Entrepreneurs are no longer seen as the outlaws in the Indian society. In fact, nearly half the Indians are considering to start their own business while every 3 in 4 Indians believe that anyone can be trained to be an entrepreneur.
These surprising findings were revealed in the Amway India Entrepreneurship report 2015 which was released by the Union Minister for Skill Development and Entrepreneurship, Rajiv Pratap Rudy. The report is aimed at understanding the spirit of entrepreneurship in the country along with the factors that motivate and discourage the new entrepreneurs.
Nielsen India, the research partner of Amway India, surveyed 250 households in each of the 21 states across 50 different cities. The research firm also interviewed one male and one female member in the 21-65 age group from each household and thus took the feedback from 10,768 respondents including 5,402 males and 5,366 females.
It is worth noting that the contribution by the MSME (Micro, Small, and Medium Enterprises) sector in India is much less than that in developed nation. This needs to change and it can only be done by the entrepreneurs.
“The contribution of MSME sector (Micro, Small and medium enterprises) in India, is much less as compared to some of the developed nations. This needs to change. It is critical that there is entrepreneurship led boom at the grass root level so that India can leverage the demographic dividend to the maximum possible extent. The understanding of motivations, attitudes towards entrepreneurship, offers valuable insight to the policy makers,” said Rajiv Pratap Rudy while unveiling the report.
Amway India aims to contribute to the discussions on Skill Development and Self-employment which affect the employability of the youth.
“We are aiming to engage different stakeholders on what drives entrepreneurship in India and contribute to the on-going discussions on the role of skill development and self-employment in improving employability of the youth,” said Amway India CEO, Anshu Budhraja.
“Entrepreneurship is a way for people to realise a better life for themselves and their families. Entrepreneurs also create jobs and encourage competition. They spur economic growth and bring opportunities to communities. So, it’s important that businesses like Amway know how entrepreneurs think and act in order to better support and encourage them,” Budhraja added.
Key Highlights of The Report
Two-Thirds of Indians See Entrepreneurship In A Positive Way– The report reveals that there is a tangible enthusiasm for entrepreneurship in India. About two-thirds of people view it as a good option for earning their livelihood in the country.
Kerala’s 78% population view entrepreneurship positively, while 77% of the respondents from Punjab, and 76% in Uttarakhand see entrepreneurship in a good way.
Finance, Family Support And Training Emerged As Favorable Conditions For Entrepreneurship– Access to finance, and family support emerged as top factors for starting one’s own business. 73% of the respondents believe that anyone can be trained to be an entrepreneur, while 62% of them thought that their current education is sufficient to start their own business.
About 50% of Respondents Want To Start Their Own Business– It is not a joke when we Indians say that every other individual wants to start his/her own business. According to the report, 47% of the respondents revealed that they are either thinking about starting their own business or are actively engaged in their own venture.
60% of the respondents from Jharkhand and 40% from Uttarakhand revealed that they are already pursuing their own business.
The Startup Ecosystem Has Improved In India– About 45% of the people who participated in the survey said that the environment to start a business has improved in the country over the last 5 years. 11% of them feel that the environment has improved significantly.
Banks Play A Key Role– 83% of the respondents voted banks as the first source of finance for starting their new business while 78% of them voted Friends and family as their source of money.
People Are Held Back By Fear of Failure– 63% people across all ages belonging to different income groups have the fear of failure. 31% respondents find “financial burdens of bankruptcy” as the most critical cause of failure. Non-conducive market conditions and fear of unemployment account are also among the top fears of the people.
To conclude, I would like to mention that it is worth noting that Indians view entrepreneurship in a positive way and want to start their own ventures at some point down the line. Improvement in business environment over the last few years and availability of funds from the banking and financial institutions are among the top factors that contributed to this change in the Indian mindset.