Where are the Entrepreneurs?: What the Data Reveal for Tamil Nadu

Abstract

The success of the reform measures in the country since the middle of the eighties depend to a large extent on the performance of private sector in the economy. On the assumption that the entrepreneurial ability and capability should get reflected in data depicting existing industrial activity and intentions to invest, we have attempted an examination of such data. We have confined our examination to the state of Tamil Nadu vis-à-vis the western states of Maharashtra and Gujarat. While maintaining its status as one of the three leading industrial states of the country, Tamil Nadu has, nevertheless, over the years, lost considerable ground and opportunities. We attribute this largely to a combination of two factors: (a) the low risk taking capacity of the existing established business houses to diversify into new and unchartered areas, and (b) the inability of the State of Tamil Nadu to create a conducive atmosphere for the large-scale emergence of small and medium entrepreneurs.