Abstract : Entrepreneurship serves as a cornerstone for economic growth, innovation, and employment generation, particularly in developing economies such as India. Over the past decade, India has witnessed a substantial rise in entrepreneurial activity, driven by the growth of Micro, Small, and Medium Enterprises (MSMEs) and a dynamic startup ecosystem. Government programs such as Startup India, Make in India, Digital India, and Atmanirbhar Bharat have enhanced entrepreneurship by improving access to finance, infrastructure, technology, and institutional support. This study analyzes the contribution of entrepreneurship to India’s economic growth through a descriptive and analytical framework, using secondary data from government reports, policy documents, and peer-reviewed literature. Comparative analysis between MSMEs and startups reveals differential contributions to employment, innovation, and regional development. Findings indicate that entrepreneurship significantly fosters economic growth, but structural challenges such as financial constraints, regulatory hurdles, skill gaps, and urban-rural disparities persist. The study underscores the need for inclusive policies, entrepreneurship education, and strengthened institutional frameworks to fully leverage entrepreneurship as a driver of sustainable economic development.
Cite : Gopalan, M. S., Iqbal, S. A., & Agarwal, K. (2026). The Role of Entrepreneurship in India’s Economic Growth: An Analytical Study of Msmes, Startups & Business Development (1st ed., pp. 225-233). Noble Science Press. https://noblesciencepress.org/chapter/nspebgtrdbaip2026ch-25
References :
Acs, Z. J., Audretsch, D. B., Braunerhjelm, P., & Carlsson, B. (2005). The knowledge spillover theory of entrepreneurship. Small Business Economics, 24(3), 311–325. https://doi.org/10.1007/s11187-005-2920-3
Amorós, J. E., & Bosma, N. (2014). Global entrepreneurship monitor: 2013 global report. Global Entrepreneurship Research Association.
Audretsch, D. B., & Keilbach, M. (2004). Entrepreneurship capital and economic performance. Regional Studies, 38(8), 949–959. https://doi.org/10.1080/0034340042000280951
Baumol, W. J. (1990). Entrepreneurship: Productive, unproductive, and destructive. Journal of Political Economy, 98(5), 893–921. https://doi.org/10.1086/261712
Beck, T., & Demirgüç-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30(11), 2931–2943. https://doi.org/10.1016/j.jbankfin.2006.05.009
Desai, V. (2011). Dynamics of entrepreneurial development and management (5th ed.). Himalaya Publishing House.
Kirzner, I. M. (1973). Competition and entrepreneurship. University of Chicago Press.
Kumar, R., & Prakash, A. (2018). Entrepreneurship in India: Challenges and opportunities. Journal of Entrepreneurship Development, 12(2), 45–58.
Lerner, J. (2009). Boulevard of broken dreams: Why public efforts to boost entrepreneurship and venture capital have failed—and what to do about it. Princeton University Press.
Naudé, W. (2010). Entrepreneurship, developing countries, and development economics: New approaches and insights. Small Business Economics, 34(1), 1–12. https://doi.org/10.1007/s11187-009-9218-8
Raina, V., & Singh, M. (2024). Digital adoption in Indian MSMEs: Productivity and regional growth implications. Journal of Business Research and Development, 16(1), 22–38.
Reddy, S., & Kumar, P. (2024). Opportunity-driven entrepreneurship in rural India: Digital tools and market expansion. International Journal of Entrepreneurship and Innovation, 25(3), 145–160.
Sharma, R., & Patil, S. (2024). Entrepreneurship and global competitiveness: Insights from Indian SMEs and startups. Journal of Entrepreneurship and Development Studies, 18(2), 50–69.
Sharma, A., Mehta, D., & Singh, R. (2024). Startup ecosystems in India: Technology, funding, and innovation trends. Indian Journal of Entrepreneurship, 21(1), 33–55.
Singh, R., & Gupta, P. (2020). Challenges of entrepreneurship in India: Regulatory and institutional perspectives. Indian Journal of Economics and Business, 19(4), 78–92.
Singh, S., & Mehta, A. (2024). Post-2020 startup growth in India: Digital platforms and venture sustainability. Journal of Small Business and Enterprise Development, 31(2), 112–130.
Verma, K., & Joshi, P. (2024). Entrepreneurial mindset and education: Enhancing productive entrepreneurship in India. Education and Entrepreneurship Review, 9(1), 15–32.
Verma, R., & Rathi, S. (2024). Policy interventions and entrepreneurship outcomes in India: Evidence from MSMEs and startups. Journal of Policy and Economic Studies, 12(3), 75–95.
