Development of Entrepreneurial Ecosystem: A Comparative Study of India and China

Abstract

In the recent era of complex economic environment, entrepreneurship and innovation are fast emerging as critical transformational drivers in establishing a new megatrend of economic growth with its capacity to reshape the economy globally. To date, not much literature is available on how the role of entrepreneurship is a crucial driver of China's economic growth and how the essence of entrepreneurship in this sense may vary between India and China. Hence, the present study carries out a comparative analysis of India and China's entrepreneurial ecosystem based on fourteen parameters under the Global Entrepreneurship Index (GEI), an annual economic activity index provided by US-based GEDI (Global Entrepreneurship and Development Institute). Correlation analysis to test the relation between the mean scores of all fourteen entrepreneurial ecosystem parameters with the total number of new firms established after the Startup India initiative from 2015-2018 was conducted. The findings of this paper show that the overall growth of entrepreneurship is higher in China than in India. India needs to concentrate on value development, empower its young entrepreneurs, and build tolerance for entrepreneurial loss. Recommendations for the same have been provided to ensure that the startup movement should be inclusive. Finally, the study offers valuable insights into the entrepreneurial ecosystem and poses further concerns that require more reflection and exploration for professionals, scholars, and policymakers.