Startups Driving Employment Growth: Assessing Government Initiatives and Implementation Challenges

Abstract

Startups are universally acknowledged as drivers of job creation in global economies. In India, the substantial youth population and ongoing unemployment issues make the utilization of the startup ecosystem a strategic national imperative. Despite the launch of several government initiatives to foster entrepreneurship, a significant mismatch often arises between policy formulation and successful implementation, which adversely affects employment-generating outcomes. This study employs a systematic assessment of secondary data to integrate previous literature, offering a novel integrative analysis of the relationship between startup-driven job creation, government policies, and the systemic constraints that hinder their success. The study reveals a notable research deficiency: the absence of a unified framework connecting policy formulation, implementation obstacles, and employment outcomes in the Indian setting. Our findings suggest that obstacles, including bureaucratic impediments, financial access limitations, and policy inconsistencies, significantly hinder the effectiveness of employment programs. This research contributes to the literature by providing a systematic evaluation of these obstacles and proposing a stakeholder-focused intervention strategy. The insights are essential for policymakers to reform policies, for entrepreneurs to navigate within the ecosystem, and for academics to identify future research opportunities, ultimately seeking to enhance the startup ecosystems capacity as a robust catalyst for sustained employment growth in India.

Keywords: Startups, Employment, Job Creation, Government Initiatives, Challenges, India

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