Written by Aasif Shah
Many students shy away from pursuing entrepreneurship as a career because of the risk involved. But a large chunk of the population is unaware of the potential rewards and innovation opportunities that can come with taking on an entrepreneurial venture. The creation of the nation’s entrepreneurial vision has never received meaningful consideration from policymakers, academics or career counselling professionals.
The UAE, Netherlands and Finland are the new hotspots for global entrepreneurship. Apart from governmental support, entrepreneurship in these countries is inculcated in the education system from school to the higher education curriculum. They view entrepreneurship as a crucial component of their sustainable development strategy for boosting economic growth and competitiveness. Though the Indian government has launched numerous initiatives including Skill India, Make in India, Start-Up India, Atal Innovation Mission and Atmanirbhar Bharat, the shift and enthusiasm towards entrepreneurship among students are yet to be realised, probably due to a lack of understanding and the perceived difficulty of starting a business. Entrepreneurial activities are mostly promoted in IIMs, IITs and larger business schools while other institutions find it difficult to support students who have innovative ideas, leaving them without support.
Every student should be able to avail the necessary resources and governments must ensure that their education policies are based on principles of equity and inclusion. Lack of employment avenues is a serious challenge all over the world, but the circumstances in India are considerably unpleasant as per the latest CMIE report. All states have abysmal unemployment statistics, making it difficult for educated Indians to find work avenues and opportunities.
In 2019, Prime Minister Narendra Modi outlined his vision statement to make India a $- trillion economy and global powerhouse by 2025. Recently, Morgan Stanley also declared that India is “on track” to become the third-largest economy by 2027. To achieve this, the government must come up with programmes to encourage entrepreneurship among younger people while they are still in college. In his seminal work, The Theory of Economic Development, Joseph Schumpeter, one of the pioneering political economists of the 20th century, proclaims that entrepreneurship causes economic growth by allowing the means of production to be used in newer and more efficient combinations.
Despite the nexus between entrepreneurship and economic growth, India’s entrepreneurial performance has fallen short of expectations. The country has not been able to make it to the top 10 entrepreneurial countries nor has it improved its ranking in innovative countries according to the Global Entrepreneurship Monitor report (2021) and Innovation Index (2022) released by London Business School and World Intellectual Property Organisation respectively.
Additionally, India ranks lowest in women’s entrepreneurship as per the MasterCard Index of Women Entrepreneurs (2021), which is a shame. We need a strong entrepreneurial ecosystem if we want to achieve our hefty $5-trillion economic target. We should develop an “Indian Entrepreneurship Index” that can measure entrepreneurial activity for all states and union territories to strengthen this ecosystem across the country. It is also necessary to celebrate and appreciate the ventures and achievements of budding young entrepreneurs who started their journey early and have progressively grown over the years.
A curriculum-focused on entrepreneurship should be introduced in schools as a compulsory credit course right from the eighth standard to prepare students. Foundational courses in entrepreneurship will help them think outside the box, practice creative approaches, and develop a strong understanding of the business world. Colleges too should play a significant role in increasing the awareness of entrepreneurship as a viable career option.
According to AISHE data (2021), 4.14 crore students are now enrolled in higher education with 78.9 per cent of them at the undergraduate level. Colleges can open up the interaction of students with local entrepreneurs. They each bring different perspectives, knowledge and expertise that are not available internally. There can also be mentorship programs where students are paired with successful entrepreneurs. Also, they can establish incubation centres, collaborate with industries, increase internships and apprenticeships, organise entrepreneurial workshops, and expand public-private partnerships to allow students to find solutions to complex social, environmental and economic challenges in the country.
As the global economy has shifted to embrace more small and medium-sized enterprises, the need for entrepreneurship education is critical. NEP 2020 is believed to instil entrepreneurial character among college students, giving them an opportunity to pursue finance, economics, marketing and management courses along with their core subjects.
Entrepreneurial education and development is a priority to address the deepening unemployment crisis in the country and revive the growth of our economy. India can look up to the Israeli model, which is consistently ranked one of the most innovative countries in the world for funding technological advancements. The Ministry of Commerce and Industry must analyse the business environment and revisit existing regulations and laws to improve ease of doing business. The greatest nations in the world are known less by their doctors and engineers and more by entrepreneurs who set the tone for the economy, culture and politics of the region.
The writer is a former Institute Postdoc Fellow from IIT Madras and winner of the Young Researcher Award 2022 from Indian Commerce Association
