Karnataka appeared as a key player in India’s start-up ecosystem, actively employing all 26 Action Points outlined in the Start-up Ranking Framework 2020. This study investigated the impact of the state’s start-up environment on the student community, focusing on their perceptions, challenges, and ambitions. It reviewed how Karnataka’s entrepreneurial ecosystem inspired students’ attitudes, self-efficacy, and intentions to pursue start-ups. The study aimed to examine students’ perceptions of the start-up ecosystem and its role in fostering entrepreneurial intent, identify barriers to student engagement, analyse students’ ambitions, and provide insights for educational institutions and policymakers to enhance support for student entrepreneurship. The research found that a positive perception of the start-up ecosystem significantly influences entrepreneurial intention among students, while challenges such as lack of funding, mentorship, and institutional support act as major deterrents. A mixed-methods research study involving 250 undergraduate and postgraduate students in Karnataka found that reputation, awareness, education, collaboration, and policy frameworks are crucial for fostering a conducive entrepreneurial environment. The study recommends focusing on branding, industry partnerships, comprehensive training programs, streamlining regulatory frameworks, and prioritizing mentorship programs. It also emphasizes the need for continuous evaluation of incubation strategies to ensure sustained support for student entrepreneurs. The study underscores the importance of various factors in enhancing incubation center effectiveness, emphasizing the need for branding, industry partnerships, and comprehensive training programs.