Profile of India’s Entrepreneurship

In economically developing nations like India, entrepreneurship is influencing the atmosphere and freedom of commerce. India's economy is rapidly growing, with high rates of urbanization, a business-friendly climate, and urbanization. There is a growing middle class in urban areas with strong purchasing power, dynamic stock markets, stable democracies, and a young labor force, making it a corporate destination right now. India now boasts a large consumer base, a thriving economy, and a young labor force, all of which contribute to a favorable business environment. Foreign investors are attracted to India by the above virtues and the government’s input of building the nation’s image globally. India strives to be an entrepreneurship hub and thus entrepreneurs are increasingly venturing its corridors of industrialization enhancing not only business. This paper aims to review the entrepreneurial profile of India as mirrors in the Global Entrepreneurship Monitor Report for 2016/2017.

India’s Economic and Entrepreneurship Background

Over the recent past, the Indian economy has improved significantly with her Gross Domestic Product (GDP) approaching 10%. The ease of starting and doing business in India has improved in the World Bank Ratings which placed India at position 134 out 189 countries worldwide. Improvements have been made to boost entrepreneurship. Huge talent pool, emergence of the middle class and cost competitiveness has encouraged business growth furthermore attracting more investors. The growth in India is multifaceted with growth being experienced almost in all her sectors of the economy. This has enabled the country to develop her buildings and infrastructure improving the businesses environment. Growth in services such as water supply, electricity connection, gas supply and other housing utilities are on the rise at over 10%. The services delivery and expansion in hotels, trades, communication infrastructures and transport services are insightful for development. The manufacturing industries have expanded by over 5% this entails the mining sector with about 3% and the construction sector to like 2% growth (Slavica, Amorós, and Arreola 2014).

The successful growth projections makes India compare to the economies such as that of China, Brazil, South Africa and Russia. Just like China, India is fast growing with its economy outperforming some recent past expectations. The per capita in terms of the Gross National Income (GNI) has improved however the country still hung as a middle income economy. The projection, however, by the World Bank places the country as an upper middle income economy in next 20 years. By then, if India continues with such growth rate, it is projected to match the current Chinese economy (Schwab and Sala-i-Martín 2014). India’s economy is factor-driven as such is the growing need for public and social infrastructure and institutions that are enabling factors for the business growth and entrepreneurship. The social drivers of the economy ensure that every individual is able to access education and health facilities (Saraf and Banerjee 2013).

Discussion of Rationality and Justification of Measures Adopted

The economic growth in India is fast as such businesses and investors see an opportunity investing and gaining from the robust Indian market. To start a business, for instance, is easier than before with a reduction in the registration days and the digital applications being used in tax registration. The country enjoys a good relationship with nations in the BRICS grouping enabling partnership in terms of trade and investor recommendations. The network has opened up the Indian market and business opportunities to even a wide global spectrum. As such India can supply its products to the markets all over the world .Growth of entrepreneurship have helped the country improve on the people’s standards of living and thus is able to sustain its high population. Multinationals in India operate differently with the established corporate hubs present in the country which offer special zones with models enabling business growth.

India is keen to compete favorably with China in gaining control over the investments and trade worldwide. Indian is preferred for its remarkable service delivery and thus many firms prefer to contract Indians to undertake services on their behalf. The median age of working Indians is 29 implying that majority of the working population entails young people. Their input is energetic and crucial in the attainment of development and prosperity (Shukla, and Awasthi 2012). The democratic governance in India is a prime driver of entrepreneurship. The country still enjoys her strengths in the ideals and fundamentals that are intact. The expanded consumer base and stronger institutions have made new businesses flourish in India.

The development of entrepreneurship in India has been robust with the country keen on improvement of living standard among its low class citizens, wealth creation and establishing employment opportunities for its citizens. This has been crucial in shaping the country’s economic destiny providing the much needed services and earning revenues for the government. Growth in Indian economy is primarily linked to entrepreneurship which is promoted throughout the country. The working majority in India forms a crucial part of entrepreneurs who drive the country’s economy. Engaging with the youths for instance is crucial in the development and enhancement of their entrepreneurial skills. The government is keen on establishing programs and developing policies that enhance innovation and capacity empowerment. Technological and scientific enhancement is crucial in the government’s agenda and promoting business development. Indian must enhance her innovative techniques and ensure that entrepreneurship grows.

