‘Venture into business, now’

Economy is passing through a bad time worldwide, with many big names having declared bankruptcy and lakhs of people having lost their jobs. But this is the perfect time to go against the tide and become an entrepreneur. It is a good opportunity to initiate one’s own venture as labour and operational costs are very low, comparatively. This was the message that emerged on the first day of the IIM-A’s two-day conference, called ‘Leverage’, focusing on venture capital funds and private equity, here on Friday.

In his inaugural speech, BH Jajoo, an IIM-A faculty, said “Recession has adversely affected the economy, but innovation always helps to come out early from negativity. Corporates registered a major fall in profitability in the last quarter, but the market is open for those who have innovative ideas.”

In his address, he also quoted Warren Buffet’s statement, “Not investing money now is like saving your sex energy for old age.”
Rakesh Basant, chairperson of Centre for Innovation, Incubation and Entrepreneurship (incubation centre of IIM-A), said, “Seed funds, venture capitalists and private equity funds should come forward to boost budding entrepreneurs having innovative ideas in this time of crisis where one can initiate business at a very low cost.”

“Recession is the best time to venture into new business and become an entrepreneur,” said MD, Inventus Capital Partners, Kanwal Rekhi. “In the recessionary times, except money all other resources are available at the best price. Moreover, job insecurity is higher in such a scenario and one compromises on pay as well.”

“But entrepreneurs have to be patient. It is difficult to get immediate returns or response in the current situation when everyone thinks of savings only,” he added.

Prominent people from industry are taking part in the conference being held at the IIM-A. They will share their views on how venture capital and private equity should perform in the downturn.