International Journal For Multidisciplinary Research
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Volume 8 Issue 6
November-December 2026
Indexing Partners
The Role of Entrepreneurship in the Growth of Employment in India
| Author(s) | Mrs. M. Gouse Bee, Dr. K. Sreedhar |
|---|---|
| Country | India |
| Abstract | Entrepreneurship has emerged as a critical driver of economic development and employment generation in India, particularly in the context of rapid population growth and increasing labor force participation. This study examines the role of entrepreneurship in fostering employment growth across various sectors of the Indian economy. With India experiencing a demographic dividend characterized by a large youth population, the challenge of providing productive and sustainable employment has become central to national development strategies. Entrepreneurship offers a viable solution by transforming job seekers into job creators and stimulating innovation, productivity, and inclusive growth. The study adopts a descriptive research methodology based on secondary data collected from government reports, national surveys, and institutional publications. Data from sources such as the Periodic Labour Force Survey (PLFS), Startup India reports, MSME annual reports, and sectoral studies are analyzed to assess the contribution of entrepreneurial ventures to employment generation. The research objectives include understanding the significance of entrepreneurship in job creation, examining sector-wise employment trends, evaluating the role of government initiatives, and identifying research gaps in existing literature. Findings indicate that entrepreneurship contributes to employment through direct, indirect, and induced channels. Direct employment is generated within startups, MSMEs, and new enterprises, while indirect employment arises through supply chains, logistics, and support services. Induced employment results from increased income and consumption patterns stimulated by entrepreneurial activities. The services sector, particularly information technology, fintech, and e-commerce, has emerged as a leading contributor to entrepreneurial employment growth. Additionally, MSMEs play a foundational role in employment generation, accounting for a substantial share of non-agricultural jobs in both rural and urban areas. Government initiatives such as Startup India, Skill India, the MUDRA Scheme, and Digital India have significantly strengthened the entrepreneurial ecosystem. These programs have facilitated access to finance, skill development, technological infrastructure, and regulatory support, thereby enhancing employment potential. The study also highlights the growing importance of inclusive entrepreneurship, including women-led enterprises, youth startups, rural ventures, and social entrepreneurship, which collectively contribute to equitable employment opportunities. Despite these positive developments, challenges remain in terms of access to credit, skill mismatches, regional disparities, startup sustainability, and quality of employment in the gig economy. The research identifies gaps in longitudinal studies on employment sustainability, evaluation of job quality, and the impact of green entrepreneurship. Overall, the study concludes that entrepreneurship plays a transformative role in shaping India’s employment landscape. By fostering innovation, decentralizing economic opportunities, and leveraging digital advancements, entrepreneurship serves as a powerful instrument for sustainable employment growth. Strengthening policy frameworks, expanding financial inclusion, and enhancing skill alignment will be essential to maximize the long-term employment benefits of entrepreneurial development in India.\ |
| Published In | Volume 8, Issue 2, March-April 2026 |
| Published On | 2026-03-30 |
| DOI | https://doi.org/10.36948/ijfmr.2026.v08i02.80857 |
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E-ISSN 2582-2160
CrossRef DOI prefix of IJFMR is 10.36948/ijfmr
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