A recent report by NSSO reported that 254 out of every 1000 people in India are self-employed. This is a respectable number when it comes to the global self-employment rate. Economic liberalization in 1991 led to a complete economic makeover in India. It resulted in India growing to one of the world’s biggest economies from a struggling one.
This economic modernization has also given birth to a huge list of entrepreneurs all over India. These innovative entrepreneurs have generated millions of jobs all over the nation. Not only employment, the rising corporate entrepreneurship in India has given a boost to the economy of the country.
Ever since Independence, a significant focus has been given towards the development of entrepreneurship in India. Many industrial, financial and economic policies have been formulated to ensure the progressive development of entrepreneurs in India.
Some economists have described entrepreneurship development as development of entrepreneurs and encouraging the flow of people towards entrepreneur ranks. To ensure this development, many factors need to be changed or modified. The individual factors, social and cultural factors, environment factors and other support system needs to be developed to promote all round growth of entrepreneurship in the country.
An entrepreneurial culture should be promoted which can result in more and more people becoming aware of the potentials, benefits and positive impact of being an entrepreneur.
While on one hand India has seen its fair share when it comes to the growth of entrepreneurs in the country, there have been several factors which have hindered the whole process in different levels. Some of these factors are:
• Lack of seed capital: A significant number of startups in India fail to take off since they cannot find an investor for seed capital. This might be due to several factors but a lot of potentially profitable businesses have died due to non-availability of funds.
• Lack of Technical Skills: A lot of young entrepreneurs fail to hire or gather the required technical skills and workforce required to survive their startups. Hence they get behind in the competition and ultimately give up.
• Monopoly: There is always a big giant company or business which has established monopoly in its industry. It often becomes quite difficult to beat someone in their own game and take their position. There are several unicorn companies in India which have already acquired a major share of the market they operate in. Thus many startups fail to make an impact and establish their roots.
• Legal Obstacles: Over the years, conducting business in India has been made easier owing to paradigm changing policies by the government. You can now open a business listing in India easily without getting into much hassle or legal formalities. Even still, a lot of industries still have to go through a lot of legal obstacles to even start their operations. A large number of startups or businesses remain untangled in the legal paper work and never come into existence.
• Social, Cultural and Personal Factors: Being a successful entrepreneur also involved taking risks and mitigating them to final establish a successful business. Some entrepreneurs are never able to make it since they cannot beat social prejudice of leaving a job and doing business. Beating the social tradition of men handling the business, many women entrepreneurs like Kiran Mazumdar made their names in the industry over the past few years. Some fail since they cannot risk being financially unstable which often comes with the launch of a startup. There also might be cultural objections to one’s idea which often proves to be a roadblock.
There are many strategies which might be adopted for entrepreneurship development in India:
1. Availability of Infrastructure: Without infrastructure, everything is bound to fail. Government, leading industrialists, businessmen and other established entities in power should make sure that land, water electricity, transportation and other resources are made available to upcoming entrepreneurs in the country.
2. Training Entrepreneurs: The Government of India has taken several initiatives in which aspiring entrepreneurs are trained to hone their entrepreneurial skills. Even private entities and organizations all over the globe have started holding seminars and meets where entrepreneurs from all over the world come forward and pitch their ideas to the investors and successful business entrepreneurs.
3. Development of Public Enterprises and Social Entrepreneurship: Government should focus on developing public enterprises where private industry does not get involved much. Social entrepreneurship should be given preference as it also helps in eliminating certain social problems like education, hunger, poverty etc.
4. Laws and Regulations: Red tape should be reduced and regulations should be relaxed so as to help the businesses out their business effectively and profitably at the same time.
5. Research and Idea Building: Special budget should be set for promoting research and idea building within the country. A lot of countries’ top researchers and prodigies leave the country since they get better remuneration and compensation for conducting research in developed countries. Such talent can be brought back and retained in our own country with a little bit of effort.