By Prof. Mahesh P. Bhave
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| Prof. Mahesh P. Bhave |
Around mid-1980s, I was puzzled by a simple question: Why is
India poor? What are the causes of the wealth and poverty of nations? I
realized only later the very question prompted Adam Smith’s 1776 classic, An Inquiry into the Nature and Causes of the Wealth of Nations.
One conclusion I reached was that entrepreneurs were
responsible for wealth creation. The state had a supportive and an enabling
role. The state, I hoped, would at least not be an impediment.
Assuming entrepreneurship is the way, what prevents
entrepreneurs from starting new ventures quickly? I reached a surprising
conclusion – absence of the right information, in a timely way, resulting in
uncertainty reduction. The faster the uncertainty reduction, the closer
entrepreneurs were to business launch.
