The Global Pandemic is once in a life-time disruption that has created serious adverse impacts on lives and livelihood in economies all around the world. Almost every major economy in the world was impacted and each country including India had to bear the cost of economic contractions, livelihood loss and increased healthcare expenditure. However, India has responded with great resilience and has emerged as one of the fastest rebounding economies in the World. As per the Economic Survey 2021-22, Covid-19 pandemic has had an adverse impact on most sectors of the economy. Government of India responded with a series of calibrated measures aimed at protecting the lives and livelihoods of most vulnerable and small businesses like the Micro, Small and Medium Enterprise (MSME) segment. India has become third largest start-up ecosystem in the world after US and China with over 60,000 start-ups. India created 42 Unicorn in the year 2021 alone.
The Global Entrepreneurship Monitor (GEM) is an international project which seeks to provide information on the entrepreneurial landscape of countries. GEM carries out survey-based research on entrepreneurship and entrepreneurship ecosystems around the world and is being led by Entrepreneurship Development Institute of India, Ahmedabad.
As per Global Entrepreneurship Monitor (GEM) India Report (21-22), India’s entrepreneurial activity expanded in 2021, with its Total Entrepreneurial Activity rate(percentage of adults (aged 18–64) who are starting or running a new business) increased to 14.4% in 2021, up from 5.3% in 2020.
This information was given by the Minister of State for Skill Development and Entrepreneurship, Shri Rajeev Chandrasekhar in a written reply in the Lok Sabha.
Further, Established Business Ownership rate (percentage of adults (aged 18–64) who are currently the owner-manager of an established business, i.e. owning and managing a business that has paid salaries, wages or any other payments to the owners, for more than 42 months)increased to 8.5%, from 5.9% in 2020. Boom in early-stage entrepreneurial activity for India in 2021 may be due to the pent-up demand and subsequent opportunities generated by the reduction in COVID-19 risk that damaged the Indian economy in 2020.
Ministry of Skill Development and Entrepreneurship (MSDE) is implementing various programmes to encourage entrepreneurship in the country as mentioned below:-
- Pilot project, ‘Economic Empowerment of Women Entrepreneurs and Startups by Women (WEE)’ is being implemented in collaboration with Deutsche Gesellschaftfür Internationale Zusammenarbeit (GIZ) Germany to pilot incubation and acceleration programmes for women micro entrepreneurs, enabling them to start new businesses and scale up existing enterprises in Maharashtra and other States, viz.Rajasthan, Telangana, Uttar Pradesh and North Eastern region of the country.
- Pilot Project on Entrepreneurship Development (PM YUVA) has been launched in November, 2019 for creating an enabling ecosystem through entrepreneurship education, training, advocacy and easy access to entrepreneurship network, for students and alumni of skill training institutes viz. Industrial Training Institutes (ITIs), Polytechnics, Pradhan Mantri Kaushal Kendra (PMKK) and Jan Shikshan Sansthan (JSS). The scheme covers 10 States including Maharashtra and 2 Union Territories.
- Entrepreneurship Promotion and Mentoring of Micro and Small Businesses in Six Holy Cities: The project seeks to catalyse local entrepreneurial activities through involvement of potential and existing entrepreneurs, through entrepreneurship awareness, education and mentoring in Pandharpur, Puri, Varanasi, Haridwar, Kollur and Bodh Gaya.
- Apart from above, in order to enhance the employability of female workers, the Government is providing training to them through a network of Women Industrial Training Institutes, National Skill Training Institutes, PMKVY Centers and Pradhan Mantri Kaushal Kendras.