A recent study conducted by Gujarat National Law University (GNLU) faculty members states that around 40% youth in cities of Ahmedabad and Gandhinagar have no idea about ‘Start-up India’, one of Prime Minister Narendra Modi’s most ambitious initiatives launched in 2016.
The study results comes at times when entrepreneurship wave is considered to be riding high across the country and both center and state governments are encouraging students to come with startups by organizing startup yatras and other lavishing events.
Titled as “Factors affecting entrepreneurial inclination among undergraduate students in Ahmedabad and Gandhinagar cities”, the study revealed that while 59.7% of the total 491 respondents were aware of Startup India campaign, 40.3% responded in the negative.
Besides this unawareness, orthodox mentality of parents also come out to be the one of primary reason for keeping youths away from entrepreneurial activities as out of the total 491 respondents, 38.1% of them stated that knowledge or education of management is more important than starting one’s own business, while according to 2.6% respondent parents entrepreneurship is least important. Respondents who were neutral towards entrepreneurship are 27.7% and ONLY 24.2% stated that it was most important whereas 7.3% respondents stated that it was somewhat important.
According to 41.5% students, their parents did not encourage them to start own business. However on a brighter side there were students whose parents motivated them to do so. According to 36.3% students, their father motivated, while 16.1% students said that it was their mother who motivated them.
On the other side, 26% of respondents said they were not interested in starting their own venture.
Respondents when asked whether they were interested in starting their own venture, 45.21% of 491 respondents answered in positive whereas 25.46% of them responded in negative.
According to 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 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.
When a total of 491 respondents were asked if funding/initial investment plays an important role in making the decision to start one’s own business, 37.5% of them said that it was important, 27.5% of them maintained a neutral viewpoint towards it, 22.8% stated that it was very important, 9% of them stated that it was somewhat important whereas 3.3% of them stated that it was the least important factor in starting one’s business.
According to Rahul Bhagchandani, acting CEO of Gujarat University Startup and Entrepreneurship Council, “If 60% 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.”
Besides GNLU, an another Gujarat-based institute, Entrepreneurship Development Institute of India (EDII), had revealed in its report this year that only 5% of Indians went on to establish their own business or startups, which is among the lowest rates in the world. Moreover, business discontinuation in India is among the highest in the world at 26.4%.