A PROJECT REPORT ON

ENTREPRENEURSHIP DEVELOPMENT IN
INDIA FROM YOUTH'S PERSPECTIVE

A PROJECT SUBMITTED TO
THE UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE DEGREE OF
BACHELOR OF MANAGEMENT STUDIES UNDER THE FACULTY OF COMMERCE

BY

ADITYA VIKRAM SINGH

UNDER THE GUIDANCE OF

ASST. PROF. VANDANA MATHUR

THAKUR SHYAMNARAYAN DEGREE COLLEGE

90 FEET RD, KANDIVALI, THAKUR COMPLEX, KANDIVALI EAST, MUMBAI,
MAHARASHTRA 400101

MARCH 2022

1
 A PROJECT REPORT ON

ENTREPRENEURSHIP DEVELOPMENT IN
INDIA FROM YOUTH'S PERSPECTIVE

A PROJECT SUBMITTED TO
THE UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE DEGREE OF
BACHELOR OF MANAGEMENT STUDIES UNDER THE FACULTY OF COMMERCE

BY

ADITYA VIKRAM SINGH

UNDER THE GUIDANCE OF

ASST. PROF. VANDANA MATHUR

THAKUR SHYAMNARAYAN DEGREE COLLEGE

90 FEET RD, KANDIVALI, THAKUR COMPLEX, KANDIVALI EAST, MUMBAI,
MAHARASHTRA 400101

MARCH 2022

2
 Certificate
This is to certify that Mr. ADITYA VIKRAM SINGH has worked
and duly completed his Project Work for the degree of Bachelor of Management Studies
under the Faculty of Commerce in the subject of Marketing Management and his project is
entitled, “ENTREPRENEURSHIP DEVELOPMENT IN INDIA FROM YOUTH’S
PERSPECTIVE” under my supervision.
I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any Degree or Diploma of any
University.
It is his own work and facts reported by her/his personal findings and investigations.

Project Guide/Internal Examiner

(Asst. Prof. Vandana Mathur) External Examiner

PRINCIPAL
DR. SHARAD PHULARI College Seal
3
 Declaration by learner

I the undersigned Mr. ADITYA VIKRAM SINGH here by, declare that the work embodied
in this project work titled “ENTREPRENEURSHIP DEVELOPMENT IN INDIA FROM
YOUTH’S PERSPECTIVE”, forms my own contribution to the research work carried out
under the guidance of Asst. Prof. Vandana Mathur is a result of my own research work and
has
not been previously submitted to any other University for any other Degree/ Diploma
to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Name and Signature of the learner

Certified by
Name and signature of the Guiding Teacher
4
 Acknowledgment
To list who all have helped me is difficult because they are so numerous and the depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this project.

I would like to thank my Principal, DR. SHARAD PHULARI for providing the necessary facilities required
for completion of this project.

I take this opportunity to thank our Coordinator ASST. PROF. SONI SINGH, for her moral support and
guidance.

I would also like to express my sincere gratitude towards my project guide

Asst. Prof. Vandana Mathur whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and magazines
related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the completion of
the project especially my Parents and Peers who supported me throughout my project.

5
 INDEX

Sr. No Topic Pg. No

Chapter 1: Introduction
1.1 Introduction 9
1.2 Concept of Entrepreneurship 10
1.3 Meaning and definition of an entrepreneur 11
1.4 Evolution of the Concept of Entrepreneur 12
1.5 Classification of Entrepreneur 14
1.6 Factor Affecting Entrepreneurial Growth 18
1.7 Entrepreneur and Entrepreneurship 21
1.8 Distinguish Between the Terms Entrepreneur And Entrepreneurship 22
1.9 Approaches to entrepreneurship 23
1.10 Objectives / Importance of Entrepreneurship Development 27
1.11 Need of entrepreneurship development 28
1.12 Pre-requisites for Entrepreneurship Development 29
1.13 Role of Entrepreneurs in the Economic Development 31
1.14 The Entrepreneurial Mindset and Personality 34
1.15 The Entrepreneurial journey 37
1.16 The Entrepreneurial Motivations 39
1.17 Entrepreneurship in India, A Historical Perspective 41
1.18 Growth of entrepreneurship in India 43
1.19 Entrepreneurship in India Compared with Other Fast-Growing Economies like 44
China and Brazil
1.20 Growth of Service Sector 45
1.21 Promoting Entrepreneurship and Entrepreneurship Training in India 46
1.22 Opportunities and Challenges 47
1.23 Challenges faced by Indian entrepreneurs before starting up 48
1.24 Youth – The Backbone of a Nation 50
1.25 Government of India support for innovation and entrepreneurship in India 51
1.26 India and its Youth Population: A Beacon of Hope or an Issue of Concern 52
1.27 Youth and Entrepreneurship 54
1.28 Role of Youth Entrepreneurship 55
1.29 Challenges for Youth Entrepreneurs 58
1.30 Implications for the Indian Economy 61
1.31 India’s efforts at promoting entrepreneurship and innovation 63

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 Chapter 2: Research Methodology
2.1 Introduction 67
2.2 Objective of Study 68
2.3 Sample Size 69
2.4 Sample Unit 69
2.5 Data collection Method 70
Chapter 3: Literature Review
3.1 Review of Literature 71
Chapter 4: Data analysis and interpretation
4.1 Analysis of data and it’s interpretation 72
Chapter 5: Conclusion and Suggestions
5.1 Conclusion 80
5.2 Suggestions 81
Chapter 6: Bibliography
6.1 Reference 82
Chapter 7: APPENDIX
7.1 Questionnaires 86

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Abstract - Entrepreneurship plays a significant role in the economic development of any country.
Entrepreneurship acts as a pillar for the economic growth of a nation as it leads to generation of employment,
increase in national income, rural development, industrialization, technological development, Infrastructural
development, imports & export promotion, etc.In the recent times it's become an ultimate tool to tackle most
the economic problems. The ever increasing population and lack of job opportunities in India makes it even
more pivotal when coming to Indian population. However, as outlined by many researchers the efforts
dedicated to review entrepreneurship in Indian domain has remained very less and unfortunately the amount
comes almost to negligible when talking of studying the topic from youth point of view. Entrepreneurship is
the act of starting a new career by taking all the associated risks together bonds. It is just a matter of building
a new business to include all the necessary functions to which is done to ensure it's continued survival. In
recent times it has become the last tool to deal with almost all economic problems. Entrepreneurial role in
arts development, economic growth, employment, individual recognition and thus ensuring economic
nutrition have made it more important and more reliable solution in the hands of strategists to achieve the
results you want. A population that is constantly growing and fall in the number of job opportunities
available in India makes it very important when it comes to the people of India. For young people, it has
become another way to satisfy their job needs and earn them respect and recognition . Given the state of
India's developing economy, there is a great need to emerge because it'll not only help to combat the
problems of unemployment and declining growth rates but it will also help the economy to strengthen its
position against developed economies. However, as explained by many researchers the efforts devoted for
studying entrepreneurship in the Indian subcontinent are always very small and unfortunately the value is
almost negligible when it comes to learning this lesson from a young perspective. This research paper tries to
close this gap by understanding it from a youth perspective. The research aims to build understanding of
youth entrepreneurship, its nature, roles and implications for the Indian economy. The study also throws a
light on the challenges faced by the young entrepreneurs and steps that ought to be undertaken to tackle these
challenges efficiently and encourage young individuals to start their ventures.

Key Words - Entrepreneurship, Income, Unemployment, Young Entrepreneurs, Economic Development

8
Chapter 1 - Introduction

1.1 Introduction
Entrepreneurs shape economic destiny of countries by creating wealth and employment, offering products
and services and generating taxes for state due to which entrepreneurship has closely been linked to
economic growth of a country. Entrepreneurs convert ideas into economic opportunities through innovations
which are considered to be major source of competitiveness in an increasingly globalizing world economy.
Entrepreneurship acts as a catalyst for the economic prosperity of a nation because it results in generation of
employment, increase in national income, rural development, industrialization, technological development,
Infrastructural development, imports & export promotion, etc. In India, the government has taken various
initiatives for entrepreneurship development within the country. An entrepreneurship both as a career choice
and an economic developer has emerged as a solid tool for boosting self-esteem and economic self-
development. Young people view entrepreneurship as a viable option where job opportunities fail to meet the
needs and expectations of young and prosperous youth. It spreads the desire for success, independence and
progress between people. It raises awareness as entrepreneurs may come up with ideas and opportunities that
have never been tested and used traditionally. Therefore governments are taking every possible step to
strengthen their footing economy. However, literature reveals that young entrepreneurs face a number of
problems that obstruct the growth of entrepreneurship. Entrepreneurship both as a career option and economy
developer has emerged as a robust tool to spice up self-worth and economic empowerment. The process of
entrepreneurship from the day of inception of idea may be a long one having its own share of problems and
challenges. The lack of resources, knowledge, accurate information, legal complications and negative
societal environment makes it more complicated and painful. These problems discourage many young
individuals from taking over the chance because of fear of losing and falling in financial crunch and thus for
this reason it becomes important to comprehend the topic from youth perspective and list all the vulnerable
areas. Therefore, the target of this paper is to first define the concepts and later analyse its role and
implications for the Indian economy. The paper aims to supply suggestions that might help boost youth
entrepreneurship and its impact for India.

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1.2 Concept of Entrepreneurship
There are many meanings of the term 'entrepreneurship‘. After the discussion on all the aspects that are
available, we can conclude entrepreneurship as a system of operating business in which opportunities
existing within the scope of a market are exploited as self-employment necessitates that any available
opportunities within the economic system should be utilized in the creation and functioning of new
organizations. A potential entrepreneur always show the interest to seek out investment opportunities in the
market, so that they can run the enterprise successfully based on the identifiable opportunities available in the
market. Thus, going through all of the above mentioned responsibilities of an entrepreneur we can define it as
a function which covers multiple functions such as:

• Building organizations.

• Providing self-employment

• Utilization of available resources

• New invention is applied to the concept of the novel

• Integrating multiple aspects of productivity in a practical way.

• Identifying and exploiting business opportunities within the existing market.

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1.3 Meaning and definition of an entrepreneur

Entrepreneurs are business people who can sense and detect the availability of business opportunities in any
situation. They will use these opportunities to create new products through new production methods in
different markets. They will also work in different ways using different resources that will give them an
advantage. It is important to note that although many business start-ups are small, the owners of those
businesses do not need to own small businesses. They can actually become big business owners, first trying
to test the water before investing in the business. Small business owners are afraid of risk, but successful
entrepreneurs are innovating and know how to make a profitable business environment, even if the risk is
very high. In fact, innovation is the lifeblood of any type of entrepreneur; this is one of the tools that helps
them to make more profit than the older players in the market. Therefore, entrepreneurs are defined as the
group of people who engage in business activities based on their new ways of solving real word problems.

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1.4 Evolution of the Concept of Entrepreneur -

Early Period:

The first description of the entrepreneur is Marco Polo. He tried to establish a trade route to the Far East. He
used to sign a contract with venture capitalist to sell his property. The capitalist was the one who put the risk.
The traveling merchant took the lead in trading. After his successful sale of goods and the end of his voyage,
profits were shared by the capitalist and merchant.

Middle Ages:

The term entrepreneur was referred to as the person in charge of major projects. He did not take risks but
managed projects using the resources provided. An example of it can be anyone who is in charge of major
building projects such as castles, public buildings, cathedrals etc.

17th century:

An entrepreneur is a person who has entered into a contract with the Government. to perform a service or to
provide certain goods. Profit taken (or loss carried) by the entrepreneur.

