The evolution and transformation of entrepreneurship in India began in the early times when the ‘Barter System’ was a common means of exchange. However, before going forward with evolution, let’s understand what entrepreneurship is. Entrepreneurs are those individuals or groups that produce new business and employment opportunities and, at the same time, bear the risks of the business. Entrepreneurship is the ability of the entrepreneur to drive and operate the business with goal-oriented objectives. In this article, we will focus on the following specific areas.
To discuss the evolution or growth of entrepreneurship in India, you should understand that India has the oldest and most civilized trade history. During the Harappan Civilizations around 2700 BC, there was an internal and external trade culture. Also, due to this, most foreign counties recognize Indian entrepreneurial skills. Moreover, the boost in trade occurred during the era of the Mughal Regimes. The popularity of Indian products generally, art, crafts, Vedic tools, foods, and more got the deserved attention from different parts of the world. The mainland of Arabs, Western Colonial Counties, and African Countries were the major parties involved in the trade.
In the same timeline, various counties like the UK, France, and Portugal expanded their colonies in different parts of the world. However, the major entrepreneurial change was when East India Company started their business from the Bay of Bengal and later captured some Bengal parts. This indirectly connected the whole Indian state in a trade ecosystem. There were some major negative aspects of the England Colonial mindset. However, it also played some good aspects in the evolution of Entrepreneurship in India. The medieval age in India ends here.
This was the age of industrialization in India, where some of the best entrepreneurs of India rose to the opportunity. In the 19th century, the British had a major role in the country’s internal politics. Moreover, it was also creating hurdles in giving rise to National Development. But due to some of the major big events and industrial development, there was a bit of confidence in modern entrepreneurial activities. The major events are as follows.
| Entrepreneurship | Details |
| 1888 Kirloskar Group | Lakshman Rao Kirloskar founded it
Working as a sole Indian company in the energy business |
| 1919 Birla Group | Birla sets the first and foremost jute Mill in Calcutta. |
| 1932 Bajaj Group | Jarnanalal Bajaj’s first automobile company in India |
| 1945 | TELOC and Wipro were also set up by the time |
Entrepreneurship in India, along with the national economy, was ground-dwelling post-independence. There was not much left in the Indian economy at that time. Moreover, India had an interim British Government alongside the Indian parliament as per the treaty. Also, it was active in internal politics and became a hurdle in full pace development. However, the government was able to overcome the situation. Some of the major steps to support the growth of India are as follows.
As all these impactful policies were in action, some major industries, unlike traditional textile and natural resources industries, were set up. Some of the emerging scopes of entrepreneurship at that time are as follows.
| Date | Entrepreneurship Development in India |
| 1957 | AMUL was the first-ever dairy-based company founded in India
It was in Anand, Gujarat, and under the shadow of Dr Verghese Kurien |
| 1966 | Dhirubhai Ambani set up the reliance Textile Industries |
| 1955 | The formation of SBI with the government bodies emerged as the top bank in India. |
From Post Independence, there was a rough growth in entrepreneurship in India. However, it may seem that most of the top entrepreneurs were already in business. But the reality was a bit different. The economic policies were not supporting the entrepreneurs much, due to which there was rough growth. However, the transformation of entrepreneurship began in 1990, which we will discuss.
Also read about :
Top 20 Self Employment Ideas in India which can help you Earn More
How to Start a Startup in India in 8 Steps
Entrepreneurship in India Detailed Analysis and its Roles
The above is all about the evolution, which continued until 1990. However, the major transformation of entrepreneurship in India began with the ‘Economic Policy Reform’ led by Dr Manmohan Singh. Moreover, the economic reform was very beneficial and most important at the time when the whole world was against our country. Furthermore, the policy was extended more in the reign of BJP led PM Modi. So you can easily classify the major transformation of Entrepreneurs in India by these two policies and events.
