Today, the story of Indian entrepreneurship plays out openly on the global market scene, attracting attention for its spectacular rise. Once considered an emerging market, India has arrived and become the world’s third-largest start-up ecosystem, boasting over 100 unicorns across diverse sectors like fintech, agri-tech, and health tech. This evolution and growth of entrepreneurship in India is rooted in its history, which has witnessed extraordinary waves of change marked by resilience, adaptability, and an innovative spirit.
Traces of Entrepreneurship in Ancient India:
The ancient Indian society revolved around rural life, with villages forming the economic foundation. Guilds or self-help groups were vital in organizing production and shaping public opinion. Artisans joined these groups to enjoy security and social status, and these associations created rules, sustained product quality, and set prices. Despite their challenges, these guilds remained technical education centers and contributed to charitable causes. Historians like Romila Thapar noted vital highlights such as the building of roads during the Mauryan period and non-Indian people’s occupation of northwestern India as causes for the Mercantile Evolution of Entrepreneurship in India.
Entrepreneurial Pursuits in Medieval India:
In the medieval period, guilds suffered under the rule of the Muslim Imperials. Agricultural products flowed from rural areas to townships without significant reciprocal returns. Rural development was neglected due to the extraction of resources mainly for wars and aggrandizing rulers. Rural-urban disintegration resulted in limited manufacturing activities in cities, and the drain from rural communities left most of the rural population impoverished. Organizing industry was difficult to grow in Mughal India because of a lack of purchasing power.
Entrepreneurial Scenario in British Colonial Rule:
The arrival of British imperial rule intensified extraction and exploitation, leading to India becoming a colony. In 1793, land revenue was permanently fixed in Bengal to drain the maximum surplus from the subcontinent. Indigo and jute, for example, were obtained at low prices through calculated British strategies. During British colonial rule, imported factory-made goods disrupted traditional cottage industries, resulting in unemployment. Entrepreneurs in India faced insurmountable obstacles, such as diverting earnings from exports to pay for import-induced costs. Several railway and irrigation projects were strategically constructed in favor of British interests, adversely affecting the Indian economy. As gold and silver were imported in large quantities, commerce and industry were affected, and British monopolies stifled local business growth.
Post-Independence Industrial Entrepreneurship:
Indian communities became engaged in industrial entrepreneurship during the post-independence era. With a history rooted in trade, the Parsis entered the industry early. As the industrial landscape evolved, other communities joined in, such as Bengalis, Marwaris, and South Indian traders. The Swadeshi movement and unity between political leaders and entrepreneurs fueled investments in indigenous industries.
Emergence of Industrial Pioneers:
Industrial pioneers such as the Birlas, Singhanias, Dalmias, and Walchand Hirachand rose to prominence between the two World Wars. Industry growth was facilitated by the diversification of the trading communities into various sectors. As a result of tariffs, protectionist measures, and the loosening grip of Europeans, indigenous entrepreneurship was further stimulated.
Contemporary Landscape: A Global Player in the Making:
India’s entrepreneurial landscape is a testament to the country’s resilience, adaptability, and innovative spirit. The talent pool is evolving, and so is the business environment. With changes in the education system and funding avenues, there is now a diverse range of backgrounds in the business world. The primary focus is creating distinctly Indian products while tapping into global trends. In addition, it establishes a niche in culturally rooted industries such as yoga, tea, and Ayurveda.
The future of Indian Entrepreneurship:
A dynamic interplay of historical, economic, and political factors has shaped the evolution of entrepreneurship in India. From ancient guilds to post-independence industrial pioneers, the entrepreneurial spirit has endured and adapted to changing circumstances. As India moves forward to embrace the future, entrepreneurs are called upon to liberate themselves from fear of failure. They must embrace experimentation and prioritize value addition with profitability over valuation. The journey continues, fueled by a commitment to empowering youth, celebrating failures, and steering towards sustainable and profitable ventures.
