Entrepreneurship Boom In India

By Author: Preetam U. Revankar
Total Articles: 5
Comment this article

India has become a hub for the startups in recent years due to high growth rates and various other factors. Many entrepreneurs like to invest in information technology, finance, software and other sectors to earn more money. The number is likely to increase in the future due to the availability of high quality manpower and government policies. A recent study says that India is growing at faster levels in the start-up ecosystem, which contributes more to country’s economic growth. Start-ups offer several job opportunities for job seekers who want to start their careers with best salaries.

History of Entrepreneurship in India
Growth of Entrepreneurship: The Second World War boom, which attracted many entrepreneurial people from many walks of life, including businessmen, artisans, etc., to the small industrial sector as entrepreneurs, is largely responsible for the small industrial sector as entrepreneur, is largely responsible for the expansion of entrepreneurship, particularly in small sector. India started deliberate economic development programmes after gaining independence in all economic areas, including small ...
... businesses.

Routes – Silk Route & Spice Route: The company and trades commenced in India following the evolution of global routes for trading goals. India went correlated to abutting foreign countries within the network of street routs heading to the Silk Route. The marine time route connection between India and other foreign countries was known as Spice Route.

Trade and Business in Ancient India: The Indian Archaeological evidence has shown that entrepreneurship started in early age of ancient India. The trading culture mainly followed by the Harrapan civilization established a commercial connection with Mesopotamian society. They used to exchange their handmade crafts like toys, pots, utensils and corpses to fulfill their daily needs. The Harrapan period was marked by commercial and business activities in India. They regulated a few trade activities, including different types of coins and handcrafted metals as import and export products.

Industrialization in India: The process of industrialization was started by the East India Company in 1673. The British were responsible for the introduction of industrial cultures in India. They came to India for business purpose in 19th century and industrial advancement occurred in the 20th century. It was mainly the private sector that was established by the British. The East India Company played a huge role in industrial development and the quality of trade, export and imports of goods at the international level. According to eminent Indian academics, manufacturing entrepreneurship is a direct result of the arrival of East Indian companies in India.

Pre-Independence Entrepreneurship: The evolution of Indian entrepreneurship may be traced back to the Rigveda, when metal handicrafts were prevalent in society. This would emphasize the fact that handicraft entrepreneurship in India is as old as human civilization itself and was fostered by artisans as part of their societal responsibilities. Prior to interaction with the West, people in India were organised in a specific form of economic and social organisation known as the village or community. The Indian towns were largely religious and isolated form the rest of the country. Clearly, organised industrial activity was visible among Indian artisans in a few recognizable products in the river basin cities like Banaras, Allahabad, Gaya, Puri and Mirzapur. This was mostly due to the rivers’ function as transportation facilities.

Post-Independence Entrepreneurship: Following a lengthy sigh of political relief in 1947, the Government of India attempted to outline the goals for creating a strategy for achieving balanced growth. The government issued the first Industrial Policy in 1948, which was amended on a regular basis. In several industrial policy statements, the government identified the state’s role as encouraging, aiding and growing industries in the national interest. It also expressly recognized the critical role of the private sector in accelerating industrial development and sufficient space was set aside for it. After having an overview of the journey of Indian entrepreneurship in India, we have an understanding that entrepreneurs play a very important part in the economic growth of our nation.

Rise of Entrepreneurship in India
According to the Global Entrepreneurship Monitor (GEM) India Report (FY 2021-22), India witnessed a significant increase in entrepreneurial activity in 2021:
The total entrepreneurial activity rate, which represents the percentage of adult (aged 18-64) starting or running new businesses rose to 14% in 2021 from 5.3% in 2020.
The established business ownership rate, representing the percentage of adults (aged 18-64) managing business for more than 42 months, increased to 8.5% in 2020 from 5.9%.
This surge in entrepreneurial activity can be attributed to restrained demand and new found opportunities emerging as covid 19 risks reduce, impacting the Indian economy in 2020.
India has the most startups in the world, with a thriving startup ecosystem that is home to more than 50,000 startups.
According to a report by NASSCOM, India’s startup ecosystem is expected to create more than 12.5 lakh direct jobs by 2025.
This has been made possible by the government’s push for a digital economy, which has created a conductive environment for entrepreneurship and innovation.

