India Ranks Fourth in Global Entrepreneurship Ecosystem: GEM Report

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India has secured an impressive fourth position among 51 countries in terms of the quality of its entrepreneurship ecosystem, according to the latest Global Entrepreneurship Monitor (GEM) National Entrepreneurship Context Index (NECI) report. This achievement reflects a remarkable turnaround for India, which had previously ranked 16th overall in 2021.

The GEM report evaluates the entrepreneurial context of various economies based on 13 distinct characteristics known as the Entrepreneurship Framework Conditions (EFCs). The NECI scores are derived from assessments provided by 36 experts, who evaluate the framework conditions across the participating economies.

With a score of 6.1, India’s entrepreneurial environment has displayed a consistent and upward trajectory over the years. The country’s NECI score rose from 5.8 in 2019 (ranking 6th among GEM economies) to 6.0 in 2020 (ranking 4th). However, there was a temporary dip in 2021, with a score of 5.0, resulting in a 16th position.

Dr. Sreevas Sahasranamam, co-author of the GEM global report and Associate Professor in Entrepreneurship & Innovation at Strathclyde Business School, Glasgow, UK, attributes the improved quality of India’s entrepreneurship ecosystem to the government’s initiatives. He cites programs like Make in India and Atal Innovation Mission, as well as the cultural shift reflected in the popularization of entrepreneurship through television shows like Shark Tank India.

Dr. Sunil Shukla, head of the GEM India Team and Director General of the Entrepreneurship Development Institute of India (EDII), suggests that the temporary setback in 2021 may be attributed to the pandemic’s severe but temporary impact on the Indian entrepreneurial environment. He emphasizes that India’s high-quality entrepreneurial ecosystem cannot be taken for granted, and the trends in the current report portray a more resilient and emerging climate for innovative and tech ventures in the country.

The GEM 2022/2023 Global Report also highlights the results of the Adult Population Survey (APS) conducted in India, which involved over 2,000 respondents. The survey reveals that Indians excel in various areas of startups. Notably, 69 percent of respondents expressed the motivation to continue a family tradition, while 81 percent aimed to make a difference in the world.

The survey indicates that nearly 80 percent of respondents believed they possessed the necessary skills and experience to start their own business, saw favorable opportunities, and found it easy to initiate ventures in India. However, only 20 percent expressed an intention to start a new business within the next three years. The report points out that over 50 percent of respondents who identified new business opportunities feared the possibility of failure, which may explain the trend.

Moreover, the report reveals that Indian entrepreneurs ranked at the top globally (nearly 70 percent) in terms of pursuing new opportunities due to the pandemic.

In conclusion, India’s impressive rise to the fourth position in the GEM NECI report reflects the nation’s growing entrepreneurship ecosystem. The government’s initiatives and a cultural shift towards celebrating entrepreneurship have contributed to this achievement. While India’s entrepreneurial environment displayed resilience, the temporary setback in 2021 serves as a reminder that continued efforts are necessary to sustain and improve the quality of the ecosystem. With Indians excelling in various startup arenas, there is optimism for a thriving and innovative climate for entrepreneurs and tech ventures in the country.