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IPFS News Link • India

The Problem With India's Entrepreneurs

•, Alex Tabarrok

Everyone here is on the make and open to opportunity. You need to hire someone to fix your wifi or repair a bicycle or make a movie? You can find someone within hours. "Yes, we can do that" is the default answer to any question. Of course, it may have to be done illegally but, subject to that, it can be done. The can-do attitude is especially prevalent in Mumbai but it's true elsewhere in India as well.

Indians are entrepreneurial because they work for themselves. Overall, 95% of Indians are self-employed compared to just 10% of workers in the United States. That is perhaps one reason why the National Academy of Science report on immigration found that "Indian immigrants are the most entrepreneurial of any group including natives."

However, when we reverse the employment statistic, only 5% of Indians work for a firm compared to approximately 90% of US workers, we see the problem.