Ushering in the new-age Indian entrepreneurship

At the cusp of independence, India boasted of 127 major companies, each contributing a unique thread to the fabric of the nation's economy. Among these, three distinct subsets emerged and they reflected diverse trajectories. Foreign-owned entities, indigenous industrialists, and opportunistic takeover artists - all played their part in shaping India's corporate ecosystem.

An extraordinary shift was observed in the business landscape as indigenous entrepreneurs seized the reins of industry. Marwaris, once prominent in trade and banking, embraced industrial pursuits. This transformative journey saw the likes of Birla's jute textile mill and Marwari-owned cotton textile mills in Ahmedabad ascend to prominence. The metamorphosis of these titans, from traders to industrialists, remains a testament to India's tenacious spirit of reinvention.

Post-1950 ushered in economic rejuvenations. Private investment surged, spurring the formation of new enterprises. The resounding clank of machinery and the fragrance of molten metals filled the air as industries burgeoned. The rise of conglomerates introduced economies of scale, utilising managerial resources to their fullest potential. This period was one hope as the nation took its fledgling steps towards prosperity.

India poses at least 247 million entrepreneurial households poised to propel the nation's forthcoming economic surge. These households are anticipated to generate an impressive transaction value of $ 8.8 trillion in the financial year 2022-23, underscoring their significant role in shaping India's economic landscape, according to a report by Enmasse, an international network of people and organisations and management consulting firm Praxis Global Alliance.

The entrepreneurial households are expected to lead India's upcoming economic wave, with their core transaction value (CTV) projected to increase by 12.7 per cent annually, reaching $95.2 trillion by FY43, states the report.

The report introduces a significant new metric, the core transaction value, revealing a vast market ripe for expansion yet currently under-capitalised. These entrepreneurial households are distinguished by diverse income streams, effectively transforming earnings and curated borrowings into a portfolio rich in high-priority goods, services, and business expenditures.

Equal access and women having control over economic and financial resources is critical for the achievement of gender equality and empowerment of women as well as equitable and sustainable economic growth and development.

In India female headed households were 11.5 % in rural areas whereas this was 12.4% in urban areas as per 68th round of NSS, 2011-12. Female literacy rate was 65.46 % as per Population Census 2011. Further, work force participation rate for female was 25.51 as per Population Census 2011. Women have started playing important roles in decision making at all levels.

Although data on women labour force, literacy and health aspects are being generated regularly though regular Censuses and surveys, the data on women entrepreneurship at the national level is rather scanty. Therefore, during Sixth Economic Census, questions related to women entrepreneurship in proprietary ownership were added. It covers sex, religion, social group, economic activity, the number of workers employed (hired and not hired) and source of finance.

It has been observed that 8.05 million out of the total 58.5 million establishments were run by women entrepreneurs in India which is around 13.76 % of the total number of establishments.

Total workers engaged in women owned & run establishments were 13.48 million persons, which is 10.24% of the total number of workers engaged in India under different economic activities.

The total number of establishments owned by women entrepreneurs was 8,050,819 out of which 5,243,044 constituting about 65.12 % of the total establishments were located in rural areas and the remaining 2,807,775 (34.88%) were located in urban areas. Further, about 6,697,354 establishments i.e., 83.19% operated without hired workers and 1,353,465 (16.31%) operated with hired workers. The percentage of establishments without hired workers in rural areas was 86.85% whereas, in urban areas, it was 76.33%. The number of women establishments involved in agricultural activities was 2,761,767, constituting 34.3 % of the total number of establishments owned by women.

Research into core transaction value and the identification of 247 million entrepreneurial households reveals a vibrant economic segment is poised for transformative growth.

The report further demonstrated that brands targeting entrepreneurial households have exhibited appealing returns on capital employed (ROCE) in FY23, comparable to those of the Nifty 50.

"The $8.8 trillion core transaction value we uncovered is not just a number; it's a testament to the untapped potential and vibrant economic activity of these households," said Madhur Singal, Managing Partner and CEO at Praxis Global Alliance.

Entrepreneurial households epitomise a culture of ingenuity and self-reliance, fostering economic dynamism and innovation across diverse sectors.

More importantly, it stands as a pillar of creativity, resourcefulness and ambition, fuelling economic growth and societal advancement.