Economic Importance of entrepreneurship in India

Economic Importance of entrepreneurship in India

In political economics, entrepreneurship is a process of identifying and starting a business venture, sourcing and organizing the required resources and taking both the risks and rewards associated with the venture. Entrepreneurship is one of the most important inputs in the economic development of India as an entrepreneur is responsible for fostering economic growth and economic development. Other important economic developments an entrepreneur leads to include increasing country’s export trade and balancing trade deficit, increasing gross national product and per capita income by wealth creation and distribution and finally creating employment opportunities.

If entrepreneurship is so important than why is it that such a large country like India has a contribution of only 3% to the total number of entrepreneurs in the world while a small country like Thailand has had a contribution of 20% of the total number of entrepreneurs in the world?

It indeed is a mind boggling question with no proper answer.  Let us try exploring some of the possible solutions to this problem. One possible reason for the lack of entrepreneurs in India could be that people in India do not have the capability to dream big. Now there is certainly something wrong with this answer as we Indians are amongst the most erudite people in this world. We cannot forget the fact that we were the ones who invented the number zero and so have intelligence running in our veins. Thus ruling this one out another possible solution could be that Indians have ideas but do not know how and where to apply them and lack the knowledge about starting their own venture. Another reason could be it that we Indians are very satisfied with the jobs we are in currently doing and hence would not like to step out of this security and take risks. Finally, whichever might be the answer to this Russellโ€™s paradox, what is important to understand is the importance of entrepreneurship and why more Indians should become entrepreneurs.

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