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Government Policy Ecosystem for Entrepreneurship Development in MSEs Sector

Bhat, Shabir A and Khan, Riyaz A (2014): Government Policy Ecosystem for Entrepreneurship Development in MSEs Sector.

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Abstract

Government Policy Ecosystem is central to the entrepreneurship development in any economy and generally includes Policies relating to government spending, taxation and regulation etc. There are two distinct channels through which government Policy ecosystem impacts the rate of entrepreneurship; the first is through its impact on the quantity and quality of inputs going into the entrepreneurial process and the second is through the impact of Policy on the institutional structure that determines the rules of the game under which the entrepreneurial process unfolds. The present study aims to assess the ‘Government Policy Ecosystem’ existing in the Jammu & Kashmir State towards the overall entrepreneurship development in the Micro and Small Enterprises (MSEs) Sector. The study is based on the response of the representative respondents {existing MSEs Sector entrepreneurs from all the three regions (Jammu, Kashmir and Ladakh) of the state} against the parameters: Policy focus and nature; Taxation and other regulatory Policies; and Policy implementation structure. Findings indicate that to the extent the Policy implementation structure is made proper and more coordination is brought in among the EPAs in implementing the state polIcies , there will be a remarkable entrepreneurship development in the MSEs Sector of the State. Towards the end of the study for the robust entrepreneurship development in Micro and Small Enterprises Sector of the State, on the basis of the findings, certain suggestions have been put forth for the improvement in the existing ‘Government Policy Ecosystem’ for MSEs Sector.

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