Role of Entrepreneurship in Economic Development in India
Raises the Standard of Living: A significant role of entrepreneurship in economic development is that it can greatly enhance the standard of living for individuals and communities by setting up industries, creating wealth and creating new positions.

Economic Independence: Entrepreneurship can be a path to economic independence for both the country and the entrepreneur. It reduces the nation’s dependence on imported goods and services and promotes self-reliance.

Benefits of New Firms and Business: Entrepreneurs identify market needs and develop solutions through their products and services to begin their business venture. By starting new firms and businesses, entrepreneurs play a key role in shaping the economy and creating a more dynamic and diverse business landscape.

Creation of Jobs: Entrepreneurship is a pivotal driver of job creation. Running the operations of new businesses and meeting the requirements of customers result in new work opportunities.

Encourages Capital Formation: Capital formation is the process of accumulating resources, such as saving and investments to fund new business ventures and support economic growth. Entrepreneurship can encourage capital formation by attracting investment.
Elimination of poverty: Entrepreneurship has the potential to lift people out of poverty by generating employment and stimulating economic activity. Entrepreneurship also contributes to the development of local economies and helps improve the overall standard of living.

Community Development: Entrepreneurship promotes economic growth, provides access to goods and services and improves the overall standard of living.

Optimal Use of Resources: Entrepreneurship can help identify market opportunities and allocate resources in the most effective way possible.

Increases Gross National Product and Per Capita Income: Entrepreneurship can play a significant role in increasing economic growth and prosperity by increasing Gross National Product(GNP) and Per Capita Income(PCI). The increase in GNP can lead to rise in PCI. Entrepreneurship can contribute to GNP by creating new businesses and industries, which can lead to job creation, increased consumer spending and higher tax revenue.

Government Schemes for Startups in India
The Government of India and the Ministry of Micro, Small and Medium Enterprises have launched more than 21 schemes to empower startups and MSMEs in India. Some of them are as follows:

CHUNAUTI:
It is a government initiative scheme that stands for Challenge Hunt under Next Generation Incubation Scheme (NGIS) for Advanced Uninhibited Technology Intervention. This online challenge was introduced with the aim of encouraging startups to come-up with solutions related to pandemic related problems.

SAMRIDH Scheme:
The Startup Accelerator of MeitY for Product Innovation, Development and Growth (SAMRIDH) Scheme was introduced by the Ministry of Electronics, Information and Technology (MeitY) in August 2021. One of the main objectives of this scheme is to provide funding support and fiscal incentives to startups.

Digital India GENESIS: Digital India GENESIS (Gen-next Support for Innovative Startups) is a deep-tech startup platform initiative launched by the Ministry of Electronic and Information Technology (MeitY). It was introduced in 2015 and aims to help tech startups from mostly Tier 2 and Tier 3 cities scale up their operation.

Startup Leadership Programme (SLP): It is a renowned global training programme for innovators, leaders and founders who want to become startup CEOs. They don’t have a specific age limit and hence anyone with a dream and interest in becoming a leader or entrepreneur can join them. This startup initiative has educated over 3900 people in over 14 countries and helped over 2000 startups.

ASPIRE (A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship): This scheme was introduced by Government of India in 2015 with the aim of improving rural India’s social and economic aspects of life, making it one of the most popular schemes launched by the Indian Government. One of the main objectives is to create new job opportunities to reduce unemployment and strengthen the competitiveness of Startups and the MSME sector and aids in setting up a network of technology centres and incubation centres to foster innovation in agro-industry, as large part of India still depends on agriculture for livelihood.

Pradhan Mantri Mudra Yojana: A scheme for startups and MSMEs that aims to provide access to capital and loans to help ventures sustain and grow their businesses. Launched in 2015, eligible applicants can claim loans of up to Rs. 10 lakh for working capital requirements. The repayment period for loans availed under this scheme is 5 to 7 years.

MBA Graduate, working as a Assistant Professor in Management Department at R L Law College, Belagavi, Karnataka, . Having a 9 years teaching experience in various subjects like International Business, Entrepreneurship Development, Business Environment, Business Communication, Production And Operations Management and Business Statistics.