A comparison of India with its peers in BRICS economies in a recent study suggests that perception about entrepreneurship on rise in India. The Global Entrepreneurship Monitor (GEM) Report found an increase in the rate of entrepreneurial intention to 14.9% in 2017 compared to 9% the previous year. Also unlike before, the fear of failure rate has decreased to 37.5% from 44% in 2016.
The self-perception parameters included perceived opportunity to start a business, perceived capabilities to start a business, fear of failure and entrepreneurial intention. The GEM considers those who perceive good opportunities for starting a business as well as those who believe they have the required skills, as potential entrepreneurs in the society. [Read the full report here]
According to the report, a comparison of India with its peers in BRICS economies suggests that perceived opportunity is the highest and perceived capability is the second highest among all. Also, there is an increase in the rate of entrepreneurial intention to 14.9% compared to 9% in 2015-16, whereas simultaneously the fear of failure rate decreased from 44% in 2015-16 to 37.5% in 2016-17.
Remarking on the readings of the survey, Dr. Sunil Shukla, GEM India Team Leader and Director, EDII-Ahmedabad said, “A macro comparison of all economies suggests that the entrepreneurial intention rate of India is close to the rate of innovation-driven economies, which is commendable. We believe that policies such as Make in India, Startup India, Stand up India, Skill India and Digital India are making India a favourable destination for doing business.”
The GEM Survey is the largest annual study of entrepreneurial dynamics in the world. Sixty-two countries are part of GEM Consortium that researches on trends in entrepreneurship in these countries. Dr. Shukla said potential entrepreneurs see good opportunities for starting a business and believe they have the necessary skills, knowledge and experience for the same.
“Individuals will assess the opportunity costs, risks and rewards of starting a business vs. other employment preferences and option, if available. In addition, the environment in which potential, intentional and active entrepreneurs exist needs to be sufficiently enabling and supportive,” he added.