The role of Government in promoting Entrepreneurship

17,151 Views Updated: 09 Apr 2018
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The role of Government in promoting Entrepreneurship

Government always has a very vital role in the promotion of entrepreneurship. This is a key objective of Government now since employment opportunities are limited and encouraging entrepreneurs and entrepreneurship not only creates additional employment but also limits the burden of Government. The government agencies promote entrepreneurship through different institutions which have been set up to fulfill this objective.

1. Small Industries Development Organization (SIDO)

This institute was established in the year 1973 and comes under Ministry of Trade, Industry, and Marketing. This is an apex body at the central level and formulates policies which help in the development of Small Scale Industries throughout the country.

2. Management Development Institute (MDI)

This institute was also developed in the year 1973 and is located in Gurugram in the state of Haryana. This institute is sponsored by Industrial Financial Corporation of India and works for the improvement of the effectiveness of managers throughout the country.

This institute also conducts management development programs throughout the country.

3. National Institute for Small Industries Extension Training

This institute was established in the year 1960 with headquarters at Hyderabad. The main objectives of this institute are to direct and coordinate syllabus for the training of small entrepreneurs and advice on managerial and technical aspects of any given program for promotion of entrepreneurship.

Posted by: Lovnish Thakur Posts: (277) Opinions: (20) Points: 21,130 Rank: 1
Opinions (2)
Yes, as jobs are not possible for all

The role of government in promoting entrepreneurship is very distinctive. The government needs to play a strong character when it comes to supporting and promoting entrepreneurship which basically is boosting the economy of the nation by means of innovation and by creating more jobs. The role of government in entrepreneurship development should not be limited to big companies because it is these small or medium sized firms which are moving towards growing into big enterprises. It is the process of growth of these small startups that gives way to more jobs eventually turning into a gigantic Multi National Company.
Role of government in entrepreneurship development:
1. Ease of enter and exit
More permissions, confusing regulations and expensive registrations restrict the growth of a company. The government should enhance and encourage competition amongst the foreign players, which enhances growth and productivity among the local players. This will help in attracting new and innovative entities and drive out old ones.
Also, if for any reason a startup decides to shut down its operations, its exit should be eased and burden free. Rather than being trapped by the regulations they can use that productivity to build a new product.
2. Accesses to input and output markets
Government should ensure that the startup has the ability to sell its product widely into domestic as well as international market easily. Easy access to market should always be encouraged. They should also provide for a decent infrastructure that can promote easy access to market.
3.  Predictable system of taxation of both personal wealth and the company
The Government should ease down on taxes and regulations should be encouraged in order to expand the capabilities of a company. They should allow and aid the company to flourish initially and then charge taxes on the profit.
4.  Broad access to capabilities and abilities
The role of government in development of entrepreneurship should be to allow the middle class to be well equipped with resources and funding. They should provide them the capacity to start and have one system or law in place for all the startup to register and function independently.

Yes, as jobs are not possible for all

Off course Government should promote Entrepreneurs. Promoting entrepreneurs make up a huge group of potential job creators which further helps the society directly. Entrepreneurs are good for the economy and employment. The government should support innovative startups and help them grow. This will infact be added benefit for the development and growth of our own country. 

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