Entrepreneurship Development in India

A self-made individual who takes financial risks in setting up a business for profit is called an
entrepreneur. Today, amidst a struggling economy, India has witnessed many start-up success
stories including Flipkart, OYO, Ola Cabs, BookMyShow, Nykaa, Big Basket, and Swiggy to
name a few. However, all self-employed people cannot call themselves entrepreneurs. The
potential for growth and economic impact is what truly defines an entrepreneurial business.

“Startups have emerged as engines of growth for our economy. Entrepreneurship has always
been the strength of India. Even today, young men and women have given up greener pastures
elsewhere to contribute to India’s growth. They are risk-taking and come up with disruptive
solutions to festering challenges…We recognise the knowledge, skills and risk-taking
capabilities of our youth. He is no longer the job seeker. He is (a) creator of jobs. Now we wish
to create more opportunities and remove road-blocks from his path.”

  • Nirmala Sitharaman, Finance Minister of India

In recent years, entrepreneurs have faced countless obstacles in the business environment.
Extreme harassment from tax officers was an issue that was addressed in the budget. “Our
government would like to reassure taxpayers that we remain committed to taking measures so
that our citizens are free from harassment of any kind,” – Nirmala Sitharaman

The government is now determined to empower Indian society, digitally. Introducing
investments, technology, employment and seed funding for ideation and development progress.
Crucial moves were also made to defer tax payment on employee stock option plan (ESOP) by
five years. This is the best way to entice young start-ups to retain their talented employees
during the initial years of business. Now taking more risks when performing on a large scale is

Objectives of Entrepreneurship

• Help reduce the unemployment problem
• Surmount stagnation issues
• Boost competition and growth of the business

Challenges of Entrepreneurship Development in India

Capital: India’s per capita income is extremely low when compared to other countries. One of
the biggest reasons for this is the investment of capital in unproductive avenues.

Technical and vocational education: The youth has limited access to technical and vocational
institutions. The general education received in schools is not enough to encourage

Motivation Centres: The few training centres that exist are mainly in urban areas.

Low Spirit: On average, children are told to chase high-income jobs to secure their future. This
leads to a minimal desire to be an entrepreneur.
Competition: Many large businesses have a good stake in the domestic and international
market. This is a major obstacle for entrepreneurs. In the public sector, the government gives
incentives to public enterprises.

Corruption: Red tape, delays and ineffective government bodies slows down entrepreneurship,
across the country.

Backward Thinking: A lack of trust in creative ideas has led to hesitation and non-progressive
ideology spreading.

High taxes
Complex Legal Formalities
Competition from Multinational Corporations
Lack of adaptable environment

Education for Entrepreneurs

Despite the challenges, entrepreneurs decide to take the leap and risk everything to make it big.
There are several markets to enter. Studying at a good entrepreneurship development institute
is the first step in understanding the complex world of entrepreneurs. FORE School of
Management, New Delhi offers an entrepreneurship development MDP programme that delves
into the understanding of different markets. Local markets, street markets, shopping centres
and malls are physical retail outlets. Virtual markets online are another option. Intermediate
goods markets have products that are further utilised in other services or goods. Another type
is the prediction market, which manages accurate predictions of research of development

The Indian Budget 2020 holds a promise for all those who wish to take risks as entrepreneurs.
Creating jobs and empowering the economy is the priority for years to come. To be a part of
the entrepreneurial development of the country is a bold step. One that must be taken by the
sharpest of minds, as they offer a chance at a brighter tomorrow.

For more information: https://www.fsm.ac.in/