New Delhi: The overall Entrepreneurial activity is highest in Delhi, Mizoram, Uttar Pradesh, Kerala, Andaman & Nicobar Islands, and Haryana, according to the Economic Survey table din the Parliament on Friday.
While the country ranks third in the number of new firms created globally, there has been a spur of new Service sector firms as opposed to Manufacturing, Agriculture, or Infrastructure. This is in line with India’s strength as a provider of global services.
While literacy is not the only criteria for developing entrepreneurial spirit, it does have a disproportionately positive role when state literacy is above 70 percent. These are the States that are helping the government realise its 'Startup India' dream.
The Survey is clear and unambiguous in its endorsement of literacy and education in fostering local entrepreneurship significantly. For instance, the eastern part of India has the lowest literacy rate of about 59.6 per cent according to the census of 2011. This is also the region in which new firm formation is the lowest.
States in the highest quintile of relative entrepreneurial activity in the Agriculture sector are Manipur, Meghalaya, Madhya Pradesh, Assam, Tripura and Orissa, regions known for growing specific agricultural produce.
The Survey maintains that establishments in the North-East are more likely to be private enterprises in the food business such as organic produce farms and tea plantations while a majority of the establishments in Madhya Pradesh and Orissa are farmer producer companies, designed as hybrids between cooperative societies and private limited companies that organize farmers into a collective to improve their bargaining strength in markets.