INTRODUCTION:

Entrepreneurship in India experienced its inception and evolution during ancient times, coinciding with the prevalence of the 'barter system' as a widespread method of exchange¹ (cheggindia.com). Viharidas Gopaldas Patel, affectionately referred to as VG, was a distinguished economist and a prominent institution builder, recognized as the 'Father of the Entrepreneurship Movement' in India. He played a pioneering role in initiating the entrepreneurship development movement in the country as early as 1970. Significant milestones reshaped the landscape of entrepreneurship in India. In 1854, Indian entrepreneur Kawasji Dover brought about a revolutionary change by establishing the first cotton textile mill. This marked a bold stride in modern entrepreneurship development in the country. Jamsetji Tata, in 1868, laid the foundation of the Tata Group, raising the standard for entrepreneurial ventures. Subsequent years witnessed noteworthy developments, including the establishment of the Cotton Mill in 1874 by JRD Tata and the founding of TISCO by Dorabji Tata. In 1932, Tata expanded into aviation and steel, contributing significantly to India's business sector and playing a vital role in various independence initiatives.

Post-independence, Indian entrepreneurship thrived amidst economic challenges. Prime Minister Nehru embraced the Soviet economic model, leading to the 1956 New Industrial Policy. Initial economic reforms, including the Mahalanobis model, laid the foundation for entrepreneurial growth. The transformation gained momentum in 1990.

Transformation of Entrepreneurship in India:

The significant shift in Indian entrepreneurship commenced with the 'Economic Policy Reform' of 1991, a transformation further extended in 2022. This allows for the classification of major entrepreneurial changes in India based on these pivotal policies and events.

In 2016, India witnessed a surge in startups, marking a significant initiative for entrepreneurship development. The MSME ministry supported small startups, while the Make in India initiative fostered homegrown entrepreneurship. The NITI Aayog scheme aimed at skill development. Since 1990, there has been consistent annual growth in entrepreneurship. The current Indian entrepreneurial landscape is highly attractive for investments, with the IT sector playing a pivotal role in India's international trade and overall entrepreneurial development.

Entrepreneurship took flight in India during the early 2000s, becoming a transformative influence on the nation's economy. This surge has been driven by factors like economic growth, increased availability of venture capital, the establishment of incubators, and a rich pool of talent² (indianexpress.com). The Global Entrepreneurship Monitor (GEM) National Entrepreneurship Context Index (NECI) ranks India fourth out of 51 countries in terms of its entrepreneurship ecosystem quality, a significant improvement from its 2021 ranking of 16th. India has solidified its position as a global startup hub, securing third place with over 90,000 startups and 107 unicorn firms valued at $30 billion, trailing only the United States and China² (gemconsortium.org). The government has introduced various schemes to foster entrepreneurship, such as the Startup India Action Plan, offering legal support, improved regulations, tax benefits, and economic stimulus through the 'Fund of Funds' initiative for financial and infrastructural backing to emerging businesses. Other flagship initiatives like Make in India, Stand-up India (providing bank loans for Scheduled Caste, Scheduled Tribe, and women entrepreneurs), and Digital India aim to promote the growth of efficient and skilled micro, small, and medium enterprises. The depicted graphical representation illustrates a discernibly ascending trajectory in the population of self-employed entrepreneurs in India spanning the temporal continuum from 2016 to 2022.

Source: Indianexpress.com

Impacts of Entrepreneurship on the Economy:

The latent impacts of entrepreneurship, though inconspicuous, wield profound significance in the realm of economic advancement. The ensuing indirect effects encompass:

Capital Circulation in the Economic Sphere: The fluidity of monetary exchanges within an economy assumes paramount importance. Entrepreneurial ventures contribute substantially to this monetary circulation by engendering employment opportunities, augmenting production, and fostering increased consumption⁴ (Sahoo, 2019).

Development of Infrastructure: Entrepreneurial endeavors flourish within specific ecosystems, and their concentration within particular cities or regions precipitates consequential infrastructural advancements. Notably, metropolises such as Bangalore, Hyderabad, and Delhi have witnessed strategic development geared towards fostering an environment conducive to entrepreneurial pursuits.

