The NECI results are based on a score of the framework conditions.
London:
India has been ranked fourth out of 51 countries in terms of quality entrepreneurship ecosystem, a new global report has said, reflecting the steady growth in the country’s business environment over the years.
India’s ranking in the Global Entrepreneurship Monitor’s (GEM) National Entrepreneurship Context Index (NECI) report is a big change after scoring very low in 2021, which was 16th overall.
India’s latest score of 6.1 reflects the steady growth in the country’s overall entrepreneurial climate over the years.
India’s NECI score increased from 5.8 in 2019 (ranked 6th among GEM economies) to 6.0 (ranked 4th) in 2020. However, the report states that there was a decline in 2021 with a score of 5.0 (barely enough) and 16th rank.
The GEM defines the entrepreneurial context of a particular economy in terms of 13 different characteristics, called Entrepreneurship Framework Conditions (EFCs).
The NECI’s results are based on the Profile Conditions score for each of the 51 participating economies.
At least 36 experts are selected to assess the statements to create scores that can be compared across economies.
Srivas Sahasranamam, co-author of the current GeM global report and associate professor in entrepreneurship and innovation at Strathclyde Business School, Glasgow, UK, said the improved quality of the entrepreneurship ecosystem is a reflection of the Indian government’s initiative.
“The improved quality of the entrepreneurship ecosystem is a reflection of both the Government of India initiatives in support of new businesses such as Make in India and the Atal Innovation Mission, and the change in popular culture is evident through the interest and celebration of entrepreneurship on television shows such as Shark Tank India,” Mr. Sahasranamam said.
Dr Sunil Shukla, head of the GeM India team and director general of the Entrepreneurship Development Institute of India (EDII), said one explanation for the trend reversal from 2021 could be that the pandemic was a ‘serious, but temporary, setback’. for the Indian entrepreneurial climate with all 13 Entrepreneurial Framework conditions scoring lower in 2021 than in 2020.’
“So, in a sense, normal service resumes in 2022. But there are lessons to be learned from the sudden decline in 2021, not least that India’s high-quality entrepreneurial environment cannot be taken lightly The trends in the current report portray a more resilient and emerging environment for innovative and tech enterprises in the country.”
The GEM 2022/2023 Global Report also discusses the results of the Adult Population Survey (APS) conducted in India with over 2,000 respondents, which found Indians excelling in several areas of startups.
“Inspiration” to continue a family tradition “remains an important driver of entrepreneurship in India, with 69 per cent respondents agreeing. Another strong driver is “to make a difference in the world” (81 per cent) has been,” it said.
According to this, around 80 per cent of the respondents agreed that they have the skills and experience to start their own business, saw good business opportunities and found it easy to start a business in India.
However, only 20 percent were expecting to start a new business in the next three years.
“The reason for the above trend may be that more than 50 per cent of the respondents, who saw new opportunities for business, fear that they might fail,” the report said.
The report further said, “India’s entrepreneurs were on top globally (about 70 percent) when it comes to pursuing new opportunities because of the pandemic.”
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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