State governments are increasingly moving in the direction to promote entrepreneurship and are adopting newer approaches for its development, a study by global consultancy KPMG says.

As per the study in association with The Indus Entrepreneurs, a non-profit organisation fostering entrepreneurship, governments in six states, Punjab, Gujarat, Delhi, Tamil Nadu, Karnataka and Maharashtra are becoming more receptive to entrepreneurial demands.

The report said, while different state governments are taking proactive policy decisions or framing innovative industrial strategies, awareness of the same is low among entrepreneurs in several states.

Similarly, in many areas, policies need to be made more current with today's environment.

For example, in Delhi, the basic policy framework has not been revised for the last 27 years.

Hence, many entrepreneurs are not aware of the policies and perhaps were not able to harness benefits while starting their entrepreneurial journey, the report revealed. "Governments-central, state and local, their policies, incentives and programs play a substantial role in influencing entrepreneurs. In many cases, governments are moving towards friendlier policies but more rapid change is necessary," KPMG India executive director Jehil Thakkar said.

On the other hand, emergence of opportunities in many sectors and lack of opportunity in others have driven some young people to strike out on their own.

However, despite the great initiatives undertaken by many Indian entrepreneurs, India remains a tough place to be an entrepreneur, the report stated.

"There are ample opportunities in small businesses and such opportunities have potential to transform India. For the government, it is important to realize that goal of small business owners is to remain self-employed," Thakkar added.

Such people may not need financial assistance but they are definitely likely in need of regulatory, marketing and legal assistance in order to sustain themselves and grow, the KPMG report said.

Entrepreneurs in Gujarat and Karnataka are extremely satisfied with their government's quick policy decisions but are are hopeful of their quicker implementations. Entrepreneurs in Punjab desire more focused attention and will, from the political establishments, which they hope would steer investments in small scale industries.

However, they appreciate their government's policy initiatives in agro and IT/ ITES sector, the report said.

Though the states are moving in the right direction, albeit at a cautious pace, they too have their set of challenges.

Although the governments acknowledge that opportunity creation will have a domino effect and could lead to long term economic upliftment, many short term priorities and needs often take precedence over long term goals.