Entrepreneurship, like most economies and cultures, has been a part of the country for centuries. This was the era of industrialization in India, during which some of the country’s best entrepreneurs rose to prominence. The major events altered the face of Indian entrepreneurship. A new global report ranks India 4th out of 51 countries in terms of having a quality entrepreneurship ecosystem.
Following a much lower score of 16th overall in 2021, India’s ranking in the Global Entrepreneurship Monitor (GEM) National Entrepreneurship Context Index (NECI) report is a dramatic turnaround.
GEM defines an economy’s entrepreneurial context in terms of 13 distinct characteristics known as the Entrepreneurship Framework Conditions (EFCs). The NECI results are based on the framework conditions scores for each of the 51 participating economies.
“The improved quality of the entrepreneurship ecosystem is a reflection of both initiatives of the Indian government in supporting new businesses such as Make in India and Atal Innovation Mission,” said Dr Sreevas Sahasranamam, who is a co-author of the current GEM global report and Associate Professor in Entrepreneurship & Innovation at Strathclyde Business School, Glasgow, UK.
“India entrepreneurs were at the top globally (nearly 70 per cent) when it comes to pursuing new opportunities due to the pandemic,” the report further said.
Effects of Entrepreneurship on the Economy
Money Flow in the Market
Money flow is equally important in an economy. The greater the flow, the better the economy. Enterprises contribute to the flow of money in the market by creating jobs and increasing output and consumption.
Infrastructural Development
Startups thrive in this environment. When an ecosystem forms in a city, the infrastructure of the city or specific area improves. Startups are thriving in Bangalore, Hyderabad, and Delhi, for example. These cities were strategically designed to foster a better environment for start-ups in order to meet the demand for entrepreneurship.
Direct and Indirect Employment
Direct employment is employment created by business entrepreneurship. However, it is not the only employment. Entrepreneurship also generates a large number of indirect jobs. For example, in Powai, Mumbai, infrastructure development creates a demand for hotels, restaurants, transportation, and so on.
Social change
Social entrepreneurship is a modern term that encourages entrepreneurs to effect social change. Crowdfunding companies, for example, are typically involved in social work, such as raising funds for non-profit organisations. Their businesses have a positive impact on society. They not only assist those in need, but they also raise social awareness.
A prosperous society makes the path to community development easier. As a result, the need for entrepreneurship in India is critical because it combines social reform and economic development.