18th Century:

It was Richard Cantillon, a French Economist, who used the word entrepreneur for the first time. Some
consider him the originator of the name. He described an entrepreneur as someone who buys factor services
at certain prices with the intention of selling them at a price that is uncertain in the future.

19th century:

Entrepreneurs were not separated from management. They were highly regarded from an economic point of
view. He takes risks, giving up his departure and his skills. He plans, organizes and leads his business.

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20th Century:

At the beginning of the 20th century Dewing equated an entrepreneur with a business promoter and saw a
promoter as a person who transformed ideas into a profitable business. It was Joseph Schumpeter who
described the entrepreneur as a inventor. According to him the entrepreneur is the inventor who develops
experimental technology.

21st Century:

Research Scientists live De Bone has pointed out that it is not always necessary for a person to come up with
a new idea to be called an entrepreneur, but even if he adds value to the current product or service, he can be
called an entrepreneur.

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1.5 Classification of Entrepreneur
Entrepreneurs can be classified in the following ways -

A. Classification on the basis of type of business –

Entrepreneurs are of the following types:

1) Business Entrepreneur:

He is a person who gets the idea to start a business and build a business to give birth to his or her idea.

2) Trading Entrepreneur:

He is an entrepreneur who is engaged in the business of trading, that is, buying and selling manufactured
goods.

3) Industrial Entrepreneur:

He is an entrepreneur engaged in manufacturing activities.

4) Corporate Entrepreneur:

A person who demonstrates his / her creative ability to plan and manage a corporate business activity.

5) Agricultural Entrepreneur:

They are entrepreneurs engaged in agricultural activities such as growing and selling crops, fertilizers and
other important agricultural activities. They are called arbitrageurs.

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B. Classification on the basis of use of technology

Entrepreneurs are of the following types:

1) Technology Entrepreneur:

They are very focused on the job. They're kind of an artist. They create new quality and improved materials
because of their craftsmanship. They are more focused on production than on advertising.

2) Non-Professional Entrepreneur:

These entrepreneurs are not concerned with the technical aspects of the product. They develop marketing
strategies and distribution strategies to grow their business. They therefore focus more on aspects of
marketing.

3) Professional Entrepreneur:

An entrepreneur who starts a business unit but does not continue the business for a long time. He sells a
running business and starts another business.

C. Classification on the basis of motivation

Entrepreneurs are of the following types:

1) Pure Entrepreneur:

They believe in their performance while doing business activities. They do business to gain their satisfaction,
status and self-esteem. They are guided by the motive of the profit.

2) Induced Entrepreneur:

He is induced to start a business with a view of getting government benefits. These benefits are in the form of
assistance, compensation, grants, permits and infrastructure.

15
3) Motivated Entrepreneur:

These entrepreneurs are motivated by the desire to use their technology and professional skills. They are
motivated by a desire for self-satisfaction.

4) Spontaneous Entrepreneur:

They are motivated by their desire to work for themselves and gain or prove their vitality in the work process.
They are Spontaneous entrepreneurs.

D. Classification on the basis of entrepreneurial activity

Entrepreneurs are of the following types:

1) First Generation Entrepreneur:

He is one who starts an industrial unit using his new ideas and skills. He is the founder and is known as a
new entrepreneur.

2) Modern Entrepreneur:

He is an entrepreneur who conducts those businesses that meet the needs of modern market.

3) Classical Businessman:

One who builds a self-sufficient business to meet the needs of customers. They are a stereo or a traditional
businessman.

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E. CLASSIFICATION ON THE BASIS OF ENTREPRENEURIAL ACTIVITY:
They are classified as follows:

1) Novice:

A novice is a person who started his or her first business venture.

2) Serial Entrepreneur:

A serial entrepreneur is a person who is committed to one business at a time but eventually starts many. He
starts businesses over and over again and grows them up to a sustainable level and then sells them.

3) Portfolio Entrepreneurs:

A portfolio entrepreneur starts and manages a number of businesses at once. It could be a risk-taking strategy
or it could be an entrepreneur enjoying a variety of opportunities at the same time.

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1.6 Factor Affecting Entrepreneurial Growth

There are various impediments in the growth of entrepreneurship development, like lack of viable concept,
lack of market familiarity, lack of Technical skill, lack of business knowledge, lack of seed capital, lack of
self-satisfaction, and motivations, social evils, lack of jobs, pressures of time and attention towards other
sides, legal obstacles, monopoly, etc., In India, various efforts have been made, after independence for
entrepreneurship development, both at Government and non-government levels, which includes industrial
policy, commercial policy, Licensing Policy, Globalization, and simplification, etc.,

Following are the key factors affecting entrepreneurship growth in India:

1. Economic Factors:
The economic factors effecting the growth of entrepreneurs in under developed countries are-

i. Non-Availability of Capital:

To expand the business and grow in future research and development has to be conducted. To conduct
research either equipment has to be purchased or get exported from other developed countries, for this huge
capital is required. Thus, the non-availability of huge capital effects the growth of entrepreneurship in the
country.

ii. Non-Availability of Quality Raw Materials and Finished Goods:

Since there is less availability of raw materials throughout the year, they have to be purchased in large
quantity and stored during the period of its availability. To purchase heavy quality raw materials, capital has
to be borrowed which involves heavy rate of interest. This effects the entrepreneurial growth.

iii. Lack of Adequate Basic Facilities:

Certain basic facilities such as power facilities irrigational facilities, latest technology, transport and
communication etc., are required for undertaking innovative activities which help in providing increased
output and reduce the cost of production. But in under developed country like ours there is in-adequate
availability of these basic facilities. The entrepreneur has to get these facilities by themselves where heavy
costs have to be beard. Thus, again these factors cause hindrance in the growth of entrepreneurs.

18
iv. Greater risk involved in the business:

a. Due to seasonal fluctuations of demand there is instability in the market.

b. Instability in domestic and foreign economic policies.
c. An entrepreneur cannot make correct estimates for his proposed venture as there is lack of correct
information, overhead facilities, market demand etc., Since lot of risks are involved the growth of
entrepreneurship is affected.

v. Non-Availability of Skilled Labors:

As there are non-availability of skilled labors and no proper training facilities available, the entrepreneurs
find it difficult to progress with these unskilled labors.

2. Social Factors:
Some of the social factors include-

i. Social System:

The social system existing in the locality effect the growth of entrepreneurship in the country. If there is a
joint family then one member of the family will not share his wealth with the other member of the family.
Thus entrepreneurship cannot be developed.

ii. Customs and Traditions:

In few cases customs and traditions play a dominant role in the production decisions rather than critically
assessing the facts.

iii. Social Set-Up:

In some societies very less importance in provided towards education, training, research etc., and more
importance is given towards caste considerations. Thus no entrepreneurs can emerge from such societies who
have great aptitude and skills.

iv. Rationality of the Society:

In under developed countries most of the societies are non- rational societies which is not suitable for the
entrepreneurial growth.

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3. Personality Factors:

In under developed countries, the entrepreneurs are looked up as a profit makers and exploiters of the
resources and people. Thus causing a problem for the growth of entrepreneurs.

4. Psychological and Sociological Factors:

According to Mc Clelland, “need achievement motive induces entrepreneurship”.

According to Paul Wilken, “entrepreneurship becomes the link between need achievement and economic
growth”.
Cole states that, “besides wealth, prestige, entrepreneurs seek power, security and serve the society”.

Rostow had conducted research on inter-generation changes in the entrepreneurial families and found that,
the first generation believes in seeking wealth, the second generation in prestige and third generation in art
and beauty.

On the basis of motives, Evens has distinguished three kinds of entrepreneurs:

i. Chief motive of managing entrepreneurs is security.

ii. Chief motive of innovating entrepreneurs is excitement,
iii. Chief motive of controlling entrepreneurs are power and authority.

Thus many psychological and sociological factors affect the growth of entrepreneurs.

5. Cultural Factors:

If the cultural factors prevailing in the country does not attach great value to business talents, industrial
leadership etc., then entrepreneurs, people may not prefer to start up a new venture. Thus entrepreneur ship is
not developed.

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1.7 Entrepreneur and Entrepreneurship

Entrepreneurs and Entrepreneurship have always been a topic of discussion where researchers try to study
ideas from different perspectives. While a few prioritize, it as an act of creating a new business, others see it
as an ethical practice of running a successful business. Schumpeter, known as the Austrian economist,
developed a widely accepted business theory and described the entrepreneur as a new inventor who
introduced new technologies. Wisely put forward by Schumpeter (2005), an entrepreneur is a major promoter
of economic activity whose job is to innovate. According to him, an entrepreneur is one who has the desire
and the power to turn an idea into something new. According to him, an entrepreneur is not a short-term
economist or non-hedonic entrepreneur (Brouwer, 2002); he is a long-term thinker. He is the founder of a
new business unit and an important facilitator of initiating and managing economic transformation.
Schumpeter summarized the new invention as a fundamental and fundamental element in the transformation
of capitalism (Metcalfe, 2004). A Schumpeterian entrepreneur often takes a flexible route from a normal flow.
The ability to create something new and initiate change in society is what makes the difference and signifies
entrepreneurial action. An entrepreneur is a system that explores the potential of a business environment in
an ever-changing environment (Rwigema and Venter, 2004). It is a habit to create something new with value
by giving your time and effort and making all the risks available to earn personal and financial satisfaction
rewards (Hisrich, 2005) and entrepreneurs are the people who create these new businesses, helping to create
new jobs for people. With a quiet perspective, Potabatti and Boob (2015) studied trade in the field of power
vision and defined trade as the use of skills, knowledge and skills to start a new business to generate wealth,
employment and social benefits. So in a nutshell, entrepreneurship is an act that goes hand in hand with
creating a new or existing business in a very new way with the available knowledge, skills and competencies
and entrepreneurs are the people who have this initial ability and ability to start and run their business.

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1.8 Distinguish Between The Terms Entrepreneur And Entrepreneurship:
Though both the terms entrepreneurs and entrepreneurship are almost similar the possess several
differentiating terms with them. The differences between the entrepreneurs and entrepreneurship are as
follows:

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1.9 Approaches to entrepreneurship: -
There are broadly four approaches to the study of entrepreneurship:

1. Sociological Approach
2. Psychological Approach
3. Political Approach
4. Composite Approach

1. Sociological Approach:

• The sociological approach to the study of entrepreneurship deals with social and cultural factors
responsible for the nature and growth of entrepreneurship development in a society. It attempts to
understand as to why a social structure and culture facilitates or inhibits entrepreneurial development.
It believes that laws of development lie in the social structure and culture of a region.

• It tries to seek answer to the question, why one segment of social structure produces larger number of
entrepreneurs than the other. For example, it is mainly the Samurai community that could rise to
entrepreneurship during the Meiji regime in Japan. Indian entrepreneurship, from the very beginning,
has been dominated by three communities: the Parsis, the Gujratis and the Marwaris. They, however,
continue to dominate the business sector even today.

• Max Weber, Cocharan, Young, Hoselitz and Hagen are prominent among the scholars known for
sociological interpretation of entrepreneurial development. Max Weber‘s thesis is that Protestantism,
and not Catholicism, could help generate entrepreneurship and modern capitalism. Weber believed
that the Hindu religion of India did not have the potential to promote entrepreneurship.

• The traditional social structures; the caste and the joint family which were essential attributes of the
Hindu society, according to Weber, have been detrimental to the process of entrepreneurial growth.
Kapp (1963) also holds the Hindu culture and Hindu social organization responsible for slow pace of
development and suggests that ―a lasting solution of the problem can be found only by a gradual but
systematic transformation of India‘s social system, world view and the level of personal aspirations‖.

