TRENDS IN INDIA'S ENTREPRENEURSHIP LANDSCAPE: AN INTERNATIONAL COMPARISON OF INDIA IN COMPARISON TO LOWER-MIDDLE-INCOME COUNTRIES, BRICS, AND SAARC

Commerce

Need of the Study: The Ease of doing business index is an indicator introduced by the World Bank to measure the regulatory environment of small and medium-sized companies across the globe and how these businesses improve over time. The present study considered the starting a business parameter of this Index. This parameter is the sum of procedures, cost, time, and minimum capital required for commencement of a business. The conducive business environment enables high-quality ideas to take root, leads to more creation of jobs and better lives. So, to promote entrepreneurs required to simplify cumbersome procedures for starting a business and Government of India took various initiatives in this regard. This paper analyses whether these initiatives help in boosting India’s position. If yes, then which extent. Purpose: The main purpose is to analyse trend of India’s position in starting a business parameter among SAARC, BRICS, and Lower-middle-Income countries for the period 2007 to 2020. Findings: This study used trend analysis and found that before 2018, India’s ranking was greater than 155 out of 189 countries. It was improved to 137 in 2019, and 136 in 2020 respectively due to easier procedures for starting a business such as integrating the multiple application forms into a single SPICe (Simplified Performa for Incorporation Company Electronically), and improving the online application system. But still, India’s position remains the same. it was lowest in BRICS, SAARC, and 43rd out of 46th lower-middle-income countries. Practical implications:The study suggests that there is a strong need to improve this parameter through a centralized system. It will look at all the matters related to starting a business instead of getting approval from various agencies such as authorized private agencies, registrar of companies, authorized vendors, municipal corporations, department of goods and service tax, Ministry of labor etc. Research limitation: A limitation of the study is that considered only starting a business parameter of Ease of doing business index.

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