Many researchers around the world have believed, entrepreneurship to be catalyst for economic growth and an antidote to unemployment. It has been proposed that entrepreneurship can be a panacea for empowerment, job creation, economic transformation, and poverty reduction, particularly in India. Entrepreneurship has been described as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make profit.

The Government of India and Various State Governments have made remarkable endeavours to develop an entrepreneurial supportive ecosystem in the country. The Ministry of Micro, Small & Medium Enterprises and its organizations are assisting the States in their efforts to encourage entrepreneurship, employment and livelihood opportunities and enhance the competitiveness of MSMEs in the changed economic scenario. Ministry of MSME envisions a vibrant MSME sector by promoting growth and development of the MSME Sector.

Entrepreneurship has become the engine of industrial development in all the developing countries including India. Economic development of a nation mainly relies on the industrialisation. Industrialisation helps solve the various socio-economic problems encountered by the developing countries. But these economies do not have adequate resources to build a strong industrial base by setting up large scale industries. They have to depend on small scale sector for the speedy development of their economies.

Promotion of entrepreneurship is the most popular aim of Indian policy makers in present times. Rising population on the one hand and lack of employment opportunities on the other point to the need for entrepreneurship.