Causes of the slow growth of entrepreneurship development in India:
Entrepreneurship development happened only in the early nineteenth century and although the basis for industrialization had been established a century ago. The following were the main reasons who could be responsible for the lack of initiative and entrepreneurial spirit among the Indians:
Caste system: This occupation decided for the members of each caste. The altitudes were restrictive and, therefore, there were no changes in the accumulation of wealth and the promotion of production.
Agriculture: Agriculture was the main occupation. Farmers and growers were always in the hands of lenders. The Zamindars, Nawabs, and Rajahs exploited the workers. They spent money on fun and luxury and never risked money in the industry. Banking and the commercial system were also absent, so even if there were savings, they could not be used for productive use.
Educational system: Talented young people were prepared to accept white-collar jobs or join government or professional services. Many were attracted to politics. The result was that very few young people were attracted to being efficient, industrial, technical, managers, etc.
Colonial rule: The British rulers adopted the discriminatory policy Rich. Indian businessmen had special connections with foreign rulers and both satisfied their own interests. Even the few banking and insurance services met the needs of some rich Indian businessman, the British in India also did not encourage industrialization.
Administrative Agents: There were only a handful of people known to have managerial skills. On a common basis, these agents would lend their skills to some of the major industries. Industrialists could not manage their own units. They were always at the mercy of the managing agents who filled their pockets with large portions of the profits of the companies and took full advantage of the Indian industrialists until the management agency system was abolished in 1970.
Joint family system: The youngest members of the family always depended on the Chief, who never gave any kind of independence or encouraged other units that were not family businesses. Several young men were discouraged to diversify from the family business and do something new and different.
Religious attitude: The Indians were very religious minded. They gave religion more time than to gain material wealth. Religion has priority over business. Some religions even condemned excess profits and indulgence in comfort. Industrial activity was, therefore, considered secondary by religious Indians.
Mentality: The mentality of the average Indian was never entrepreneurial. Our literature and religious epics told us to be patient and continue working without waiting for the fruits of work. This also killed the momentum and desire to get involved in business activities.
Recognition of society: In earlier days, the heroes of India were social reformers and politicians. Now is the era of athletes, models and movie stars. It is said that successful or struggling entrepreneurs have never been recognized as heroes. Business activity did not have due importance in Indian society.
Family background: Empirical studies have shown that a good number of entrepreneurs come from families with industrial backgrounds. Unfortunately, only a few business communities in India made a business contribution. These communities also failed to advance in the business field due to colonial rule, lack of infrastructure and other facilities. The development of entrepreneurship could only take place after independence in India.
Also read: Concept of entrepreneurship, Types of entrepreneur, Process of entrepreneurship, Need of entrepreneurship, Barriers of Entrepreneurship, Entrepreneur vs Intrapreneur, The emergence of entrepreneural Class