India produces too few entrepreneurs for its stage of development. Why promoting entrepreneurship is important for india? What are the strategies it can adopt? Discuss
Answers
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Demographic trends in India, the second most populous country in the world, suggest that a million people join the labour force every month. This amounts to 12 million Indians joining the labour force every year, which is more than the entire population of Sweden. With millions of young people joining the labour market every month, the question on their lips is if there will be enough jobs for them. Few are asking who creates jobs.
Contrary to popular belief, India produces too few entrepreneurs for its stage of development. The pace of creation of new businesses and new start-ups in India is low compared to the rest of the world (see “Entrepreneurship, Growth And Job Creation, In Reshaping Tomorrow", World Bank). A slow pace of entrepreneurship is associated with a slow pace of job creation.
An examination of millions of enterprises in India and the US has shown a very strong link between new start-ups and subsequent job growth in both countries. A detailed examination of enterprise in 600 districts in India confirms the strong relationship between new start-ups and subsequent job growth. Districts in India that embraced entrepreneurship have experienced faster job growth.