The Role of Entrepreneurship in Economic Growth and Employment Generation: A Study of How Startups Contribute to Job Creation and Income Growth

D. Lavanya; A. Asirvadam; G. Vijayadeep

doi:10.36948/ijfmr.2026.v08i02.80863

The Role of Entrepreneurship in Economic Growth and Employment Generation: A Study of How Startups Contribute to Job Creation and Income Growth

Author(s)	Dr. D. Lavanya, Dr. A. Asirvadam, G. Vijayadeep
Country	India
Abstract	Entrepreneurship has become an essential vehicle for economic growth and employment opportunities, both in developed and developing countries. In the last few decades startups have gained prominence as levers of structural change, technological advance and inclusive development. This research examines the level to which the rise of entrepreneurship contributes to the economic growth and employment creation in three main zones; what is the effect of startups, in reality, on creating jobs and raising incomes including local unemployment. The research is based on secondary data from government reports, industry surveys and academic publications, and used to study the Indian startup ecosystem one of the world’s fastest growing. The paper studies the formation of startups, breakdowns of sector labor, sources of income and level of contribution to GDP. It also assesses indirect employment consequences resulting from supply chain operations, service networks or other sectors. Startups represent one of the most significant sources of absorption by skilled and semi-skilled workforce that has led to self-employment and innovation that has led to increased productivity and efficiency. Additionally, startups play an important role in regional development by helping boost the economy outside cities and by stimulating economic activity at an individual local level. The paper further emphasizes the essential need for an enabling ecosystem of entrepreneurs, financial facilitation through finance, skill empowerment practices and favorable regulations for its social impact. Startups are widely considered to have a high positive impact on economic resilience, growth in income, and sustainable development. Therefore, an effective policy response to unemployment and the economy’s future would require reinforcing entrepreneurship through targeted policy measures.
Keywords	Entrepreneurship, Startups, Economic Growth, Employment Generation, Job Creation, Income Growth, Innovation
Published In	Volume 8, Issue 2, March-April 2026
Published On	2026-03-30
DOI	https://doi.org/10.36948/ijfmr.2026.v08i02.80863

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The Role of Entrepreneurship in Economic Growth and Employment Generation: A Study of How Startups Contribute to Job Creation and Income Growth

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