New waves of entrepreneurship (or, why Mumbai is no longer the entrepreneurial capital of India)

Mumbai is dead...long live India!

Mumbai has long accounted for all the largest number of entrepreneurial ventures - the birthplace for all large corporates - the Tatas, the Ambanis, the Godrejs...and many more...all of them are credited with making Mumbai the commercial capital of India.

But I believe that the days of Mumbai as a entrepreneurial beehive are numbered.  And these are the reasons for my prediction:

1. Entrepreneurship requires lotus eaters.  People who are willing to set aside the daily hub-a-hub of life to dream of doing something different, even the ridiculous.
2. The single minded focus on commercial success does not drive entrepreneurs.  Entrepreneurs are more interested in the success of their dreams and not in the money that they can make, Mumbai has passed that stage.
3. The opportunity costs are too high.  In any other part of India, the opportunity costs of not working for immediate financial needs are still not high, and therefore one can afford to want to start something; not, I am afraid, in Mumbai.
4. Mumbai is overcrowded - not just literally.  Everyone is jostling to be the next millionaire.  The scope for aiming for a few hundreds (against the millions which every Mumbaikar dreams of) are very restrictive, and not attractive to the average intending entrepreneur.

So; is there hope?  Certainly, but only for the rich and the leisurely; this is the crowd to watch out for.  Until then, expect more GVKs and GMRs to capture the entrepreneurial space even in Mumbai.. And look out for the Lucknows, Hyderabads, Bhopals, Mysores, and Coimbatores to emerge.

Watch the results from the ET sponsored Power of Ideas campaign participants (you can check out www.powerofideas.co.in)  and you will know what I mean.