The Relationship Between Government Policy and the Growth of Entrepreneurship in the Micro, Small & Medium Enterprises of India

With an impressive history of small firm development policy, in post-Independence India MSMEs (Micro, small and medium enterprises) dominate the industrial scenario through its contribution to generation of employment and income as also tackling the problem of regional disparities. Policymaking in the entrepreneurship field is complex and messy. Many areas of Government policy affect levels of entrepreneurial activity -regulatory policies, trade policies, labor market policies, regional development policies, social policies, and even gender policies. This means Governments must adopt more horizontal structures for developing and implementing an integrated policy approach. The mix of policy options will depend on a number of factors, including the prevailing attitudes of the population towards entrepreneurship, the structure of the labor force, the size and role of Government, the prevalence of existing level of entrepreneurial activity and the existing MSMEs. It is commonplace for Governments to have policies to encourage the growth of local MSMEs as they can help to directly alleviate poverty by increasing income levels and creating jobs. So the main purpose of the article is to introduce and analyze the relationship between Government policy and the growth of entrepreneurship in the micro, small &medium enterprises of India. In particular, it also considers the contribution of MSMEs towards country's employment generation. The global market has changed considerably as also the activities of Micro, Small and medium enterprises. Today, for businesses to survive, dynamism and entrepreneurship must exist in its fullest degree.