A worldwide consortium from over 500 researchers stated on Thursday in its newest study that India is among the top five smoothest countries to establish a new startup, putting the nation on top among low-income economies on several economic regulatory frameworks.
The data for the Global Entrepreneurship Monitor (GEM) 2021/2022 study, which was revealed at the Dubai Expo, was acquired through a poll of at least 2,000 respondents from each of 47 high, middle, and low-income nations.
According to a poll of Indian respondents who answered questions about their entrepreneurial activity, attitudes toward business, and perceptions of their local entrepreneurial environment, 82% believe it is simple to start a firm, ranking India fourth internationally.
As many as 83% believe there are strong possibilities to set up a business in their region, ranking second internationally, and 86% believe they have the skills and expertise to do so, ranking fourth globally.
Furthermore, 54% mention fear of failure as a reason for not planning to establish a new venture in the next three years, ranking India second out of 47 countries on this list.
According to the GEM report, India ranks first among low-income economies (based on GDP per capita) in several Entrepreneurial Framework Conditions, including Entrepreneurial Finance, Ease of Access to Finance, Government Policy: Support and Relevance, and Government Support: Taxes and Bureaucracy, with Government Entrepreneurial Programs ranking second.
However, the findings revealed that the entrepreneur attitude about growth prospects was poor, with more than 80% of Indian entrepreneurs having much lower growth forecasts than the previous year.
However, Dr. Sreevas Sahasranamam, Senior Lecturer in Entrepreneurship and Innovation at the Hunter Centre for Entrepreneurship at the University of Strathclyde in Glasgow, and one of eight authors of the GEM report stated that entrepreneurial inclinations among the general public and development expectations among entrepreneurs remain modest.
“So, there is a need for cultural change around reducing the fear of failure amongst the general population, and support for scaling-up new ventures,” he said.
“Entrepreneurship has become a crucial determinant for sustained economic growth and has enormous potential to provide job opportunities,” stated Dr. Sunil Shukla, Director-General of the Entrepreneurship Development Institute of India and GEM India National Team Leader.
Furthermore, research studies indicate that more than 77% of businesses are looking for new chances as a result of the COVID-19 outbreak, ranking India #1 out of 47 countries.
This remark echoes the conclusions of a paper published last year by academics from the University of Strathclyde and King’s College London, which indicated that over 60% of Indian entrepreneurs expect COVID-19 to have a long-term beneficial influence on their enterprises.
“We discovered a definite association between the amount of national income and the percentage of start-ups in business services, such as professional services, communications, with this share generally being significantly larger in high-income nations than in low-income ones,” Sreevas added.
“As a result, promoting new start-ups in specialized, knowledge-based high-value business services rather than consumer services may enhance the growth path of emerging countries such as India, paving the way to its USD 5 trillion economic targets.”
The National Expert Survey analyzes the national context in which people establish new businesses.
