In 2008, the National Knowledge Commission (NKC) published an interesting study about the factors that have led to growth of entrepreneurship in India in recent times.

NKC defined entrepreneurship as ‘the professional application of knowledge, skills and competencies and/or of monetizing a new idea, by an individual or a set of people by launching an enterprise de novo or diversifying from an existing one (distinct from seeking self employment as in a profession or trade), thus to pursue growth while generating wealth, employment and social good’.

The Indian entrepreneurship pyramid consists of four levels, based on sectors and number of persons employed:

Level 1: Agriculture and other activities: Crop production, Plantation, Forestry, Livestock, Fishing, Mining and Quarrying.

Level 2: Trading services: Wholesale and retail trade; Hotels and restaurants

Level 3: Old economy or traditional sectors: Manufacturing, Electricity, Gas and Water supply

Level 4: Emerging sectors (including knowledge intensive sectors): IT, Finance, Insurance and Business services, Construction,Community, Social & Personal Services, Supply Chain, Transport-Storage-Communications etc.

Level 4 and 3 have see high registration of companies compared to other categories since 1991. This will lead to broadening of the pyramid at Level 4, 3 as activities and people migrate from Level 1 and 2 to Levels 3 and 4.

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