In less than just three decades, India has seen an exponential rise in entrepreneurial success. India’s move from subsistence-oriented, tightly integrated, inward looking local economy to a surplus seeking, market led, outward looking economy was possible only with the emergence of a multitude of entrepreneurs in all walks of life. Enterprises and entrepreneurs have been in the centre stage of modernization since the days of Industrial Revolution. There are various reasons for the growth of entrepreneurs and their success in the present economy.
Reasons for growth of entrepreneurs
Changing Industry Structure
Recent technological changes have led to an industry structure that is generally shifting towards a bigger role for small firms. The new economy is represented by online based new service ventures characterised by rapidly changing technology.
New technologies
New technological trends like intent based marketing, interactive e-retailing have helped industries like Education, Retail and Healthcare provide their customers with services beyond the traditional methods and ensure stable growth of business.
Rising dissatisfaction at job
Dissatisfaction with one’s promotion and a number of issues pertaining to superior‐subordinate relations appear to be related to the shift from paid employment to aspirations of entrepreneurial success and self-employment.
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The new economy is represented by online based new service ventures characterised by rapidly changing technology.
Government Incentives and Subsidies
Several schemes are offered by the government to encourage budding entrepreneurs to kick-start their innovative businesses by providing subsidies and loans.
Entrepreneurial Education
E-Cells in universities and colleges have been influential in triggering awareness, interest, desire and action towards entrepreneurship among students from non-business communities.
Impact of Covid-19 on the growth of entrepreneurs
The steady growth of entrepreneurs have been impacted by the pandemic and the resulting lockdown on an international scale. Reduction in demand and employee health concerns forced a large number of small businesses to close down. In the absence of extended emergency credit lines and relief in the form of moratorium, small businesses don’t have enough cash to survive a long shutdown.
However, while some businesses have come to a standstill, there are a few enterprises that have turned the tables on the market downturns. Investors are showing interest in funding potential COVID-19 solutions and also in industries that could thrive in the post-pandemic.
With the increased demand of contactless services, companies had to extend their businesses to online services leading to large-scale elevation in the technology department. Industries like contactless healthcare, education and e-commerce platforms offering basic necessities have seen a massive boom in their business.
What’s in it for me?
So far in 2021, India has seen 11 startups enter the coveted unicorn club. This proves that despite the harsh impacts of the pandemic, small businesses can still ensure growth and productivity. To survive the pandemic, businesses need to adapt to the changing demand and approach it with a different perspective.
Conducting a market-opportunity analysis using data from earlier years, you can determine the category under which your business falls and then execute a plan that is either long-term or cater to specific, urgent and sizable problems. Building a digital presence has almost become an essential step to lead your business towards growth. Since the pandemic is still underway, businesses need to be cautious at every step from idea to execution.
