Abstract:

Entrepreneurship plays a pivotal role in India’s economic development by fostering innovation, employment generation, and inclusive growth. In recent years, Artificial Intelligence (AI) has emerged as a transformative general-purpose technology with significant implications for entrepreneurial activity. This paper presents a comprehensive review of existing literature to examine the role of AI in enabling entrepreneurship in the Indian context. Adopting a qualitative research design, the study synthesises secondary data from peer-reviewed journals, reports, and policy documents to identify key themes, opportunities, and challenges associated with AI-driven entrepreneurship.The review highlights that AI enhances entrepreneurial capabilities by supporting opportunity identification, improving strategic decision-making, enabling personalised marketing, optimising operational efficiency, and facilitating access to finance through AI-enabled fintech solutions. AI adoption has been particularly prominent in technology-driven sectors such as Fintech, Healthcare, and social commerce, where data-driven business models and automation have contributed to scalability and competitiveness. The paper also illustrates the role of AI-enabled platforms in promoting inclusive entrepreneurship, as demonstrated through the case of Meesho, which leverages AI to support micro-entrepreneurs and small sellers. Despite its potential, the review identifies persistent challenges limiting widespread AI adoption among Indian entrepreneurs, including skill gaps, infrastructure constraints, high implementation costs, and ethical concerns related to data privacy and transparency. The study further identifies research gaps, particularly the lack of empirical evidence on AI adoption among MSMEs and rural entrepreneurs. The paper concludes that coordinated policy support, skill development initiatives, and responsible AI adoption are essential to harness AI’s full potential for fostering sustainable and inclusive entrepreneurship in India.

Keywords:

Artificial Intelligence; Entrepreneurship; Start-ups; MSMEs; Innovation; Digital Transformation; India.

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