Fostering sustainable economic growth in Karnataka: The critical role of entrepreneurial competencies

India stands at a critical juncture where sustaining high economic growth must be balanced with environmental protection and social inclusion. Traditional growth models driven primarily by capital and labor are increasingly inadequate to address contemporary challenges such as climate change, inequality, and employment generation. In this context, entrepreneurship viewed through the lens of entrepreneurial competencies emerges as a crucial micro-level driver of sustainable economic growth. This study examines the role of entrepreneurial skills in fostering sustainable economic growth in India, with a specific focus on the state of Karnataka, India’s leading startup ecosystem. Using a qualitative research design supported by primary data collected through structured questionnaires and secondary data from academic and policy sources, the study evaluates how competencies such as innovation, risk management, financial literacy, digital adoption, leadership, and sustainability orientation influence economic, social, and environmental outcomes. The findings reveal that entrepreneurs in Karnataka demonstrate strong capabilities in innovation, digital adoption, networking, and adaptability, which significantly contribute to job creation, regional development, and inclusive growth. However, challenges such as regulatory complexity, infrastructure gaps, limited access to finance, and cultural aversion to failure continue to constrain sustainable entrepreneurial growth. The study concludes that strengthening entrepreneurial competencies through targeted policy interventions, education, incubation support, and ecosystem development is essential for translating sustainability goals into tangible economic outcomes. By placing human capital at the center of development strategy, India can achieve resilient, inclusive, and long-term economic growth.