A Lesson from IIT | Envisioning frameworks for inclusive growth of India through ‘techno-social’ entrepreneurship informed by UN SDGs

This mission resonates with the United Nations Sustainable Development Goals (SDGs), particularly focusing on poverty eradication (SDG 1), promoting decent work and economic growth (SDG 8), advancing industry innovation and infrastructure (SDG 9), and reducing inequalities (SDG 10). Nonetheless, achieving these objectives remains an ongoing endeavor, necessitating continual and systematic efforts across governance, economics, and societal behavior.

The multifaceted nature of developmental efforts requires a convergence between our educational trajectory, entrepreneurial pursuits, and the overarching imperative for inclusive financial growth; while also ensuring the preservation of well-being. India’s strides toward meeting these developmental goals demand strategic, long-term planning over the upcoming decades.

A Lesson from IIT | IIT aspirants should look beyond placement packages

It necessitates prompt and efficient adjustments in governance, economic strategies, and societal paradigms. The attainment of these milestones is critical not only for our nation but for the world.

As the world’s most populous country, with over 50 per cent of our populace under 25 and more than 65 per cent below 35, India’s demographics pose significant stakes, impacting both our nation and the world. We have an opportunity to capitalise on the potential demographic dividend, wherein increased economic productivity occurs due to the increasing number of individuals in the workforce relative to dependents. This opportunity aligns well with the current phase of multidisciplinary learning promoted by the National Education Policy 2020.

Acknowledging India’s demographic strengths must also be accompanied by a recognition of ground realities, which present significant challenges. According to the Periodic Labour Force Survey (PLFS) conducted by the National Statistical Office (NSO) in 2019-20, youth unemployment rates stood at 23.4 per cent in urban and 17.3 per cent in rural areas among individuals under 29.

This situation persists and reflects a shortage of suitable employment opportunities compounded by inadequate skills among the youth. This issue extends beyond the youth and encompasses older Indians above 55, who face obstacles in sustaining employment, securing re-employment opportunities, and maintaining financial stability. This challenge has been underscored by the recent McKinsey Health Institute (MHI) global report titled ‘Aging with a Purpose’.

Further complicating matters, approximately 80 per cent of Indians operate in the unorganised sector, grappling with irregular incomes and limited access to financial resources. This significantly impacts healthcare access, particularly among the elderly, as highlighted by the National Sample Survey Office (NSSO).

A Lesson from IIT | AI and ML as transformative agents in sciences, their potential impacts on social good

Addressing these challenges, along with tackling the rural-urban divide, wealth concentration, financial illiteracy, and sectoral disparities, presents a multi-layered challenge for India. Consequently, achieving the UN SDGs requires a comprehensive and balanced approach, requiring cohesive efforts.

In our pursuit, entrepreneurship and innovation have emerged as potential pathways toward inclusive growth and sustainable development. Universities are increasingly fostering startups within their incubation cells, presenting promising prospects for aspiring entrepreneurs. However, it’s crucial to note the inclusivity of our national aspirations. To effectively support these aspirations and propel national progress, grounding our understanding of the relationship between entrepreneurship and development in empirical evidence becomes paramount.

Challenges persist here too. The World Development Report 2019 by the World Bank acknowledges the complexity in quantifying the direct impact of entrepreneurship on inclusive growth due to multifaceted economic dynamics, requiring robust methodologies and comprehensive data. While acknowledging the transformative potential of entrepreneurship, it must be approached mindfully and strategically to benefit all segments of society. Scholars caution against unchecked entrepreneurship solely driven by monetary gains, which could lead to adverse outcomes, particularly social exclusion in impoverished communities or among vulnerable people.

Researchers Bruno S. Silvestre and Diana Mihaela of the University of Manitoba have proposed a ‘typology’ that fosters sustainable entrepreneurship and innovation. While certain entrepreneurial endeavours might inadvertently exacerbate inequalities by favouring specific societal segments or concentrating wealth, socially impactful entrepreneurship stands out. Social entrepreneurship, with a focus on addressing social challenges and fostering equitable development, prioritises both social impact and financial returns, aiming to uplift all members of society inclusively. Moreover, it contributes to fostering social cohesion, which stands as a significant common good.

In a diverse nation like India, even within high-growth technology-driven sectors, establishing structures that foster a dynamic culture of inclusive growth becomes pivotal. ‘Typologies of entrepreneurship’ that amalgamate technical innovation with genuine societal impact appear more conducive. Leveraging our technical innovation and scientific capacity, and directing entrepreneurial efforts in a socially relevant manner would prove beneficial. Thus, advocating for ‘techno-social entrepreneurship’, which emphasises technology-oriented startup creation while addressing community needs and overall well-being, becomes imperative. Educational ecosystems in India could play a pivotal role in nurturing this entrepreneurial typology.

Leveraging the flexibility offered by the National Education Policy 2020, academia could foster a culture of collaborative entrepreneurship aligned with technology and social impact simultaneously. Universities could cultivate a culture of ‘Techno-social enterprises’ operating across diverse fields (e.g. education technology, universal healthcare access through telemedicine, mental health monitoring, sustainable agricultural technologies, personalised Fintech solutions, assistive technologies for the differently-abled, and data analytics for measuring social impact). Furthermore, technological interventions could aid in the enhancement of citizenship behavior, and democratic participation, and expedite justice delivery using AI, ML, and blockchain technologies.

A Lesson from IIT | The magic of Chemistry lies in solving problems plaguing the world, writes IIT Guwahati professor

To advance such initiatives, pivotal collaborations between investors, technical experts, social scientists, and non governmental organisations are essential. Encouraging tax and social benefits for those engaged in such enterprises could stimulate immense social good and foster multidimensional success for India. This approach would encourage collaborative goodwill efforts, generating catalysts for inclusive financial growth and human well-being.

Initiatives promoting ‘techno-social entrepreneurship’ are somewhat in motion already. For instance, the Rural Technology and Business Incubator (RTBI) at IIT Madras encourages technology development and startups focused on rural development. Multiplying such initiatives through state-facilitated mechanisms is crucial. These approaches can operate beyond the conventional corporate social responsibility framework, effectively manifesting our commitment to the UN SDGs, particularly targeting poverty eradication, economic growth, innovation, and reducing inequalities.

Envisioning a nation where every individual contributes economically with dignity, irrespective of background, education, or age, would significantly contribute to both collective and individual well-being. It is imperative to instantiate our belief in human dignity by systematically working towards inclusive growth, ensuring that no individual is excluded from our nation’s growth narrative. ‘Techno-social entrepreneurship’ could serve as a potent instrument in achieving this worthwhile goal.

(The writer is an Associate Professor at IIT Madras)

(A Lesson from IIT is a weekly column by an IIT faculty member on learning, science and technology on campus and beyond. The column appears every Friday)