The Role of Entrepreneurship in Economic Diversification, Productivity Enhancement and Employment Generation in Developing Countries: Evidence from India

Author(s)	Dr. P. Aravind Swamy, Dr. B. Narayana Rao
Country	India
Abstract	Entrepreneurship is widely recognised as a strategic driver of economic transformation in developing economies. In countries like India, entrepreneurial activities have been instrumental in broadening economic bases beyond traditional sectors, enhancing productivity through innovation, and creating large-scale employment opportunities. This research paper investigates the multifaceted role of entrepreneurship in economic diversification, productivity enhancement, and employment generation with a specific focus on India. Combination of secondary data analysis, review of scholarly work, government reports, and recent empirical evidence shows that a dynamic entrepreneurial ecosystem strengthens economic resilience, contributes to structural transformation, and supports inclusive growth. The paper presents current statistical evidence on India’s start-up ecosystem, Micro, Small and Medium Enterprises (MSMEs), and employment trends to substantiate the arguments.
Published In	Volume 8, Issue 2, March-April 2026
Published On	2026-03-30
DOI	https://doi.org/10.36948/ijfmr.2026.v08i02.80882

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International Journal For Multidisciplinary Research