India ranks relatively high in entrepreneurial capacity, according to the Global Entrepreneurship Monitor (GEM) project's India Report. The findings say that India, with more than 85 million businesses, is the most entrepreneurial country by volume.
But lack of physical infrastructure, educational support, and R&D investments and transfers has resulted in most businesses remaining extremely small.
Most businesses in India remain local businesses fighting with other local businesses for a share of the small local market. Businesses of all sizes find it difficult to scale in India mostly because of a highly fragmented market resulting from artificial barriers, imposed by a poor transport infrastructure and a complex web of local taxes, against free movement of goods and services in the country.
It's the lack of job opportunities that forces people to start these very small businesses in search of livelihood. The biggest employer in India today are hawking, rickshaw pulling and corner grocery stores. All of which would qualify as businesses but are unlikely to scale and create substantial wealth.
However there is a big positive resulting from this high volume of entrepreneurship. It has helped keep some terrible social and political problems from happening.
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