Journal of African Development

The micro-enterprise sector in India represents a critical pillar of the national economy, contributing approximately 29.6% to the country’s GDP and employing over 111 million individuals as of 2024. This paper focuses on the motivational dynamics of micro-level entrepreneurs and also analyzes the success rate of Government schemes for promoting entrepreneurship among the youths of India in 2021-2025. The study was conducted by descriptive and analytical approach using secondary data obtained from MSME, NSSO, government portals etc to study the relationship between government interventions and entrepreneurial motivation. The study uses statistical method such as percentage analysis, growth rate, Pearson correlation and multiple regression analysis software SPSS. The findings show that although schemes like Pradhan Mantri Mudra Yojana (PMMY), Stand Up India, and Udyam Registration have made credit access more widespread and formalization more easily accessible, gaps in the system like slow credit disbursals, lack of awareness and procedural hurdles remain. The statistical analysis shows very high positive correlation between scheme awareness and Entrepreneurial activity (r=0.78) and regression analysis shows that Government schemes accounts for 62% of the variance in development of youth entrepreneurship. The paper ends with the evidence based policy suggestions for policy optimization to improve the motivational impact of policy interventions related to micro-level entrepreneurship