Entrepreneurship is defined as the ability and readiness to start, plan, and manage a business operation with all of its uncertainties in order to turn it profitable. The most visible manifestation of entrepreneurship is the establishment of new businesses. Without a question, unemployment has always been a problem that has hampered societal growth. Creating possibilities for entrepreneurship is the most effective instrument for addressing this issue and giving the young generation more power.
In the aftermath of the pandemic, the Indian government is working hard to develop a robust startup ecosystem. The government has formed a ministry dedicated to assisting new businesses and providing them with critical knowledge and other resources to help them grow.
In the recent past, the Indian government and Prime minister Narendra Modi has stressed on the importance of self-reliant Bharat and creating new opportunities for job creation. One of the important steps taken by the government to amplify the growth of start-ups and entrepreneurs is the Startup Indiainitiative which is a flagship initiative of the government of India. It intends to build a strong ecosystem that is conducive to the growth of startup businesses, drive sustainable economic growth, and generate large-scale employment opportunities.
Entrepreneurship is a solution to the unemployment problem since it opens opportunities for new projects, businesses, alliances, etc. When an investor invests in a startup or venture, the entrepreneur is instantly allowed to grow their staff to scale the business and generate additional growth and employment opportunities.
In contrast to corporate or big companies, who insist on hiring from renowned colleges or shortlisting candidates based on qualifications rather than capabilities, entrepreneurs are now willing to hire even resources who lack formal education or a degree but have the right attitude, skill set and willingness to learn.
Below are some key factors that prove entrepreneurship is a visible long-term solution for unemployment in society:
Entrepreneurship generates new job opportunities: In today’s economy, entrepreneurship is more important than ever, for creating new jobs and driving the economic growth of a country. A new business typically requires several promising and skilled employees to get it off the ground and scale rapidly.
Entrepreneurship helps to revitalize a community: Starting a business is just one aspect of entrepreneurship; another is reviving a community. When business owners make investments in their community, they contribute to boosting employment and the local economy.
Entrepreneurship helps to develop a sense of pride in the community in addition to producing jobs and strengthening the economy. People are more likely to desire to live and work in a place where successful enterprises are located. This sense of pride can contribute to community regeneration by recruiting new businesses and people. A new business can bring new life to a community, which can help in improving the local economy.
Entrepreneurs up the level of competition: Entrepreneurs increase competition for already-existing businesses by starting new ones. Lower prices and a wider selection of products as a result benefit consumers. A measure of market mobility has been created by researchers to show how new company creation affects already-existing businesses. A shift in the order of established companies according to their staff count denotes a change in market share and increased market mobility.
This effect is most pronounced when taking into account entrepreneurial activities five years prior to the start-up, which suggests that start-ups have a significant time lag before they have an impact on market mobility. Furthermore, the creation of new businesses encourages existing businesses to perform better, which indirectly increases competition.
Entrepreneurship leads to innovation: Economic expansion and the creation of new jobs are both fuelled by innovation. Any economy that wants to succeed needs to have a strong entrepreneurship ecosystem. Entrepreneurs who have the ability to problem-solve creatively and outside the box are the most successful. This is what creates successful economies and prosperous enterprises.
Risk-taking and a willingness to try new things are essential components of entrepreneurship. Innovation is the key to success in any profession, and this is what drives it. Successful entrepreneurs are those who are always thinking of new methods to expand their operations and solve issues in novel ways.
Gauging the entrepreneurship ecosystem, the best course of action for the government is to create institutions and policies for entrepreneurship development that harness the potential of young people and provide them with the skills and resources they need to succeed.
The regulations should be designed in a way that covers that and encourages a risk-free innovative atmosphere for entrepreneurs to grow. Many young people today recognize the value of focusing on consistent business growth, assembling the best team possible, and giving that team the tools necessary to achieve that growth.
Unemployment is one of the most painful and vexing concerns that every economy faces. Unemployment has spread not only among the unskilled but also among the educated. India, as a youthful country, has a large proportion of its population that is young, and in order to fully utilize their potential, we must provide them with the necessary skills and chances.
Entrepreneurship is our most powerful weapon in combating this issue and empowering our kids. Youth are naturally energized and empowered, and they are eager to explore new regions and take on new challenges and risks.
While working as an entrepreneur, an individual gets to work on multiple things, juggle different roles and turn them into better leaders and better individuals. Putting aside the fact that Entrepreneurship brings big money from investors and even foreign clients, it also has a key role to play in building a character.
When battling unemployment, entrepreneurship is a solution, entrepreneurs open doors to new ventures, new businesses, new alliances, etc. When an investor puts money into a startup or a venture, the entrepreneur automatically gets to expand its team to scale the venture and hence provide employment to more people.
These days entrepreneurs are willing to hire even resources who do not have formal education or a degree but have the right attitude, skill set, and willingness to learn, which is a big shift in the thought process in comparison to corporate or big companies who are adamant on hiring from Ivy League colleges or shortlist candidates on the basis of qualifications not capabilities.
