Entrepreneurship Development in India

What is Entrepreneurship Development?

Entrepreneurship Development is used to support and help entrepreneurs establish and grow their own companies. It includes:

• It is used to provide training and assistance.
• It helps people to find the funding options so that they can start their own business.
• Helps in making policies simpler and easier to do business. 
• It helps in assisting new startups with skills and knowledge.

Government Schemes Supporting Entrepreneurship Development in India

The government schemes for entrepreneurship development are specific programs that help individuals to start their businesses. These schemes provide financial support, training, and mentorship.

The five key aspects of these schemes are:

1. Provides easy access to funds and loans when needed.
2. Foster skill development and training courses for individuals.
3. Provide support for women, SC/ST, and rural entrepreneurs.
4. Simplified registration and legal aid support.
5. Promotion for using innovation and technology.

Major Government Initiatives for Entrepreneurship

1. Startup India Initiative

The Startup India program was established in 2016 to promote and grow startups actively in India and to make India a hub of innovation. 

Key Benefits:

• Simple registration through the Startup India portal.
• 3 years of tax benefits.
• Fast-tracked patent registrations.
• Funding and mentoring from the government.

The Startup India initiative allows young entrepreneurs to grow quickly and with minimal bureaucracy.

2. Atmanirbhar Bharat Abhiyan

The Atmanirbhar Bharat campaign began in 2020 to promote self-reliance in India. It encourages people to be ‘Vocal for Local’ by supporting and buying locally-made products so that domestic businesses become strong and independent.

Key Benefits:

• The package will provide economic relief to the tune of ₹20 lakh crore.
• Support MSMEs, small industries, and rural businesses.
• Boost to local manufacturing and sectors. 
• Encourage “Make in India” products.

This scheme empowers entrepreneurs to make products for India and the world.

3. Stand-Up India Scheme 

This scheme is specifically aimed at assisting women and SC/ST entrepreneurs. 

Key Benefits:

• Get loans between ₹10 lakh and ₹1 crore.
• Support related to setting up a new business in the manufacturing, trading, or service sector.
• Handholding and training support.
• More than 1.5 lakh bank branches across India.

This scheme provides an opportunity for underrepresented people to get into business. 

4. Digital India and Udyam Registration

Digital India is a promotion of technology use in all sectors. Udyam Registration under Digital India for MSMEs is a simple registration for startups or small businesses and is done primarily online. 

Key Benefits:

• Free and easy online applications.
• Access to several government schemes and subsidies.
• Facilitates loans & faster access to credit.
• Gives availability for digital records & promotes transparency in business practices.

This is an initiative to help entrepreneurs start and/or grow digitally.

5. Atal Innovation Mission (AIM)

AIM is a flagship NITI Aayog initiative to build a culture of innovation and entrepreneurship.

Key Benefits:

• Set up Atal tinkering labs in schools.
• Support startups through Atal incubation centers.
• Encourage future problem-solvers and creative thinkers.
• Promote research, development, and innovation.

This mission builds future entrepreneurs from an early age

6. MSME Sector Support

The Micro, Small, and Medium Enterprises (MSME) sector is the backbone of the Indian economy. The government has a different support system for each MSME segment.

Key Benefits:

• Credit Guarantee Schemes.
• Technology Upgradation.
• Market access through export promotion.
• Training and Skill Development.

MSME is given strong support to function and compete in the national and global markets.

Role of the Ministry of Skill Development and Entrepreneurship (MSDE)

The Indian Government established the Ministry of Skill Development and Entrepreneurship (MSDE), which is used to develop skills and entrepreneurship throughout India.

Key Responsibilities: 

1. Policy Development: It is used to develop national policy for skill training and the promotion of entrepreneurship.
2. Skill Training Program: It is used to develop skills in the individual by running various training programs.
3. Coordination: Works with various ministries, states, and training agencies. 
4. Supporting Entrepreneurs: It helps people turn their ideas into businesses by providing support, training, and access to loans.
5. National Skill Development Mission: Implements the National Skill Development Mission for improving youth employability and self-employment.

Objectives of Entrepreneurship Development

Let’s explore the objectives of the development of entrepreneurship:

1. Encouraging Self-Employment: It supports individuals in becoming self-employed.
2. Creating Jobs: It helps businesses to grow and create jobs for individuals
3. Encouraging Innovation: Support individuals to think about new ideas and novel ways of doing things.
4. Developing Business Skills: Provide training through workshops in core business areas like finance, marketing, and management. 
5. Building Confidence: Providing support and encouragement to develop confidence in an individual’s ability to become an entrepreneur, 
6. Reducing Regional Disparity: Building entrepreneurship in rural and depressed areas.

Entrepreneurship Development Institute of India (EDII)

The Ministry of Skill Development and Entrepreneurship (MSDE) was established by the government of India to foster skill development and entrepreneurship throughout the country.

Key Roles:

1. Policy Making: Develop national policies regarding skill training or entrepreneurship
2. Skill Training Program: Organize numerous programs to develop skills for employment and business.
3. Coordination: Ensure collaboration with ministries, state governments/UTs, and training delivery agencies.
4. Support for Entrepreneurs: Assist individuals in developing businesses from ideas, with support and training, and provide access to loans.
5. National Skill Development Mission (NSDM): Administer this program to enhance the employability and self-reliance of the country’s youth.

Phases of Entrepreneurship Development

Entrepreneurship development occurs through multiple stages. It is a multifaceted process with many stages that guide a person into lifelong entrepreneurship. 

There are five main stages: 

1. Awareness: In the awareness stage, individuals are made aware of entrepreneurship as a career. This stage includes seminars and workshops, and campaigns. 

2. Motivation: In the motivation stage, individuals are motivated to take an interest in starting a business.  The awareness and motivation stage must show the advantages and case studies, and success stories of entrepreneurs.

3. Training: The training stage addresses skills development in practical business skills, including marketing, finance, and management.  This stage may also include training on the preparation of the startup planning and project development processes. 

4. Support Stage: Support will assist with loan and incorporation arrangements, as well as support in the setup process. Support may include mentoring, benefits from government programs and services, and networking opportunities. 

5. Follow-up: Ongoing follow-up regularly assists the entrepreneur to understand and address challenges to their project and provides ongoing support and offers growth and sustainability. 

Major Challenges Faced by Entrepreneurs in India

1. Lack of Funds: Startups and small businesses often struggle to obtain loans or find investors, especially in rural areas, due to insufficient funds.
2. Limited Access to Markets: It can often be difficult for new businesses to find customers. In many instances, entering international markets may also be impossible, limiting potential sales. 
3. Lack of Proper Training: Many new entrepreneurs do not receive appropriate knowledge in essential areas such as marketing, finance, and management. 
4. Technological Barriers: Many small businesses operating in rural communities may lack access to modern technology and the Internet. 
5. Social Pressure: Social and financial pressures can discourage many would-be entrepreneurs from taking risks.  
6. Changing Policies: Policy support or changing rules and regulations by government bodies can impact entrepreneurial plans and loans to businesses. 

Conclusion

Entrepreneurship development is not strictly about starting a business. A true entrepreneur is a person who develops something meaningful, provides a solution to a real problem, and contributes to society. With various levels of government support, a community of talented youth, and an expanding culture of start-up activity, India is fast approaching a future where it will become a global leader in the business and innovation sectors.

Entrepreneurship Development in India – FAQs