Innovation, Entrepreneurship and Startup Challenges and Role for Sustainable Economic Growth of India

Abstract

India’s transition toward a knowledge-driven and innovation-led economy has intensified the importance of entrepreneurship and startup ecosystems as engines of sustainable economic growth. This study empirically examines how innovation orientation, entrepreneurial capability, startup support systems, and structural challenges influence sustainable economic growth in India. A structured survey was conducted with 288 respondents comprising startup founders, MSME owners, incubator participants, and young entrepreneurs across major Indian cities. Statistical tools including demographic profiling, reliability analysis, ANOVA, regression, and model fit assessment were applied using SPSS. Findings indicate that innovation capability, policy support, and entrepreneurial intention significantly predict sustainable economic growth, whereas funding constraints and regulatory barriers negatively affect startup performance. Regression results reveal that the proposed model explains 68.4% variance in sustainable growth outcomes. ANOVA results indicate significant differences across age, experience, and sector categories. The paper concludes that India’s long-term economic resilience depends on deepening innovation ecosystems, reducing bureaucratic friction, strengthening startup financing, and promoting inclusive entrepreneurship.