The New Economic Policy 1991, bought by Dr Manmohan Singh under the governance of P.V Narshimha Rao-led Congress, was a huge turning point. This policy has included three major aspects, which are as follows.
| Aspects | Role |
| Liberalization | Providing some provisions in different parts of the industry
It boosts the private sector, including banks and the stock market |
| Privatization | Disinvestment of Public Firms to reduce the burden
Promote the national entrepreneurs for good business |
| Globalization | Welcoming FDIs, and FPI
Creating SEZ and Economic Corridor for foreign companies |
These all were the most important roles of the major aspects included in the New Economic Policy. However, these all had played an important role in the growth of entrepreneurship in India. For example, from 1981 to 1991, Infosys had an average growth of less than $5 million. But after the implementation of the policy, the company has advocated an average growth of $6 Billion in the last 20 years. Some of the benefits that transformed it through this policy are as follows.
Has the New Economic Policy served its purpose? So for this question, yes, it has served its purpose. Moreover, the major purpose was economic reform, but it has also served in the transformation of entrepreneurship. Before the policy, the entrepreneurship of India was based on the model of traditional industries, agricultural industries. However, after the policy came into action, major changes were seen in technology. There was the emergence of Infosys, TCS, Wipro, HCL, and more. Also, in automobiles, Maruti, Tata, Mahindra, Bajaj, and more were emerging. But this policy has a limitation because it is very supportive of big companies and does not provide chances for a small and new startup to land.
In 2016 Indian government, led by PM Modi, took some startup initiatives. This startup initiate has some major aspects which have the prime motto of providing and lending support for entrepreneurship development in India. Till the year 2015, startups in India were on a great scale. Moreover, India is also known as the ‘Poster Child of Emerging Market. Some of the major aspects of the startup initiatives of 2016 are as follows.
In recent times, the new startup has cured at 12%. In the FYI 2021, about 15% of unicorn companies are from India-based Companies. Similarly, new innovators and potential entrepreneurs are assisting their businesses in the Indian market day by day. If you consider the growth of entrepreneurship from the year 1990, you will see a steep rise every year.
The current Indian entrepreneurship world is becoming a highly favourable market for any company to invest in. Also, most Indian companies have marked their potential in international business and showed the growth of entrepreneurship in India. However, among all other top startups and companies, the IT sector of India is on the boom. It alone handles the major chunk of the entrepreneur’s growth representing India.
There were some negative aspects of the startup initiative as well. Since the unplanned introduction of GST and Demonetization, startups have faced difficulty. Also, there was an unfair practice to Indian companies in the FDIs where FDIs were mostly less taxable and had some special provisions. So it is a hurdle to market dominance.
Entrepreneurship in India has been on a rough to the steep path. Also, it has seen the era of the most civilised and oldest trading to the dominance of the British. Moreover, post-independence, there was a terrible impact on it. However, with the policies and hard work, our country was able to overcome it in a time. Now with innovative minds, India is getting its dominance in the market. And there are going to be entrepreneurship opportunities in India.
Read More – India’s Top 10 Successful Entrepreneurs in India and Their Businesses
Ans. There are many gems of entrepreneurs in India. However, some of the best entrepreneurs in India are as follows.
| Entrepreneur | Founding Company |
| Jamsetji Tata | Tata Group |
| JRD Tata | Air India |
| Dhirubhai Ambani | Reliance |
| Narayana Murthy | Infosys |
| Ghanshyam Das Birla | Birla Group |
| Azim Premji | Wipro |
| Shiv Nadar | HCL |
| Ardeshir Godrej | Godrej Group |
| Jarnanalal Bajaj | Bajaj Group |
Ans. Ritesh Agarwal is the youngest entrepreneur in India. He is the co-founder and CEO of Oyo, a hotel Service Company. Moreover, he founded the company at a very young age, and it was a massive success in the Indian Market, too.
Ans. As per recent statistics, about 5% of Indian adults have already established their businesses. Moreover, 11% of the adults are somehow involved in the early entrepreneurial stage. So this shows the availability of adults in entrepreneurship in India. Moreover, there is a surge in involvement if you compare the recent year in terms of entrepreneurial activities.
Ans. In the business scene, Mukesh Ambani is the no one entrepreneur in India. He is the wealthiest person in India as well. However, according to humanitarian views, Ratan Tata is no one entrepreneur in India due to his great personality.
Ans. Yes, you can become an entrepreneur, but you have to find the best innovative problem-solving idea. Then you can get into the business and work and become an entrepreneur. Also, some of the major steps involved in becoming an entrepreneur are.
To read more related articles, click here.
To read more related articles, click here.