Entrepreneurship Development in India: Role of Foreign Direct Investment and Economic Growth
Entrepreneurship development is at the heart of Indian development and it is important to leverage local resources, employment and rural development. As an entrepreneur or small business owner, you might think that you are working hard to build your own business and provide for yourself and your family, but in reality you are doing much more for your community, state, region and community as a whole. Wealth creation and sharing, job creation, balanced regional development, GDP and per capita income, living standards, exports and community development are seven important roles that entrepreneurs play in the country's economic development.
Entrepreneurs occupy a central position in the market economy. Because entrepreneurs act as spark plugs in economic engines that activate and stimulate all economic activity. Economic success in countries around the world is the result of encouraging and rewarding entrepreneurial instincts.
This paper examines the impact of financial development, economic development, and foreign direct investment on entrepreneurial development, measured in terms of output per MSME and fixed investment per MSME (small and medium-sized enterprises) from 1992-93 to 2015-16. The error correction model shows that investments per MSME have a positive impact on financial development in the long run. In the short term, foreign investment and economic development have a positive impact on MSME's fixed investment. Production per MSME is positively affected by economic development and financial development in the long run, while in the short term none of the selected independent variables affects MSME production.
Keywords: MSME, Error Correction Model, FDI, GDP
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.