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The IUP Journal of Entrepreneurship Development :
Entrepreneurship Development: A New Strategy
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The paper focuses on the new directions and strategies of entrepreneurship, innovation and inclusiveness through two programs launched by the center: (i) Start-up India on January 16, 2016, for which the nodal agency is Department of Industrial Policy and Promotion (DIPP), and (ii) Stand-up India on April 5, 2016, for which the nodal agency is Development Commissioner Micro, Small and Medium Enterprises (MSME). Start-up India program, as outlined in the action plan, refers to promotion of innovative enterprises with considerable amount of research and development work carried out in collaboration with higher educational and scientific research institutions. Technology business incubators promoted for this purpose are normally established in collaboration with a host higher educational institution or scientific research body. To facilitate the youth to take up innovative ventures, creating a favorable and liberal ecosystem is a prerequisite. Easier entry and faster exit are emphasized for the success of these enterprises which involve high risk. Opportunities and challenges are presented in the paper along with strategies. In this program, the key players that deserve special mention are Department of Science and Technology (DST), and DIPP from Government of India, and Small Industries Development Bank of India (SIDBI) among development financial institutions. Stand-up India program refers to promotion of Micro, Small and Medium Enterprises (MSMEs) by women and SC/STs across the country with focus on rural and semi-urban areas, and remote and less developed regions. This speaks of inclusiveness. Entrepreneurs promoting MSMEs can pursue these high potential directions which are prone to high risk and yield high reward.

 
 
 

India has been progressively moving towards an economy driven by knowledge and innovation. The Global Competitiveness Report (GCR), released annually by the World Economic Forum (WEF), Davos, Switzerland, classifies national economies into three broad categories: (a) factor-driven, (b) efficiency-driven, and (c) innovation-driven. Many economies are considered to be in the transitional phase between any two given broad groups. These categories are seen as indicators of a development ladder. In factor-driven economies, economic development is primarily driven by basic requirements of various sectors. In efficiency-driven economies, the government’s focus is on ensuring the smooth functioning of mechanisms such as markets and technological progress. In the innovation-driven economies, entrepreneurial framework conditions become more important as levers of economic development than basic requirements and efficiency enhancers. The outcome of the model is national economic growth through, for example, job creation and technical innovation. India is placed in the factor-driven category. It is yet to move to the efficiency-driven category, as per WEF studies.

 
 
 

Entrepreneurship Development Journal, Entrepreneurship Development, A New Strategy