Knowledge Gap: An hindrance to wealth creation

Micro-entrepreneurship in India faces hurdles of inadequate training and knowledge gaps, exacerbating disparities among marginalized communities. A recent survey by Bhartiya Yuva Shakti Trust reveals concerning trends, necessitating urgent policy interventions to foster inclusive economic growth.

1: Dimension - Training Discrepancies

• Training Deficiency: The survey conducted by Bhartiya Yuva Shakti Trust (BYST) highlights a concerning reality: less than one-third of micro-entrepreneurs have received any form of training. This dearth of training extends to over half of the respondents who are unaware of the fundamental factors involved in commencing a business venture.
• Disparities in Scheduled Castes and Scheduled Tribes (SC/ST): Particularly alarming is the sharp decline in training accessibility among micro-entrepreneurs from the SC/ST category. Only a dismal 17% and 28% of SC/ST entrepreneurs, respectively, reported receiving adequate training or mentorship.

2: Dimension - Knowledge Gap Challenges

• GST Awareness: The survey findings underscore a significant knowledge gap among micro-entrepreneurs regarding essential business components such as the Goods and Services Tax (GST). A mere 28% of all respondents and a paltry 20% of SC/ST entrepreneurs exhibit awareness of GST-related matters.
• Financial Literacy: The survey illuminates the pervasive lack of financial literacy among micro-entrepreneurs, particularly concerning tax management and governmental policies. Only 43% of all respondents and 37% of SC/ST entrepreneurs profess knowledge in managing and filing business taxes.

3: Dimension - Digital Preparedness

• Digital Readiness: The survey evaluates the digital preparedness of micro-entrepreneurs, revealing notable gaps in digital presence, payments, and marketing strategies. While 43% of all entrepreneurs maintain a digital presence, only 21% of SC/ST entrepreneurs are active on social media platforms.

4: Dimension- Addressing the Disparities

• Policy Reevaluation: Policy reforms are needed to enhance entrepreneurship opportunities, particularly for underserved demographics. The necessity of updating existing policies to accommodate the diverse needs of micro-entrepreneurs, especially women.
• Financial Support and Education: Initiatives such as the Mudra Yojana and Stand-Up India Scheme are pivotal in fostering entrepreneurship. However, concerted efforts are required to ensure that financial support is complemented by comprehensive education and training programs tailored to the specific requirements of micro-entrepreneurs.
• Digital Literacy Promotion: Alongside traditional business training, emphasis should be placed on enhancing digital literacy among micro-entrepreneurs, thereby empowering them to leverage digital platforms for business growth and expansion.

Mains Practice Question

Q. "Access to training and knowledge remains a critical barrier to the inclusive growth of micro-entrepreneurship in India." Discuss