Significance of Entrepreneurship

And

Tendency of present youth towards Entrepreneurship in India

Rashmi Sree, B.com (ISM)

Faculty of Science and humanities,

SRM Institute of Science and Technology,

Chennai, Tamil Nadu, India.

E-mail: ravirashmisree1@gmail.com

Abstract

Economic development in a country is drastically effected by entrepreneurship in many ways.

Entrepreneurship and economic condition of a country are intimately related. Entrepreneurs

play a crucial role not only in the development of industrial sector of a country but also in the

development of agricultural and service sector. The importance of entrepreneurship in

economic development varies from the economy of country to country. The vital role played

by the entrepreneurs in the evolution of developed countries has made the people of

developing countries conscious of the significance of entrepreneurship for economic

development. Countries that are developing currently have begun to perceive that for

achieving economic development, it is necessary to increase entrepreneurship both

qualitatively and quantitatively in the country. A balanced approach to nurturing

entrepreneurship will definitely result in positive impact on economy. As the Indian economy
needs development in the area of entrepreneurship which will lead to overall development of

the country, this paper investigates the present attitude of Indian youth towards new business

creation and entrepreneurship. Thus the basic purpose of the paper is to examine the

significance of Indian entrepreneurs and tendency of youth towards entrepreneurship. Data

regarding the attitude of youth towards entrepreneurship and risk taking has been collected

and analysed. Furthermore, the analysis shows the reasons for the consent or the denial of

youth towards building innovative enterprises and their interest in entrepreneurship.

Keywords

Entrepreneurship, Significance, Youth tendency, Unemployment, Start ups.

Introduction

Entrepreneurship seems to be the arch word for current generation. There has been a great

increase in the number of people taking risk of initiating a business idea of their own. Over

the years there has been a rise in young Indians overcoming their phobia of failure and

stepping up into the tricky world of start-ups. With the IT industry’s rise sweeping India,

starting up something of your own has not been that challenging any more. Also energizing

stories of other entrepreneurs around the world like Bill Gates, Steve Jobs and Jeff Bezos

have been providing the required spirit for the fresh minds of our country. Success stories of

start-ups like Infosys, Flipkart and Snapdeal from the prior years have been motivating for

the young generation to believe in their own ideas and smart work towards turning them into

reality.

Originally establishing in big cities like Mumbai and Bangalore, the trend of entrepreneurship

is slowly moving towards tier 2 cities though the main reason for the revolution still located

in these cities. Bangalore which is known as the Silicon Valley of India, particularly boasts of
being the only Indian city among the “Top 20 Entrepreneurial Hot Spots around the Globe”

in accordance with a data released by the financial-software firm Intuit in 2013. It found a

place on the 19th spot in the list with Silicon Valley leading the list. In the past few years,

electronic business is acting as a crucial area for entrepreneurship in India with Flipkart,

Snapdeal, Zomato, bookmyshow etc becoming the top companies in the field within a few

years of its emergence.

With regard to the statistics, if we look at the data released by NASSCOM it becomes even

transparent that the start-up ecosystem in India is becoming more and more victorious over

time. In accordance to the data published, India has become the 4th largest community in

terms of the number of technical products or digital start-ups in the world with about 3100

start-ups and is hence seen as the fastest emerging community. Observing the growth from

2010 to 2014 it can be seen that there has been a stable year on year increment of 14% in the

revenues generated by the start-ups in India. The key area of most of the start-ups in India has

been on the Business to customer market with 59% of the newly launched firms opting for it.

37% of the start-ups opt for B2B market whereas only 4% opt for both B2B and B2C

markets.

Start ups cannot operate in a vacuum; they need a supporting eco-system to cherish them.

Taking a gander at the profile of the start-up originators in India we locate that 53% of the

entrepreneurs fall under the age group of 26 to 35 years, 22% out of 36-45 years age section,

20% in underneath 25 years age group and 5% of these business visionaries fall in the class

of more than 45 years old. It can be watched that 73% of the aggregate new companies are

begun by individuals under 35 years old. This demonstrates the risks taking capacities of the

young people in the nation and furthermore the want for them to begin something of their

own.
A great extent of investing firms has demonstrated enthusiasm for making investments in

India. India, in the primary quarter of 2015, had seen 67% more investment transactions than

China as far as total volume. Sequoia Capital, the most dynamic funding firm of this quarter

in the Asia Pacific locale has made 13 of its 32 investments in India. Another worldwide

funding firm, Tiger Global, has made 9 of its 20 investments in India.

