Entrepreneurship: solution to unemployment and a social prosperity tool in India.
Few days back, me and my comrade were discussing about the high rate of unemployment in our country. As the discussion moved on we reached latitude were entrepreneurship came out to be a solution.
If we see, the current population of India is 1.31 billion (131crores). Out of which 9 Million people are unemployed. According to national sample survey office (NSSO) the overall employment rate in 2009 – 10 was around 39.2% , then there was a dip in employment rate and it had gone down to 38.6% in 2011 – 12.During this time, Kerala being the most literate state in India had the highest rate of unemployment , close to 10 % among the large states . Whereas, rate of unemployment in west Bengal was 4.5 % and Assam was 4.3 %.
Labour bureau under Union ministry of labour and employment released an annual employment and unemployment survey Report. The report for 2012 – 13 states that Sikkim has the maximum number of unemployed people. In north India Jammu and Kashmir had the maximum unemployment rate which was 4.4% in rural areas and 5.7% in urban areas.
The unemployment rate among youth (below the age of 35) decreased to 12.90% in 2013 from 18.10% in 2012. Youth unemployment rate in India averaged 15.50 % from 2012 until 2013, reaching all time height of 18.10% in 2012 and a record low of 12.90% in 2013.It is reported by labour bureau of GoI.
Youth unemployment rate in India is expected to be 15.50%by the end of this quarter, according to trading economics global macro models and analysts expectations. in the long term ,the Indian youth unemployment rate is projected to be more than 15.50% in 2020.
These percentages seem to be fine and simple but the figures of the same are really daunting.
Here, I would like to share a shocking incident that took place in UP. In September 2015, the unemployment rate reached a mark that 23 lakh people applied for 368 posts of peon in the state secretariat of UP. Among the applicants, 255 candidates with a PhD degree and more than 2 lakh hold b.tech, bsc, and M.com and Msc degrees.
Now, it is obvious that unemployment situation is grim indeed. It has, therefore, to be tackled with appropriate measures and on an urgent basis.
Here, I have come across the major causes of unemployment and entrepreneurship solving the same.
One of the major reasons of unemployment is Rapid population growth: Population of India in 2015 was around 1.277 billion, containing worlds 17.5%. India is projected to be the world’s most populous country by 2022, surpassing china. It is true that increasing labour force requires the creation of new job opportunities at an increasing rate. But in actual practice employment expansion has not been sufficient to match the growth of labour force, and to reduce the backleg of unemployment .We many conclude that, any rise in population, over a large absolute base as in India, implies a large absolute number. Here, I can say that entrepreneurship is the answer to unemployment, with respect to growing population.
If one in India starts with entrepreneurship he can generate employment. In India more than 65% of population is below 35 in age. If this young population would start with proper ventures then more than half of unemployed population of India will get employed. As well as it will help our national economy to grow to a greater extend. So I may conclude that entrepreneurial ventures are not only wealth creating weapons but also job creating tools.
One more cause for unemployment can be illiteracy; “Reducing illiteracy by social entrepreneurship” is a strategy that is being implied by Nigerian people to reduce the level of illiteracy in Africa. In India education is not always available and affordable to all. The free education programmes that are sponsored by govt. are not evenly efficient across all states. By encouraging social entrepreneurs, the condition can be improved. We can develop social entrepreneurs by empowering and equipping them with the skills and tools that are necessary for the transformation of the communities. These social innovators should be trained, motivated and encourage. Social entrepreneurship projects in our country will lead to solve many problems in rural areas and will tend to reduce illiteracy level through projects which encompasses health, environment, agriculture, and IT education.
In India there are still a little percentage of people who will argue over the fact that educated people can’t be entrepreneurs , they still believe that entrepreneurship is the task for less educated people and not for the ones who have done MBAs and MSCs etc. But the picture is not like that, Starting a venture is not an easy task it requires a highly skilled person with great managerial skills and on top of that with a good business sense. However, in India we are just the followers of the same mentality. Majority people in India are scared of risks, they ll never try to do something innovative. People always will follow the same culture of the govt. job or the job in some companies. If we ll deeply analyse this situation we ll realize that an entrepreneur gets more incentives than any person whose having a govt. job or is working in any private company.
There are scores of entrepreneurial success stories in India – Verghese Kurein ( Amul), Azim premji ( wipro) , Sachin Bansal and Binny Bansal (flipkart) , N.R Narayan Murthy (Infosys) and so many more.
Since past few years we can see the noticeable change in the young generation of our country, as they are trying to look beyond govt. jobs and jobs in private companies. I will always persistently and emphatically patronize entrepreneurship.
I believe that entrepreneurship is not just to make profit but also to bring about a huge change in different indicators of our nation. It’s not only about making profit but it also improves economic conditions , living standard of people .It also bring about a change in social setup of people , it tends to put your innovative ideas on practical grounds, improves resources, gives a platform to your creativity , improves management of time, It brings flexibility attitude in you, resilience after failure, stress management .
I believe that an entrepreneurship besides making profit is also a solution to our social problems.
I conclude by saying that in addition to creating wealth from entrepreneurial ventures, entrepreneurship is also responsible for the creation of jobs and improving the conditions for the prosperous society. In this way entrepreneur can turn out to be a true asset for our nation.