India’s startup boom Part II: Building a deeper Entrepreneurial Culture

India is often called a land of entrepreneurs. From street vendors in Delhi to textile traders in Surat, informal entrepreneurship has always been a part of daily life. Yet, despite this instinct, India historically struggled to build a structured ecosystem that could compete with Silicon Valley or East Asia’s industrial hubs. Today, with more than 117,000 recognised startups and over 110 unicorns, India has a golden opportunity to embed entrepreneurship deeper into its society.

A Historical Look at India’s Business Culture

India’s entrepreneurial roots stretch back millenia. Indian luxury goods like spices and silks had such high demand in ancient Rome. One Roman senator wrote that if Roman aristocratic women bought any more Indian silk cloth, then Rome would go bankrupt. Ancient guilds (shrenis) organised artisans and merchants into networks that controlled trade. Merchant communities like the Marwaris, Chettiars, and Parsis flourished during the Middle Ages and even the colonial era, and early industrialists such as JRD Tata and G.D. Birla laid the foundations of modern industry.

Post-independence, the License Raj stifled entrepreneurship, making bureaucracy more important than innovation. Liberalisation in 1991 unlocked private enterprise, while the IT boom of the 1990s and 2000s created India’s first global success stories. The 2010s ushered in the startup era, with Digital India, Startup India, and UPI laying the foundation for today’s ecosystem.

The Social Context: Risk, Family, and Status

For decades, secure government or corporate jobs were considered the pinnacle of success. Entrepreneurship was often seen as risky and reserved for those with wealth. Families preferred their children to pursue careers in engineering, medicine, or the civil services.

This mindset is shifting. Success stories like Flipkart, Ola, and Byju’s have made startups aspirational. Media coverage and government recognition have turned founders into role models. Yet, a broader cultural acceptance of risk-taking and failure as part of the entrepreneurial journey is still needed.

The Economic Context: Informal vs. Formal Entrepreneurship

India’s economy has always been entrepreneurial at the grassroots. Informal enterprises—small shops, kirana stores, and self-employed workers—make up over 80% of the workforce. But these ventures are usually survival-driven, not innovation-driven. The challenge now is to bring informal entrepreneurs into the formal economy and enable them to innovate and scale.

Building a Deeper Entrepreneurial Culture: Key Steps

• Education Reform: Introduce entrepreneurship and financial literacy into curricula, encourage project-based learning, and set up incubation programs in universities.
• Celebrating Risk-Taking: Normalize failure as a stepping stone and highlight stories of resilience alongside unicorn success stories.
• Women and Inclusive Entrepreneurship: Expand credit, mentorship, and role models for women, SC/ST, and rural entrepreneurs.
• Regional Expansion: Strengthen ecosystems in Tier II and III cities with local incubators and angel networks.
• Mentorship and Networks: Institutionalise mentorship by linking successful founders with first-time entrepreneurs.
• Access to Capital: Expand credit guarantee schemes and promote micro-VCs beyond metros.
• Global Integration: Help Indian startups enter overseas markets through trade delegations and cross-border exchanges.

Conclusion

India’s entrepreneurial culture is undergoing a historic shift, from a society that once prized job security to one that is beginning to celebrate innovation and risk-taking. Government initiatives like Startup India and Digital India have laid a strong foundation. But the real leap will come when risk-taking is socially accepted, innovation is culturally celebrated, and entrepreneurship becomes accessible to every student, worker, and small-town dreamer. That will mark the true depth of India’s entrepreneurial culture.