As India Inc. grows stronger by the day, more entrepreneurs want to dip their fingers in the pie. But the question here is- which is the best part of the pie to target? While entrepreneurship is on the rise, what are the sectors that drive the country’s entrepreneurial charge or which sectors are the most profitable ones?
Entrepreneurship is no more about- “I am a qualified journalist with x years of experience, so I think I could start my own publication.” It is about understanding your own strengths and analysing how you can utilise it in specific growth sectors. You may very well be the best journalist out there, but after scouring through endless reports on growth trends, you might just realises that the sanest decision would be to set shop in the content marketing or the public relations industry! At any given point in time, there are certain sectors that drive a country’s economy and here is a roundup of some sectors that are currently ticking. Also find out what it takes to set foot into these sectors.
Digital Technology: With GPS, mobile apps, cloud technology, website development, digital design and highly successful social media initiatives; the one sector that holds promise for rapid growth is the digital technology sector. Especially in India, the sector is nascent, unlike in countries like USA and UK. Even the huge players in the market still need the support of small businesses in this fast paced and dynamic industry.
What it takes: A bit of technical knowledge, oodles of creativity and curiosity, a great team of techies and sound understanding of cyber laws across countries.
Lifestyle & Wellness: The lifestyle and wellness industry is in full bloom in India, what with the mushrooming number of concept gyms, spas, salons, martial art centres and more. The Indian Direct Selling Association (IDSA) says, “Wellness has emerged as a leading product category contributing to the highest share of sales leaving behind cosmetics and personal care products.” With urban India’s innate need to look and feel good, the growth in this sector has shown no signs of slowing down.
What it takes: Pro networking skills, an expert hospitality industry consultant, a knack for recruiting the right kind of talent and a customer driven culture at work.
Social Entrepreneurship: Social entrepreneurship is no more just in the NGO domain. There are several social ventures out there proving that with the right mix of conscience and business acumen, there are profits to be made. This niche sector has led to many innovations. Several small businesses operators hold patents for coming up with innovative creations that address various sustainability needs for people and places. This sector drives growth in the semi-urban and rural sectors.
What it takes: A unique mind-set that makes one put helping others ahead of making profits and drive to reach out to people not just in urban sectors but in rural sectors as well. An entrepreneur in this industry also needs to have the knack for spotting the right kind of inventions and creations.
Education: World statistics estimate that between 2010 and 2030, India will add another 241 million people to the working-age demographic and that means the children who are currently in our education system. Even the present Union Budget has identified the sector as one of the critical sectors that will drive the long term growth of the country. Entrepreneurs in sectors would not only enjoy one of the biggest market shares, but also support from the government in terms of allowances, subsidies and tax deductions. Right from play schools and educating children with special needs to training young adults for competitive exams, this sector presents a myriad of opportunities.
What it takes: The motivation to help build the next generation of super brains, trained teachers/ tutors and strong admin support.
Healthcare: With a market potential of Rs.50,000 crores, this sector holds immense potential for entrepreneurs. With India now fast establishing itself as a medical tourism hub and venture capitalists pumping money into research and development in this sector, the healthcare industry is brimming with lucrative opportunities. Clinical trials, speciality clinics, combining healthcare with holistic wellness are some of the exciting new developments in this sector.
What it takes: To start off, a lot more capital investment than the afore mentioned emerging sectors! A strong understanding of life sciences and niche markets, not just in India but across the world. You would also need a skilled operations management and administrative team.
The other growth sectors include food and hospitality, agriculture, microfinance and of course IT. While further analysis will reveal more growth areas, it would do well to keep in mind that most of these key sectors come under the direct radar of regulators. You would have to know if your business plan is viable in terms of your own strengths and external factors like legalities, regulations, target audience and geographic scope. Your best bet would be to do a thorough research and bring on an expert consultant, before you reach out for that tempting piece of market share!
Inventory is nothing but the ‘stock’ of a business – the product that the business is holding for sale. It includes the raw materials, semi-finished goods and finished goods.