Indirect Employment Generation: Beyond direct employment engendered within entrepreneurial enterprises, a more expansive realm of indirect employment surfaces⁵ (Biswas D. et.al.). For instance, the infrastructural metamorphosis in locales such as Powai in Mumbai begets ancillary employment opportunities in sectors like hospitality, transportation, and gastronomy.

Augmented Demand for Ancillary Services: The progression and expansion of entrepreneurial enterprises necessitate an array of ancillary services extending beyond their core competencies. Consider, for instance, an educational technology startup requiring diverse services such as human resources, marketing, consultancy, and legal expertise. Consequently, an escalation in the number of entrepreneurs precipitates a concomitant surge in demand for ancillary services.

Pandemic, Layoffs and Entrepreneurship:

The COVID-19 pandemic has exerted a profound influence on the global economy, precipitating a layoff crisis across diverse sectors. The aftermath of the pandemic has engendered a multifaceted challenge, significantly impacting both the economy and the labor market. Particularly vulnerable to this crisis are the informal sector, small and medium enterprises, and urban workers, experiencing enduring repercussions amid a sluggish economic recovery. The initiation of the layoff trend was observed in 2020, with 12,932 individuals displaced. In 2023, as Indian startups contended with diminished funding and heightened investor expectations, employee layoffs persisted as a strategic measure to enhance profitability⁶ (legalserviceindia.com). Recent statistics from layoffs.fyi reveal a pinnacle in layoffs during 2023, encompassing 16,398 startup employees—a 15% escalation from the preceding year⁷ (thehindubusinessline.com). The trajectory suggests a potential continuation in 2024, as both technology behemoths and indigenous ventures announce workforce reductions, ostensibly in response to challenging economic cycles and the imperative to streamline operations. Eminent corporations such as Salesforce, Google, Microsoft, Zomato, Flipkart, Amazon, and Swiggy have, among others, signaled impending workforce reductions in the pursuit of fiscal consolidation.

Source: https://www.linkedin.com/pulse/layoofs-the-pandemic-unemployement-cygnus-a-d-consulting/

Challenges Confronting Entrepreneurs in India:

Lack of Capital or Financing:

· Despite a burgeoning entrepreneurial landscape, securing adequate funding remains a formidable challenge.

· Emphasis on subsequent reforms is imperative to facilitate the availability of both foreign and domestic funding.

· Government initiatives should focus on further relaxation of regulations and enhanced incentives to attract foreign funds, particularly for startups.

Regulatory Environment:

· Despite governmental initiatives, policy and regulatory challenges persist.

· Initiating a business in India entails navigating through multiple permissions from various government agencies.

· Stringent regulations in labor laws, intellectual property rights, and dispute resolution pose hurdles.

· Streamlining and simplifying regulations can enhance the ease of doing business, allowing companies to concentrate on growth instead of compliance.

Awareness and Accessibility:

· Despite the Startup India Initiative, many startups remain unregistered or unrecognized by the Department for Promotion of Industry and Internal Trade (DPIIT).

· Limited registration hinders access to government-provided benefits crucial for growth and operations.

· The government should prioritize proper training and platforms to encourage startups to register and leverage available benefits.

Infrastructure:

· Despite substantial government investments in transportation, roads, and airports, fundamental infrastructure elements like consistent electricity supply and high-speed internet remain deficient in various regions.

· Inadequate infrastructure poses challenges for entrepreneurs in establishing and expanding their businesses.

Addressing these limitations is crucial to fostering a conducive environment for entrepreneurial growth. Following steps can be taken to resolve this problem and reduce the cons of entrepreneurship in our economy:

Resolving Challenges in Entrepreneurship: Strategies for Action:

Government-Led Initiatives and Schemes:

Actively promoting entrepreneurship through schemes like Startup India, Standup India, and Make in India. Aiming to provide financial support, mentorship, and a conducive regulatory environment.

Focus on Innovation and Technology:

Emphasizing innovation and technological advancements to play a pivotal role in economic development. Potential sector-specific targeting, including fintech, health tech, artificial intelligence, and renewable energy.

Inclusive Entrepreneurship:

Efforts towards fostering inclusive entrepreneurship by encouraging women, marginalized communities, and differently-abled individuals. Aiming for a more diverse and resilient entrepreneurial ecosystem.

