Paper On Significance of Entrepreneurship
Paper On Significance of Entrepreneurship
And
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Abstract
play a crucial role not only in the development of industrial sector of a country but also in the
economic development varies from the economy of country to country. The vital role played
by the entrepreneurs in the evolution of developed countries has made the people of
development. Countries that are developing currently have begun to perceive that for
entrepreneurship will definitely result in positive impact on economy. As the Indian economy
needs development in the area of entrepreneurship which will lead to overall development of
the country, this paper investigates the present attitude of Indian youth towards new business
creation and entrepreneurship. Thus the basic purpose of the paper is to examine the
regarding the attitude of youth towards entrepreneurship and risk taking has been collected
and analysed. Furthermore, the analysis shows the reasons for the consent or the denial of
Keywords
Introduction
Entrepreneurship seems to be the arch word for current generation. There has been a great
increase in the number of people taking risk of initiating a business idea of their own. Over
the years there has been a rise in young Indians overcoming their phobia of failure and
stepping up into the tricky world of start-ups. With the IT industry’s rise sweeping India,
starting up something of your own has not been that challenging any more. Also energizing
stories of other entrepreneurs around the world like Bill Gates, Steve Jobs and Jeff Bezos
have been providing the required spirit for the fresh minds of our country. Success stories of
start-ups like Infosys, Flipkart and Snapdeal from the prior years have been motivating for
the young generation to believe in their own ideas and smart work towards turning them into
reality.
Originally establishing in big cities like Mumbai and Bangalore, the trend of entrepreneurship
is slowly moving towards tier 2 cities though the main reason for the revolution still located
in these cities. Bangalore which is known as the Silicon Valley of India, particularly boasts of
being the only Indian city among the “Top 20 Entrepreneurial Hot Spots around the Globe”
in accordance with a data released by the financial-software firm Intuit in 2013. It found a
place on the 19th spot in the list with Silicon Valley leading the list. In the past few years,
electronic business is acting as a crucial area for entrepreneurship in India with Flipkart,
Snapdeal, Zomato, bookmyshow etc becoming the top companies in the field within a few
With regard to the statistics, if we look at the data released by NASSCOM it becomes even
transparent that the start-up ecosystem in India is becoming more and more victorious over
time. In accordance to the data published, India has become the 4th largest community in
terms of the number of technical products or digital start-ups in the world with about 3100
start-ups and is hence seen as the fastest emerging community. Observing the growth from
2010 to 2014 it can be seen that there has been a stable year on year increment of 14% in the
revenues generated by the start-ups in India. The key area of most of the start-ups in India has
been on the Business to customer market with 59% of the newly launched firms opting for it.
37% of the start-ups opt for B2B market whereas only 4% opt for both B2B and B2C
markets.
Start ups cannot operate in a vacuum; they need a supporting eco-system to cherish them.
Taking a gander at the profile of the start-up originators in India we locate that 53% of the
entrepreneurs fall under the age group of 26 to 35 years, 22% out of 36-45 years age section,
20% in underneath 25 years age group and 5% of these business visionaries fall in the class
of more than 45 years old. It can be watched that 73% of the aggregate new companies are
begun by individuals under 35 years old. This demonstrates the risks taking capacities of the
young people in the nation and furthermore the want for them to begin something of their
own.
A great extent of investing firms has demonstrated enthusiasm for making investments in
India. India, in the primary quarter of 2015, had seen 67% more investment transactions than
China as far as total volume. Sequoia Capital, the most dynamic funding firm of this quarter
in the Asia Pacific locale has made 13 of its 32 investments in India. Another worldwide
Aside from the well developing service sector there have been significant activities taken by
the legislature with respect to enhancing the entrepreneurial situation in the manufacturing
sector of the nation. Propelled on 25th September 2014 by the honourable Prime Minister of
India, Mr. Narendra Modi the Make in India activity was begun to encourage Indian
organizations to make their goods in India instead of outsourcing them. This activity is relied
upon to build the quantity of individuals starting their own particular firms in the
manufacturing segment in this way helping the twin reason for entrepreneurship and
improving the slacking manufacturing segment in the nation. This activity likewise desires
There has been a marvellous ascent found in the number of new businesses in India and the
significant explanation behind that is the adjustment in outlook and mentality of the general
population to have something of their own rather than buckling down for the objectives set by
others. The future looks far superior with an ever increasing number of individuals turning
out to introduce their plans to financial specialists and an ever increasing number of investors
looking for thoughts that are unique and that may bear some significance among the general
population.
Union budget 2018
In the Union Budget 2018 the promise of "additional measures" to strengthen existing
investment and taxation rules offers little aid to start-ups with angel tax still emerging large.