Aside from the well developing service sector there have been significant activities taken by

the legislature with respect to enhancing the entrepreneurial situation in the manufacturing

sector of the nation. Propelled on 25th September 2014 by the honourable Prime Minister of

India, Mr. Narendra Modi the Make in India activity was begun to encourage Indian

organizations to make their goods in India instead of outsourcing them. This activity is relied

upon to build the quantity of individuals starting their own particular firms in the

manufacturing segment in this way helping the twin reason for entrepreneurship and

improving the slacking manufacturing segment in the nation. This activity likewise desires

for pulling in more mechanical and capital interests in India.

There has been a marvellous ascent found in the number of new businesses in India and the

significant explanation behind that is the adjustment in outlook and mentality of the general

population to have something of their own rather than buckling down for the objectives set by

others. The future looks far superior with an ever increasing number of individuals turning

out to introduce their plans to financial specialists and an ever increasing number of investors

looking for thoughts that are unique and that may bear some significance among the general

population.
Union budget 2018

In the Union Budget 2018 the promise of "additional measures" to strengthen existing

investment and taxation rules offers little aid to start-ups with angel tax still emerging large.

Furthermore, no extension has been made to the tax exemption period for start-ups. By

making the tax structures simple and easing of procedures to decrease regulatory load was a

common challenge among start-ups this year, but the Budget has failed to satisfy their

demands for that in this fiscal year. Clarity on what constitutes an 'innovative' start-up

remains under vague in the Budget proposals, as does the process of tapping funds

from Government's massive 'Fund of Funds' program. However, the industry seems to be

inviting the move to allocate funds to boost the adoption of new technologies like Artificial

Intelligence in India. Finance Minister of India Arun Jaitley has announced a massive

budgetary allocation for the Department of Science and Technology (DST). "To boost

research, training and skilling in new technologies, the DST will launch a mission on cyber

space to support the establishment of centre of excellence," he had said. "(To this end) I have

doubled the allocation on the Digital India program to Rs 3,073 crore in 2018-19," he had

added. The measures announced for the MSME sector will give a toss to one of the biggest

job creation engines in India. Moreover, the steps like credit support for MSMEs etc can

benefit early-stage start-ups which are outside the traditional business net as well. While the

allocation to Digital India has increased, there could have been a more importance given to

encourage the country's entrepreneurs as well. Furthermore, start-up sector could have also

benefited from dissolution of the angel tax and further expanding the tax holiday period.
Tendency of present youth towards Entrepreneurship in India survey

The survey on the Tendency of present youth towards entrepreneurship in India is conducted

to know the mindset of the students about entrepreneurship. The participants of the survey

were asked to fill out an online survey and the total received responses are from the 172

students, most of them are in the age group of 18 to 25. Questions are asked to withdraw the

major aspects that depict the views of the students towards entrepreneurship. One of the

principal aims of this project is to know the attitude of present youth in relation to risk taking

and reasons that support or oppose entrepreneurship in their point of view.

Objectives and Methodology

 To study the percentage of youth who are interested in entrepreneurship and who

would like to become entrepreneurs.

 To analyze the constraints that impedes and prospects that motivates the young people

from starting and running new enterprises.

 To study their view about unemployment in relation with the entrepreneurship.

 To know the aspects which are challenging to run an enterprise by the youth.

 To study the factors contributing to the advancement of young entrepreneurs to start

up their own enterprise.

The study is based on an exploratory research of 172 young people in India. For undertaking

the survey, a structured questionnaire was prepared which covered different issues relating to

the preference of students for entrepreneurship, motivating factors for entrepreneurship,

reasons for not choosing entrepreneurship, problems faced by the entrepreneurs from their

individual perspective. Secondary data, i.e., through websites, books and journals were also

referred for the preparation of the research paper.

Youth of India and Entrepreneurship

India have high rate of youth percentage. As per an UN report 2014, world's biggest youth

populace with 356 million (10 years to 24 years of age) is in India. The 2011 census

demonstrates that around 41% of populace of India is underneath the age of 20 years, half of

populace is in the 20-59 age categories and remaining 9 % is over the age of 60. While in the

meantime, just 32 % of the nation's youth (15-24 years) populace is employed yet (World

Development Indicator, World Bank Data 2014), which is likewise far underneath than the

41% worldwide average. Then again, According to NSSO (National Sample Survey

Organization) figures at each level of education, the joblessness rate is higher among the 15

year to 29 year categories in contrasted with the broader populace all in all. The yearly

populace development rate of India is 1.2% (World Bank information, 2015) and a report

from the United Nations Development Program (UNDP) discharged in April 2016

demonstrated that India will confront a serious challenge of finding occupations for a

developing populace throughout the following 35 years.

