Policy and Support Framework for Entrepreneurship in Unorganised Sector in India: Understanding the Opportunities and Complexities

Prabha Arya () and Sapna Dadwal
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Prabha Arya: GD Goenka University
Sapna Dadwal: DPG Institute of Technology and Management

A chapter in Entrepreneurship in India's Unorganized Sector, 2025, pp 61-78 from Springer

Abstract: Abstract The unorganised sector of the economy in India is largely unregulated by law but governed by customs. More than half of the national product is derived from this sector, which indicates the significant role it plays in India’s economic activity (Harris-White, 2014). This sector presents both opportunities and challenges for entrepreneurship. The characteristics of the informal sector are examined, highlighting both positive and negative aspects. Despite over 70 per cent of the workforce being involved in the unorganised sector in India, there are several areas of uncertainty and ambiguity (Tripathi, S. S., & Brahma, M. (2018). Technology entrepreneurship in emerging markets: An exploration of entrepreneurial models prevalent in India. Technology Innovation Management Review, 8(1)). The lack of a regulatory framework and an unsystematic and limited marketing approach has hindered the sector’s ability to gain the confidence of stakeholders and investors. Employees in the informal sector face job insecurity, limited growth opportunities, and lack of leave schemes. This paper has also attempted to explore entrepreneurship in other emerging economies like China, India, Singapore, Indonesia, Thailand, and Malaysia, in order to identify the best practices followed by neighbouring economies that could be adapted by India. This study emphasises that effective entrepreneurship in the unorganised sector will be crucial for employment growth in India. It will also help transition people out of subsistence living and alleviate poverty from the lower end of the economic pyramid through entrepreneurship. The study suggests that creating clusters of enterprises with similar or complementary products can promote efficiency, increase market demand, and drive technological advancement. Moreover, since database of informal sector is unstructured and fractured, the application of knowledge management in this sector can attract investors and stakeholders.

Keywords: Unorganised Sector; India; Entrepreneurship; Self-employment; Skill Development; Make in India (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/978-981-96-4313-4_5

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