Furthermore, no extension has been made to the tax exemption period for start-ups. By
making the tax structures simple and easing of procedures to decrease regulatory load was a
common challenge among start-ups this year, but the Budget has failed to satisfy their
demands for that in this fiscal year. Clarity on what constitutes an 'innovative' start-up
remains under vague in the Budget proposals, as does the process of tapping funds
from Government's massive 'Fund of Funds' program. However, the industry seems to be
inviting the move to allocate funds to boost the adoption of new technologies like Artificial
Intelligence in India. Finance Minister of India Arun Jaitley has announced a massive
budgetary allocation for the Department of Science and Technology (DST). "To boost
research, training and skilling in new technologies, the DST will launch a mission on cyber
space to support the establishment of centre of excellence," he had said. "(To this end) I have
doubled the allocation on the Digital India program to Rs 3,073 crore in 2018-19," he had
added. The measures announced for the MSME sector will give a toss to one of the biggest
job creation engines in India. Moreover, the steps like credit support for MSMEs etc can
benefit early-stage start-ups which are outside the traditional business net as well. While the
allocation to Digital India has increased, there could have been a more importance given to
encourage the country's entrepreneurs as well. Furthermore, start-up sector could have also
benefited from dissolution of the angel tax and further expanding the tax holiday period.
Tendency of present youth towards Entrepreneurship in India survey
The survey on the Tendency of present youth towards entrepreneurship in India is conducted
to know the mindset of the students about entrepreneurship. The participants of the survey
were asked to fill out an online survey and the total received responses are from the 172
students, most of them are in the age group of 18 to 25. Questions are asked to withdraw the
major aspects that depict the views of the students towards entrepreneurship. One of the
principal aims of this project is to know the attitude of present youth in relation to risk taking
To study the percentage of youth who are interested in entrepreneurship and who
To analyze the constraints that impedes and prospects that motivates the young people
To know the aspects which are challenging to run an enterprise by the youth.
The study is based on an exploratory research of 172 young people in India. For undertaking
the survey, a structured questionnaire was prepared which covered different issues relating to
reasons for not choosing entrepreneurship, problems faced by the entrepreneurs from their
individual perspective. Secondary data, i.e., through websites, books and journals were also
India have high rate of youth percentage. As per an UN report 2014, world's biggest youth
populace with 356 million (10 years to 24 years of age) is in India. The 2011 census
demonstrates that around 41% of populace of India is underneath the age of 20 years, half of
populace is in the 20-59 age categories and remaining 9 % is over the age of 60. While in the
meantime, just 32 % of the nation's youth (15-24 years) populace is employed yet (World
Development Indicator, World Bank Data 2014), which is likewise far underneath than the
41% worldwide average. Then again, According to NSSO (National Sample Survey
Organization) figures at each level of education, the joblessness rate is higher among the 15
year to 29 year categories in contrasted with the broader populace all in all. The yearly
populace development rate of India is 1.2% (World Bank information, 2015) and a report
from the United Nations Development Program (UNDP) discharged in April 2016
demonstrated that India will confront a serious challenge of finding occupations for a
When we see the major reasons for unemployment we will discover the absence of
development of industrialization, regularity of agriculture and allied sectors at the top. The
rate of joblessness has become speedier for individuals with practically no education than for
those with some education. The Government has not been able to give enough openings for
work to all the jobless and in the meantime the unemployed youth populace has been
expanding step by step. By all means, rate of unemployment is higher in rural than urban
territories and the rate of female unemployment surpassed the rate of male unemployment.
In scenarios like this, there is solid requirement for entrepreneurship in our nation. India
needs work producers rather than work seekers. Instead of searching for occupations youth
can endeavour to discover new open doors where they can begin their own undertakings
originating from their new thoughts. This could be a plausible answer for our unemployment
issue by making work for own self as well as other people. Entrepreneur is a person who
works together all assets, steps up with regards to begin something new, takes risks, gives
work to numerous and fills the gaps (gives answer for individuals' issues in the form of
services and goods) to make lives less demanding. In the event when we see the huge picture
then we find that business visionaries can help a nation from various perspectives. It causes a
nation
1. To decrease its joblessness rate (through independent work and giving work to
others).
developments),
3. One single entrepreneurial unit, impacts such a significant number of lives and offices
indirectly.
5. Foreign cash flows to the economy through fares (directly) and so on.
already discussed in India a larger piece of populace is youth and they have potential for
statistic profit, which happens when the extent of working individuals in the whole populace
is more than the rest. It means that more nationals can possibly work, be gainful and
contribute for the countries' financial improvement. When more youngsters progress toward
becoming business visionaries, at that point the issue of unemployment can be lessened to a
huge degree.
