The Role of Government in Promoting Entrepreneurship Development
Table of Contents
- Jaro Education
- 28, March 2023
- 9:32 am
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The journey of Vijay Shekhar Sharma with Paytm perfectly captures the essence of entrepreneurship’s crucial role in society. Starting with a vision of a cash-reliant India, he navigated scepticism to revolutionise how people transact daily, making digital payments a norm. This narrative highlights entrepreneurship as a force for societal transformation, emphasising its ability to tackle challenges, push tech boundaries, and inclusively enrich economies.
Entrepreneurs like Sharma prove that innovative ideas, when executed with determination, can significantly enhance our way of living and interacting with the world.
As the world shifts to an economy driven by small businesses, the need for government support for entrepreneurs and their venture initiatives has become increasingly important. Governments around the world recognise that small businesses are essential for economic growth, job creation, and social stability. To ensure that these businesses continue to prosper and flourish, the role of government in promoting entrepreneurship must take a proactive role in developing entrepreneurship policies and programs.
This blog aims to shed light on the role of the central and state governments in promoting entrepreneurship development and the role of government in entrepreneurship development. Let’s delve into the specifics of how the government contributes to fostering an environment that is optimal for entrepreneurs to flourish.
The Government’s Role in Business
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The role of government in promoting entrepreneurship development is multifaceted.
- On one hand, the government provides an enabling environment for businesses to start up and grow. This includes things like infrastructure, access to financing, and a favourable regulatory regime.
- On another hand, the role of government in promoting entrepreneurship also has a direct role in entrepreneurship development through programmes and initiatives that support entrepreneurs.
- Ways Government Encourages Entrepreneurship: The role of government in developing entrepreneurship is foremost the creation of a business-friendly environment. This covers:
- Easing of Business Registration: Governments usually work on removing bureaucratic hurdles to starting a company. E-governance platforms like Startup India or Ease of Doing Business initiatives help an entrepreneur to register and carry on with business without unnecessary delays.Â
- Regulatory Reforms: To foster business growth, regulations should be geared towards reducing compliance costs and simplifying the tax system so that entrepreneurs can focus on innovating and growing their firms.
Government Institutions In India That Promote Entrepreneurship
The government of India aids in entrepreneurship development in myriad ways through these institutions:
1. Small Industries Development Organization (SIDO)
It’s an organisation set up by the central government to develop entrepreneurship and formulate new policies for small-scale industries. With a keen focus on rural entrepreneurship, SIDO strengthens the small-scale business sector in the country.
2. Management Development Institute (MDI)
Established in 1973 and funded by the Industrial Finance Corporation of India, this body aims at improving management practices across various industries by hosting various management development courses.
3. National Small Scale Corporation Ltd. (NISC)
This body, established by the central government in 1995, opens up new avenues for small-scale businesses through its extensive network. Apart from enabling small businesses within the country, it also boosts entrepreneurship by aiding them in exporting their goods to foreign countries as well. These are just a few of the roles of government in developing entrepreneurship organisations and initiatives that are geared toward entrepreneurship development.
Benefits of Entrepreneurship for the Society
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There are many benefits of entrepreneurship for society at large. One of the most important benefits is that it creates job opportunities. Entrepreneurship can also lead to innovation and the development of new products and services, which can improve the quality of life for people in society. Additionally, entrepreneurship can help to diversify the economy and make it more resilient to shocks.
