A recent study indicates that Indian college and university students have robust entrepreneurial aspirations, with nearly one-third identifying as budding entrepreneurs. Notably, some students are actively working toward launching their businesses by graduation, a figure that exceeds the global average of approximately 25%. Moreover, about one in six Indian students intends to become a founder immediately after graduation instead of seeking employment.
According to the first comprehensive survey on student entrepreneurship in India, conducted by the India Chapter of the Global University Entrepreneurial Spirit Students’ Survey (GUESSS), Indian universities are leading in fostering an entrepreneurial environment, ranking highest among major startup ecosystems worldwide.
Entrepreneurial Intent
Indian students demonstrate the highest entrepreneurial intent globally, scoring an average of 4.6 on a seven-point scale, compared to the global average of 3.7. The GUESSS project is a significant global research initiative that surveys student entrepreneurs in 57 countries, examining their entrepreneurial spirit, intentions, and activities. While it was first launched in 2003 by the University of St Gallen in Switzerland, this marks India’s inaugural involvement.
Conducted between November 2023 and February 2024, the survey gathered responses from 13,896 students enrolled in higher education institutions across India. It explored various factors, including career preferences, attitudes, behaviors, and the university environment, to map global and national trends in student entrepreneurship.
Dr. Puran Singh, lead author of the GUESSS India 2023 Report and associate professor at the Indian Institute of Technology Mandi, emphasized the importance of harnessing the entrepreneurial potential of Indian youth. He noted, “India is already the third-largest startup ecosystem in the world and boasts the largest youth population globally. Tapping into the entrepreneurial potential of our youth will be crucial for the country’s growth.” He also highlighted a previous lack of data on students’ entrepreneurial mindsets.
Evolving Aspirations
The report, which includes contributions from IIT-Mandi research fellow Dharmender K. Yadav, revealed that approximately 14% of Indian students plan to become founders immediately after graduation, closely aligning with the global average of 15.7%. However, entrepreneurial aspirations evolve over time, with 31.4% planning to start businesses five years after graduation, matching the global average of 30%.
While 69.7% of students initially seek employment post-graduation, this figure decreases to 52.2% over five years, as the percentage of aspiring entrepreneurs rises to 31%, up from 14% at graduation. About 38% of students are involved in venture creation, with 33% in early stages, surpassing their global counterparts. However, only 4.8% of these ventures have progressed to generating revenue, indicating significant potential for growth.
University Support
Indian universities are rated highly for fostering an entrepreneurial environment, achieving a score of 4.7 out of 7, the highest among global startup ecosystems. Approximately 63% of student entrepreneurs reported receiving support from their universities, with 26% of ventures undergoing incubation at their institutions.
Dr. Singh noted that students’ increasing startup aspirations reflect a growing momentum for entrepreneurship within Indian universities, likely influenced by various government initiatives. Approximately 1,000 Institute Innovation Councils have been established, encouraging universities to foster innovation.
The Startup India initiative, launched in 2016, has played a pivotal role in promoting a culture of innovation and entrepreneurship within higher education institutions. Furthermore, the National Education Policy (NEP 2020) encourages entrepreneurial activities and support systems in educational institutions.
As of December 31, 2023, there are approximately 117,254 recognized startups in India, contributing over 1.24 million direct jobs and showcasing the government’s commitment to creating an entrepreneurial ecosystem across the nation. The presence of recognized startups in every state and union territory, covering over 80% of districts, underscores the significant economic impact of this initiative.
