Only five percent of adult Indians establish own business: Survey
Eleven percent of the adult population in India is engaged in "early-stage entrepreneurial activities", and only five percent of the country's people go on to establish their own business, a survey has found. This -- 5 per cent -- is among the lowest rates in the world, while the business discontinuation rate in India is among the highest at 26.4 percent, it says. The survey was conducted among 3,400 respondents aged between 18 and 64 years to assess the level of entrepreneurial activity. According to the Global Entrepreneurship Monitor (GEM) India Report 2016-17, prepared by Gandhinagar-based Entrepreneurship Development Institute of India (EDI) and its associates, 11 percent of India's adult population is engaged in "total early-stage entrepreneurial activity (TEA). " Around 4 percent of the population accounts for "nascent entrepreneurs," who are actively engaged in setting up a business they will own or co-own, the report says. Another 7 percent are the entrepreneurs who are owner-managers of businesses which are running for less than 3.5 years. Only 5 per cent of adult population in India manages to establish their businesses, which is to say, their businesses survive for longer than 42 months, the report says. This rate is among the lowest in the world, it adds. Among the BRICS economies, Brazil has the highest rate of established business ownership (17 per cent) and South Africa has the lowest (3 per cent). China has a slightly higher rate of 8 per cent, while it is 5 per cent in both Russia and India, the report says.