration, mentoring and networking.

In India, TiE delivers its single-minded focus on the mission of fostering entrepreneurship and wealth creation, through a triple A- programme viz:

Advocacy - advocating the role / cause of entrepreneurs at both macro and micro levels to facilitate a conducive ecosystem for entrepreneurship

Awareness - through education and sharing insights into the entrepreneurial mindset

Assistance- through active mentoring with other experienced entrepreneurs and support systems like VCs and service providers.

TiE has network of 48 chapters across 11 countries (13 in India) and an eclectic mix of 15,000+ members worldwide spanning the whole entrepreneurial ecosystem – including successful experienced as well as budding entrepreneurs, venture capital firms, angel investors, incubation centers, service providers, etc. TiE offers a rich resource pool to an entrepreneur. It makes continuous efforts to interconnect this network in a way that delivers real value to all its constituents.

For further information contact:
Archana Dabral
Marketing & Communications
KPMG - Mumbai
Mobile : +91 98200 04441
Email: archanadabral@kpmg.com

Tanuja Sharma / Smita Pillai
Integral PR
98197 11377 / 9821929066
tanuja@integralpr.com / smita@integralpr.com

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