• The backward economies, according to Hoselitz, exhibit usually a lack of reliance on achievement as
a norm for acquiring economic goods. Achievement-oriented behaviour is however not fully absent
but exists only in limited cases.

23
• Distribution of economic goods in primitive societies and also in medieval societies has been typical
example of ascriptive way of distribution pattern. The advanced societies, on the other hand, exhibit
the norms of achievement-oriented behaviour. In such societies, there is system of formal education
and vocational and professional training.

• The second characteristic of underdeveloped economies is the prevalence of particularism in the

distribution of economically relevant tasks among performers. Particularistic pattern of distribution
has been prevalent, for example, in the traditional Indian caste system. The advanced societies have
universalistic i.e., rational approach to the allocation of resources.

• Again, it is to be emphasized that both these variables do not exist in the respective societies in their
pure forms. The movement of society is seen from particularistic to universalistic system as it moves
from backward to advanced economy. Sir Henry Maine has also postulated this movement with
different terminology and that is from status to contract.

• Thirdly, in the backward societies, economic activities are quite diffuse. It is so because of the fact
that there is a low level of development of division of labour. Partly it is the result and, at the same
time, cause of the low level of productivity. Thus, the specialization of tasks and the finer division of
labour require the development of principle of specificity and rational allocation of roles.

• Specificity is the outcome of rational planning, the result of the combined application of the
principles of universalism and achievement as the norm to economically relevant social situations.
Hoselitz concludes that the analysis of social structural aspects of the differentiation
between ―advanced‖ and ―underdeveloped‖ economies leads us to conclude that we expect the
former to exhibit predominantly universalistic norms in determining the selection process for the
attainment of economically relevant roles; that the roles themselves are functionally highly specific;
that the predominant norms by which the selection process for those roles is regulated are based on
the principle of achievement, or performance.

• In an underdeveloped society, on the contrary, particularism, functional diffusion and the principle of
ascription predominate as regulators of social structural relations especially in its economic aspects
and the orientation of actors in economically or politically influential roles is determined
predominantly by considerations of their ego.

• Entrepreneurial characteristics, such as the ability to make new combinations of factors of production,
managerial skill perception of opportunity, risk-taking, inventiveness and achievement motivation are

24
 not merely a pale reflection of these antecedent conditions; they constitute an independent causal
factor mediating between structural factors and consequent economic development.
• Modern democratic system is more conducive to the development of innovative behaviour. According
to him, they are more prone to taking up entrepreneurship as a career whose existing social status has
been denigrated in the course of historical change.

2. Psychological Approach:

We have understood by now that the entrepreneur is not a common person. He has a typical personality with
creative, managerial and imaginative skill who can innovate and contribute positively to an industrial project.
This kind of personality develops in a person who has strong motivation for achievement.

• David McClelland, the greatest exponent of the psychological approach to entrepreneurship, is of the
view that the genesis and performance of entrepreneurs requires strong motivation for achievement.
The achievement motivation, according to McClelland, is a function of child rearing practices in a
society.
• Unlike the sociological approach which asserts that the existing social structure determines
entrepreneurship and economic development, the psychological approach seeks to find out how the
social structure affects the attitude of the people of a society. Areas like entrepreneurial commitments,
tendency of saving and investment and business management have been usually covered by the
studies carried out bypsychologists.
• Collins, Moore and others have examined a sub-category of business leaders. Their study of
innovating entrepreneurs revealed that many of their subjects had experienced childhood poverty and
disrupted family lives which stimulated strong motivations for personal achievements.
• John H. Kunkel questioned the validity of many psycho-dynamic concepts and principles and the
unresolved controversy surrounding the role of social structure and personality in the process of
economic development. He propounds the behavioural approach as an alternative.
• Joseph Schumpeter, the first to offer a systematic interpretation of entrepreneurship, had
psychological perspective in his mind when he said that the entrepreneur possesses energy of will and
mind to overcome fixed habits of thought and the capacity to withstand social opposition.

3. Political Approach:

• The political approach to entrepreneurship deals with the issues involved in relationships between
entrepreneurship development and the state particularly in the context of the role of the latter in the
development of entrepreneurs. The role of the government is crucial in deciding the nature and rate of
development.
• Rapid growth of industries and good pace of economic development largely depend on the merit of
economic policies of the government. Democratic and relatively stable governments are supposed to
be conducive to economic development.

25
 • Entrepreneurial supply would be greater in a state which believes in the ideology of capitalistic
liberalism and provides requisite credit facility, appropriate training opportunity, technological and
scientific knowledge and adequate incentive.

• The Government of India pursued the policy of mixed economy till the end of 80s of the 20th century
which could not contribute to growth rate of 3 to 4 per cent for over 40 years of the economic regime
of the country. Corruption, laziness, traditional power structure and weak governance, responsible for
sluggish development, could not be removed by the state.
• Economic reforms initiated by India from 1991 with an objective to liberalize economic policies,
promote individual investors and bring about structural adjustment have undoubtedly yielded
significant results.
• Entrepreneurial growth in India had been very slow till 1990. A long span of colonial rule and the
following strict and partially controlled economy and red-tapism did not allow fast entrepreneurial
growth. By 1990, the number of small-scale units in the country was about 10 lakh which, due to
economic reform movement, swelled up to about 35 lakh by 2005.
• Political studies on entrepreneurship have revealed that the late growth of entre- preneurship in
Russia and France had been due to the existing political conditions in the countries. Japan‘s fast
entrepreneurial growth can be attributed to the country‘s political system which peculiarly integrated
the industrial and agriculturaleconomy.

4. Composite Approach:

• The entrepreneurship is a complex phenomenon. None of the approaches discussed above has been
able to explain the entrepreneurial dynamics fully. Due to their non-holistic nature, they have failed to
offer the precise laws of supply and success of entrepreneurship.
• It has been observed that entrepreneurial behaviour is an outcome of the interplay of multiple social,
cultural, economic, political and psychological factors. No single factor is entirely responsible for the
supply of successful entrepreneurs. We, in our study of carpet manufacturers in the Bhadohi-Mirjapur
belt in India, found no manufacturer entering into business on account of any single factor.
• Dwijendra Tripathi also, in his comparative study of historical roots of industrial entrepreneurship in
India and Japan, has observed that the emergence, performance and perception of entrepreneurs can
be understood by an integrated approach which would take into account all the possible sociological,
psychological, economic and political factors contributing to the increase in entrepreneurial behaviour.

26
1.10 Objectives / Importance of Entrepreneurship Development

The need for entrepreneurship development was not felt by the classical economists like Adam Smith and
David Ricardo. They thought that capital formation led to economic development.

But according to Schumpeter, the rate of economic growth depends upon the number of innovations
introduced by the entrepreneurs and the extent with which the financial institutions come forward to finance
the new venture businesses which are associated with high risks. He considered the fact that, the prevailing
entrepreneurship development determines the economic growth and innovation itself is of no use unless it is
made available to the public through new product and the activities involved in such processes are called as
‘entrepreneurship’.

According to him innovative entrepreneurs are essential for industrialization, though imitative entrepreneurs
are also equally playing their role in industrialization. Japan is the best example for industrialisation with the
imitative entrepreneurs.

27
1.11 Need of entrepreneurship development

1. Optimum Utilization of Resources

Natural resources are getting depleted over a period of time. Some of the resources are almost scarce and it is
the responsibility of the entrepreneurs to identify the alternative sources of supply of resources and also to
make use of the existing resources without doing much harm to the environment.

2. Improved Standard of Living

The living conditions of the people could be improved through planned entrepreneurship development
program. Entrepreneurs use the latest technology and manufacture those products which are essential to all
people at the lowest cost and thereby try to improve the living standard of the people.

3. Ensure Industrialization
A country is said to be advanced if there is an existence of adequate industrial units of big and small in size.
The existing entrepreneurship development programs create a congenial atmosphere for the aspiring and
young entrepreneurs to come forward to set up industrial units especially in the industrially backward regions.

4. Innovation is the gateway

Innovation takes place in all fields activities. The application of computers enable businessmen and
Government to expedite their business activities. Marked improvement has been taken place in the filed of
communication due to the application of innovative technology.

5. Allow Global Market Entry

Entrepreneurship’ development enables the manufactures to manufacture products of international quality
and thereby try to enter into the global market and compete with the products of other nations.

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1.12 Pre-requisites for Entrepreneurship Development

Development does not mean the setting up of large scale industrial units. The settings up of a small scale
industrial unit also play an equivalent role in the economic development.

1. Incubator Facilities
‘Incubators’ have been used in U.S.A. to develop entrepreneurs for small scale industries. It enables them to I
translate their laboratory research into commercial products and thereby help consumers to enjoy the benefits
of the recently found technology. Venture capital financing firms in these days come forward to provide
incubator facilities to the entrepreneurs.

These firms select viable projects and extend not only their financial. Assistance but also their managerial
and marketing experiences so as to enable them to stand on their own legs.

2. Linkage of Research and Development

Entrepreneurship development depends upon a perfect linkage between the entrepreneurs and Research and
Development institutions. The very objective of setting up of Science Park is to enable the entrepreneurs’ to
acquaint themselves with the latest research developments. It helps them to establish suitable small: scale
industries and thereby improve the economic standard.

3. Cultural Behaviors
The existing cultural value is such that entrepreneurs find it: difficult to change the living style of the people.
There is a wide gap between the educated and the uneducated, rural masses and urban masses, indigeneous
method of production and industrial; method of production and the like. Because of these variation the:
entrepreneurship development is said to be sluggish.

4. Cumbersome Formalities Entrepreneurial growth is affected by:

Strict Government’s control on prices.
• Foreign competition.
• Poor infrastructure.
• Inadequate training facilities including education and
• Cumbersome formalities to be fulfilled at the time of setting up of industrial units.

Besides there is no adequate investment for training, ambiguity in the entrepreneurship development
programs and entrepreneurial information system.

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5. Other Obstacles

• Inadequate marketing information.

• Frequent change of Government and its economic policies.
• Inadequate monetary incentives that commensurate with the risks.
• Absence of data bank.

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1.13 Role of Entrepreneurs in the Economic Development –

1. Employment opportunities:

Entrepreneurs employ labour for managing their business activities and provides employment opportunities
to a large number of people. They remove unemployment problem.

2. Balanced Regional Development:

Government promotes decentralized development of industries as most of the incentives are granted for
establishing industries in backward and rural areas. Thus, the entrepreneurs to avail the benefits establish
industries in backward and rural areas They remove regional disparities and bring balanced regional
development. They also help to reduce the problems of congestion, slums, sanitation and pollution in cities
by providing employment and income to people living in rural areas. They help in improving the standard of
living of the people residing in suburban and rural areas.

3. Mobilization of Local Resources:

Entrepreneurs help to mobilize and utilize local resources like small savings and talents of relatives and
friends, which might otherwise remain idle and unutilized. Thus they help in effective utilization of resources.

4. Optimization of Capital:

Entrepreneurs aim to get quick return on investment. They act as a stabilizing force by providing high output
capital ratio as well as high employment capital ratio.

5. Promotion of Exports:

Entrepreneurs reduce the pressure on the country’s balance of payments by exporting their goods they earn
valuable foreign exchange through exports.

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6. Consumer Demands:

Entrepreneurs produce a wide range of products required by consumers. They meet the demand of the
consumers without creating a shortage for goods.

7. Social Advantage:

Entrepreneurs help in the development of the society by providing employment to people and paves for
independent living. They encourage democracy and self-governance. They are adept in distributing national
income in more efficient and equitable manner among the various participants of the society.

