Public Policy Initiatives and Entrepreneurship Development in India: Evidence from MSMEs and Startups

Abstract

The goal of this study is to determine how well public policy efforts support sustainable entrepreneurship in India by assessing their impact on the expansion and formalization of startups and Micro, Small, and Medium-Sized Enterprises (MSMEs). It looks into whether new policy initiatives have boosted entrepreneurship and promoted equitable and sustainable economic growth. Using secondary data from official sources, such as the Ministry of MSME, DPIIT, Startup India, Udyam Registration Portal, RBI, SIDBI, MOSPI, and the Press Information Bureau, the study employs a quantitative descriptive research approach for the years 2020–2025. To evaluate changes in entrepreneurship indicators after significant policy reforms, descriptive statistics, trend analysis, year-over-year growth analysis, and compound annual growth rate (CAGR) are used.  The results show that India's entrepreneurial ecosystem has been greatly enhanced by policy initiatives including Startup India, Udyam Registration, the updated MSME definition, RAMP, and the Udyam Assist Platform. MSME registrations rose from 0.67 crore to 6.19 crore throughout the study period, and startup recognition grew significantly, indicating improved business formalization, innovation, financial inclusion, employment creation, and regional entrepreneurial development. These results show how equitable growth, economic resilience, and the advancement of sustainable development have all benefited from supportive public policies.