Skill Development and Education:

Essential focus on developing entrepreneurial skills and fostering a culture of innovation and risk-taking. Incorporating training programs, workshops, and mentorship in entrepreneurship schemes.

Access to Finance:

Recognizing the critical role of finance in entrepreneurial success. Exploring innovative financing models like venture capital, angel investors, and crowd funding for adequate financial support.

E-Governance and Simplified Regulations:

Continued emphasis on e-governance and streamlined regulatory frameworks. Aiming to reduce bureaucratic hurdles, facilitating a more straightforward business environment.

Global Collaboration and Market Access:

Initiatives promoting international collaboration and providing avenues for global market access. Strengthening ties with other countries and facilitating export-import activities for enhanced global reach.

Green and Sustainable Entrepreneurship:

Encouraging the development of green and sustainable businesses. Potential support for clean energy startups, waste management solutions, and environmentally friendly technologies.

Entrepreneurship Development Initiatives by the Government of IndiaTop of Form:

In fostering a conducive environment for economic growth and innovation, the Government of India has implemented various schemes dedicated to entrepreneurship development. These initiatives aim to provide a robust framework of support, encompassing financial assistance, regulatory facilitation, and skill enhancement for aspiring entrepreneurs.

Startup India Initiative:

Initiated by the Government of India, Startup India stands as a cornerstone endeavor aimed at fostering and bolstering startup enterprises. This pioneering initiative extends an array of benefits, encompassing tax exemptions, funding assistance, and a dedicated helpline to provide comprehensive support to burgeoning startups.

Pradhan Mantri Mudra Yojana (PMMY):

Addressing the micro-enterprise sector, PMMY extends loans up to Rs. 10 lakh to non-corporate, non-farm small and micro-enterprises. This scheme is strategically designed to incentivize entrepreneurship within the micro-enterprise landscape.

Stand-Up India:

Focused on fostering entrepreneurship within marginalized communities, particularly women and Scheduled Castes/Tribes (SC/ST), Stand-Up India offers financial support in the form of loans for greenfield enterprises operating in manufacturing, services, or trading sectors.

Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE):

Facilitating collateral-free credit access to micro and small enterprises, CGTMSE plays a pivotal role by providing loan guarantees up to a predetermined limit, thereby encouraging entrepreneurship within this sector.

National Small Industries Corporation (NSIC) Subsidy:

NSIC contributes to the promotion of small and medium-sized enterprises (SMEs) through a spectrum of schemes and subsidies, encompassing raw material assistance and marketing support to bolster entrepreneurship across these segments.

Atal Innovation Mission (AIM):

Dedicated to fostering innovation and entrepreneurship on a national scale, AIM introduces multifaceted programs such as Atal Tinkering Labs, Atal Incubation Centers, and Atal New India Challenges⁸ (Jayanthi,2022).

Make in India:

While not exclusively tailored for startups, the Make in India initiative serves as a catalyst for entrepreneurship by encouraging investments and enterprise development within the manufacturing and allied sectors.

Biotechnology Ignition Grant (BIG) Scheme:

Administered by the Biotechnology Industry Research Assistance Council (BIRAC), the BIG Scheme extends financial support to startups operating in the biotechnology sector, contributing to the entrepreneurial landscape in this domain.

SIDBI Make in India Soft Loan Fund for Micro, Small and Medium Enterprises (SMILE):

Initiated by SIDBI, the SMILE initiative offers concessional-rate soft loans to small and medium enterprises, aiming to invigorate entrepreneurship within this vital economic segment.

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): While not explicitly framed as an entrepreneurship scheme, MGNREGA plays a vital role in providing employment opportunities and supporting rural livelihoods, contributing to the larger landscape of sustainable economic activities.

Entrepreneurship development programs (EDPs):

Entrepreneurship development programs (EDPs) in India have been initiated by institutions such as SIET (State Institute of Education Technology), Small Industry Development Organization (SIDO), Small Industry Services Institute (SISI), Industrial Development Bank of India (IDBI), and Technical Consultancy Organizations (TCOs). Recognizing the pivotal role of entrepreneurial skills in business success, the Indian government has actively promoted and supported various programs to foster and nurture entrepreneurial talent. Here are some entrepreneurial development programmes in India:

1. Industrial Motivation Campaigns (IMCs):

· Two-day events identifying and motivating potential entrepreneurs.