The way forward should be to establish Entrepreneurship Development policies and institutions from the Govt, that focus on harnessing the power of the youth and empowering them with the tools and means to venture out. Of course, not all ventures will take off and few will have to come across failures often, the policies should be planned in a way to cover that and promote a risk-free innovative environment for entrepreneurs to flourish.
Entrepreneurs these days are moving back to their home towns in Tier 2/3 cities from Tier 1 cities in order to uplift their towns and cities and give employment in their communities. Surya Power Magic, a cleantech venture based out of Coimbatore was built up by founders who initially started their first ventures in Banglore – the IT hub of the country. Now in Coimbatore, they hire and source their staff locally.
Entrepreneurship is not a money-driven venture but a passion-driven one that facilitates positive change in society. The role of the government in entrepreneurship should be that of a facilitator and not a controller. The tremendous impact of the internet in business, which has obliterated geographical barriers, has made business a lucrative career option.
Many young minds now understand the importance of looking at steady business growth, forming the right team, and empowering it to bring about that growth. Targeting rural areas and tier 2-3 cities with better products and services is the way forward for entrepreneurs as there is already saturation in metros and big cities. Industry experts say any business that adds value to the quality of the life of youth will see growth. Startups have the opportunity to grow and become big. Keep challenging yourself and keep pushing yourself.
How to Solve Unemployment With Entrepreneurship?
To address the employment and skills gap, we must create solutions that can be shared, copied, and expanded to reduce unemployment and bridge the skills gap. Furthermore, traditional educational institutions may need to evolve in order to appropriately cultivate talent for market demands, and people may need to learn while working in order to keep up with change and advancement.
Entrepreneurship and business ownership come to the rescue. These two factors are critical for job creation and economic growth. This is especially true because the act of developing new business models addresses the displacement of existing occupations and so offers new business prospects.
Entrepreneurs with smaller businesses are more inclined to recruit people with little to no schooling on a small scale, giving them disposable income and establishing earn money programs, which help the economy move forward.
In contrast to corporate or large companies that insist on hiring from Ivy League colleges or shortlist candidates based on qualifications rather than capabilities, entrepreneurs are now willing to hire people who lack formal education or a degree but possess the right attitude, skill set, and willingness to learn.
New venture opportunities
There are numerous sites for individuals seeking fresh job opportunities. Clearly, if entrepreneurs identify market inefficiency and have an idea for how to fix it, with adequate resources and capability, that may end up yielding a promising business idea.
Furthermore, when entrepreneurs notice a product or service that is popular in one area but not in other geographical locations, they can – as a result – import and establish this project where they see necessary.
Providing new skills to the market
Entrepreneurship equips individuals with out-of-the-box talents, thus meeting market needs and developing solutions for businesses, even those adopting traditional working styles. In this aspect, entrepreneurship utilizes these new skills, adopts them in business, and equips individuals with competitive skills in the working field.
For example, in recent years, entrepreneurship helped develop social media skills among businesses, which boosted their growth in terms of size and market outreach.
Encouragement of regional and international commerce
Technology and established trade infrastructures are now assisting entrepreneurs. This means that successful entrepreneurs may easily start exporting goods and services to neighboring regions or even abroad. A rise in this type of revenue strengthens an economy, improves trading links with other countries, and improves a population’s general welfare; resulting in the creation of new job opportunities.
Entrepreneurship is vital in reducing unemployment and driving economic growth and development. There are different ways entrepreneurship can reduce unemployment. First, entrepreneurs can create new jobs and businesses, which can help to reduce the number of unemployed individuals.
When entrepreneurs start a new business, they typically hire employees to help them run the business and grow their operations. This job creation can have a ripple effect, as the new business employees can also spend more money, which can drive economic growth and create new job opportunities in other industries.
Secondly, new businesses bring new ideas, products, and services to the market, so entrepreneurship drives economic growth and development. Finally, this increased competition can drive innovation, as established businesses are forced to adapt and improve to remain competitive.
Third, entrepreneurs must learn and develop new skills to start and grow their businesses. This learning and development can help increase the human capital of the individual entrepreneur, their employees, and the wider community.
By creating new job opportunities and businesses and driving innovation, competition, and skill development, entrepreneurs can help address the challenges of unemployment and create a more prosperous and sustainable future.
Entrepreneurship can be a solution for some unemployed individuals, but it is not a solution for everyone. While starting a business can provide opportunities for personal and financial growth, it also involves risks and challenges, such as the possibility of failure, limited access to financing and support services, and a lack of experience and skills.
Additionally, entrepreneurship is not the only solution for unemployment. Other solutions include job training programs, government-led employment initiatives, and private-sector job creation efforts.
Therefore, while entrepreneurship can be a solution for some unemployed individuals, it should be considered part of a comprehensive approach to addressing unemployment, along with other solutions such as job training and job creation programs. The most effective solution will depend on the specific needs and circumstances of each individual and the wider community.