Sunday, August 26, 2012
Monday, March 19, 2012
ANGEL nomore - Time to announce my retirement ?
We resident Indians have always had a raw deal with the Government.
Until a few years ago, I used to rant against the injustice to resident entrepreneurs (who would be taxed at 22% on capital gains) .vs. NRIs (who'd pay 0% CAPITAL GAINS). This is probably one of the things that prompted me to evaluate the option of being an entrepreneur again ?
Now, I see that I probably have to evaluate the option of being an ANGEL investor.
In India, given that money supply is sooooo scarce for a small startup, my guess is that this is going to be the death knell !. Most investors in Indian startups tend to be either friends / family or resident, Individual investors who have an entrepreneurial streak that they hope is fulfilling from a second-hand effect. In one clean swoop, the Government is planning to take away the complete cover on this form of funding.
India is desperately in need of highly efficient / non-asset-intensive capital. The kind that could have competed against the "real estate" option. Over the last few years, I've been an hopeful advocate of this form or investment : taking personal risks and trying to leverage my experience / contacts etc. In parallel, I have also watched encouraging signs of the market really starting to blossom. The Government, however, seems to be keen on throwing out the baby with the bathwater.
This is a classic case of a RULE being made for EXCEPTION !
Am reminded my conversations with corporate HR during my time in large MNCs / Indian corporates. I'd struggle to convey to the heads of HR & Finance that the "spirit" of any rule should be to encourage compliance and not to cover / plug "holes". Guess it is time for me to take this message to the finmin ?
For those of you wondering what this rant is all about :The new budget proposal is to TAX as INCOME any premium paid (in excess of prescribed FMV - Fair Market Value) towards share purchase of a private company. Who decides this ? The assessment officer !!!.
Let me point out a sore fact - the maximum time of debate between the investor and the entrepreneurs POST the decision to invest is to figure out this VALUE!
Maybe I'm the one who's delusional ? Maybe I should have quit when I saw the government tightening legitimate transfer of funds with 15CA / 15CB - coating it with the words "NEW & LIBERALIZED scheme", although it all but one !.
I guess if I cannot work out options, I'm going to be available in the job market - after all, the government seems intent on furthering a generation of "highly capable coolies" :-(
Until a few years ago, I used to rant against the injustice to resident entrepreneurs (who would be taxed at 22% on capital gains) .vs. NRIs (who'd pay 0% CAPITAL GAINS). This is probably one of the things that prompted me to evaluate the option of being an entrepreneur again ?
Now, I see that I probably have to evaluate the option of being an ANGEL investor.
In India, given that money supply is sooooo scarce for a small startup, my guess is that this is going to be the death knell !. Most investors in Indian startups tend to be either friends / family or resident, Individual investors who have an entrepreneurial streak that they hope is fulfilling from a second-hand effect. In one clean swoop, the Government is planning to take away the complete cover on this form of funding.
India is desperately in need of highly efficient / non-asset-intensive capital. The kind that could have competed against the "real estate" option. Over the last few years, I've been an hopeful advocate of this form or investment : taking personal risks and trying to leverage my experience / contacts etc. In parallel, I have also watched encouraging signs of the market really starting to blossom. The Government, however, seems to be keen on throwing out the baby with the bathwater.
This is a classic case of a RULE being made for EXCEPTION !
Am reminded my conversations with corporate HR during my time in large MNCs / Indian corporates. I'd struggle to convey to the heads of HR & Finance that the "spirit" of any rule should be to encourage compliance and not to cover / plug "holes". Guess it is time for me to take this message to the finmin ?
For those of you wondering what this rant is all about :The new budget proposal is to TAX as INCOME any premium paid (in excess of prescribed FMV - Fair Market Value) towards share purchase of a private company. Who decides this ? The assessment officer !!!.
Let me point out a sore fact - the maximum time of debate between the investor and the entrepreneurs POST the decision to invest is to figure out this VALUE!
Maybe I'm the one who's delusional ? Maybe I should have quit when I saw the government tightening legitimate transfer of funds with 15CA / 15CB - coating it with the words "NEW & LIBERALIZED scheme", although it all but one !.
I guess if I cannot work out options, I'm going to be available in the job market - after all, the government seems intent on furthering a generation of "highly capable coolies" :-(
Monday, February 27, 2012
Efficiency : Is this a foreign concept for India ?
It is probably appropriate that my 'return' to blogging is on the topic "efficiency"
At times, I feel that this is a concept that is foreign to the Indian ethos ?
Why else would we disregard this key item in all our dealings ? This is most obvious while prioritizing between time, money or effort.
While this shows up in most cases as "devalued time"... I think the issue is more endemic. One of these numerous examples was clear in a stark manner while watching a free-format discussion last week on "Transforming talent" in a tony setting.
Most ideas discussed, IMHO were transactional (eg. employee satisfaction level, bridging demand-supply) rather than TRANSFORMATIONAL.
When I asked a specific question (leading, if I may add) as to the panels opinion on employee productivity or the lack thereof, it was cleanly side-stepped. The panels' opinion was that Indians were all very "hardworking" and were unable to get to "smart working" due to infrastructure problems. Example cited - it takes 2 hours to travel into work and 2 hours to travel back and hence they are inefficient ?
Is the real issue that we are not using our time "effectively" the main issue with efficiency ?
Are we admitting grudgingly that we do not KNOW how to effectively use our travel time ?
I think this concept has not had enough exposure across our educational system for individuals to appreciate the nuances. We mistake "prioritization" for "efficiency" all the while discussing these at coffee breaks or desk-side chats.
Efficiency begins with a razor sharp focus on outcome. This translates to the focus all through the task / activity so that TIME gets to be the clear UOM. Unfortunately, we all seem to be very busy and yet cannot clear our schedules.
Reminds me of saying.. If you really want something done - give it to the busy person !
At times, I feel that this is a concept that is foreign to the Indian ethos ?
Why else would we disregard this key item in all our dealings ? This is most obvious while prioritizing between time, money or effort.
While this shows up in most cases as "devalued time"... I think the issue is more endemic. One of these numerous examples was clear in a stark manner while watching a free-format discussion last week on "Transforming talent" in a tony setting.
Most ideas discussed, IMHO were transactional (eg. employee satisfaction level, bridging demand-supply) rather than TRANSFORMATIONAL.
When I asked a specific question (leading, if I may add) as to the panels opinion on employee productivity or the lack thereof, it was cleanly side-stepped. The panels' opinion was that Indians were all very "hardworking" and were unable to get to "smart working" due to infrastructure problems. Example cited - it takes 2 hours to travel into work and 2 hours to travel back and hence they are inefficient ?
Is the real issue that we are not using our time "effectively" the main issue with efficiency ?
Are we admitting grudgingly that we do not KNOW how to effectively use our travel time ?
I think this concept has not had enough exposure across our educational system for individuals to appreciate the nuances. We mistake "prioritization" for "efficiency" all the while discussing these at coffee breaks or desk-side chats.
Efficiency begins with a razor sharp focus on outcome. This translates to the focus all through the task / activity so that TIME gets to be the clear UOM. Unfortunately, we all seem to be very busy and yet cannot clear our schedules.
Reminds me of saying.. If you really want something done - give it to the busy person !
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