Importance in youth entrepreneurship has been elevated due to high levels of unemployment
amongst young people and as a way to cherish employment opportunities or to address social
highly educated young people in areas such as information technology, biotechnology and
Blooming Entrepreneurship has obtained more significance in recent years in many countries
field in academic and policy debates, two principle factors represent its developing
consideration in developed nations. The first is the expanded number of jobless youngsters
contrasted with the rest of the population; the second is the requirement for more prominent
competitiveness, and the accompanying pressures for skill improvement and entrepreneurship
unemployment is associated with: firstly, the troublesome progress from school to work;
the successive job changes by youngsters trying to locate a satisfactory job. In spite of the
(Greene, 2005) that youngsters feel that working for themselves as a profession alternative
since it offers them an intriguing job, flexibility and independence which other working
atmosphere might not give. So these are the main reasons that majority of the participants of
Source: From my Survey - The tendency of present youth towards Entrepreneurship in India
Through the sample survey it was found that 79% of the respondent chose to become
entrepreneurs, 19% chose that they are not sure about it and only 3% chose that they do not
prefer entrepreneurship as their career option. This is a positive sign which shows that the
young minds are aspiring to become entrepreneurs. This also needs proper guidance, support
Numerous individuals opt for entrepreneurship as their profession because of various reasons.
Some dig into the business since they would need to maintain their own particular business,
offering an explanation to nobody and setting every one of the principles and conventions
without anyone else. Others hop into enterprise since they have seen that most successful
individuals on the planet claim an effective business. There are likewise others that make
entrepreneurship as a second optional career because of the fact that their present occupations
Source: From my Survey - The tendency of present youth towards Entrepreneurship in India
From the sample research it was found that nearly 24% of the respondents chose
entrepreneurship because of their passion for entrepreneurship and high ambition, 25% to
provide employment for others, 17% chose entrepreneurship only to become rich and 48% of
the respondents chose for all the above mentioned reasons. Some of the other respondents
According to the opinions of the respondents from the sample research it was found that
nearly 57% of the respondents says that their major concern for not choosing
entrepreneurship is because of lack of Financial and family support, 30% opine because it is
risky, 20% says because of the reasons that it may lead to job insecurity and only 9% thought
Source: From my Survey - The tendency of present youth towards Entrepreneurship in India
Figure 1: Students opinion regarding Opportunities for new entrepreneurs in comparison with other
countries
Source: From my Survey - The tendency of present youth towards Entrepreneurship in India
When the students are asked for their opinion regarding the Opportunities for new
entrepreneurs in comparison with other countries, as the figure 1 shows 22% of the students
strongly agreed for the statement and 18% strongly disagreed and 23% of them are neutral to
the statement.
From the survey it was found that 50% of the total participants chosen the option that
entrepreneurship should be made as one of the academic subject, 48% opted that there should
be given more awareness among young people regarding this, and 46% among the total
members choose that entrepreneurship should be made as one of the academic subject. In the
opinion of some others they said that there should be investment habits and money making
games for school children. As the interest of individuals plays a key role some suggest that
there should be media which make students coherent and make them attracted towards the
When the students are asked if they would like to collaborate with their friends or would they
start their enterprise individually, out of the total members 59% of the members chose that
they would like to start in collaboration with friends or partners, 45% of the participants
chose to start individually. When they are asked why the youth are not choosing
entrepreneurship according to their opinion 37% of them said because of the lack of financial
and family support, 33% chose the reason that youth are not interested to take risk and 17%
chose because of lack of knowledge. When the survey asked to give their opinion if more
new entrepreneurs are required in India to boost up Indian economy, 86% of them said
positively, only 5% said that they are not required and the rest said that they are not sure
about it. When the members were asked if they agree that Indian youngsters have capacity to
succeed in entrepreneurship only 26% of the total participants agreed totally, 14% are neutral
and 27% of them totally disagreed. This shows that Indian youth are still in lack of self
confidence about their ability. Out of total members 79% of the respondents agreed that
Entrepreneurship would abolish unemployment and only 6% disagreed and the rest of them
are not sure about it. Among the total participants of the survey 93% of them chose that hard
work and proper planning is the main reason for the success of the entrepreneurship and only
15% chose that luck is the main reason. 43% of the survey participants agreed that Indian
Government is encouraging entrepreneurship and 22% of then disagreed for that and the rest
are not sure about that. 66% of the participants chose that lack of moral support from society
and the family is the major challenge for the women entrepreneurs, 34% chose that lack of
safety and security is the major challenge. When the members of the survey are asked to give
their opinion regarding the major challenges for the new entrepreneurs in India, 58% of them
chose Lack of financial support is the major challenge, 46% said that market competition is
Conclusion
India provides a thriving platform for entrepreneurship culture. India is the fifth largest
country in the world on the basis of growing number of start-ups counting over 4200. The
the growth process by influencing macroeconomic variables through micro ventures. The
entrepreneurs also have the capability of creating a spark to transform the economy which is
required for an emerging economy like India. This survey and further research aims at
eliciting the thoughts of present youth towards entrepreneurship and their preferences at the
entry level in to entrepreneurship. The overall study shows us that Indian youth hasn’t
ought to be required in this present scenario. Research findings suggest more and more new
entrepreneurs to be evolved from Indian youth by improving their notions about the
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