8. Increase Per Capita Income:

Entrepreneurs help to increase the per capita income of the country in various ways and facilitate
development of backward areas and weaker sections of the society.

9. Capital formation:

A country can attain economic development only when there is more amount of investment and production.
Entrepreneurs help in channelizing their savings and savings of the public to productive resources by
establishing enterprises. They promote capital formation by channelizing the savings of public to productive
resources.

10. Growth of capital market:

Entrepreneurs raises money for running their business through shares and debentures. Trading of shares and
debentures by the public with the help of financial services sector leads to capital market growth.

11. Growth of infrastructure:

The infrastructure development of any country determines the economic development of a country,
Entrepreneurs by establishing their enterprises in rural and backward areas influence the government to
develop the infrastructure of those areas.

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12. Development of Trader:

Entrepreneurs play an important role in the promotion of domestic trade and foreign trade. They avail
assistance from various financial institutions in the form of cash credit, trade credit, overdraft, short term
loans, secured loans and unsecured loans and lead to the development of the trade in the country.

13. Economic Integration:

Entrepreneur reduces the concentration of power in a few hands by creating employment opportunities and
through equitable distribution of income. Entrepreneurs promote economic integration in the country by
adopting certain economic policies and laws framed by the government. They help in removing the disparity
between the rich and the poor by adopting the rules and regulation framed by the government for the
effective functioning of business in the country.

14. Inflow of Foreign Capital:

Entrepreneurs help to attract funds from individuals and institutions residing in foreign countries for their
businesses

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1.14 The Entrepreneurial Mindset and Personality:

The Entrepreneurial Mindset refers to a specific state of mind which orientates human conduct towards the
Entrepreneurial activities and outcomes. Individuals with entrepreneurial mindsets are often drawn to
opportunities, innovation and new value creation. Characteristics include the ability to take calculated risks
and accept the realities of change and uncertainty.
The Entrepreneurial Mindset offers a refreshingly practical blueprint for thinking and acting in environments
that are fast-paced, rapidly changing, and highly uncertain. It provides both a guide to energizing the
organization to find tomorrow's opportunities and a set of entrepreneurial principles you can use personally
to transform the arenas in which you compete. The authors present simple but powerful.

They show how to: eliminate paralyzing uncertainty by creating an entrepreneurial frame that shapes a shared
understanding of what is to be accomplished; create a richly stocked opportunity register to redesign existing
products, find new sources of differentiation, resegment existing markets, reconfigure market spaces, and
seize the huge upside potential of breakthroughs; build a dynamic portfolio of businesses and options that
continuously move your organization toward the future while simultaneously leaving the past behind;
execute dynamically your ideas so that you can move fast, with confidence and without undue risk; and
develop your own way of leading with an entrepreneurial mindset to create a vibrant entrepreneurial climate
within your organization.

In order to organize and run a business successfully, an entrepreneur must possess the following traits

Self-confidence: Others will trust you only when you trust yourself. This is the most important trait of an
entrepreneur, who should have the confidence to take one‘s own decisions.
Risk-taking ability: Business is all about taking risks and experimenting. Entrepreneurs need to have a risk-
taking ability.

Decision-making ability:

Entrepreneurs should have the willingness and capability to take decisions in favor of the organization all the
time.

Competitive:

Entrepreneurs should always be ready to give and face competition.

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Intelligent:

Entrepreneurs always need to keep their mind active and increase their IQ and knowledge. Visualization:
Entrepreneurs should have the ability to see things from different point of views.

Patience:

This is another virtue which is very important for entrepreneurship as the path to success is often very
challenging and it requires a lot of patience for sustenance.

Emotional tolerance:

The ability to balance professional and personal life and not mixing the two is another important trait of an
entrepreneur.

Leadership quality:

Entrepreneurs should be able to lead, control and motivate the mass.

Technical skill:

To be in stride with the recent times, entrepreneurs should at least have a basic knowledge about the
technologies that are to be used.

Managerial skill:

Entrepreneurs should have the required skill to manage different people such as clients, employees, co-
workers, competitors, etc.

Conflict resolution skill:

Entrepreneurs should be able to resolve any type of dispute.

Organizing skill:

They should be highly organized and should be able to maintain everything in a format and style.

35
High motivation:

Entrepreneurs should have high level of motivation. They should be able to encourage everyone to give their
level best.

Creative: They should be innovative and invite new creative ideas from others as well.

Reality-oriented: They should be practical and have rational thinking.

36
1.15 The Entrepreneurial journey

Nobody is born an entrepreneur. Different people take different paths to achieve success, and there is no set-
in-stone instruction for becoming one. Entrepreneurs take on a number of different roles and these roles can
vary depending on what field you choose to enter.

While there is no perfect guide to entrepreneurship, there are a few steps that should be taken before
beginning the endeavor, however. As with most forms of success, one way to achieve your goal is by
avoiding mistakes. Following these pieces of advice could prevent you from starting off your life as an
entrepreneur on the wrong foot.

1. Have the right mindset.

I often see people who want to be an entrepreneur and can‘t figure out why their goal isn‘t working. In the
end, they simply aren‘t thinking like an entrepreneur. The first thing that new entrepreneurs need to know is
that failure is likely and success is not given. Understand the risk you are taking, and also understand that you
will most likely not succeed immediately.

2. Be honest with yourself.

The life of an entrepreneur can be great -- you‘re your own boss, you make the rules, you run the business.
However, all of these are easier said than done. Entrepreneurship isn‘t an easy path. Instead, it is often much
more difficult than getting a regular job.
One reason entrepreneurship isn‘t easy is because, at the end of the day, you can only ever blame yourself.
At a corporation you can blame your boss, or perhaps the economy as a whole. As an entrepreneur, you will
be looking for a niche in the market that you can fill. Excuses won‘t cut it in this field. If your business failed,
chances are that you researched poorly, you hired the wrong people or you just weren‘t prepared.

3. Start thinking.
Just because some college drinking buddies want to open a bar doesn‘t mean they should. Likewise, just
because you‘ve come up with what you think is a good idea doesn‘t mean it‘s perfect. There‘s a lot of
research, planning and general deep thought needed to succeed as an entrepreneur. Without proper
preparation, your dream business could fail quite quickly.

At the same time, no amount of preparation is going to ensure that your business will succeed. You need to
be the one who knows when you‘re ready. Decisiveness is important to have, but you should have ample
preparation before the big decisions need to be made.

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4. Find a mentor.

This is one of the most important steps you can take to lay a foundation for success. When you have expert
guidance, support, and motivation -- you are 100 times more unstoppable than you are alone. Mentorship
allows you to quantum leap straight to the head of the game more rapidly than if you tediously faced down
every beginner‘s hurdle. Avoid pitfalls, mistakes that could cost you your future, and rash decisions by
having someone in your corner. I credit having a mentor from the outset as the reason I was able to attain
success. It‘s an invaluable resource for anyone who is serious about getting where they want to go. Get
online, get out into the world, connect with the people who inspire you -- especially the one‘s whose paths
you admire and develop a working relationship with someone who has done what you want to do.

5. Commit.

Once your business idea is prepared and you‘re ready to be an entrepreneur, the last thing you need to do is
commit. If you truly want to succeed, put in 100 percent effort. Effort will always trump luck and skill, so if
you‘re serious about being an entrepreneur then you should never stop trying.

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1.16 The Entrepreneurial Motivations
What is the incentive for starting a business? Is it money alone? True, many entrepreneurs achieve great
wealth. However, money is almost always tight in the startup and early phases of a new business. Many
entrepreneurs do not even take a salary until they can do so and still leave the firm with a positive cash flow.
The factors that motivate people to take all the risk and start a new enterprise can be identified. The

6Cs that motivate entrepreneurs to establish their own business are as follows:

1. Change -

Entrepreneurs frequently want change, not only change, they also want to be the bearers of change. They are
solution givers and want to interrupt the status quo. They have a vision like "I want to assemble the world's
information" or "I want to put an AC at every desk" and they take an attempt to make this change. In this
attempt, some succeed and some fail.

2. Challenge -

Some people love challenges and they opt for starting a new business as it is very challenging to handle big
problems. These people find typical job in a big corporate as boring and not challenging enough.

3. Creativity -

Running one‘s own business is all about being more creative and having the independence to make new
discoveries. For example, testing a new website design, launching a new marketing scheme, creating
inventive items that solve a known issue in a different way, creating new advertising campaigns, etc. One
needs to have an infinite room to welcome and introduce creativity in a small business.

4. Control -

Some people tend to start a business because they don't want to be pushed around and work for a
product/company in which they have no way to shape their destiny. They want to be their own boss having
their own time, own pace, location of their choice, employees of their choice and have a progressive role in
deciding the direction of the company.

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Curiosity -

Successful entrepreneurs are always anxious and ask - "what if we do X this way? They want to have more
than one option to do a work and choose the best one from them. They want to understand the customer's
perceptions, point of views, markets and competitors. They are frequently anxious to see how their particular
theory like "people want to do A with B" works. In this aspect, they can‘t be differentiated from a scientist
who is trying to prove his theorem.

Cash -

The last but not the least part is the cash. Money says it all. Many non-entrepreneurs have a misconception
that cash comes first for entrepreneurs but this is never really true. If this would be the case, then there is no
reason for an Ellison or Gates to keep expanding their business aggressively after they have made more than
billion dollars. However, money is not the primary motivation.

40
1.17 Entrepreneurship in India, A Historical Perspective
Before the advent of the British, India was an important economic power in the world accounting for almost
25% of the world trade. This was because of the entrepreneurial skills of its artisans and craftsmen. During
the end of Mughal period, India’s share in world trade was almost 25% [Kular I.K.A.S.B.J.S.]. Indian society
consisted of a unique economic and socialsystem called Village Community. These Village communities
were almost self sufficient to meet all the needs of the villagers. Organized industrial activity was seen in
selected cities like Banaras, Allahabad, Gaya etc. [Khanka S., 2014]. But due to the two centuries of colonial
rule by the British, India was transformed from a net producer to consumer and the industrial backbone of the
country was crushed by the British to promote their industries. The world famous Indian handicrafts industry
declined by the later part of eighteenth century due to British colonial rule [Gadgil D., 1959].

During the British rule, very few industries started by Indians flourished, that also under the patronage of the
ruler. The Parsis were the first Indian community which established businesses like ship building, textiles,
steel manufacturing etc. [Pavlov V., 1964]. Other commercial communities namely Jains and Vaishyas
lagged behind in entrepreneurial ventures during the 19th century [Tripathi D., 1971]. The “Swadeshi”
campaign gave boost to entrepreneurship and many industrialists like Jamshetji Tata had started industries
totally under Indian Management [Joshi A. And Ram L.S., 1975].

Entrepreneurship in India got a boost after the First World War due to the “discriminating protection to
certain industries’ and the Indian entrepreneurs had benefitted from this and established manufacturing
industries. During the first 4 decades of 20th century, the influence of Parsis as a business community had
declined and the Gujaratis and Marwaris gained importance in the entrepreneurship scene [Khanka S., 2014].
The emergence of “Managing Agency System” was another important development in India during this
period.

After independence, the Government of India had realized the importance of the growth of entrepreneurship
and had been promoting it with a focus on small businesses. The Government of India had come out with
Industrial Policy Resolutions starting with IPR 1948. The IPR of 1956 was a landmark one which gave major
thrust to small enterprises and had reserved 128 items exclusively to be manufactured under small scale
sector [Khanka S., 2014]. The IPR of 1977 had given thrust to the Cottage and house hold industry, Tiny
sector and Small scale industry. Various measures were suggested for the promotion of small-scale and
cottage industry also. The IPR of 1980 planned for promotion of industries in backward districts, promotion
of village and rural industries [Khanka S., 2014]. Government of India had come out with a policy
exclusively for small scale sector called “New Small Enterprise Policy in 1991 to provide accelerated growth
to small scale sector. This policy was instrumental in widespread growth of small scale sector [Khanka S.,
2014].

