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Entrepreneurship is known for the innovations and variety it brings to existing and new markets, products, and technologies. Entrepreneurs contribute to the creation of new wealth and the growth of national income by increasing income and employment, increasing tax revenues, and transferring assets to investors and shareholders. More than 90% of all businesses in the world and 50% of all jobs are owned by Small and Medium Enterprises which account for 37% of India’s GDP and are the backbone of the country’s economy.
Entrepreneurs have the opportunity to progress in the world in a variety of ways, including job creation, innovation, profit, and investment in GDP. The primary mechanism through which entrepreneurial activity influences economic expansion and development is the process of structural change. The income cycle of the economy shows how money flows through society and affects the economy.
Entrepreneurs see opportunities not only for themselves, but also for others when they try to see the world with open eyes. They enhance competition between markets. Their activities influence the national economy by launching new products, methods, and strategies. For example, an entrepreneur performs a value chain analysis, which is a step-by-step business process that transforms a product or service from idea to reality. The goal of this analysis is to improve the efficiency of production so that the company can keep costs as low as possible.
Entrepreneurship has not always had a positive impact on GDP. Even the failure of a business enterprise can have repercussions not just financially but also psychologically, economically, and socially. If the company is running as a sole proprietorship or a partnership, the business owner stands to lose far more money than the amount of stock that was initially invested in the failing endeavor, and the economic cost is that the failing company will no longer contribute to the Gross Domestic Product (GDP), employment levels, or tax revenues of the nation, all of which are essential to the nation’s economy.
If we talk about India’s future economy, it will be entirely different from today. The current technology will be replaced by a new one. New market rules and developments are rapidly changing the size of the market and consumer tastes & preferences. Companies are facing new hurdles as customer expectations are rising and they realise how long human life can be. In the future, work patterns will need to be more flexible and agile than in this dynamic environment. To drive this change, Indian companies have adopted business plans with resources to reduce risk, build strong alliances with future competitors and create technology-related opportunities. To overcome the obstacles for India, it is necessary to remain open to development and innovation. In our opinion, the public and private sectors must work together to encourage India’s rising entrepreneurial spirit in order for it to grow and thrive. It can be achieved by embracing the spirit of value growth, investing in innovation, research and development. Whereas the support of the government of India for new entrepreneurs is commendable. The government is taking measures to reduce the legal burden for employers and employees to support their ideas and various government initiatives. The government is collaborating with industry and higher education institutions to encourage entrepreneurship and innovation to their full potential as a means of boosting public relations. Our previous president A.P.J. Abdul Kalam envisioned India as a powerful and developed nation, and If we continue along this path, we’ll get there sooner rather than later.
Shailja, Nandini, Anchit and Dr. Bindu Singh
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