The interface between the government and business in India has improved considerably in the past ten years and simplifying laws can make it even better. Some young people we quizzed understood what went into setting up a business in a legal manner, but our regulatory regime still seems too complex.
Business rules and laws are still beyond the comprehension of a Class-10 graduate. They form the majority of the people who set up businesses for themselves without any help from the government. They are also the most vulnerable — preyed upon by unscrupulous officials responsible for enforcing regulations. Little wonder that the young of India shy away from business and instead seek employment.
We experienced some of this when we set up systems to connect small and medium businesses with young people. Businesses, almost all of them, told us that they were open to young people who could help on a part-time basis. But, it was the young who were hesitant. One, they said that it was beneath the dignity of an educated person to work. Two, they were preparing for competitive exams that would enable them to get a government job. When thousands of similar responses stream in, one wonders if the complex regulatory regimes are scaring them away.
Given the vast number of young people in India who are eager to work, we must create an enabling environment for them. All businesses, whether small or big, involve risk-taking. In the absence of an enabling ecosystem, the energies of entrepreneurial youngsters simply go to waste.
So, what would be the elements of a positive entrepreneurial ecosystem? An absolute first is a simplified legal process. This includes laws that ensure fairness and govern everything from getting an electricity connection and registering property to filing annual returns and so on. Making sure that laws are simple and easy to understand ensures that the people are not scared of following the law and reporting those inspectors who violate the law.
Second, we need to create spaces for students and businesses to interact with each other, beyond job seeking. Currently, there is a widespread belief that all businesses are either cheats or are compelled to cheat.
This impression needs to be removed. Fostering interaction between businesses and young people can build a breeding ground for innovation.
And finally, a space for informal interaction can also lead to students finding good mentors to guide them. A mentor is a key component in the success of any business. A robust mentoring network that can connect youngsters to mentors is currently missing. A positive attitude to business, simplified laws and the availability of mentors can all combine to reduce the risks of setting up new businesses.
With the BHIM interface, Open Network for Digital Commerce network, Goods and Service Tax and a unified tax regime, we have already laid the groundwork for sustainable economic growth.
Now we need to capitalise on that by building a positive ecosystem that could be leveraged by the young for moving forward and taking the leap of imagination and risk involved in building an enterprise.
Meeta Rajivlochan is secretary, youth affairs, Government of India. The views expressed are personal