The dynamism in the Indian market is set to strengthen with the establishment of business incubation centers and presence of angel investors. Venture capitalists have been instrumental in the development of the business ecosystem as they have enhanced funding. Government sponsorship on the incubators has played significant input to innovation and entrepreneurship. The institutions ought to enhance the development of more entrepreneurs instead of producing more job seekers on quest for white collar jobs. Ensuring that they youths create their own business which expand the employment opportunities as such ensuring that the unemployment rates reduce. The social values, individual attributes and indicators of entrepreneurship are crucial in the business development in India.

Critical Analysis of Findings

India provides an enabling environment for doing business by cultivating values in business related activities and creating positive attitudes. Empowering entrepreneurs is crucial in their development and success. India has an enabling culture that is important in ensuring that business activities thrive and more revenues generated as a result. The ecosystem of doing business being value oriented and optimistic for entrepreneurs promotes investments attracting even foreign funding. Indian government has put in place policies that value the cultural makeup and value chain of the country. Establishing favorable grounds for business and ensuring that an attitude that is favorable to business is enhanced is crucial for the development of entrepreneurship (Kwon and Arenius 2010).These societal values can be seen in the way individual entrepreneurs prefer starting a new kind of venture they deem befits their needs and satisfaction. When such people progress and become successful, they gain a social status of esteem in their society and become respected. The media also plays a crucial role in painting success in entrepreneurship and highlighting successful entrepreneurs as such enhancing the business like culture.

The Indian adults have in particular shown a positive response towards entrepreneurship and see it as an attractive and worthy career. The consideration of entrepreneurship as a career of high stakes has influenced majority of the youths to venture into it. 49% of the adult population considers entrepreneurship as a career desirable and respectful. Media attention to entrepreneurship has improved which is positive to business development. Younger adults are now seeing business as a worthwhile undertaking which is important in societal economic progress than before, though much still needs to be done to encourage the youth to venture into businesses. Most youth still take courses that will secure them employment in Government sectors, large private sector and multinational corporations rather than those that will enable them open their own businesses. Entrepreneurship being in India factor-driven has influenced its development and individuals participating in it. Being a career driven initiative, majority prefer taking after their family members into business thus train early and as such further their families; businesses. Appreciating the entrepreneurs are crucial in fostering their activities and encouraging others to take part in it (Klapper, & Parker 2010).

Social Attributes towards Entrepreneurship in India

The social and gender values of the Indian people have played a significant role in entrepreneurship as distinctive perceptions exists between the females and the males. There are more men than women in India who show a more positive approach towards entrepreneurship. The societal and cultural perspective in India essentially accepts entrepreneurship as such gender disparities doesn’t play a significant role in influencing businesses. Women though not much active in business provide support and motivation to their male fellows. Indian heterogeneity is different from other countries in the region. It has a big population with diverse cultural and physical patterns. The distinct features of such individuals include their rituals, creeds and customs which in a way affect their ways of doing business. The factors of diversity are crucial in the development of different aspects of entrepreneurship. The influence of such factors may be responsible for the distinctive formation of businesses. A significant difference is visible in the different regions of the country. The west for instance have 69% of its adults supporting entrepreneurship while in south about 89% supports it. More media attention has been given to entrepreneurship also in the South.

Individual Attributes towards Entrepreneurship in India

Some of the attributes that can be factors include the intentions of the entrepreneur, fear of failure, perception of individual capabilities and even on opportunities. With regard to the factor-driven kind of economies, individuals outline varied attributes with regards to entrepreneurship. Different individuals have distinctive perceived opportunities with regards to the ease of doing business. Whereas some believe that individuals should have background knowledge, experience and skills in order to do business, others are keen on their phobia of failing. The intentions of forming businesses are crucial in their inception and require support for their ideas. The business ideas of individuals vary across the board encouraging diverse thinking and more opportunities. The threats and opportunities in different localities influence the success of entrepreneurship.

