Rise of Indian Entrepreneurs

Why in news?

Centre for Monitoring Indian Economy data 2023 suggests that Indians are increasingly in self-employment.

Entrepreneur- It is an individual creating a new enterprise and bearing the risks and the rewards of the establishment. The process of establishing a business is known as entrepreneurship.
They play a key role in the economy as they use their skills to study the market and bring new products according to the market.
Entrepreneurs combine capital, labour and natural resources to provide services and manufacture goods.
Sub category- There are 3 sub categories of Business class.
- Businessmen- It includes those people who set up large businesses that leverage capital and humans to run them.
- They manage some fixed premises such as an office, shop, workshop, factory, etc.
- Qualified self-employed professionals- It includes people who run their own professional enterprises and leverage their own expertise.
- Example-Doctors, Lawyers etc.,
- Self-employed-It includes those “entrepreneurs” who run their own business enterprises but these enterprises do not leverage much financial capital, human capital or even professional skills.
- Example- Taxi drivers, barbers, beauticians etc.,

Status of entrepreneurship in India

According to CMIE, the total employment in India in January-April 2023 stood at 412.9 million.
Employment status-In descending order
- Farmers,
- Wage labourers or small traders,
- Salaried class
- Business class or entrepreneurship- Fourth biggest category of employment.
Business is the only category that has actually recovered to the pre-pandemic level.
The number of people categorised under “business” grew by 8.4 million between the last four years.
In the business class category self-employed entrepreneurs accounted for the largest share, at around 70-80 % of all the entrepreneurs in India.
This shiftdoes not indicate an increase in real entrepreneurship but is merely a reflection of poor employment opportunities in the economy.

What are the benefits of entrepreneurship?

Money flow in the economy- Enterprises help in the flow of money in the market by creating employment and increasing production and consumption.
Infrastructure development- When an entrepreneurial ecosystem is formed in a particular area, there is an increase in the infrastructure in that area. Example- Chennai, Hyderabad etc.,
Employment generation– Both direct and indirect employment is fostered by the growth of entrepreneurship.
Economic development- It helps in increasing the GDP of the country through the development of new markets and creation of new wealth.
Social change- It breaks with tradition and reduces reliance on outdated systems by providing unique products and services.
Foster innovation- It creates market ease, new opportunities and encourages consumption, which will be a roadmap for economic development.
Increase standard of living- The standard of living is directly proportional to employment.
Research and development- It is due to the progress of innovation that would result in technological advancement.

Steps taken by India to Promote Entrepreneurship

Progressive Industrial Policies- The central government declared industrial policies in 1948, 1956, 1980, 1986, and 1991 to promote economy growth and entrepreneurship in country.
Invest India- It was launched in 2009 to promote foreign investment in the country.
Startup India- It was launched in 2015 to promote innovation and entrepreneurship in India.
Standup India- It was launched in 2016 to promote entrepreneurship among women and SC/ST communities.
Atal Innovation Mission- It was launched in 2016 to promote an innovative culture and the development of the spirit of entrepreneurship across India.
E-biz portal- It is the first online platform that was founded in 2013 that allows government-to-business (G2B) communication.
ASPIRE scheme- A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE) was launched to set up incubation centres and network of technology centres to to promote startups for innovation in agro-industry.
Pradhan Mantri MUDRA Yojana- It aims to develop micro units and helps in refinancing micro finance institutions.
Institutional support- National Industrial Entrepreneurship Development Centre, National Entrepreneurial and Small Business Development Institute etc., provide guidance, training, and facilities to the entrepreneurs.
National Awards- The government has established National Entrepreneur Awards of India to promote entrepreneurship.

IMF Data- It forecasted India to be the third largest economy in 2027.
So, India must use the opportunity and create a positive impact in entrepreneurship.
G20 Presidency- India holds the presidency of G20 in 2023 with the theme of “One Earth One Family One Future”.
India led the G20’s Startup engagement group which focuses on the policy recommendations on entrepreneurship and innovation.

References