India is home to tremendous possibilities in the field of startups. Entrepreneurship in India has become a trend, thanks to thousands of people taking the entrepreneurial road. In this article, we uncover some of the recent possibilities, growth, and way forward to make India the land of entrepreneurial opportunities.
India, the world’s third-largest economy in terms of purchasing power parity, has emerged as a major business hub in the last few years. Especially after the 1991 LPG reforms in India, the country’s GDP witnessed significant growth. Foreign investment rules were liberalized and various economic policies were reformed, paving the way for a lot of opportunities for entrepreneurship in India. These reforms proved to be a watershed in the country’s post-independence economic history. India has since then witnessed the emergence of several businesses and entrepreneurs from different sectors, encouraging young minds to take the road of entrepreneurship.
The wave of entrepreneurism inspired business students and professionals to walk on a road that was hardly explored before. With the spread of technological advancements, the Indian economy underwent a phase of transformation and modernism. The era also saw a tremendous increase in the number of institutes offering innovation and entrepreneurship courses in India. As a result, the country emerged as a lucrative destination for entrepreneurial wings to fly free.
Types of Entrepreneurship in India
Having held the position of the world’s fastest-growing economy for six consecutive years from 2013 to 2018, India has been flourishing profoundly when it comes to creating entrepreneurship opportunities. Although India’s economy is led by the service sector, contributing over half of the country’s GDP, a number of startups from across industries have entered the market space. Here are the top 5 types of entrepreneurship in India based on the industries
Small Scale Entrepreneurship
This type of entrepreneurship refers to those small businesses started by one person with an aim to expand into several franchises. Most of these businesses are owned either by a person or a family such as a toco truck, fast-food outlet, salon, etc. The number of small-scale startups in India is huge, holding probably the largest percentage.
Large Business Entrepreneurship
Large company entrepreneurship refers to the idea of acquiring existing firms or creating new subsidiaries within a big company. For example, Facebook (now Meta) acquiring Instagram and Whatsapp falls in this category. Reliance Jio is also an example of large business entrepreneurship. These organizations aspire to grow constantly by building a company culture.
Scalable Startup Entrepreneurship
Scalable startup entrepreneurship in India is an emerging trend. These are based on unique ideas, identifying what’s missing in the market. They have been critical to bringing a change in society, the lifestyle of people. For example, online shopping was a new concept a couple of decades back. A lot of companies such as Myntra, Flipkart, Snapdeal, etc. started this trend, making the supply chain industry one of the most flourishing in India.
Social entrepreneurs in India are innovators who focus on global causes along with making profits. Sustainable development of the planet is at the core of this type of entrepreneurship. Amul, Grameen Bank, Whole Food, etc. are some of the examples.
Innovative entrepreneurship in India is the next big thing. It constantly strives to achieve what’s on the other side of the revolution. Innovative entrepreneurs believe in getting to the avant-garde in whichever field they work in. One of the finest examples of this is Tesla. Where there is no limit, there is innovation. If you are aspiring to learn the art of leading a startup, an entrepreneurship course is worth attending.
Let’s look at this chart that shows the share of entrepreneurs in India by phase of business, as of June 2017. (According to Statista)
|Characteristic||Share of respondents|
|Entrepreneurial employee activity||0.2%|
|Discontinuation of business||3.2%|
|Early-stage entrepreneurship activity||9.3%|
One of the brightest aspects of India’s business domain has been the recent success of many women entrepreneurs. Hundreds of women in the country are taking this difficult road. The entrepreneurial culture has inspired not only urban Indian ladies but also those from remote villages. From Falguni Nayar to Vani Kola and from Tage Rita to Aditi Gupta, women entrepreneurs of India have given hope to those thousands of young aspiring minds who wish to fly high in the sky.
According to Forbes magazine, women make up only about 14% of total Indian entrepreneurs. In the MSME sector, however, the number is 20.37%. Despite India becoming a better business ecosystem, the magazine reveals, the percentage of self-employed women has degraded in the last few years, while the number of salaried women going exponentially high. This data shows we need a lot of effort towards creating a level-playing field and business-friendly environment to encourage female participation in the entrepreneurial sphere.
Steps needed for the growth of entrepreneurship in India
Since the picture of Indian entrepreneurship is not so impressive, we need to make certain decisions to promote more people towards innovation. Here are a few suggestions the government and society should look at:
- Opening quality business schools should be the priority of the governments
- State governments can engage with businesses to offer entrepreneurship development programs in India
- Private entities should be given easy access to the market
- Government’s initiatives such as Skill India and Make in India need to be promoted
- Easy business loans for startups