An Empirical Evaluation of India's Entrepreneurial Ecosystem via the GEM Framework

Venkataram Bhat

doi:10.36948/ijfmr.2026.v08i01.89483

An Empirical Evaluation of India's Entrepreneurial Ecosystem via the GEM Framework

Author(s)	Dr. Venkataram Bhat
Country	India
Abstract	This study provides an empirical evaluation of India’s entrepreneurial ecosystem using the 2023/2024 Global Entrepreneurship Monitor (GEM) framework. Incorporating data from the Adult Population Survey (N = 2,000) and National Expert Survey (N = 36), the paper analyzes key indicators—including Total early-stage Entrepreneurial Activity (TEA), opportunity perception, self-efficacy, and risk aversion—integrated alongside World Bank macroeconomic and digital infrastructure metrics. India ranks 2nd globally in entrepreneurial dynamism, with a stable double-digit TEA (12.2%), driven by rapid digital penetration, strong self-efficacy (80%), and high local opportunity awareness (75%–80%). Comparative benchmark analysis demonstrates significant regional variations: traditional trade hubs like Gujarat achieve an opportunity perception of 84.2% and startup intentions of 29.2%, outperforming national baselines due to community-embedded mentorship and a normalized risk culture. However, the study identifies a crucial behavioral paradox: over 40% of adults who recognize viable opportunities abstain from launching ventures due to a cultural fear of failure. Furthermore, structural deficits in post-school entrepreneurship education and growth-stage debt access hinder the transition of early-stage startups into established, high-employment enterprises. The research highlights a definitive evolution from necessity-driven survivalism toward opportunity-driven, tech-enabled innovation. Strategic policy implications emphasize expanding second-chance insolvency frameworks, scaling credit guarantee architectures (e.g., CGSS), facilitating public procurement access via the Government e-Marketplace (GeM), and embedding experiential entrepreneurship curricula to bridge the post-early-stage scaling gap.
Keywords	Global Entrepreneurship Monitor (GEM), Total Early-Stage Entrepreneurial Activity (TEA), India Startup Ecosystem, Opportunity Recognition, Fear of Failure.
Field	Mathematics > Economy / Commerce
Published In	Volume 8, Issue 1, January-February 2026
Published On	2026-02-05
DOI	https://doi.org/10.36948/ijfmr.2026.v08i01.89483

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An Empirical Evaluation of India's Entrepreneurial Ecosystem via the GEM Framework

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