India stands at the beginning of a transformative period as its youth increasingly embrace entrepreneurship, reshaping the country’s economic landscape in real-time. The GUESSS India 2023 Survey shows that Indian students have a growing interest in entrepreneurship, a trend strengthened by academic programs, progressive policies, and a culture that increasingly values innovation. Conducted by the Indian chapter of the Global University Entrepreneurial Spirit Students’ Survey (GUESSS), led by Dr. Puran Singh, Associate Professor at the Indian Institute of Technology Mandi and India’s GUESSS country delegate, this survey highlights a shift in career aspirations among young Indians. This shift is a pivotal aspect of India’s development as it aims for global leadership in entrepreneurship and reflects changing career goals among young Indians.

The findings of the GUESSS India survey provide valuable insights into career aspirations, government support for startups, and suggestions for fostering a more supportive environment for future entrepreneurs. The implications of these findings are significant for policymakers, educators, and investors. By supporting this entrepreneurial movement, India could undergo transformative change and set an example of student-led growth for the global community.

Indian students stand out globally, demonstrating one of the highest levels of entrepreneurial ambition. As India’s startup ecosystem thrives, aided by government initiatives like Startup India and extensive support from academic institutions, the GUESSS report raises essential conversations for policymakers, educators, and stakeholders. Targeted strategies are needed to harness this entrepreneurial potential by closing critical gaps, improving accessibility, and building an environment where every aspiring entrepreneur can succeed.

Immediate career preferences: employment is primary, but entrepreneurship is on the rise

The GUESSS India 2023 report, the first survey in India, reveals that 69.7% of Indian students intend to pursue employment right after graduation, a statistic that mirrors global trends. Many students within this group aspire to join large corporations, public service, or academia, reflecting the value placed on job security and career stability early on. This preference aligns with the traditional education-to-employment path that has historically directed students toward stable jobs post-graduation.

However, a growing segment—about 14%—aims to jump directly into entrepreneurship. This new wave of students sees potential in creating their own businesses and contributing to India’s dynamic startup environment. With entrepreneurship becoming more attractive due to platforms like Shark Tank India and the success stories of Indian unicorns, students are increasingly inspired to build their ventures.

Five years after graduation, the number of students aiming to launch their businesses more than doubled, reaching 31.4%. Meanwhile, preference for traditional employment falls to 52.2%. This trend suggests an “employee-first, entrepreneur-later” mindset, where students view the corporate experience as valuable preparation for entrepreneurship. For policymakers and educational institutions, this deferred approach signals the need to create pathways that make entrepreneurship a feasible career choice right after graduation.

The role of government initiatives: startup India and incubators

Government initiatives, especially Startup India, have created a vast network of over 500 government-recognized incubators nationwide, fostering a supportive environment for young entrepreneurs. These incubators serve as critical resources, providing funding, mentorship, and hands-on business support to help students overcome early obstacles. In addition, programs like tax exemptions, simplified compliance, and prioritized procurement for government projects have helped student-led ventures thrive. 

Through initiatives like the National Innovation and Startup Policy (NISP) and the National Education Policy (NEP), the government encourages universities to include entrepreneurship in their curricula—for example, the Atal Innovation Mission funds numerous universities’ innovation labs and incubation centers. The Atmanirbhar Bharat and Make in India encourage student entrepreneurship by supporting ventures that foster national self-reliance and showcase Indian ingenuity. Expanding access to incubators, mentorship, and funding focused on young entrepreneurs will empower more students to transform their ambitions into businesses that enhance India’s economic resilience and international stature.

Challenges in achieving the entrepreneurial vision

Despite enthusiasm for entrepreneurship, challenges hinder the transition from intention to action. Currently, only 4.8% of Indian students manage active, revenue-generating businesses. This discrepancy suggests barriers to transforming startup ideas into functional businesses, requiring attention from institutions and policymakers. Furthermore, male students display higher entrepreneurial ambition than their female counterparts, highlighting the need for programs encouraging women entrepreneurs. Resource accessibility, especially incubators and funding, also varies across regions, posing additional challenges for students in rural or underserved areas. Addressing these regional disparities is crucial to ensuring equal entrepreneurial opportunities for all students.

Recommendations to unlock India’s entrepreneurial potential

The following actions are essential to maximize the entrepreneurial potential of India’s youth:

1. Expand Incubation Support: While India’s incubator network is growing, making these resources more accessible to students across regions, especially women entrepreneurs, would create a more inclusive ecosystem. Aligning these resources with student needs, particularly in non-urban areas, will foster a diverse and widespread entrepreneurial culture.

2. Enhance Entrepreneurial Education: Integrating entrepreneurship education across disciplines—not just in business schools—can foster a broader understanding of venture creation. Universities can also implement experiential programs that let students work on actual startup projects, bridging the gap between theory and practice.

3. Increase Government-Industry-Academia Collaboration: Collaborative programs among government agencies, private enterprises, and academic institutions can provide funding and mentorship, helping students gain valuable industry insights and connections crucial for entrepreneurial success.

4. Support Women Entrepreneurs: Mentorship programs and scholarships for female entrepreneurs can help close the gender gap in entrepreneurship. Female students can also benefit from connecting with female mentors and role models in business, inspiring more women to pursue entrepreneurial careers.

5. Promote a Startup Culture through Media and Events: Shows like Shark Tank India illustrate media’s impact on career ambitions. More events and initiatives celebrating young entrepreneurs can help create a culture where entrepreneurship is encouraged and celebrated.

India’s path forward: reflections from stakeholders

As India’s student entrepreneurship ecosystem grows, policymakers, educators, and industry leaders have a unique opportunity to shape a future where student-driven innovation fuels economic growth. Supporting the ambitions of young entrepreneurs benefits individuals and contributes to solving more significant economic issues, from job creation to technological advancement.

The GUESSS India 2023 Survey reveals a strong entrepreneurial drive among India’s youth. The challenge ahead is creating a comprehensive support system that removes obstacles and improves accessibility, enabling these entrepreneurial aspirations to become impactful realities. Through effective policies, enhanced educational frameworks, and collaborative initiatives, India can position itself as a global hub for student-led entrepreneurship.

[Liam Roman edited this piece.]

The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy.