Do you know about the government’s Start-Up India scheme? If yes, then you are updated about the Indian startup ecosystem. Many don’t.
Gujarat National Law University‘s faculty members conducted a study and concluded that more than 40 per cent of the youth in Ahmedabad and Gandhinagar have absolutely no idea about “Start-up India”.
Let me tell you that ‘Start-up India’ is an initiative of the Government of India. The campaign was first announced by Indian Prime Minister, Narendra Modi during his 15 August 2015 address from the Red Fort, in New Delhi.
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Now, whether the scheme is a success or a failure is debatable. But, I certainly believed that more than 80 per cent of India’s youth knows about the scheme. However, this study changed my notion.
The study’s conclusions are bit shocking because we are living at a time when entrepreneurship is hitting the waves across the nation. Various state government have launched their own schemes to encourage youth, student and entrepreneurs to build their startups and create job opportunities.
The study titled “Factors Affecting Entrepreneurial Inclination Among Undergraduate Students in Ahmedabad and Gandhinagar cities” revealed that 59.7 per cent of the respondents were well aware and updated about Start-up India scheme while 40.3% were clueless about the same. The study was conducted on a test group of 491 students.
38.1 per cent of 491 respondents stated that knowledge of management is more important than starting up a business. 27.7 per cent of the members were neutral and 24.2 per cent stated entrepreneurship to be the most important thing.
Who to blame? Should we blame the mentality of society towards job and entrepreneurship? Or should we blame the extreme pressure from parents to take a job? Or is entrepreneurship really not important? Tell us in the comments.
41.5 per cent of the respondents stated that their parents never encouraged them to start up their business. However, things are not so depressing. More than 36 per cent student admitted that their father motivated them to start up their own business while 16 per cent revealed that their mother encouraged them to start their own venture.
According to the principal investigator of the study, Viral Pandya, “Entrepreneurship and startups are the most important vehicles for acceleration of economic activities and job creation. With this objective, the research was conducted among undergraduate students of Ahmedabad and Gandhinagar to identify factors affecting the entrepreneurial inclination. The relationship between entrepreneurial inclinations is gender neutral.”
“Both male and female students showed an inclination towards entrepreneurship. Students’ association with entrepreneurship-related activities in universities doesn’t increase the likelihood of starting their own business. Motivation from role models affects the inclination of youth towards entrepreneurship,” he said.
Let’s talk about funding and investments.
37.5 per cent of 491 respondents agree that funding plays an important role in starting up, while 22.8 per cent said that it is essential to have an initial investment to start up. 27.5 per cent were neutral about the initial investments while 9 per cent said that angel investments were somewhat important. There was some bootstrapper mentality too, 3.3 per cent of the respondents stated that funding was the least important factor for a startup’s success.
According to Rahul Bhagchandani, acting CEO of Gujarat University Startup and Entrepreneurship Council, “If 60% of students are aware of Startup India, it is a good number and it is increasing. Regarding entrepreneurship, most students have time after academics to seek knowledge about entrepreneurship and channelise their ideas.”
Apart from this recent study, another study conducted by the Entrepreneurship Development Institute of India, a Gujarat-based educational institute, revealed that only 5 per cent of Indians actively look towards starting their own venture. This is the lowest rate in comparison to the rest of the world.