Entrepreneurship in a Modern Networked Indian Economy

Entrepreneurship is important in the daily business environment and is plays a crucial role in the world economy. Entrepreneurship is an interesting topic as it deals with the behaviour of the firm entrepreneur and the entrepreneur's main competencies. However, the field of entrepreneurship world over is evolving and so is it in India. The focus of this paper is on entrepreneurship in modern networked economy of India. In this survey paper the literature on entrepreneurship is summarized from the perspective of geographical seedbed conditions and network constellations. Urban areas offer favourable incubator conditions for innovative entrepreneurship, as a result of economies of density and the opportunities created by the city as a nucleus of a broader network. Hence, a modem entrepreneur tends to become increasingly a network operator and manager. The paper focuses on the role that small firms and entrepreneurship would play in the Indian economy as it transforms itself. The current constraints are identified, and the areas that need action are highlighted. It is argued that a better understanding of the process of evolution of the modern entrepreneurship in the late industrializing economies can help India make appropriate policy choices. It is also suggested that in the age of liberalization and globalization, any attempt at creation of a competitive environment in the country would need to explicitly take note of the emerging global production and knowledge networks.