When we see the major reasons for unemployment we will discover the absence of

employment opportunities, skill crises, high development of population, moderate

development of industrialization, regularity of agriculture and allied sectors at the top. The

rate of joblessness has become speedier for individuals with practically no education than for

those with some education. The Government has not been able to give enough openings for

work to all the jobless and in the meantime the unemployed youth populace has been

expanding step by step. By all means, rate of unemployment is higher in rural than urban

territories and the rate of female unemployment surpassed the rate of male unemployment.
In scenarios like this, there is solid requirement for entrepreneurship in our nation. India

needs work producers rather than work seekers. Instead of searching for occupations youth

can endeavour to discover new open doors where they can begin their own undertakings

originating from their new thoughts. This could be a plausible answer for our unemployment

issue by making work for own self as well as other people. Entrepreneur is a person who

works together all assets, steps up with regards to begin something new, takes risks, gives

work to numerous and fills the gaps (gives answer for individuals' issues in the form of

services and goods) to make lives less demanding. In the event when we see the huge picture

then we find that business visionaries can help a nation from various perspectives. It causes a

nation

1. To decrease its joblessness rate (through independent work and giving work to

others).

2. To wind up fiscally and technologically independent (through trading and

developments),

3. One single entrepreneurial unit, impacts such a significant number of lives and offices

directly or indirectly, it also gives money related security.

4. Income to government drastically improves because of taxes payment directly and

indirectly.

5. Foreign cash flows to the economy through fares (directly) and so on.

Thus an entrepreneur helps a nation in its general monetary improvement. In such a

circumstance advancement of business is particularly required in the nation like India. As we

already discussed in India a larger piece of populace is youth and they have potential for

statistic profit, which happens when the extent of working individuals in the whole populace

is more than the rest. It means that more nationals can possibly work, be gainful and
contribute for the countries' financial improvement. When more youngsters progress toward

becoming business visionaries, at that point the issue of unemployment can be lessened to a

huge degree.

Importance in youth entrepreneurship has been elevated due to high levels of unemployment

amongst young people and as a way to cherish employment opportunities or to address social

exclusion. Moreover, entrepreneurship is seen as a medium for the talents of abounding

highly educated young people in areas such as information technology, biotechnology and

other modern industries.

Blooming Entrepreneurship has obtained more significance in recent years in many countries

with increased interest in entrepreneurship as a way of increase economic competitiveness

and promoting regional advancement. While new business enterprise is an under-scrutinized

field in academic and policy debates, two principle factors represent its developing

consideration in developed nations. The first is the expanded number of jobless youngsters

contrasted with the rest of the population; the second is the requirement for more prominent

competitiveness, and the accompanying pressures for skill improvement and entrepreneurship

as a method of addressing the pressures of globalization. In general ways youth

unemployment is associated with: firstly, the troublesome progress from school to work;

furthermore, the unwillingness of businesses to utilize unpractised employees, and; thirdly,

the successive job changes by youngsters trying to locate a satisfactory job. In spite of the

fact that the literature on youth entrepreneurship is constrained, there is confirmation

(Greene, 2005) that youngsters feel that working for themselves as a profession alternative

since it offers them an intriguing job, flexibility and independence which other working

atmosphere might not give. So these are the main reasons that majority of the participants of

the survey are students and youth.

Data Analysis

Percentage of students for entrepreneurship

Table 1: Students responses for Entrepreneurship

Source: From my Survey - The tendency of present youth towards Entrepreneurship in India

Through the sample survey it was found that 79% of the respondent chose to become

entrepreneurs, 19% chose that they are not sure about it and only 3% chose that they do not

prefer entrepreneurship as their career option. This is a positive sign which shows that the

young minds are aspiring to become entrepreneurs. This also needs proper guidance, support

and strong will from the individual to happen in reality.

Reasons for choosing Entrepreneurship

Numerous individuals opt for entrepreneurship as their profession because of various reasons.

Some dig into the business since they would need to maintain their own particular business,

offering an explanation to nobody and setting every one of the principles and conventions

without anyone else. Others hop into enterprise since they have seen that most successful

individuals on the planet claim an effective business. There are likewise others that make
entrepreneurship as a second optional career because of the fact that their present occupations

are not sufficiently winning for them.

