IIMS Journal of Management Science

The Potential Role of Irrationality and Behavioural Nudges in Entrepreneurship Development Policies in India

Arnab Banerjee¹ and Pradeep K. Jain²

First Published 1 Jun 2022. https://doi.org/10.5958/0976-173X.2021.00013.0

Article Information

Volume 12, Issue 3 September-December 2021

¹Arnab Banerjee,Assistant Professor, Department of FMS, NIFT, Shillong, Meghalaya, India. He can be reached at: arnab.banerjee@nift.ac.in

²Pradeep K. Jain, Professor, Department of Business Administration, Gauhati University, Guwahati, Assam, India. He can be reached at: pkjain60@gmail.com

Abstract

Entrepreneurship Development Programs have received a lot of socio-political thrust in India especially of late. This is not unexpected for a country that is entering its maturity, in terms of economic stature; where entrepreneurship is one of the primary means of attaining nationwide financial and social growth for all sectors of society. The current article proposes to understand whether India as a nation has reached equilibrium or is still in a state of flux, when it comes to choosing a career between entrepreneurship and job-seeking. The study also looks into the underlying forces and policy implications for sustained progress in Indian Entrepreneurial scenario. The article first looks to validate the claim that there is a need for advocacy of entrepreneurship. Subsequently, it uses the notions of irrationality and behavioural economics to suggest more effective and sustainable policy framework, by explaining entrepreneurship as a process such as the Transtheoretical Model.

Keywords

Behavioural economics, Entrepreneurship, Irrationality, Nudging, Policy implications

JEL Classification: Z13

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