Many new startups thinking small, says Kishore Biyani

While jury is still out among the Indian corporate sector on 'ease of doing business in India', founder and group CEO of Future Group Kishore Biyani doesn't mince words by saying that a lot still needs to be done in that area.

"Today, the only fear we have is the issues we will face in business, and how do we deal with it or ensure they do not impact business operations. In fact, many a times, the issues (legal and otherwise) being raised are very stupid in nature. I think somewhere, we all need to agree on how we want to take this nation forward, believe in it and go for it," said Biyani on the second day of the India Retail Forum (IRF) summit in Mumbai.

The business fraternity is also of the view that changing times and technological advancements have made it easier for a lot of digital and internet-based businesses in the country.

"India has seen a lot many entrepreneurial initiatives with a host of students coming out of IITs / IIMs and wanting to go through the learning curve while launching their own business," said Raghav Bahl, founder and chairman, Quintillion Media Pvt Ltd.

However, questions are being raised on the kind of businesses that are being thought of by the new-age entrepreneurs. Biyani is of the view that there is a big problem with this entire wave of creating new businesses because people are thinking very small. "The ventures are such that they cannot go beyond Rs 50 lakh to Rs 1 crore in business. And this, in an age when these people could very easily get salaries of over a crore," he said.

Adding to Biyani's observations, Bahl, said, "That's also because a lot of the new-age entrepreneurs are thinking about service businesses. There is a need to think beyond the services sector especially if one wants to build a big business."

One of the reasons for entrepreneurs thinking small, according to B S Nagesh, founder of Trust for Retailers & Retail Association of India (TRRAIN), was the fact that the Bansals of the e-commerce world have been propagating the fact that one could start small and gradually scale up the business operations and build large valuations.

In terms of offering an advice to the second generation entrepreneurs, Bahl stressed on the fact that people need to getting on with the business efficiently with clear focus on profitability and viability.

"While there is a bubble building on the other side it will burst. History has shown us in the last 100 years that bubbles from tulips, to dotcoms and now e-commerce have been created and these will burst because businesses run on cash flows and profitability and not on valuations," he said.