| Flexible Schedules | The bosses are out of the offices and organisations because they will only allow a certain time or place to do the work. They do have their time and location to work as they please. Entrepreneurs work most of the time at the location and time of their preferences. They fine-tune work according to their lifestyles and obligations. |
| Fulfilling and Boosting Self-Esteem | Entrepreneurs need many management skills, like proper decision-making and being able to make such decisions confidently, which itself boosts self-esteem. Entrepreneurs are those who are inspired to start their own business and take the passion in a certain way to pursue it by looking up to it confidently. Great leaders of vision— these are people with leadership attributes. Having the ability to conceive a product that would satisfy a particular consumer need with the application of personal ideas, talent, and resources provides a positive feeling that is very satisfying and fulfilling. |
| The New Learning | One of the most coveted benefits of entrepreneurship is the opportunity to assume diverse roles and acquire a multitude of knowledge. These lessons would go beyond one's industry-first marketing, managing money, dealing with people, risk, best work delivery methods, etc. It lets one learn and explore how to make things happen, even if they don't have a lot of knowledge about it. |
| Wealth Creation for Oneself and Related Enterprises | Entrepreneurs often enjoy a high probability of earning profits despite the associated risk. An entrepreneur's needs being met proves to be profitable. The entrepreneur develops rich profits and also adds up wealth for him along with the related industry. Setting up a business involves putting resources together from the existing market. The present entrepreneurs also earn revenue from such new businesses. |
| Better the Standard of Living | There is increased need from consumers for variation, more options available in quality, and opulence in the goods and services availed to them, which drives entrepreneurs to develop such requirement-based innovative products. This could be electronics, clothing, automobiles, and so on. Such increased inclusion of these new products in use then reflects on increasing standards of living to possible consumers. |
| Creates Enterprises and Employment for the People | This is when like-minded entrepreneurs unite and coordinate their physical, human, and financial resources toward the dire achievement of objectives using managerial acumen: Business comes into being under such conditions. Even though entrepreneurship would imply that one person is running the business or the innovator, it is not so simple; it has to do with the fact that there is a very involved use of resources that will create organisations. Most of them are created from scratch with several skilled people working together. There is a substantial job opportunity created. |
| Developing the Economy | Entrepreneurship facilitates the emergence of new markets in the form of goods, services, and technologies. It creates pathways for the generation of wealth; these higher incomes lead to increased national income and tax revenues. |
The Challenges of Promoting Entrepreneurship
There are many challenges that governments face when it comes to the role of central and state governments in promoting entrepreneurship development. One of the most difficult challenges is finding the right mix of policies and programmes that will encourage more people to start businesses. Another challenge is making sure that these businesses are successful and have a positive impact on society.
Another big challenge is funding. Many government programmes that promote entrepreneurship are underfunded or not funded at all. This makes it difficult for them to reach their goals and have a lasting impact. Additionally, some entrepreneurs may lack the resources (time, money, skills, etc.) needed to start and sustain their businesses.
Finally, governments must overcome cultural barriers that discourage entrepreneurship. Many countries have a culture that does not embrace risk-taking or celebrate failure. Governments must work to create an environment where entrepreneurship is encouraged and failure is considered part of the learning process.
How an Online MBA Degree From Dr. DY Patil University Prepares You to be an Entrepreneur?
In recent years, the government has been promoting entrepreneurship development through various initiatives and programmes. Private educational institutions and universities have also been playing a major role in driving entrepreneurship in India.
Online MBA – Manipal University, Jaipur is giving a boost to India’s future entrepreneurs through its online MBA degree programme. The programme aims to provide students with the necessary skills and knowledge to become successful entrepreneurs.
Program highlights:
The programme covers a range of topics, including business plan development, financial management, marketing, and human resource management. It also provides students with an opportunity to gain real-world experience through internships and projects.
Eligibility Criteria:
- (10 + 2 + 3)—Bachelor’s degree from a recognised university or institution, or an equivalent qualification as recognised by the Association of Indian Universities or other competent bodies, in any discipline.
- The student must achieve a minimum of 50% marks in aggregate (45% for reserved categories).
- A valid score from any aptitude test (CAT/MAT/CMAT/XAT/GMAT). Candidates without an aptitude test score need to appear and clear the online aptitude test conducted by Manipal University Jaipur as per admission norms to the online MBA programme.
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Conclusion
In conclusion, the role of government in promoting entrepreneurship development is crucial for any economy. Governments should create an enabling environment that promotes and encourages entrepreneurs to start their businesses. This can be done through initiatives such as providing training and funding, establishing support networks, and creating incentives for new business owners. However, not everything can be left up to the government. Students also play an important role in shaping their future as well as that of the country.Â
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The blog highlights essential support measures and offers valuable perspectives for aspiring entrepreneurs. A must-read for anyone interested in business development!