Delhi-NCR is losing entrepreneurs
Qualified professionals are opting out of entrepreneurship. Factors such as slowing economy, new tax policies and proactive tax…
Qualified professionals are opting out of entrepreneurship. Factors such as slowing economy, new tax policies and proactive tax authorities are responsible for the trend.
Brief: Bad news for entrepreneurship
In the past two years number of qualified professionals, who were entrepreneurs, have gone down.
Mahesh Vyas of CMIE writes:
“Professionally educated entrepreneurs are reducing in numbers. Between January-April 2016 and May-August 2018, ie over about two-and-half years, their count declined from an estimated 1.6 million to less than one million.”However, entrepreneurs, who aren’t qualified professionals such as drivers for Uber/ Ola or delivery boys for Swiggy/ Zomato or road side vendors have increased. There are 27 lakhs new self employment jobs since 2014–15, but generation through these peaked in 2016–17.
Why are they leaving?
They are opting for the jobs, where they get salaries.
Mahesh Vyas writes:
“ During the same period, the count of professionally educated salaried employees increased from 12.5 million to 14.8 million.”Demonetisation, GST and unfavourable economic climate have forced entrepreneurs to opt for the jobs.
How does it impact Delhi-NCR economy?
When qualified professionals become entrepreneurs they create more jobs.
They also help the new recruits develop their skills, which is not possible while driving an Uber or delivery food packets.
If conditions remain same, more people will opt for formal jobs, and those who aren’t qualified will move towards low paying self employed jobs. Economy will contract.
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