41
 The Government had started to promote small industries from the third five year plan onwards in the form
incentives, capital, technical know-how, marketing assistance and land. All the subsequent plans had given
major concessions to promote small industries in back ward areas for balanced regional development and
also to provide large scale employment [Khanka S., 2014]. Even though, the small enterprises had increased
in numbers, they lacked entrepreneurial ability which resulted in industrial sickness and closure. But, some
entrepreneurs had grown from small to medium to large enterprises by taking advantage of the environment.
This development was limited to some family enterprise units like, Tata, Birla, Mafatlal, Dalmia, Kirloskar,
Relience etc. [Khanka S., 2014].

The Micro Small and Medium Enterprises (MSMED) Act, 2006 of the Government of India had set up a
separate ministry to promote Micro Small and Medium enterprises. The Act envisaged for the promotion of
small enterprises by providing legislation, credit support and fiscal support. The Act also provide for the
“Cluster based development” of small enterprises, marketing support, entrepreneurial and management
development, empowerment of women owned enterprises etc. [Khanka S., 2014].

Nearly two centuries of colonial rule and half a century of socialistic leanings did not help in bringing an
entrepreneurial culture. Even though many small enterprises were started, it did not attain a growth rate as
happened in the advanced countries. Thus, the thinking that growth of entrepreneurship is essential for
economic development and the necessity to move to an entrepreneurial culture has been a recent
phenomenon [Dubey R., 2014]. The Government realized the importance of promoting entrepreneurship and
employment and had recently enacted National Policy on Skill Development and Entrepreneurship 2015. A
separate ministry has been set up under the Government of India for the promotion of skill development and
entrepreneurship with a greater focus.

42
1.18 GROWTH OF ENTREPRENEURSHIP IN INDIA

In India, the past few decades have seen a major rise in the area of Entrepreneurship. In the early nineties,
with India opening up to foreign investments through the much-needed policies of liberalization, the Indian
market saw multitudes of foreign companies willing to invest in the India market.

Entrepreneurship plays a significant role in the economic development of any country. Entrepreneurship acts
as a pillar for the economic prosperity of a nation as it leads to generation of employment, contribution in
national income, rural development, industrialization, technological development, export promotion etc.

Today, India has become fertile ground for breeding new entrepreneurs. Present markets are liquid, vibrant
and as the recent economic factors has shown, much more stable as compared to markets of other countries.
It is well established that education is a prime factor which contributes to the development of
entrepreneurship. Access to technology, increase in foreign direct investments and other de-regulation
policies are throwing up new opportunities every day.

Capital can be organized. Organizations like National Entrepreneurship Network (NEN), National Social
Entrepreneurship Forum (NSEF) are helping new ventures in obtainin capital and angel funding. Thus we
can say that there is a potential for entrepreneurship in India.

An important aspect of entrepreneurship in India is social entrepreneurship. In India, where high levels of
poverty and unemployment still exist, many people have decided to take matters into their own hands, with
or without the help of government, to work for a better tomorrow. Concepts like Teach for India, Tata Jagriti
Yatra etc. not only help in promotion of entrepreneurship among the youth, but also provide them with
hands-on experience. There is a greater recognition that social enterprises could have a role in solving social
issues. What we need to do is to create an environment where entrepreneurs feel confident that they will not
face any obstacles if they develop business models for the benefit of the poor.

One must realize that establishing a business in India is not a walk in the park. Yes, it is true that nowadays
Indian entrepreneurs do not have to leave the country to pursue their interests, however, building empires
requires much more than mere opportunities, what it requires is an outlook and individual motivations, traits
which are not hard to find in the Indian society. Surely, one feels India, in a few years, will become a leader
in world business.

43
1.19 Entrepreneurship in India Compared with Other Fast-Growing Economies like
China and Brazil
Indian economy has become the second fastest growing economy in the world even during the recent world-
wide recession [Kular I.K.A.S.B.J.S.]. It is expected to be the fastest growing economy in the years to come.

Small and medium enterprises are considered world-wide as the promoters of economic development. In
India, they constitute 95% of the industrial units, accounts for 40% of the total industrial production and 34%
of the exports. They provide employment to about 312.5 lakh people in 128.5 lakh units as on 2006-07[Kular
I.K.A.S.B.J.S.].

China gives more importance to SMEs than India, where over 68% of China’s exports come from small and
medium sector. The growth of SMEs in China has been phenomenal that in the last 20 years it has created
more SMEs than the total number of SMEs in US and Europe combined. In the case of Brazil, another fast
growing economy, SME’s constitute 96.8% of the registered business employing 59% of the active
population [Kular I.K.A.S.B.J.S.]. This shows that India has a long way to go in the case of promoting
entrepreneurship to foster faster economic development.

The policies being followed by India and China are different in promoting entrepreneurship. While India
have taken steps to stimulate consumer demand and concentrated on entrepreneurship, China has encouraged
resource mobilization. While the growth China has achieved through rapid growth of its physical
infrastructure, it may have affected social investments in primary and secondary education [Kalyanaram G.K.,
2009]

Entrepreneurship-Provider of Large Scale Employment/ Self-Employment India is a country with the

youngest population. According to the 2011 census, the population is over 120 crores and 31% (37.9 crores)
of the population are in the age group of 18-35 years. This is a great demographic advantage for India. But
India cannot give jobs to all these young people. According to the survey conducted by National Sample
Survey Office 2013, only one person out of 4 urban educated males are employed. The Government has
realized that promoting entrepreneurship will help create large-scale employment which will result in growth
of the economy [Abhyankar R., 2014].

If India want to fight unemployment and poverty and take advantage of the globalization, it need to
concentrate on entrepreneurship development [Barot D. H., 2015].

The government has realized that entrepreneurship is the main mechanism to provide large scale
employment as well as for capital formation. Realising its importance, the national and state Governments of
India are initiating policies and programmes to promote entrepreneurship and self-employment to foster
economic development [Ahluvalia M.S., 2005]. But most of the population are not having an entrepreneurial
culture or are not oriented towards it. So educating potential entrepreneurs about entrepreneurship has
become necessary to achieve the objectives of the state [Barot D. H., 2015].
Thus, entrepreneurship and entrepreneurship education have become a thrust area for the Government.
44
1.20 Growth of Service Sector

In India, the service sector has overtaken the manufacturing sector in the case of growth rate as well as
provider of employment. This is a very unique phenomenon. It is evident that the Indian economy withstood
the global meltdown due to the resilience of the service sector. Various studies have shown that GDP growth
of India is feasible through service sector growth.

This growth model is sustainable not only from an economic view point but also from a social and
environmental angle [Singh B., 2012]. The service sector share in GDP has grown consistently over the years.
The share of services has gone up from 28% in 1950s to 54% in 2000s. The growth rate of the sector has
shown arising trend from 4.1% in 1950s to 9.2% in 2000s [Singh B., 2012]. The following table shows the
GDP share and growth rate of Primary, Secondary and Tertiary (service) sectors of Indian economy from
1950s to 2000s.

45
1.21 Promoting Entrepreneurship and Entrepreneurship Training in India

The approach paper for the 12thplan accepts that the MSME sector as the foundation for the manufacturing
sector. In order to increase the competitiveness of MSMEs, it has identified few thrust areas like “absorbing
new technology, improving productivity, growth of dynamic clusters, skilled human resources, linking skill
development and training initiatives with requirements of the industry” [Patra K.B. PK, 2013].
The Government of India has enacted the MSME Act of 2006 and these industries were brought under
MSME ministry to provide necessary assistance and promotion to entrepreneurs and small businesses.
Government sponsored Institutes like the National Institute for Micro, Small and Medium Enterprises (NI-
MSME), National Institute for Entrepreneurship and
Small Business Development (NIESBUD), Indian Institute of Entrepreneurship (IIE) or the Development
Commissioner MSME (DC-MSME) provide training to potential and existing entrepreneurs. Other private
players are also in the field to provide training and consultancy. “It is considered to be the best roadmap
towards fast economic development that emerging economies like China and Brazil have already undertaken
successfully” [Nitu Bose Ghosh G.R., 2015].

A separate ministry has been set up under the Government of India for the promotion of skill development
and entrepreneurship with a greater focus in 2015. A national policy on Skill Development and
Entrepreneurship has been formulated in 2015 to provide necessary skills to the people and encourage
entrepreneurship [MSDE, 2015]

“The Indian experience has established that, when the right environment is created by the policy makers, the
entrepreneurial spirit of the people finds expression and the economic activity booms” [Dubey R., 2014]

46
1.22 Opportunities and Challenges
There are certain psychological challenges such as one; family challenges- convincing to opt for business
over job is not an easy task for an individual. People are more interested in jobs especially public sector. The
most of the young creative energy is consumed by civil services exams especially in north India. Second is a
social challenge, which further affects the thinking of student. Traditional attitudes are obstacles in the way.
Technological challenge is another concerning issue- our education system, which does not impart
professional skill and technological knowledge. At initial levels getting an investor is a tough task. Policy
constraint is another challenge- there is limited scope for the government to provide subsidies due to
international agreements and protocols. Instead of this, business environment, raising equity capital,
availability of raw materials, out dated technology and increased pollutions ecological imbalance are another
issue to flourishing entrepreneurship development in India. However, there are lots of opportunities also
available for entrepreneurship such as free entry into world trade, improved risk-taking ability due to
competition and efficiency, Encouragement to innovations and inventions, consideration increases in
government assistance for international trade, establishment of other national and international institutes to
support business among nations of the world are some of the initiatives taken by the government to promote
entrepreneurship in India. Government has commitment towards entrepreneurship development in country.
There are dedicated policies, initiatives, persuasions, funds available. The MUDRA bank, stand up India,
startup India are ambitious program of the government instead of various others prevailing program

47
1.23 Challenges faced by Indian entrepreneurs before starting up

1. Courage to start your own business:

Starting your own venture is not an easy task. You need a lot of courage and strength to quit your job and
start your own business. One needs to be determined and confident towards his/her goals. You need to
convince yourself that there is a need of such product in the market and you are the best person to build it.

2. Is your idea big enough:

Idea is the most important challenge which every entrepreneur faces? What are you planning to go for? What
type of business you are going to deal in? Who are your target audiences? Is your Idea really worth giving a
chance? These are few questions that would come up in your mind and you need to find answers for them.

3.Raising Capital:
Money is another biggest challenge faced by an entrepreneur. Now you have to decide when, how and from
whom you are going to raise the required capital. At times, people need to bootstrap their start-up for a longer
period of time.

4. Hiring right talent:

After you have decided to start your own venture, you need a team. Behind every successful business is a
dream team - be it finding a right co-founder or the founding start-up team. Getting someone, who believes in
your idea/venture as much as you, to make it work are always difficult, but yet the most crucial.

5. Effective marketing on limited budget:

Being a start-up it’s very essential to create visibility among your consumers. You need to reach your target
audiences by using effective marketing techniques.

6. Financial Security:
For a start-up to be a successful enterprise one needs to answer two most important questions – ‘Do I have
enough savings to ensure my family’s financial security?’ and ‘Does the company have enough funds to
ensure at least a year’s runway?’ If you know you have enough savings for the family, then you can easily
focus on the start-up that you are building. Along with it, if your start-up has enough working capital, then
you have the ability to take bigger risks.

