Lok Sabha Question No. 1861 (UNSTARRED), answered on 2022-03-14
Subject: Global Entrepreneurship Monitor (GEM)
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Raghu Ramakrishna Raju Kanumuru, Y. S. Avinash Reddy, Kotha Prabhakar  Reddy

## LOK SABHA

## UNSTARRED QUESTION NO. 1861 TO BE ANSWERED ON 14.03.2022

## GLOBAL ENTREPRENEURSHIP MONITOR (GEM)

## 1861.  SHRI KANUMURU RAGHU RAMA KRISHNA RAJU: SHRI Y.S. AVINASH REDDY: SHRI KOTHA PRABHAKAR REDDY:

## Will  the  Minister  of  SKILL  DEVELOPMENT  AND  ENTREPRENEURSHIP  be pleased to state:

(a) whether  the  COVID-19  pandemic  has  taken  its  toll  on  the  entrepreneurial activities  in  the  country  with  the  total  early-stage  entrepreneurial  activity,  if  so,  the details thereof; and

(b) the  details  of  the  Global  Entrepreneurship  Monitor  India  Survey  conducted  by Entrepreneurship  Development  Institutes  of  India,  if  so,  the  details  thereof  of  the setbacks in this regard caused by the pandemic and the surveys conducted and reports prepared/action thereon?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP (SHRI RAJEEV CHANDRASEKHAR)

(a) The Global Pandemic is once in a life-time disruption that has created serious adverse impacts on lives and livelihood in economies all around the world. Almost every major economy in the world was impacted and each country including India had to bear the cost of economic contractions, livelihood loss and increased healthcare expenditure. However,  India  has  responded  with  great  resilience  and  has  emerged  as  one  of  the fastest  rebounding  economies  in  the  World.  As  per  the  Economic  Survey  2021-22, Covid-19  pandemic  has  had  an  adverse  impact  on  most  sectors  of  the  economy. Government  of  India  responded  with  a  series  of  calibrated  measures  aimed  at protecting  the  lives  and  livelihoods  of  most  vulnerable  and  small  businesses  like  the Micro, Small and Medium Enterprise (MSME) segment. India has become third largest start-up  ecosystem in the world  after  US  and  China  with  over  60,000  start-ups.  India created 42 Unicorn in the year 2021 alone.

(b) The  Global  Entrepreneurship  Monitor  (GEM)  is  an  international  project  which seeks to provide information on the entrepreneurial landscape of countries. GEM carries out  survey-based  research  on  entrepreneurship  and  entrepreneurship  ecosystems around the world and is being led by Entrepreneurship Development Institute of India, Ahmedabad.

As  per Global  Entrepreneurship  Monitor  (GEM) India  Report  (21-22),  India's entrepreneurial activity expanded in 2021, with its Total Entrepreneurial Activity rate(percentage  of  adults  (aged  18-64)  who  are  starting  or  running  a  new  business) increased to 14.4% in 2021, up from 5.3% in 2020.

Further,  Established Business Ownership rate (percentage of adults (aged 1864) who are currently the owner-manager of an established business, i.e. owning and managing  a  business  that  has  paid  salaries,  wages  or  any  other  payments  to  the owners, for more than 42 months)increased to 8.5%, from 5.9% in 2020. Boom in earlystage entrepreneurial activity for India in 2021 may be due to the pent-up demand and subsequent opportunities  generated  by  the  reduction  in  COVID-19  risk  that damaged the Indian economy in 2020.

Ministry  of  Skill  Development  and  Entrepreneurship  (MSDE)  is  implementing various  programmes  to  encourage entrepreneurship  in  the  country  as  mentioned below:-

(i)          Pilot  project,  'Economic  Empowerment of Women Entrepreneurs and Startups by Women (WEE)' is being implemented in collaboration with Deutsche Gesellschaftfür Internationale  Zusammenarbeit  (GIZ)  Germany  to  pilot  incubation  and  acceleration programmes for women micro  entrepreneurs,  enabling  them  to  start  new  businesses and  scale  up  existing  enterprises  in  Maharashtra  and  other  States,  viz.Rajasthan, Telangana, Uttar Pradesh and North Eastern region of the country.

(ii)        Pilot Project on Entrepreneurship Development (PM YUVA) has been launched in  November,  2019  for  creating  an  enabling  ecosystem  through  entrepreneurship education,  training,  advocacy  and  easy  access  to  entrepreneurship  network,  for students  and  alumni  of  skill  training  institutes  viz.   Industrial  Training  Institutes  (ITIs), Polytechnics,  Pradhan  Mantri  Kaushal  Kendra  (PMKK)  and  Jan  Shikshan  Sansthan (JSS). The scheme covers 10 States including Maharashtra and 2 Union Territories.

(iii)         Entrepreneurship  Promotion  and  Mentoring  of  Micro  and  Small  Businesses  in Six  Holy  Cities:  The  project  seeks  to  catalyse  local  entrepreneurial  activities  through involvement of potential and existing entrepreneurs, through entrepreneurship awareness,  education  and  mentoring  in  Pandharpur,  Puri,  Varanasi,  Haridwar,  Kollur and Bodh Gaya.

(iv)       Apart from above, in order to enhance the employability of female workers, the Government  is  providing  training  to  them  through  a  network  of  Women  Industrial Training  Institutes,  National  Skill  Training  Institutes,  PMKVY  Centers  and  Pradhan Mantri Kaushal  Kendras.

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