Entrepreneurial spirit among Indian students rising

A significant shift towards entrepreneurship among Indian college students is underway. The GUESSS India 2023 report reveals that 32.5 per cent of the students are “nascent” entrepreneurs, who are actively engaged in starting their own businesses. This figure surpasses the global average of 25.7 per cent, indicating a burgeoning entrepreneurial culture in Indian universities, bolstered by supportive government policies.

The report, conducted by the India Chapter of the Global University Entrepreneurial Spirit Students’ Survey (GUESSS), highlights that 14 per cent of the Indian students after graduation aspire to be founders, closely matching the global average of 15.7 per cent. Over time, this aspiration shifts — 31.4 per cent of the students aim to pursue five-year entrepreneurship postgraduation, compared to the global average of 30 per cent.

The survey, which marks the first such comprehensive study in India, collected data from 13,896 students in various higher education institutions between November 2023 and February 2024

Puran Singh, Associate Professor at the Indian Institute of Technology (IIT), Mandi, and Country Delegate for GUESSS India, spearheaded the research alongside co-author Dharmender K Yadav.

Puran Singh emphasised the significance of the survey stating, “India is the third-largest start-up ecosystem in the world, with the largest youth population. Understanding the students’ entrepreneurial mindsets is crucial for harnessing their potential.” He added that the report validated extensive resources invested by the government to promote entrepreneurship.

Key findings from the report reveal a dynamic landscape of student entrepreneurship in India. Initially, 69.7 per cent of the students aimed for employment after graduation. However, this number decreased to 52.2 per cent over five years, with a notable rise in entrepreneurial aspirations from 14 per cent to 31 per cent. Furthermore, Indian students exhibited the highest entrepreneurial intent globally, scoring an average of 4.6 on a seven-point scale, well above the global average of 3.7.

In terms of venture involvement, 38 per cent of students are engaged in venture creation, with 33 per cent in the nascent stage, representing the highest rate compared to their global counterparts. However, only 4.8 per cent have reached the revenue-generating phase, suggesting significant room for growth and support in this sector.

The university’s support plays a vital role in this entrepreneurial surge, with 63 per cent student entrepreneurs accessing institutional assistance and 26 per cent of ventures being incubated. Indian universities have created a conducive environment for entrepreneurship, achieving a rating of 4.7 out of 7, the highest among the leading global start-up ecosystems.

A spokesperson for the IIT-Mandi said that the survey report was unveiled at ISBAcon 2024, an annual conference organised by the Indian STEP and Business Incubators Association (ISBA). Suresh Kumar, president of the ISBA, highlighted the report’s importance for stakeholders in India’s start-up ecosystem, providing insights that can inform policies aimed at nurturing student entrepreneurs.