The lower literacy rate does not influence any positive activity to happen in a growing society. This is because people with no literacy are unaware of the current facts and scenarios that are prevailing in the world. Therefore, low literacy rates in a region do not encourage such entrepreneurial activity that might help to prosper the economy of the region and even the socio-economic status. Thus it is essential to increase the literacy rates of the people in a region for enhancing the level of socio-economic status of a nation. Economic Survey 2020 Suggests the Reason for Lower Entrepreneurial Activity As per the recent economic survey, the government has been able to explore the idea of privatization of education to augment the capacity of education at all levels of education. The data of the World Bank on Entrepreneurship suggests that India stands at the third position in the creation of a number of new firms. These data and facts highlight that the creation of new firms in the service sector was higher than in manufacturing, agriculture, and infrastructure. The Economic Survey, with the involvement of the World Bank’s data, provides specific polity implications, for the fast-tracking entrepreneurship and local wealth creation. India has lower rates of formal entrepreneurship on a per-capita basis in comparison to the other countries, in spite of being the third-largest ecosystem for entrepreneurship in the world. For increasing the entrepreneurial activity and local wealth creation among the first measures, it is increasing the literacy levels in colleges and schools. According to the survey, it is also revealed that according to the census of 2011, the eastern part of India has the lowest literacy rate of about 59.6 percent. It has been seen that in this region, the formal entrepreneurial activity is the lowest. The next point of focus in the list of the increasing entrepreneurial activity involves increasing the access to the local markets by improvising the connectivity between the villages using tar and concrete roads. Influence of Literacy Rates on Entrepreneurial Activity However, it can also be said that with the increase in access to the local markets, it might also create some other opportunities that might discourage entrepreneurship. Thereby the investments that are involved in infrastructure are especially those that are undertaken to enhance the entrepreneurial activity that needs to be weighed against how the infrastructure that is improved creates other kinds of opportunities that might be consequential to a district’s GDDP. Apart from this, in the entrepreneurial sector, there is a specific need for policies that influences the convenience of doing business as well as labor regulations, especially in the manufacturing sector. It is a fact that the manufacturing sectors have the potential to create maximum jobs. Hence, the states must focus on allowing the convenience of making flexible business and labor regulations for fostering the creation of employment. According to an economic survey conducted earlier, Rajasthan, Punjab, and Gujarat are classified as states with flexible labor laws. However, in the manufacturing sector, these are also among the highest quintile of entrepreneurial activity.
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