Dinner tables, caste networks, entrepreneurship

Thus blog had pointed to how dinner tables are so important for entrepreneurship.

Niranjan Rajadhyakhsha reviews the role of dinner tables in his new piece:

A few months ago, Mumbai Mirror reported how several of the biggest real estate developers in the city traced their roots to Bhinmal, a small town in Rajasthan. Almost all the new public buildings in this town have been funded by those who struck gold in the Mumbai real estate market. One of the locals perceptively told Chaitanya Marpakwar: “See, if one person moves to a new place and makes money there, others follow. But it is important to note that all these builders had business acumen and foresight. They made the right investments at the right time. Later, they helped people from their native place to set up a business in Mumbai. It was like a chain.”

I remembered this newspaper story when I came across a new paper by two economists on what they have evocatively described as dinner table capitalism. Hans K. Hvide and Paul Oyer went through reams of data on entrepreneurs in Finland to show that many of them went into industries in which their fathers worked. And those who set up new enterprises in areas where their fathers worked did better than their entrepreneurial peers who ventured into other lines of business. Four years after the new enterprises were set up, the ones in the former group were more likely to survive and have more employees.

Not just real estate, even much of diamond business is driven by Jains from Palanpur. There are several such stories of caste networks and entrepreneurship. And yes how they come from a common location..

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