Indians are hard-working with a strong desire to be independent and achieve.
Desire to leave something better for children and future generations drives saving and entrepreneurial activity.
Many entrepreneurial activities take shape, despite increasing preference for jobs among the English-educated.
Global Entrepreneurship Monitor (GEM) 2002: India was the second most entrepreneurially active nation (17.9% of population).
Close personal and community relationships mean one person's entry into business influences others to follow suit.
Success of one person encourages others; successful individuals often induct relatives and acquaintances into their businesses.

Includes non-company entities in non-agricultural, non-government activities (excludes private/public sector companies).
Consists of partnership/proprietorships, self-employed persons, and cooperatives.
Often referred to as "un-organized," "informal," or "residual" sector.
Has the largest share in national income, manufacturing, services, savings, investment, taxes, credit market, employment, and forex earnings.
Significant in service sectors: construction, trade, hotels, restaurants, non-railway transport, storage, real estate.
Largest contributor to national income, savings & investments, and taxes.
Accounts for largest share in manufacturing & service activities and employment.

Families extend to close-knit relatives, forming wider circles.
Indians have one of the largest circles of relatives, including friends, colleagues, neighbors, and acquaintances.
Tradition of "Atithi Devo Bhava" (Guest is God); strangers are treated as guests, even allowed to partake in food without permission.
Indians treat everyone with warmth and affection, accommodating diverse groups.
Each family takes responsibility for its members.
Indian society is largely self-functioning, resulting in very low expenditures on social security, old-age homes, and administrative/judicial infrastructure.
Social orientation remains a basic foundation of life; people live like a well-knit society.
Reduces government burden in maintaining society.
Sociologists emphasize that nations thrive when people live together as groups.

Economic transactions among known people are based on faith.
Faith-based transactions are easy, fast, and reduce transaction costs, not relying on state machinery.
Facilitated by close-knit relationships and social capital.
Many daily economic transactions depend on faith, not just non-monetary or small sums.
Even larger financial transactions are undertaken on faith and goodwill (e.g., village loans without third-party knowledge, oral agreements for assets).
Though traditional arrangements are waning, a large presence of faith-based transactions persists at all levels.
Raising funds or borrowing from a "good person" is possible due to relationships.
In Gujarat, a Patel's good reputation can attract capital for a new venture.
Investment decisions in non-banking finance companies are often based on the reputation of the people behind them.
Study in Karur textile cluster showed most financial transactions were based on faith and goodwill; financiers gave funds based on borrower's reputation, not documents or pledges.