Micro, Small and Medium Enterprises (MSMEs) play a vital role in fostering entrepreneurship development in any economy, particularly in developing countries like India. They serve as a backbone for industrial progress, economic diversification, and inclusive growth by generating employment, promoting innovation, and contributing to regional balance in industrial development. The Government of India has recognized the strategic importance of MSMEs and has initiated several policies and schemes to promote entrepreneurship through this sector. These initiatives aim to enhance productivity, improve competitiveness, and create an enabling ecosystem for entrepreneurs to flourish. MSMEs are the breeding ground for entrepreneurship as they provide opportunities for individuals to transform ideas into viable business ventures with relatively lower capital requirements. They encourage risk-taking and innovation by enabling entrepreneurs to enter markets and experiment with products, processes, and technologies. The flexible nature of MSMEs allows entrepreneurs to respond swiftly to market changes and customer needs, thereby enhancing their resilience and adaptability. This dynamic approach nurtures a culture of entrepreneurship that drives economic dynamism and diversification. The government has played a crucial role in supporting MSME-led entrepreneurship through targeted initiatives and institutional frameworks. The Ministry of Micro, Small and Medium Enterprises is the primary body responsible for formulating and implementing policies for the growth of the sector. One of the most significant initiatives is the Prime Minister’s Employment Generation Programme (PMEGP), which provides financial assistance to individuals for setting up new enterprises in the non-farm sector. The scheme promotes first-generation entrepreneurs by offering credit-linked subsidies and easy access to institutional finance. This has led to the creation of millions of self-employment opportunities, especially in rural and semi-urban areas. To strengthen the entrepreneurial ecosystem further, the government launched the Micro and Small Enterprises – Cluster Development Programme (MSE-CDP). This initiative encourages the formation of clusters where similar enterprises come together to enhance productivity, access common facilities, and adopt advanced technologies. By promoting collaborative growth, the