India ranks as one of the world's best places to start a business
Published: 13 February 2024
India is one of the best countries in the world to start a business and ranks second in the latest Global Entrepreneurship Monitor (GEM), according to a report co-authored by the University of Glasgow.
India is one of the best countries in the world to start a business and ranks second in the latest Global Entrepreneurship Monitor (GEM), according to a report co-authored by the University of Glasgow.
The country’s economy shows high levels of established business ownership which suggests businesses are sustaining over a longer period. And it scores highly on ‘social and cultural norms’ in support of entrepreneurship.
India’s score has increased from 4th to 2nd among 49 countries in the 2023/24 GEM report.
As part of the research, entrepreneurship experts assess Entrepreneurship Framework Conditions. These results form the basis for a country’s GEM score.
Professor Sreevas Sahasranamam, of the University of Glasgow's Adam Smith Business School, and co-author of the global GEM report, said: “This is an encouraging trend that reflects highly of initiatives such as Atal Tinkering Lab in schools, stress on innovation in the New Education Policy, and cultural mainstreaming of entrepreneurship through popular TV shows like Shark Tank. Last year, under India’s G20 presidency, a dedicated engagement group for startups called Startup20 was launched, which also gave major impetus entrepreneurship by bringing together global stakeholders.”
In addition, results of the Global Entrepreneurship Monitor revealed that India is one of just five countries where experts assess both social support for women entrepreneurs and their resource access as satisfactory or better, and three out of four entrepreneurs said they had started a business to continue a family tradition. ‘Making A Difference in the World’ was the most popular motivation among Indian entrepreneurs, agreed by more than four out of five.
The work also highlighted some areas that need attention, includingthe fact that growth expectations are muted among India’s entrepreneurs, with less than one in 10 expecting to employ at least six more people over the next five years. The largest majority - 70% of Indian entrepreneurship - is in consumer services such as retailing, hotels and restaurants, and personal services. Just 2.3% of entrepreneurs are in business services such as information technology and professional services.
Professor Sahasranamam added: “More impetus and support is needed to build business service entrepreneurs in India. Business services have higher margins, greater potential for scaling, and more difficult to entry compared to consumer services.”
The Global Entrepreneurship Monitor is the largest single study of entrepreneurial activity in the world. It is the only global research source that collects data on entrepreneurship directly from individual entrepreneurs.
First published: 13 February 2024