Table 2: Students reasons for choosing Entrepreneurship

Source: From my Survey - The tendency of present youth towards Entrepreneurship in India

From the sample research it was found that nearly 24% of the respondents chose

entrepreneurship because of their passion for entrepreneurship and high ambition, 25% to

provide employment for others, 17% chose entrepreneurship only to become rich and 48% of

the respondents chose for all the above mentioned reasons. Some of the other respondents

choose it to address common issues.

Reasons for not choosing Entrepreneurship

According to the opinions of the respondents from the sample research it was found that

nearly 57% of the respondents says that their major concern for not choosing

entrepreneurship is because of lack of Financial and family support, 30% opine because it is

risky, 20% says because of the reasons that it may lead to job insecurity and only 9% thought

because of some other reasons like interested or passionate in other fields.

 Table 3: Students reasons for not choosing Entrepreneurship

Source: From my Survey - The tendency of present youth towards Entrepreneurship in India

Opportunities for new entrepreneurs in comparison with other countries

Figure 1: Students opinion regarding Opportunities for new entrepreneurs in comparison with other

countries

Source: From my Survey - The tendency of present youth towards Entrepreneurship in India
When the students are asked for their opinion regarding the Opportunities for new

entrepreneurs in comparison with other countries, as the figure 1 shows 22% of the students

strongly agreed for the statement and 18% strongly disagreed and 23% of them are neutral to

the statement.

Suggestions to increase students’ tendency towards Entrepreneurship

From the survey it was found that 50% of the total participants chosen the option that

entrepreneurship should be made as one of the academic subject, 48% opted that there should

be given more awareness among young people regarding this, and 46% among the total

members choose that entrepreneurship should be made as one of the academic subject. In the

opinion of some others they said that there should be investment habits and money making

games for school children. As the interest of individuals plays a key role some suggest that

there should be media which make students coherent and make them attracted towards the

subject as this is important to the nation currently.

Table 4: Suggestions to increase students’ tendency towards Entrepreneurship

Source: From my Survey - The tendency of present youth towards Entrepreneurship in India

When the students are asked if they would like to collaborate with their friends or would they

start their enterprise individually, out of the total members 59% of the members chose that

they would like to start in collaboration with friends or partners, 45% of the participants

chose to start individually. When they are asked why the youth are not choosing

entrepreneurship according to their opinion 37% of them said because of the lack of financial

and family support, 33% chose the reason that youth are not interested to take risk and 17%

chose because of lack of knowledge. When the survey asked to give their opinion if more

new entrepreneurs are required in India to boost up Indian economy, 86% of them said

positively, only 5% said that they are not required and the rest said that they are not sure

about it. When the members were asked if they agree that Indian youngsters have capacity to

succeed in entrepreneurship only 26% of the total participants agreed totally, 14% are neutral

and 27% of them totally disagreed. This shows that Indian youth are still in lack of self

confidence about their ability. Out of total members 79% of the respondents agreed that

Entrepreneurship would abolish unemployment and only 6% disagreed and the rest of them

are not sure about it. Among the total participants of the survey 93% of them chose that hard

work and proper planning is the main reason for the success of the entrepreneurship and only

15% chose that luck is the main reason. 43% of the survey participants agreed that Indian

Government is encouraging entrepreneurship and 22% of then disagreed for that and the rest

are not sure about that. 66% of the participants chose that lack of moral support from society

and the family is the major challenge for the women entrepreneurs, 34% chose that lack of

safety and security is the major challenge. When the members of the survey are asked to give

their opinion regarding the major challenges for the new entrepreneurs in India, 58% of them
chose Lack of financial support is the major challenge, 46% said that market competition is

the major challenge and the rest chose practical problems.

Conclusion

India provides a thriving platform for entrepreneurship culture. India is the fifth largest

country in the world on the basis of growing number of start-ups counting over 4200. The

entrepreneurs work as change-agents in the economy of a country. They help in stimulating

the growth process by influencing macroeconomic variables through micro ventures. The

entrepreneurs also have the capability of creating a spark to transform the economy which is

required for an emerging economy like India. This survey and further research aims at

eliciting the thoughts of present youth towards entrepreneurship and their preferences at the

entry level in to entrepreneurship. The overall study shows us that Indian youth hasn’t

completely reached to the expectations of their involvement in entrepreneurship which is

ought to be required in this present scenario. Research findings suggest more and more new

entrepreneurs to be evolved from Indian youth by improving their notions about the

entrepreneurship and thus abolish the problem of unemployment in India.

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