To develop an entrepreneurial idea it is crucial to have the overall idea, skills and funding. Understanding the surrounding environment is vital for entrepreneur to identify and understand the surrounding requirements for success. Aspects of flexibility, risk and independence are essential in ensuring that the abilities are categorized in form of innovative kind of thinking, sound judgment and the recognizing of opportunities. Capital is crucial for business and can be raised independently or with support from the government. India has proven to be fast developing economy with entrepreneurship being the driver. An innovative way of thinking is crucial for entrepreneurs to maneuver over their challenges and become successful in their undertakings (Tang, Kacmar, and Busenitz 2012).

Individual’s belief and perception ought to be enlightened. Perceptions of the people are crucial shaping the choices being made in an economy. India’s continued growth has been instrumental in supporting young entrepreneurs and ensuring that technology is embraced by enhancing innovative learning. Identifying opportunities is crucial for venture entrepreneurs who are keen on entrepreneurship. This alertness is crucial for business and ensures that nothing is left to chance. The intentions of majority of the entrepreneurs provide a prime prediction for the future of their business behavior (Kureger et al., 2000).

Current Status of Entrepreneurial Activity in India

India is developing at a high rate with entrepreneurship being at top gear. India is on a right path and if her projection works as planned, it will be a top economic hub in the near future. India is attractive to entrepreneurs as the country’s policies of governance make it easier to trade and do business. The mergence or corporate hubs in the country like Special Economic Zones (SEZ) has resulted in paradigm shift in business models. New businesses see it as an ideal place for entrepreneurship and investment. Manufacturing companies have expanded their industries to cater for the growing needs of the middle class population. India socio-economic factors are promoting to the entrepreneurs who are keen on earning and gaining a societal status. The majority of the working class being young essentially is crucial for future development and sustainability. Entrepreneurs are their own creation as such innovation and skills are based on their input (Baron, 2007)

To be at par, more needs to be done through empowerment and institutions being proactive fore-runners in the formulation of careers which are more pro-entrepreneurship. The good perception of business among both males and females is crucial societal factor that makes entrepreneurship tenable. It is vital that entrepreneurship is cushioned well so as to keep its reputation as a worthy career and not bring shame to individuals in case of failures. This way in case business fails the affected person is able to be compensated and hence they can move on with their livelihood. Entrepreneurship creates employment for the economy which helps the country fight unemployment crisis. If more people are encouraged to establish businesses, more people are able to get jobs and as such the individual’s livelihood get improved and their living standards get uplifted. This can be done by the government of the day providing incentives and friendly packages for entrepreneurs. Training also helps sharpen their skills and as such be able to deal with the business associated risks well (Bosma 2011).

In conclusion India continues as a fast growing economy whose mandate is primarily enabled by way of entrepreneurship. The Global Entrepreneurship Monitor is crucial in creating a comprehensive report on India and how it cooperates with her fellow BRIC counterparts. The report compares different aspects of entrepreneurship that exist among the different nations of the world. India is a visionary country with a supportive leadership which is keen on improving the livelihood of individuals and their living standards. Entrepreneurship is instrumental in fighting poverty and ensuring that individuals gain equal shares of opportunities and access to socio-economic amenities.

5.0 Appendix

Figure 1: Gross Domestic Product Growth of India (2012-2017)

7.0 References

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Klapper, L.F. and Parker, S.C., 2010. Gender and the business environment for new firm creation. The World Bank Research Observer, 26(2), pp.237-257.

Kwon, S.W. and Arenius, P., 2010. Nations of entrepreneurs: A social capital perspective. Journal of Business Venturing, 25(3), pp.315-330.

Shukla, S., Tanuku, K., Bharti, P. and Dwivedi, A., 2016. Global Entrepreneurship Monitor 2014: India Report.

Schwab, K., 2010, September. The global competitiveness report 2010-2011. Geneva: World Economic Forum.

Slavica S., Amorós, J.E. and Arreola D.M. (2014). Global entrepreneurship monitor 2014 global report. London: Global Entrepreneurship Research Association.

Shukla, S. and Awasthi, D.N. (2012). Gen Y and entrepreneurship: the enablers, the killers and the eco-system.InS.Shukla (Ed.),Perfect professional: enabling managers to make a difference.

Tang, J., Kacmar, K. M., and Busenitz, L. W. (2012). Alertness in the pursuit of new opportunities. Journal of Business Venturing, vol. 27, no. 1, pp. 77–94.