Entrepreneurship can help in employment generation

About a fifth of the world’s population increase by 2050 will be caused by India alone according to a United Nations Report of 2017. Governments often dress this unhealthy fact in terms of a ‘demographic dividend’. But the truth is that there is nothing automatic about this dividend. A huge population is unsustainable for the resources of any state. Without extensive planning to provide basic amenities and employment to this group, this dividend can easily result in chaos.

LARGE UNEMPLOYED POPULATION IN INDIA

The latest report by the Center for Monitoring the Indian Economy claimed that the unemployment rate at the end of February, 2018 was 6.1% or about 3.1 crore in absolute terms. Skill development programs have managed to bring to par a significant number of unemployed youth in terms of training and skill. However, those numbers still remain a minuscule proportion of the actual number of unemployed persons. Agrarian distress is driving greater number of domestic migrants to urban centers in search of work. This continuously adds to stress on unemployment numbers. Manufacturing, which is often touted as a sector with the greatest potential to absorb new entrants to the workforce, is witnessing jobless growth despite buoyant ‘Make in India’ initiatives.It is estimated that the Indian economy would have to generate at least 10 lakh jobs every year if it is to successfully reap the much talked about demographic dividend.

NEW ENTERPRISES ARE DRIVERS OF EMPLOYMENT GENERATION

It is said that new enterprises are the backbone of any economy with their ability to generate employment in a self-propagating manner. A market economy thrives when there is competition, growth and innovation. New enterprises are the engines of innovation and consequent growth. New businesses tend to shake established methods of product conceptualization, design, delivery and competition.