Geography of Business Incubators, Incubatees, and Venture Capitalists: The Untapped Entrepreneurial Talents in India

Abstract

The geographical concentration (clustering) of economic activities is a global phenomenon, but a detailed study combining on the three critical entrepreneurial talents required for socio-economic transformation of a region has not been carried out so far, particularly in India. The present study analyses the clustering pattern of the three critical factors / entrepreneurial talents which are required for the successful emergence of new business enterprises as well as expansion of existing business enterprises in a region. In the case of 157 venture capitalists (VC’s) and also the quantum of venture capital (VC) financing, the concentration exists towards western region indicating Political-related as well as Finance-related clustering; whereas in the case of 36 business incubators (BI’s) and 1170 incubatees, concentration is towards southern region indicating the presence of Technology-related clustering. The clustering equation may change in the years to come depending on the development taking place in the technology sector and also on the changing scenario of the political leadership as well as financial market conditions, which may bring in more finance so as to have a uniform development in India as a whole in the near future.

Keywords: Business Incubation, Clustering, Regional Influences, Developing Country, Risk Capital.

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