What Drives Entrepreneurship? Some Evidence From India

Posted: 25 Sep 2017

Date Written: July 21, 2014

Abstract

We study the growth of entrepreneurship in India by analyzing the micro, small and medium enterprises sector (MSME) and explore the factors that contribute to its development. We analyze a panel data of all 35 states and union territories from 1991 until 2006. The outcomes of interest are number of units, output, employment and total exports from the MSME sector. Our main findings suggest that general improvements in physical and financial infrastruc- ture have contributed significantly more to growth of entrepreneurship in India, than specific targeted policies of the government such as financial subsidies and creation of special economic zones aimed at entrepreneurship development.

Suggested Citation

Ravi, Shamika, What Drives Entrepreneurship? Some Evidence From India (July 21, 2014). Available at SSRN: https://ssrn.com/abstract=3041200

Shamika Ravi (Contact Author)

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

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