Social entrepreneurship and positive government support can jumpstart investments in sectors with large business potential starved of capital today.
Why investments remain low in many sectors
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If India has to make its mark as a global economic power, and provide public services to its people, we need (a) a vibrant economy and (b) well-distributed growth. Short term driver of growth : Higher production and consumption driven by increased incomes. Medium/Long term driver sof growth : More rapid innovations and faster technology development wto retain our competitiveness and improve service delivery. Our technology and structural development in the last few years has failed to encourage innovators. We can create more and better opportunities for our young population by promoting and encouraging entrepreneurship. The Atal Innovation mission (AIM) is mandated to strengthen entrepreneurship and innovation climate in India. Trends that have democratized innovations and inspired first-generation entrepreneurship are (1) Making the growth capital seamless and (2) Access to distribution channels from large companies and family businesses to startups.
However, private sector will not make heavy investments in sectors which are of social importance, like health, agriculture, affordable housing, sanitation etc. for obvious reasons of low returns or societal or regulatory barriers. Despite these sectors witnessing huge technological development, private sector investment in these sectors has not matched their business potential and social importance. Read our Bodhi Saars on Startups and Entrepreneurship. Governments have shown more and more interest in innovations as a means of economic development and job creation. The rise of low-cost entrepreneurship has closely tracked the growth of internet, which has widely changed human behaviour like shopping, social connection, travel etc. Startups led to this global change. The next phase of entrepreneurship is expected to be in the field of public services delivery and infrastructure. Presently, startups in India are taking care of challenges like clean water, rural electrification etc, and filling gaps left by the state. This could be called social entrepreneurship. The growth of social entrepreneurship could be enhanced by funds that invest in welfare businesses.
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