Global Entrepreneurship Monitor (GEM) Report

Global Entrepreneurship Monitor: Relevance

• GS 3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Global Entrepreneurship Monitor: Context

• According to the recently released Global Entrepreneurship Monitor (GEM) India Report (21-22), India’s entrepreneurial activity expanded in 2021.

Global Entrepreneurship Monitor: Key points

• The report revealed that India’s 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.
  • Percentage of adults (aged 18–64) who are starting or running a new business.
• Established Business Ownership rate increased to 8.5%, from 5.9% in 2020.
  • Percentage of adults (aged 18–64) 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.

What is Global Entrepreneurship Monitor?

• 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.
• The main indicator used is called TEA (Total Early-Stage Entrepreneurial Activity), which assesses the percentage of the working age population both about to start an entrepreneurial activity, and that have started one from a maximum of 3 and a half years.

National initiatives to promote entrepreneurship

Ministry of Skill Development and Entrepreneurship (MSDE) is implementing various programmes to encourage entrepreneurship in the country.

• Pilot project, ‘Economic Empowerment of Women Entrepreneurs and Startups by Women (WEE)’ is being implemented to pilot incubation and acceleration programmes for women micro entrepreneurs, enabling them to start new businesses and scale up existing enterprise.

• 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 like Industrial Training Institutes (ITIs), Polytechnics, Pradhan Mantri Kaushal Kendra (PMKK) and Jan Shikshan Sansthan (JSS).

• 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.
• 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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