Ministry Of Entrepreneurship: New Portfolio Raises The Hopes Of Millions

Among the many firsts of the newly elected Narendra Modi government, a new portfolio of the Ministry of Entrepreneurship (MoE) has been created. Its purpose is to create more job opportunities, upgrade the skills of workers and enable them to embark on entrepreneurship.

An MP from Lakhimpur constituency of Assam heads this new ministry. The charter for the ministry is clear. It is to hone and harness the skills, creativity and talent of 500 million people by 2022.

But, wasn’t there a conducive atmosphere earlier for businesses to thrive? Yes and no. Many government agencies like the Ministry of Small and Medium Enterprises did focus on this sector, along with the National Skill Development Agency (NSDA), which focused on skill development. Under the NSDA alone, there were three councils and sub-heads for skill development, making the path to entrepreneurship a bit longer. The approach was fragmented, with small-time entrepreneurs running from pillar to post to get their files cleared.

At times, the advisor to the Prime Minister also played a crucial role by stepping in and creating space for new businesses to boom in an otherwise ‘challenging’ avenues that made the task of getting through with government sanctions almost impossible.

Red-tapism has been the chief deterrent for people looking to embark on entrepreneurial pursuits. The MoE will strive to create an ecosystem that will encourage new ventures and eliminate the bottlenecks.

But the new ministry faces many challenges. The entrepreneurs are facing a number of problems with the FDI being allowed in various sectors and an uneven competition posing the biggest challenge. Apart from this, home-grown businesses also have to face complex tax structure and legal frameworks. Getting permission or grant for a new business is a long-drawn process.

The new ministry, hopefully, will address all these issues and simplify the process of getting approvals. The infrastructure and capital regulation issues also need to be efficiently addressed. The Human Resources Development Ministry can work together with the MoE to upgrade the skills of workers who have been incubating their business ideas to enter the market. Rural development seems to be the key word here.

Indian products, having a premium value abroad, can use the best brains and skills available in the country to create and expand their overseas market.

This combination will work well in the same spirit as the country allowed FDI and liberalised the import of products into the country. Market survey institutions, which have been engaging in trade studies for decades, can align with the ministries to understand and guide the new concepts into better business atmosphere. This, if it happens, is a very constructive situation and the ‘audacity of hope of a nation’ that’s dreaming new dreams!