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7. Dealing with stress:
It is correctly said ‘No pain no gain’. Entrepreneur has to go through many stresses – whether it is related to
its business or family. To run a successful business one needs to be very strong and clam. So if you are
starting up your own venture, then be prepared to deal with the daily stress.

8. Facing Failure:

It’s not necessary that every idea of yours will work. With launching of new products and scaling new
markets comes the notion of “failing fast”. If you’re trying a lot of new things, not everything will work and
you will not succeed at each of those ideas.

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1.24 Youth – The Backbone of a Nation

Conventionally defined, youth is a period from adolescence to middle age. As accepted by masses being a
very subjective domain, it is more about a perception and feeling than age. The definition of Youth has
always been a center of attraction because of the different viewpoints attached to the term. However, in order
to provide rational footing to the concept and ease out the analysis process, various institutions from across
the world have come forward to define youth. They take age as the determining factor in conceptualizing
youth. UN defines people belonging to the age group of 15-24 years as youth while the National Youth
Policy (2003) that defines the vision of the Government of India for the youth of the country defined the
youth as the people in the age group of 15-34 years. However, National Youth Policy (2014) through its
modifications defined youth as people falling in the age group of 15-29 years. The change was made to have
a more focused approach and offer suitable policy interventions for the each segment of the population.
However, owing to the diversity and country specific characteristics, the definitions may vary from nation to
nation based on their perceptions and thus no universal agreement exists as to its definition.

Youth have always been taken as the most fundamental component of any nation’s population. Youth are
necessarily the backbone of a nation who through their energy and passion brings out the dramatic alterations
in a nation and the way it functions. Youth being energetic, artistic, innovative, enthusiastic and dynamic in
nature constitute the most crucial part of the population. The strong ardour, motivation and longing to
achieve something make young individuals the dearest human resource for fostering social, economic and
political development of any nation. They have all the qualities that are necessary to make a nation strong
and capable of standing its rivals. As compared to their older counterparts they have the strength to face the
challenges that globalization has put forward. Their zeal to fight the competition and vigour to stand up again
every time they fail make them the most valuable resource of any nation. Through their continuous hard
work and urge to question the long driven orthodox norms, they have the ability to bring out a societal
change and construct a society which is open to experimentation and adaptation of new methods and ventures.

A country’s potential to foster to a large extent is determined by the size and quality of its youth population.
Their role in structuring defense capability of a nation is undoubtedly prima una. If harnessed properly their
energy and fervor is likely to fetch an enormous positive change to the society and thereby the nation. Youth
are the active participants and creative digital innovators whose contribution to sustainable development has
always remained visible. However, to utilize their talent to the best, proper policy measures and motivation
mechanisms are needed to channelize their energy in the right direction towards the right goal.

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1.25 Government of India support for innovation and entrepreneurship in India

The Government of India has undertaken several initiatives and instituted policy measures to foster a culture
of innovation and entrepreneurship in the country. Job creation is a foremost challenge facing India. With a
significant and unique demographic advantage, India, however, has immense potential to innovate, raise
entrepreneurs and create jobs for the benefit of the nation and the world.

In the recent years, wide spectrums of new programmers and opportunities to nurture innovation have been
created by the Government of India across a number of sectors. From engaging with academia, industry,
investors, small and big entrepreneurs, non-governmental organizations to the most underserved sections of
society.

Recognizing the importance of women entrepreneurship and economic participation in enabling the country’s
growth and prosperity, Government of India has ensured that all policy initiatives are geared towards
enabling equal opportunity for women. The government seeks to bring women to the forefront of India’s
entrepreneurial ecosystem by providing access to loans, networks, markets and trainings.

In India, various initiatives have been taken by the government from time to time for entrepreneurship
development in the country. Entrepreneurship has attracted the attention of policymakers in India. A series of
high-level initiatives, including Startup India, have been launched to promote private sector development.
However, the role of entrepreneurship in development remains a mystery for many policy observers.

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1.26 India and its Youth Population: A Beacon of Hope or an Issue of Concern

India seems to stand at an advantage because of its huge youth population which is higher than any other
nation. India is one of the most populated nation and accounts for the substantial share of world population
after China. As of 2010, India accounted for 17.8% of the total world population marking an increase of 2.7%
since 1970. India’s population is predicted to grow similarly and contribute 17.97% of the total world
population by 2030. Not just the overall population, India is expected to record increase in the percentage of
its youth population as well.

In many of the developed regions comprising North America and Europe, the share of young population is on
its declining trend since the nineteenth century, putting India at advantage where India is the only country
which is likely to record maximum growth in the youth population compared to other nations. As per the
report of ‘World Population Prospects: The 2015 revision’

Population Database of United Nations Population Division, India has the world’s highest number of people
falling in the age bracket of 10-24 years with 242 million as against 185 million in China.

As per the records of India’s census 2011, youth (15-24 years) in India constitute one-fifth i.e. 19.1% of
India’s total population. Taking the pattern forward by 2020, India’s youth population is expected to grow
even further and contribute 34.33% share in its total population while in China the share of youth population
is expected to shrink and come down to 27.62%. It is believed that

India at present has the relative advantage over other countries in terms of distribution of youth population.
India is seen to remain younger longer than China and Indonesia, the two major countries besides India
which determine the demographics of Asia. The youth population statistics provide a strong backing to India
making it more competent and powerful. However, while these statistics are a source of good news for India,
it would not be wrong to conclude it as an issue of concern too.

Increase in number of young people while gives an advantage to the nation creates problems too. The higher
number of young individuals means more educated job aspirants looking for suitable job opportunities. The
increase in youth population puts a huge pressure on the economic resources and assets. While having young
population puts India at a strong position, it is also expected to create problems in the market bringing out
disequilibrium in the employment market. In such a scenario, the wages are likely to fall below what is
acceptable thus leading to deterioration in the standard of living. Also the consequences of this
disequilibrium are expected to impact youth more profoundly than adults. The problem creates a kind of
vicious circle with one problem giving rise to another one.

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The Youth unemployment is likely to impact not just the individual but also the nation in the form of lost
talent and opportunity that could otherwise have been cashed. The most trajectory impact of youth
unemployment is not the loss of earning, talent or opportunity but the lifelong mark that it leaves on the
person’s mind denting all his confidence and passion.

Young individuals failing to pursue desired career options end up compromising on their needs and goals. If
it is to be believed, in future there will be more skilled people who will have no job and thus no earning. In
such a scenario, the youth is likely to get attracted to illegal means to survive themselves. Thus, we can see
how one problem may lead to another one dragging the nation in a never ending mess.

Therefore, in order to use the young population for the nation’s benefit, it becomes imperative for the policy
makers to draft strategies that aim at incorporating youth into labor market with wider options and adequate
resource availability.

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1.27 Youth and Entrepreneurship

Though not explored to its fullest yet, a huge proportion of youth population is driven by entrepreneurship
and is considered as a feasible and more reliable career option as against paid employment. They see
entrepreneurship as a means to achieve their goals and gain a sense of accomplishment. It has become a new
way to achieve what one is capable of. Moreover the zeal to do something new and be one’s own boss makes
it a perfect option for young individuals. Many young individuals who find it hard to work for others find
entrepreneurship perfect and fulfilling.

However, while many take the entrepreneurship with full enthusiasm and passion, there is a huge chunk of
young individuals who take entrepreneurship not of out of choice but necessity. The necessity to support
family earning and unavailability of desired job type forces them to take the course. Lack of adequate job
opportunities forces youth to find alternative means of livelihood.

Youth are the major job seekers as they traverse their journey from adolescent to youth. Though many of
young people take over their family business, the major proportion of youth tend to become the first time job-
seekers and look out for opportunities in their surrounding environment. While many of them succeed in
getting desired type of job, a large proportion of them fail to find any suitable job and thus start considering
the prospects of having their own enterprise. The entrepreneurship helps them use their skills for creation of
something original which they can call their own. The growth of attention to youth entrepreneurship can be
attributed to two factors (Dash and Kaur, 2012).

The first is the ever-growing number of unemployed young people and second is the desire for
competitiveness combined with pressure for skill development. Beyond just being an effective solution to
problem of youth unemployment, entrepreneurship also gives the young individuals a stage to explore new
ideas and opportunities.

The entrepreneurship provides them a chance to come out of their cocoon and add something to the
technological transformations. With their innovative and disruptive ideas, sometimes entrepreneurs help
tackle social problems that otherwise would have been difficult to be resolved. Youth of today is much more
entrepreneurial and aspiring than it used to be years back. What the nation is witnessing is a kind of youth
driven growth, characterized by radical ideas and strategies originating out of young creative minds.

However, entrepreneurship in India could be more lauded if we can understand the transformation process of
the youth.

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1.28 Role of Youth Entrepreneurship

Peter (2004) in his book about Youth Entrepreneurship conceptualizes youth entrepreneurship as a course of
molding ideas into opportunities and then opportunities into practicable ventures using their management,
planning, improving, mentoring and awareness building skills. Young entrepreneurs possess advance
knowledge and social networks that help in the establishment of successful undertakings that decrease the
level of unemployment thereby contributing to economic wellness and innovation. Youth engagement has a
potential to contribute to personal development of young people, to improve their living and to address
injustice in society.

Entrepreneurship is seen as fostering economic development through employment and wealth creation
(OECD, 1998). Young entrepreneurs by starting their creative independent ventures, not only create
opportunities for themselves but also create for others looking to break out of the traditional working system.

Summarizing the role of entrepreneurship in economic development, Dhaliwal, 2016 rightly said “an
economy is the effect for which entrepreneurship is the cause”.

Entrepreneurship can provide economic empowerment, inclusive economic approach to nation and self-
reliance to the entrepreneurs. Occupation transition from salaried employment to self-employment drives the
growth and development of both developed as well as the emerging nations. They happen to enhance our
knowledge of what consumers want by introducing path breaking innovations through new products/services
or by radical improvements of the existing ones.

Young firms have the benefits of flat hierarchies and less bureaucracy enabling a firm to quickly adapt to
changes with less time and money (O’Dwyer & Ryan, 2000).

However, the impact of entrepreneurial activity in defining economic development is likely to be different
for different nations depending on the stage of development the country is in (Ellis and Bemhardt, 2000). The
evidence from the study of Van Stel et. el. (2005) highlights the differing levels of impact of
entrepreneurship on national economic development depending upon the stage of development the country is
in. Therefore, it becomes imperative to emphasize the importance of considering stages of economic
development while comparing countries and drawing conclusions as to the impact of youth entrepreneurship.

For example, a high start up rate in a developing nation may be a sign of less economic growth as compared
to equivalent rates in highly developed country. That is, even a smaller percentage of these start-ups in
developing nations when compared to developed nations may result into creation of high-growth companies
producing significant value addition. For highly developed nations, the impact of entrepreneurial activity on
economic growth is much pronounced as compared to developing ones. For relatively weaker/poor nations, it
is more uncertain to understand the influence of entrepreneurial activity.

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The role of entrepreneurship is broader and complicated and is likely to impact economic growth in many
ways. The benefits of entrepreneurship include social and economic growth and individual fulfilment in
terms of self-recognition. The entrepreneurship is likely to break the long ago created barriers of class, status,
gender, age, race and sexual orientation. Dutta and Crossan (2005) aptly describe entrepreneurs as engines of
economic growth who through their passion, hard work and dedication convert mere concepts into reality
providing nation with a stronger base.

