India's Growing Entrepreneur Era: 31% Students Aim to Launch Their Own Ventures Within 5 Years India is currently home to nearly 116 unicorns, with the number projected to reach 280 by 2030

Entrepreneurship is at the heart of economic growth, especially in developing economies, not only because it generates employment opportunities and alleviates poverty but also because it fosters innovative businesses aligned with social and economic needs. It also addresses larger societal challenges. Notably, Indian entrepreneurs are increasingly emerging from Tier-II and Tier-III cities, signaling a significant shift from the traditional mindset of seeking jobs to creating job opportunities and improving the quality of life for local communities.

A recent report from GUESS India highlights that 14 per cent of Indian students aspire to become entrepreneurs immediately after graduation, and 31 per cent aim to launch their own ventures within five years of graduating, demonstrating a strong entrepreneurial spirit—the highest among their global peers. As of January 2024, the Indian government has recognized over 130,000 startups, with 50 per cent of them based in Tier-II and Tier-III cities.

According to the report, 33 per cent of students are currently working on their startup ideas—higher than the global average of 25 per cent. However, only 4.8 per cent of Indian students are actively running a business venture, which is below the global average of 11 per cent. Despite this gap, the report predicts a surge in entrepreneurial activity, with 33 per cent of Indian students expected to run their ventures in the near future. While 70 per cent of surveyed students intend to pursue jobs after graduation, this figure is expected to drop to 52 per cent within five years.

This shift in aspirations can be attributed to several factors. About 49 per cent of students have access to entrepreneurship education, and 63 per cent of student ventures have received support from their universities. In addition, favorable government policies, along with access to mentorship, funding, and infrastructure, are propelling entrepreneurial ambitions. Even students who are not yet running their own businesses express a strong desire or plan to do so in the future, with India's entrepreneurial intent rated at 4.6 out of 7—significantly higher than the global average of 3.7.

The growing interest of global and local investors in India has also accelerated the country's startup ecosystem. During Q2 2024 (July-September), Indian startups raised USD 5.2 billion, marking an eight-quarter high. Fintech startups attracted the most investment, followed by sectors such as Artificial Intelligence (AI), Software as a Service (SaaS), and e-commerce. Bengaluru, Delhi-NCR, and Mumbai continue to dominate the funding landscape, according to DealStreetAsia.

India is currently home to nearly 116 unicorns, with the number projected to reach 280 by 2030. Fintech, e-commerce, and enterprise technology are expected to shape the future startup landscape, as noted by Inc42. While India's unicorn ecosystem is expanding rapidly, the United States remains the global leader with over 700 unicorns—more than any other country in the world.