· Encourages Mid-Sized Enterprise (MSE) establishment.

· Provides information on support and sanctions.

2. Entrepreneurship Awareness Programmes (EAPs):

· Conducted multiple times yearly.

· Informs and inspires youth about entrepreneurship.

· Covers project profile preparation, marketing, and financial management.

3. Entrepreneurship-cum-Skill Development Programme (E-SDP):

· Intensive training for technical skill enhancement.

· Targets potential entrepreneurs and existing workforce.

· Focus on socially disadvantaged groups.

4. Management Development Programmes (MDPs):

· Enhances decision-making capabilities.

· Short-duration programs covering various managerial functions.

· Tailored to industry needs and participant requirements.

Young entrepreneurs in India:

India boasts a demographic where more than half of its population is under 30, as indicated by the UN World Population Prospects 2022. Within this substantial youth segment, GEM reports that 14.2% of individuals aged 18 to 34 are engaged in entrepreneurial pursuits. Moreover, around 50% of the youth are anticipated to be employable in 2023, underscoring a substantial reservoir of potential innovators poised to harness the power of entrepreneurship. The impetus behind entrepreneurial endeavors among young Indians is twofold: a response to job scarcity, driving the desire to earn a livelihood, and a visionary aspiration to effect meaningful change⁹ (Jayanthi,2022). This signals a paradigm shift where the youth are not solely job seekers but increasingly emerging as creators of employment opportunities themselves.

CONCLUSION:

In conclusion, the future trajectory of entrepreneurship in India presents a promising and transformative journey, particularly over the next decade propelled by advancements in infrastructure and digital connectivity. Notably, a study by Nasscom forecasts that the Indian startup landscape will generate over 1.25 million direct employment opportunities by 2025. This anticipated growth is intricately linked to the government's commitment to fostering a digital economy, offering tax incentives, and establishing government-backed incubators, thus creating a conducive environment for entrepreneurial ventures and innovation. Initiatives and financial resources directed towards promoting innovation in sectors like agriculture, healthcare, and sustainable energy underscore the government's commitment to spur the growth of new ventures¹⁰ (linkedIn.com). With a rapidly expanding economy boasting a 7.2% GDP growth in the fiscal year 2022-2023, the concerted efforts to enhance infrastructure, promote digital connectivity, and advance financial inclusion have catalyzed the ascent of sectors such as e-commerce and fintech.

The immense potential of entrepreneurship in India holds the power to reshape the socio-economic landscape, underscoring the urgency for stakeholders to amplify this potential through strategic investments and collaborations within the entrepreneurial ecosystem. Entrepreneurship, evolving as one of the most dynamic forces in the economy, necessitates dedicated efforts towards enabling a conducive environment for nurturing influential entrepreneurs. This imperative underscores the importance of comprehensive policies, procedures, rules, and regulations geared towards fostering and honing entrepreneurship skills and abilities in India.

REFERENCES:

1. https://www.cheggindia.com/earn-online/entrepreneurship-in-india/#:~:text=The%20major%20events%20changed%20the,Group%20in%20the%20year%201868

2. https://indianexpress.com/article/explained/explained-economics/explainspeaking-rise-of-indian-entrepreneurs-reality-check-8869761/ thursday, jan 18, 2024.epaper. today’s paper

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8. R. Jayanthi, “A Study about Entrepreneurship in India and Its Promotion under 'STARTUP INDIA' Scheme”, IRE Journals, MAY 2019, Volume 2 Issue 11, ISSN: 2456-8880, pp. 118-126

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10. https://www.linkedin.com/pulse/how-can-entrepreneurship-help-shape-indias-future-employment-patil-cwvjf/?trk=public_post_main-feed-card_feed-article-content

Received on 30.01.2024 Modified on 14.02.2024

Int. J. Rev. and Res. Social Sci. 2024; 12(1):28-34.

DOI: 10.52711/2454-2687.2024.00007