Entrepreneurship, in its most basic sense, can be described as problem solving. An individual or a group creates new business by solving a problem that people are willing to pay for. It’s an ancient concept, which humans have been practicing since, believe it or not, 17,000 BC. The first entrepreneurs were traders and merchants. In India, the earliest traces of entrepreneurship can be traced back to the Vedic ages. In that era, entrepreneurship mostly created artisans and craftsmen.

Coming back to the present, India is on the path to becoming an entrepreneurial powerhouse. Since India is a developing nation, the importance of entrepreneurship is significant, and entrepreneurs are essentially national assets. New business ventures enable the growth of new markets and the creation of fresh wealth. Most importantly, they create jobs – a national priority –and higher incomes. This leads to greater tax revenues, which can be invested in schools, hospitals, infrastructure & defence.

Apart from contributing to national profit, entrepreneurs are also agents of social change. Through innovative business ventures, they improve the quality of life for their fellow citizens.

Perhaps the biggest example in recent times as to why entrepreneurship is important would be the creation of COVID-19 vaccines. Who made them? It wasn’t a government entity. All the major COVID vaccines in circulation right now have been created by private companies.

Let’s look at entrepreneurial innovation, too. Delivery apps have revolutionised the simple act of doorstep deliveries; you can even have items delivered within 10 minutes! Such innovations are changing the way we live.

It’s clear, then, that the engine of India is entrepreneurs. A startup ecosystem has evolved in which investments are being made in information technology, finance, software and other sectors.

There are several reasons why entrepreneurship as a whole is going to see rapid advancements in the near future. Among them are:

More job opportunities

To sustain any economy, unemployment rates need to be kept low. The government can only provide a limited number of jobs. The private sector and startups bridge the gap by providing a plethora of new jobs in various sectors across the nation. Entrepreneurs offer job-seekers excellent incentives like high salaries and the ability to work in a niche industry.

An emerging market

With the IT boom and recent technological developments, India is becoming the fastest growing economy in the world. Due to that, even niche products have the potential to be sold. Also, incomes and purchasing power in India are rising steadily. The youth sector is booming too, which is why previously unimaginable and ambitious ventures are on the rise.

Governmental support

The private sector banks heavily on the government and its policies. Without political and governmental support, startups and new businesses cannot grow. Thankfully, the government has been really supportive of the startup economy in recent years. Various state governments are encouraging new entrepreneurs to launch businesses, and they are helping them to do so with ease. Government schemes such as ‘ASPIRE’ (A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship) and ‘MUDRA’ (Micro-Units Development and Refinance Agency) have made entrepreneurs’ life easy by initiating the creation of a startup ecosystem that promotes innovation and new ideas.

Having said that, there are still some challenges that entrepreneurs and startups face in India. For example, hiring qualified employees has proved to be a struggle for most new businesses as they can’t keep up with the reputations of established firms. Startups also usually lack good marketing strategies due to cultural differences and geographical limitations.

The biggest hurdle that entrepreneurs face are complex policies and the lack of funding. Even though the government is trying to build a favorable ecosystem, there are some policies that are outdated and cause problems. When it comes to funding, it is very difficult for new business owners since banks don’t offer loans without collateral and thus the chances of getting immediate funds are extremely low.

However, entrepreneurs are ready to face all challenges thrown at them without stopping or slowing down. The rise of entrepreneurship in India is unstoppable, and that is something we should be proud of.

Published at timesofindia.indiatimes.com