Why is start-up India not really starting up?

Abstract

In an increasingly globalised world economy which is promoting entrepreneurs and encouraging those who turn business ideas into economic opportunities through innovation, an entrepreneurial system is the necessity of every country. India has witnessed growth at a relatively higher rate in past couple of years and is estimated to be world’s largest economy by 2050. With about 63% of the population in the age group of 15 to 59 years, and the average age of 29 years (EY, FICCI, 2013), India has one of the youngest demographics unlike most of the other developed or developing economies. However, the synergy of this demographic dividend could prove to be the albatross around our necks if they are not engaged in creative pursuit through appropriate skills including entrepreneurial ones. The Indian society has always been risk averse with a distinct preference for services/jobs which provide definitive economic security to them. The pro-service culture has passed from one generation to the next, but currently, India needs more job creators than job seekers. Even if someone tries to choose the path of entrepreneurship to set up his/her business, several adverse factors such as information deficiency on establishing and operating a business, access to start-up funds, lack of education and training, procedural hurdles, stringent tax and regulatory frameworks, lack of networking and mentoring options along with the nightmare about the consequences of failure discourage the spirit to choose entrepreneurship as a career option. Therefore, we have critically analysed the government’s initiative to foster entrepreneurship, and based on our primary and secondary research some recommendations have been suggested to improve and incubate the entrepreneurship culture in India.