For past couple of years India is facing hard time for its startup ecosystem and entrepreneurial space as earlier this month India saw a drop in Networked Readiness Index ranking — from 61 in 2013 to 91 in 2016.
Now, new report the ‘EY G20 Digital Entrepreneurship Barometer’ conducted by an international consulting firm, Ernst and Young (EY) ranks India in the bottom 10 of G20 Digital Entrepreneurship. According to this report the UK is on the top G20 country for starting a digital business easily. Canada’s name came after the U.K. in terms of entrepreneurship in digital business environment. Canada has been also named as the best G20 destination for providing funds access to digital businesses.
Five Metrics followed for Ranking
The report ranked entrepreneurship in the group of 20, or G20, countries on the basis of below mentioned metrics;
- Access to finance
It concerned to availability of equity and debt capital, financial regulation. The report considered finance one of the most important area for entrepreneurs’ success. In many countries entrepreneurs are facing challenges to tap into right sources of capital.
- Entrepreneurial cultureThis factor talked about societal attitude towards entrepreneurship, taxes, policies, patent activity, protection of intellectual property etc. In the countries which have good entrepreneurial culture, entrepreneurs get better platforms to talk about their experiences and help each other.
- Digital business environmentIt studied about internet connectivity, regulations and taxation etc.
- Digital skills and entrepreneurial educationThis metric analyzed leadership and technical skills etc..
- Digital knowledge base and information and communications technology (ICT)It collected data of available technologies, coaching and quality of research institutions etc.
The consulting firm EY has been prepared this report in the association of the G20 Young Entrepreneurs’ Alliance, an international network of entrepreneurs. The firm spoke to various entrepreneurs and enterprises in the digital and traditional sectors across the world to collect the genuine data and has arrived at the rankings. The report has also given many other recommendations for G20 countries on how they can make better startup ecosystems to support young talent. According to the report; all leading countries need to do more throughout their policies and future plans. India needs to start more initiatives like Digital India and Make in India to encourage young minds to stay competitive on the world level.
The UK and Canada has been also praised for having world’s best recruitment practices, tax frameworks, legal efficiency etc. These countries lagged behind in other areas; digital skills and entrepreneurial education as well as entrepreneurial culture and came in fifth place.