01/12/2018 - Indian Economy | GS III

IAS Parliament 5 years

KEY POINTS

Reasons for successful employment generation

· A Joint entrepreneurship brings in a knowledge pool along with the specialization.

· The risks are shared among entrepreneurs.

· Huge volume brings in an optimal size of business that can more easily handle the increasing requirement of formalization.

· It becomes a more attractive for value chain partners, establishing both forward and backward linkages.

· Joint entrepreneurship enables the firms to utilize the skilled and unskilled human resources optimally.

Case Study

Through the Startup India initiative, Government of India promotes entrepreneurship by mentoring, nurturing and facilitating startups throughout their life cycle. It has set up research parks, incubators and startup centers across the country by creating a strong network of academia and industry bodies. A ‘Fund of Funds’ has been created to help startups gain access to funding.

To ensure proper outcomes in employment generation

· Following the public-private-community partnership route in joint entrepreneurship.

· Promotion of joint entrepreneurship will demand development fund. While local, state and Union governments can provide such funds, they have to admit the superior role of the private sector in promoting market conditions and skills.

· There is a need to optimally support the skilling and market opening opportunities by the private sector as well as the important task of creating the chief executive who will act as the developmental link between the joint entrepreneur model and the private sector, i.e. value chain partners.

· Stability in the government and the patience of promoting such growth models that can take time, from 4-5 years.