Entrepreneurs are viewed as national assets who should be encouraged, nurtured, and feasibly fully rewarded. Entrepreneurship in India comes up with novel concepts that result in many products and services that alter the way we work and live.
The value of entrepreneurship in India can be gauged by what it accomplishes for society. Entrepreneurship in India provides benefits through producing job opportunities, raising living standards, and contributing to the economy’s general growth, which we call the gross domestic product (GDP).
Communities throughout the country are hurting today. Many workers are concerned about their jobs, and the youth is doubtful of their prospects due to a lack of growth opportunities. There are no clear solutions, but entrepreneurs in India act as innovators, bringing prosperity and growth to the economy and society.
DEFINITIONS OF ENTREPRENEURSHIP
- Entrepreneurship is defined as the ability and willingness to create, organize, and manage a business enterprise, as well as cope with any dangers that may arise to make a profit. This definition focuses solely on starting, running, and profiting from a business.
- Entrepreneurship is an entrepreneur’s ability to locate and act on changes to translate ideas, innovations, or technologies into services or products defined by a broader term commonly used in economics.
- Entrepreneurship is defined as the process of creating or extracting value. Instead of only economic times, one meaning explains the term as bringing about a transition that may include other ideals.
- Thus, entrepreneurship in India is critical for a variety of reasons, ranging from driving innovation and job creation to encouraging social change. Great entrepreneurs can change the way we live and work via their leadership.
Entrepreneurship in India, if successful, would raise living standards, and in addition to earning income through entrepreneurial endeavors, it may also contribute to a developing economy by producing jobs.
IMPORTANCE OF ENTREPRENEURSHIP IN INDIA
BOOSTING ECONOMIC GROWTH
A cascading impact occurs when new items and services are introduced to the market through entrepreneurship in India. This allows connected businesses and industries to expand, resulting in increased economic development.
Entrepreneurship in India benefits not only the industry but multiple sectors as well, resulting in economic growth. Furthermore, future development in a growing country like India needs strong logistics assistance, capital investment, and qualified labor. As a result, there are plenty of prospects for aspiring entrepreneurs who can employ a trained programmer and a construction worker.
Entrepreneurship in India is a process that begins with the creation of new firms that generate revenue for civilization. Entrepreneurs invest cash to create new products and services, increasing economic value. Venture capitalists and angel investors also contribute more capital, increasing the amount of money invested in the organization’s growth and success.
Employees pay income tax, while businesses make profits and pay taxes. The government is using this additional revenue to boost the economy and build better infrastructures. As a result, the country’s GDP rises overall.
The heart of entrepreneurship is innovation. Any entrepreneurial enterprise cannot succeed without innovation and originality, regardless of the sector, product or service, or market. As a result, the GDP rises significantly because of new enterprises, products, technologies, markets, improved quality of goods, and other factors resulting from innovation and entrepreneurship. Entrepreneurship in India is triggering the innovative culture of India.
Entrepreneurs keep a close eye on technology shifts and take steps to address any gaps. They are aware of the negative consequences of technical advancements, such as the loss of occupations. Still, they also recognize the additional prospects that can be garnered from this technological era. As a result, they innovate and develop new items. Innovators observe consumer problems and devise solutions. Creativity entrepreneurship is what generates jobs.
CREATING JOBS AND FLEXIBILITY IN JOB CULTURE
The number of employments created when entrepreneurs start new enterprises demonstrates the importance of entrepreneurship in India. These businesses become a source of employment.
Small enterprises are the backbone of every country’s economy. Policies promoting small business growth and the role of entrepreneurship in the market are beneficial to the economy.
The “Schumpeter effect” refers to entrepreneurship in India activity reducing unemployment in the economy. It has been discovered that unemployment is adversely associated with new-firm start-ups. In other words, new enterprises boost the employment of resources and decrease unemployment significantly. Individuals can use their talents and energies to create riches by creating goods and services through entrepreneurship.
One of the primary goals of economic development is the creation of jobs by new and existing firms. Therefore, the Indian government has developed programs like Startup India to encourage new businesses, as well as initiatives like Make in India to lure foreign companies and their FDI into the Indian economy. As a result, entrepreneurship in India is creating many new job opportunities and raising our standards to a global level.
Nowadays there is also flexibility available in working hours and work from home option. Hence, entrepreneurship in India provided flexible work culture.
DEVELOPED HIGH LIFESTYLE STANDARDS
When entrepreneurs notice a problem in customers’ lives, they employ their imagination to come up with a remedy. They establish a new company and employ people. New employees are compensated when they are hired, and this money is spent on the local economy. This results in an increase in population wealth and a higher standard of living for all parties concerned.
When a company introduces a better product or service, competitors must either match it or exit the market. The growing competition forces everyone to enhance their efficiency and become better at their occupations. They do not have an option but to increase their productivity and raise their level of living.
BRINGING CHANGE IN THE SOCIETY
The local community and society benefit from entrepreneurship in India. The new company pays salaries to their employees to spend at local businesses. For the store owners, this means more revenue. When one company succeeds, it helps the growth of another.
Some businesses require individuals with advanced degrees. This creates a demand for skill training through schools, internships, and workshops. Everyone in society advances with the established training institutions because of society’s response. The corporation hires the people it needs, and society benefits from highly educated and skilled people.
Entrepreneurs organize for food drives, house construction, clean-up funds, and charitable donations to local charities. Some may also contribute to the improvement of society’s infrastructure. Hence, entrepreneurship in India contributes greatly to society’s growth and development.
GOVERNMENT INITIATIVE FOR ENTREPRENEURSHIP IN INDIA
ATAL INNOVATION MISSION (AIM)
- Atal Innovation Mission (AIM) is a flagship initiative in India to promote a culture of innovation and entrepreneurship in India.
- AIM promotes innovation and revolutionizing the country’s entrepreneurial ecosystem as an umbrella organization.
- It creates new policies and programs to encourage innovation in many areas of the economy.
- Moreover, it also provides a platform and chances for collaboration with various players in the entrepreneurial environment.
PRADHAN MANTRI MUDRA YOJANA (PMMY)
On April 8, 2015, The Honorable Prime Minister announced the Pradhan Mantri Mudra Yojana (PMMY).
It provides loans up to 10 lakhs to non-corporate, non-farm small/micro-enterprises.
Under PMMY, these loans are called MUDRA loans.
Commercial banks, RRBs, small finance banks, MFIs, and NBFCs provide these loans.
The borrower can go to any of the above-mentioned lending institutions or apply online at www.udyamimitra.in
MUDRA has developed three products – ‘Shishu,’ ‘Kishore,’ and ‘Tarun,’ under the auspices of PMMY.
These three products indicate the stage of growth/development and financial needs of the beneficiary micro unit/entrepreneur and serve as a reference point.
In this way, PMMY nurtures entrepreneurship in India.
- The Government of India’s flagship initiative, Startup India, aims to catalyze the startup culture.
- It also aims to create a robust and inclusive ecosystem for innovation and entrepreneurship in the country.
- Since the announcement of the initiative on January 16, 2016, several projects have been implemented to support the Honorable Prime Minister’s vision of changing India into a country of job creators rather than job seekers.
- These programs have accelerated the startup culture, with the Startup India initiative recognizing businesses and many entrepreneurs taking advantage of beginning a firm or entrepreneurship in India.
MAKE IN INDIA
- Make in India is a government-led project that began on September 25, 2014.
- Its goal is to facilitate investment, foster creativity, construct world-class infrastructure, and transform India into a manufacturing, design, and innovation hub.
- The Indian government continues to place a high premium on the development of a strong manufacturing sector.
- It was one of the first ‘Vocal for Local’ campaigns to bring India’s manufacturing sector to the rest of the globe.
- Not only does this industry has the capacity to boost economic growth, but it can also employ a substantial portion of our young workforce.
- Make in India also promotes entrepreneurship in India.
THE CHANGING ECOSYSTEM OF ENTREPRENEURSHIP IN INDIA
Two decades back, private and government jobs gave more importance to schooling. Mostly, people having their family businesses try to run the business. But nowadays, many people from different educational backgrounds are starting their own business or startup with innovative thinking. Also, entrepreneurship in India is attracting international funding. Recently, the Indian startup BYJU’s raised $460 million in funding. This funding is changing the social and economic culture of India.
The government initiatives like Atal Innovation Mission, PMMY, Startup India, Make in India, etc., are also helping to nurture the entrepreneurship culture in India. Moreover, the new-age technology helped in evolving the entrepreneurship culture in India. New Edutech startups like Vedantu, WhiteHat Jr, BYJU’s are entirely dependent on technology. Hence, we can say that technology is the key to entrepreneurship in India.