The third report of YBI’s Making Entrepreneurship Work Series (2010), on Youth Entrepreneurship–Beyond
Collateral postulated youth entrepreneurship as a tool to ensure sustainable growth and social development.
According to the report, young entrepreneurs would help facilitate even-handed growth through sustainable
employment generation. SMEs are documented as the chief means for achieving even-handed and
sustainable industrial diversification, growth and dispersal.

Thus entrepreneurship serves to play many roles in a nation and therefore needs to be addressed from
different views considering the level of development of respective nations.

A young person through his act of starting a new enterprise sets an example to other young people and
thereby presents entrepreneurship as a mechanism for garnering employment and better financial outcomes
for aspiring young folks. Undoubtedly, one reason contributing to the popularity of youth entrepreneurship is
its ability to provide native solutions to economically disadvantaged sections of the nation (De Clercq and
Honig, 2011; Greene et al, 2008).

Beyond just being the contributor to national income, youth entrepreneurship also acts as a bridge between
novelty and market space. Modern India characterized by advancements in technology and education is in
dire need to come out of its social inhibitions associated with risk acceptance

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57
1.29 Challenges for Youth Entrepreneurs

There has been a kind of change movement taking place in the experiences and perceptions of the youth
since the very beginning of the 21st century. About 87 % of young population in developing nations face
challenges due to limited and unequal access to education, training, healthcare, resources and employment
facilities. Individuals entering the stage of entrepreneurship for the first time with no history in
entrepreneurship face more uncertainty.

However, what may sound disheartening but is true is the fact that many youth entrepreneurs fail to survive,
expand or render sustainability because of their limited social connections, inadequate capital and
competition from established business houses. The opportunities are not divided uniformly among the
different sections of the society making the situation even worse (UNDP Youth Strategy 2014-17). Even
after so many years of independence and globalization, youth in many parts of the world still face poverty,
hunger, violence, barriers to education and employment prospects.

Youth are often excluded from the decision making processes thereby signaling towards the deteriorating
situation of the youth. Youth is both the prey as well as the perpetrator of the violence in societies they live
and is thus taken both a cause of concern and a beacon of hope. The environment that the companies act in is
becoming extremely intricate and difficult to predict.

With a revolution in way the industries are formulated and run, the dynamic landscape is becoming more
complicated. While this complexity imposes a challenge on survival of the organizations, it also offers great
prospects for youth to test their strengths and come forward as a strong self-realizing force capable of
introducing innovation and sustainability.

Entrepreneurial firms and peculiarly the younger ones are likely to face more challenges because of their
newness. Suresh and Krishnamurthy (2014) through their study outlined high risk, unavailability of adequate
finance and unsupportive environment as the few factors that impact the growth of entrepreneurship among
youth.

The authors highlighted the importance of introducing entrepreneurship as a subject to make students aware
of the role of entrepreneurship and train them for the same.

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Few prominent challenges faced by majority of young entrepreneurs are explained as below:

1. Lack of role models or family support:

Because of the inhibitions associated with entrepreneurship and its success rate many youth entrepreneurs
find it difficult to gain family support. Absence of role models magnifies the difficulty for the first generation
entrepreneurs who have to rely solely on their instinct. Also, high poverty rates make paid employment a
better and more secure option for many Indian parents because of high risk and high capital investment
linked with entrepreneurship.

2. Higher Environmental Uncertainty:

Entrepreneurial firms differ from established firms in the sense that entrepreneurial firms are younger and
face more environmental uncertainty (Stinchcombe, 1965). The new firms face certain challenges because of
their youth characteristic. Welsh and White (1981) highlight their two important characteristics- high
environment uncertainty and youth which make them different from their established counterparts.

3. Lack of broad knowledge base:

Because of their low experience and youth characteristic, these firms normally lack data making it harder for
them to implement pricing strategies and foresee market trends (Romanelli, 1989). Talking specifically, these
firms struggle because they are focused more on establishing roles, structures, and processes that are feasible
for all employees. Also, in the beginning, the young firm lacks understanding of pre-defined roles and
relationships.

4. Lack of reputation in the market:

Because of their newness, the young entrepreneurs and their establishments lack market reputation which
makes it difficult for them to stand against big competitors and create relationships (Gruber 2004).

5. Lack of financial and human resources:

Smallness and newness is also accompanied by scarcity of financial and human resources (Aldrich & Auster,
1986; Carson et. al., 1995). Lack of investors and personal finances stop them from exploring big
opportunities or undertake creative projects. Also not many skilled professionals are willing to work with
newly created ventures because of their uncertainty and inability to pay packages that are with market rates.

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6. Difficulty to understand pricing mechanisms:

Pricing being the only function that generates revenue for an enterprise needs to be given utmost priority.
However, many of the youth entrepreneurs find themselves stuck in the dilemma of earning profits or
generating customer base and therefore usually end up with the case of over or under pricing (Reuber and
Fischer, 2005). If they keep a low price, they risk their margins and if they keep the price level too high they
risk their potential and actual customers. Therefore, strategizing pricing becomes the key issue for these
entrepreneurs.

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1.30 Implications for the Indian Economy

Looking at the prospects of youth entrepreneurship in Indian environment, it can be concluded that it has
surely become a tool to handle the falling situation of the Indian economy and achieve the targeted growth
rates. The youth entrepreneurship can help the nation and its inhabitants to secure a better standard of living
for them. It has the capacity to drag the nation from the stagnating growth rates and take it to the expected
ones. The young population not only provides better and more technologically sound goods and services to
the society but also provides a growing market for manufactured products, the market which is willing to
experiment with new products and services. Young entrepreneurs put India at an advantage over other
countries. Young entrepreneurs are likely to have better risk acceptance and high fortitude for
experimentation thereby providing a stronger base for technological innovations. There unbeatable levels of
creativity prove them the ultimate innovators.

A nation backed by creative products, outstanding technologies and skilled workforce is sure to outperform
other nations both on professional and economic front.
However what seems so easy has not yet been very successful so far. Despite of acceptance of the importance
of youth entrepreneurship and entrepreneurship in general, the growth of youth entrepreneurship has
remained very slow reasons being lack of regulatory and legal assistance, lack of adequate funding, lack of
experience and unavailability of any monitoring assistance.
Many youth entrepreneurs though have a breathtaking idea fail to start or run their ventures successfully
because of their inability to fulfil capital and regulatory requirements. Competition from established
organizations makes it difficult for them to create market for their products and make customers buy their
products. Lack of any protection barrier worsens the situation for these entrepreneurs to another level. These
difficulties not only obstruct entrepreneurs from running their enterprises but also kill their ‘entrepreneurial
spirit’ making them monotonous.

Looking at the sustainability issues of youth entrepreneurs, there have been tremendous efforts undertaken by
the Indian government to boost entrepreneurship and encourage young entrepreneurs.

Various initiatives in the form of introduction of Make in India (2014), Startup India (2015) and Digital India
(2015) campaigns have been launched to strengthen manufacturing sector, make funding easier and connect
rural areas by developing their digital infrastructure. These initiatives are expected to boost the confidence of
entrepreneurs and make government services available in all areas. The initiatives are likely to increase the
rate of startup activity in India.

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To truly realize the benefits, following steps must be undertaken:

Government should frame policies to appreciate entrepreneurial efforts and provideeducational and financial
support to the young aspiring entrepreneurs.

Entrepreneurship education should be made a part of college curriculum to teach youth aboutthe aspects and
prospects of entrepreneurship.
Big and established entrepreneurs should come forward to help young entrepreneurs andteach them through
their experience. Networking between big and young entrepreneurs should be encouraged as a part of social
activity.

Tax incentives and relaxations in the form of subsidies can help entrepreneurs keep running and growing.
Reducing the tax burden would help them use their profits for securing required technology and resources.
Also this would make them concentrate on their operating mechanisms rather than worrying about their tax
liabilities.
Campaigns should be run not just to boost entrepreneurial spirit but also to bring abouta change in social
environment. It is equally important to change the attitude of the society about the entrepreneurship.

Training centres, skill imparting institutes and business incubators should be opened inrural areas to provide
knowledge to their youth. Opening these centres in rural areas would also provide an opportunity to women
of these areas to gain training who otherwise find it difficult to travel to cities for gaining practical education.
This is necessary to harness the talent of youth of rural areas and remove regional disparities.

Young future generation needs to be given not only the basic skills and technical know-how but also the right
attitude and behavioural skills to come up with innovative solutions.

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1.31 India’s efforts at promoting entrepreneurship and innovation

1. Startup India:
Through the Startup India initiative, Government of India promotes entrepreneurship by mentoring, nurturing
and facilitating startups throughout their life cycle. Since its launch in January 2016, the initiative has
successfully given a head start to numerous aspiring entrepreneurs wiith a 360-degree approach to enable
startups, the initiative provides a comprehensive four-week free online learning program, has set up research
parks, incubators and startup Centres across the country by creating a strong network of academia and
industry bodies.
More importantly, a ‘Fund of Funds’ has been created to help startups gain access to funding. At the core of
the initiative is the effort to build an ecosystem in which startups can innovate and excel without any barriers,
through such mechanisms as online recognition of startups, Startup India Learning Programme, Facilitated
Patent filing, Easy Compliance Norms, Relaxed Procurement Norms, incubator support, innovation focused
programmes for students, funding support, tax benefits and addressing of regulatory issues.

2. Make in India:
Designed to transform India into a global design and manufacturing hub, the Make in India initiative was
launched in September 2014. It came as a powerful call to India’s citizens and business leaders, and an
invitation to potential partners and investors around the world to overhaul outdated processes and policies,
and centralize information about opportunities in India’s manufacturing sector. This has led to renewed
confidence in India’s capabilities among potential partners abroad, business community within the country
and citizens at large. The plan behind Make in India was one of the largest undertaken in recent history.
Among several other measures, the initiative has ensured the replacement of obsolete and obstructive
frameworks with transparent and user-friendly systems. This has in turn helped procure investments, foster
innovation, develop skills, protect intellectual property and build best-in-class manufacturing infrastructure.

3. Innovation Mission (AIM):

AIM is the Government of India’s endeavor to promote a culture of innovation and entrepreneurship, and it
serves as a platform for promotion of world-class Innovation Hubs, Grand Challenges, start-up businesses
and other self-employment activities, particularly in technology driven areas. In order to foster curiosity,
creativity and imagination right at the school, AIM recently launched Atal Tinkering Labs (ATL) across
India. ATLs are workspaces where students can work with tools and equipment to gain hands-on training in
the concepts of STEM (Science, Technology, Engineering and Math). Atal Incubation Centres (AICs) are
another programme of AIM created to build innovative start-up businesses as scalable and sustainable
enterprises. AICs provide world class incubation facilities with appropriate physical infrastructure in terms of
capital equipment and operating facilities.

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4. Support to Training and Employment
Programme for Women (STEP):

STEP was launched by the Government of India’s Ministry of Women and Child Development to train
women with no access to formal skill training facilities, especially in rural India. The Ministry of Skill
Development & Entrepreneurship and NITI Aayog recently redrafted the Guidelines of the 30-year-old
initiative to adapt to present-day needs. The initiative reaches out to all Indian women above 16 years of age.
The programme imparts skills in several sectors such as agriculture, horticulture, food processing, handlooms,
traditional crafts like embroidery, travel and tourism, hospitality, computer and IT services.

5. Jan Dhan- Aadhaar- Mobile (JAM):

JAM, for the first time, is a technological intervention that enables direct transfer of subsidies to intended
beneficiaries and, therefore, eliminates all intermediaries and leakages in the system, which has a potential
impact on the lives of millions of Indian citizens. Besides serving as a vital check on corruption, JAM
provides for accounts to all underserved regions, in order to make banking services accessible down to the
last mile.

