Indian Students Drive Startup Dreams But Face Mentorship and Funding Challenges

A new national survey has revealed that India’s youth are becoming increasingly entrepreneurial, with nearly three out of four university students expressing the desire to start their own ventures. However, despite this growing enthusiasm, most young entrepreneurs face significant barriers, including a lack of mentorship, limited access to funding, and inadequate legal guidance.

The study, titled “Youth Entrepreneurship and Start-up Governance – Guiding the Next Generation of Leaders Towards Stability and Success”, was conducted by BML Munjal University (BMU). The report surveyed 1,000 students from leading Indian universities and 200 industry professionals, including founders, CXOs, investors, and ecosystem experts, providing valuable insights into India’s evolving startup mindset.

The findings point to a generation that is ambitious yet grounded, eager to innovate responsibly rather than pursue unchecked expansion. Today’s students are looking to build ventures that combine profitability with purpose, placing greater emphasis on ethical business practices and long-term sustainability.

Mentorship and Funding: Key Obstacles

According to the report, 35% of respondents identified the lack of mentorship as the primary barrier to launching their own businesses. Another 24% mentioned the absence of legal and financial guidance, while 22% highlighted funding challenges as a major constraint.

The fear of failure and difficulty in balancing academics with entrepreneurial pursuits were also cited by 13% and 7% of students, respectively. Experts noted that these challenges, if unaddressed, could slow down the momentum of India’s growing startup ecosystem.

Governance, Transparency, and Ethics Take Center Stage

The survey emphasized that good governance is no longer optional — it is a cornerstone of sustainable growth. Over half of the participating industry professionals described governance as a key enabler for long-term success, while 33% believed it remains the most underdeveloped skill among student-led startups.

Startups that demonstrated transparent reporting, ethical leadership, and structured oversight were found to gain greater investor trust. Transparency, social impact, and founder credibility emerged as the top three drivers of investor confidence.

Universities as the Backbone of Future Entrepreneurs

The report also underscored the role of academic institutions in shaping India’s entrepreneurial future. Nearly half of the students rated their universities’ contribution to entrepreneurship as significant, while an impressive 89% supported introducing courses on financial accountability, ethics, and startup governance.

However, only 9.6% of respondents found their university incubation programs highly effective, suggesting the need for stronger academia-industry collaboration to close mentorship and funding gaps.

As India positions itself as a global hub for innovation, this report reflects a major shift in how young entrepreneurs define success — not merely by scale, but by sustainability and integrity. Experts believe that with the right support systems, India’s student entrepreneurs could power the nation’s next phase of economic growth and global competitiveness.