6. Digital India:

The Digital India initiative was launched to modernize the Indian economy to makes all government services
available electronically. The initiative aims to transform India into a digitally-empowered society and
knowledge economy with universal access to goods and services. Given historically poor internet penetration,
this initiative aims to make available high-speed internet down to the grassroots. This program aims to
improve citizen participation in the digital and financial space, make India’s cyberspace safer and more
secure, and improve ease of doing business. Digital India hopes to achieve equity and efficiency in a country
with immense diversity by making digital resources and services available in all Indian languages.

7. Biotechnology Industry Research Assistance Council (BIRAC):

BIRAC is a not-for-profit Public-Sector Enterprise, set up by Department of Biotechnology to strengthen and
empower emerging biotechnology enterprises. It aims to embed strategic research and innovation in all
biotech enterprises, and bridge the existing gaps between industry and academia. The ultimate goal is to
develop high-quality, yet affordable, products with the use of cutting edge technologies. BIRAC has initiated
partnerships with several national and global partners for building capacities of the Indian biotech industry,
particularly start-ups and SME’s, and has facilitated several rapid developments in medical technology.

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8. Department of Science and Technology (DST):
The DST comprises several arms that work across the spectrum on all major projects that require scientific
and technological intervention. The Technology Interventions for Disabled and Elderly, for instance,
provides technological solutions to address challenges and improve quality of life of the elderly in India
through the application of science and technology. On the other hand, the ASEAN-India Science,
Technology and Innovation Cooperation works to narrow the development gap and enhance connectivity
between the ASEAN countries. It encourages cooperation in science, technology and innovation through
joint research across sectors and provides fellowships to scientists and researchers from ASEAN member
states with Indian R&D/ academic institutions to upgrade their research skills and expertise.

9. Stand-Up India:
Launched in 2015, Stand-Up India seeks to leverage institutional credit for the benefit of India’s
underprivileged. It aims to enable economic participation of, and share the benefits of India’s growth, among
women entrepreneurs, Scheduled Castes and Scheduled Tribes. Towards this end, at least one women and
one individual from the SC or ST communities are granted loans between Rs.1 million to Rs.10 million to set
up Greenfield enterprises in manufacturing, services or the trading sector. The Stand-Up India portal also acts
as a digital platform for small entrepreneurs and provides information on financing and credit guarantee.

10. Trade related Entrepreneurship Assistance and Development (TREAD):

To address the critical issues of access to credit among India’s underprivileged women, the TREAD
programme enables credit availability to interested women through non-governmental organizations (NGOs).
As such, women can receive support of registered NGOs in both accessing loan facilities, and receiving
counseling and training opportunities to kick-start proposed enterprises, in order to provide pathways for
women to take up non-farm activities.

11. Pradhan Mantri Kaushal Vikas Yojana (PMKVY):

A flagship initiative of the Ministry of Skill Development & Entrepreneurship (MSDE), this is a Skill
Certification initiative that aims to train youth in industry-relevant skills to enhance opportunities for
livelihood creation and employability. Individuals with prior learning experience or skills are also assessed
and certified as a Recognition of Prior Learning. Training and Assessment fees are entirely borne by the
Government under this program.

12. National Skill Development Mission:

Launched in July 2015, the mission aims to build synergies across sectors and States in skilled industries and
initiatives. With a vision to build a ‘Skilled India’ it is designed to expedite decision-making across sectors to
provide skills at scale, without compromising on quality or speed. The seven sub-missions proposed in the
initial phase to guide the mission’s skilling efforts across India are: (i) Institutional Training (ii)
Infrastructure (iii) Convergence (iv) Trainers (v) Overseas Employment (vi) Sustainable Livelihoods
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13. Science for Equity Empowerment and Development (SEED):
SEED aims to provide opportunities to motivated scientists and field level workers to undertake action-
oriented, location specific projects for socio-economic gain, particularly in rural areas. Efforts have been
made to associate national labs and other specialist S&T institutions with innovations at the grassroots to
enable access to inputs from experts, quality infrastructure. SEED emphasizes equity in development, so that
the benefits of technological accrue to a vast section of the population, particularly the disadvantaged

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Chapter 2: Research Methodology:

2.1 Introduction:
Methodology is the study of research methods or more formally, 'a contextual framework' for research, a
coherent and logical scheme based on views, beliefs, and values, that guides the choices researchers [or other
users] make".

It comprises the theoretical analysis of the body of methods and principles associated with a branch of
knowledge such that the methodologies employed from differing disciplines vary depending on their
historical development. This creates a continuum of methodologies that stretch across competing
understandings of how knowledge and reality are best understood. This situates methodologies within
overarching philosophies and approaches.

Methodology may be visualized as a spectrum from a predominantly quantitative approach towards a

predominantly qualitative approach. Although a methodology may conventionally sit specifically within one
of these approaches, researchers may blend approaches in answering their research objectives and so have
methodologies that are multimethod and/or interdisciplinary.

Overall, a methodology does not set out to provide solutions - it is therefore, not the same as a method.
Instead, a methodology offers a theoretical perspective for understanding which method, set of methods, or
best practices can be applied to the research question(s) at hand.

For the purpose of study the primary data has been collected through survey on Google Forms and secondary
data has been collected online, which mainly include websites, articles & newspapers.

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2.2 Objective of Study:
1. Understanding entrepreneur and entrepreneurship

2. To study the role and importance of entrepreneurship development in India with respect to growth and
employment generation in India.

3. Understanding entrepreneurship from youth's perspective

4. To study the opportunities and challenges faced by the young entrepreneurs

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2.3 SAMPLE SIZE
Sampling maybe defined as the selection of some part of aggregate or totality based on which a judgement or
inference about the aggregate or totality is made. The items so selected which constitute of what technically
is called sample is known as Sample Size. Since this research was confined to limited area and limited size of
people, the sample size for the project was of 50 people.

2.4 SAMPLE UNIT

A sampling unit can refer to any single person being researched. In context of market research, a sampling
unit is an individual person. The term sampling unit refers to a singular value of database. For example, if
you were conducting research using a sample of university students, a single university student will be a
sample unit.

Herein, the sample unit were the Young Entrepreneurs.

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2.5 Data collection Method – For the purpose of study data was collected through primary and
secondary medium

• Primary Data - Primary data refers to information that is generated to meet the specific requirements
of the investigation at hand. The researcher collects primary data himself. In this research Primary
Data was collected through survey on Google Forms

• Secondary Data - Secondary data is information that is collected for a purpose other than to solve the
specific problem under investigation. For this research secondary data has been collected online,
which mainly include websites, articles & newspapers.

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Chapter 3. Literature Review

3.1 Review of Literature -

There is extensive research done to understand the effect of entrepreneurship development but there is
limited research that looks into the Entrepreneurship Development in India from Youth's Perspective. About
51 articles about entrepreneurial literature about India have been down loaded, books of famous authors
referred and the relevant articles which had come in newspapers have been referred for preparing this paper.
After extensive reading, articles and chapters particularly relevant to the area of present study, that is the role
of entrepreneurship development in India from Youth's Perspective have been selected and analysed for the
study to arrive at the conclusions.

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Chapter 4. Data analysis and interpretation

4.1 Analysis of data and it’s interpretation -

From the above-mentioned pie chart, we can easily conclude that there was nearly equal
participation from both males and females which helped us to study the topic from the
perspectives of both the genders.

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From the above-mentioned pie chart, we can conclude that there was an active participation
from the people of almost every age group but maximum participation was from the young
age group i.e., 15-24. Due to this it was helpful for us to understand the topic from youth’s
perspective.

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In our survey we got to know that 70 percent of the youth population of our country have the
desire of being an entrepreneur.

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Based on the above-mentioned output we can get on the conclusion that majority of the
respondents think that increase in entrepreneurship can reduce unemployment which can also
help in the overall growth and development of our nation.

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As entrepreneurs help in revenue generation and provide employment it is believed by
everyone that increase in entrepreneurship can strengthen our economy.

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Coincidentally equal number of people i.e., 35.3% want to be an entrepreneur because they
want to be their own boss or they want to do something for the society where as 29.4% of the
respondents want to be an entrepreneur because the want to earn huge profits from it.

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For majority of the young entrepreneurs Lack of funds i.e. financial help is the dominant
barrier for being an entrepreneur or starting their own business where as for many people lack
of knowledge is also a dominant barrier for being an entrepreneur or starting their own
business.

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The interpretation of the data mentioned above states that majority of people are satisfied
with the steps takes by the government to promote entrepreneurship where as lot of people
also believe that the steps taken by the government are not satisfactory.

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Chapter 5. Conclusion and Suggestions

5.1 Conclusion -
• In India, the past few decades have seen a major rise in the area of Entrepreneurship.
• Today, India has become fertile ground for breeding new entrepreneurs.
• Young entrepreneurs with their vision and ability to bear risk can transform the economic scene of the
country.
• Youth entrepreneurship is that one tool which can save any nation from drawing in the sea of high
unemployment, poverty and stagnation.

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5.2 Suggestions -

Still many entrepreneurs find it difficult to carry their ventures very long with many of them shutting their
ventures in between owing to different reasons. Thus there is a strong need to initiate an “entrepreneurial
revolution” that might help generate the entrepreneurial spirit among the youth of the society. It is necessary
to create an environment that is suitable for our young entrepreneurs, where there will be a scope to
experiment, to innovate and to learn, where failure is accepted and success is honoured, where there are no
inhibitions as to the sustainability of start-ups, where young individuals are respected for giving ideas, where
even the big entrepreneurs find it a privilege to support young ones.

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Chapter 6. Bibliography

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Commission N.K., “Entrepreneurship in India,” National Knowledge Commission, New Delhi, 2008.

Khanka S., Entrepreneurial Development, New Delhi: S. Chand & Company Pvt. Ltd., 2014.

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Guin K.K., “Innovation and Entrepreneurship in India,” Technology Innovation Management Review, 2014.
Nickels W.G., Understanding Business, (Ed.), Boston: McGraw-Hill, 2004.

Kular I.K.A.S.B.J.S., “Entrepreneurship: Our Glorious Heritage,” Drishtikon: A Management Journal.

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Tripathi D., “Indian Entrepreneurship in Historical Perspective: A Reinterpretation,” Economic and Political
Weekly, pp. 6-22, 29 May 1971.

Joshi A. And Ram L.S.: A Study in Entrepreneurship and Industrial Management, New Delhi: Orient
Longman, 1975.

Dubey R., “Q&A,” Technology Innovation Management Review, 2014.

Kalyanaram G.K., “India’s economic growth and market potential: benchmarked against China,” Journal of
Indian Business Research, pp. 57-65, 2009.

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Abhyankar R., “The Government of India's Role in Promoting Innovation through Policy Initiatives for
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[Accessed 6 February 2017].

S.K. Mohanty, Fundamentals of Entrepreneurship, 2005.

David A. Harper, Foundations of Entrepreneurship and Economic Development, 2003.

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House, Mumbai, 2009.

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(https://www.youthkiawaaz.com/2011/06/building-empires-growth-of-entrepreneurship-in-india)
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68.html).

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Chapter 7. APPENDIX

7.1 Questionnaires

Q.1 Would you like to be an Entrepreneur?

Q.2 Can Increase in number of Entrepreneurs reduce unemployment?

Q.3 Can increase in Entrepreneurship strengthen our Economy?

Q 4 What are/ can be your motivation to start a business?

Q.5 From the given options what can be the most dominant barrier in starting your own business?

Q.6 Are you satisfied with the steps taken by the government to promote Entrepreneurship?

Q.7 According to you what are the challenges one can face while starting their own business?

86