Challenges Faced by Indian Entrepreneurs

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    INTRODUCTION

    ENTERPRENEUR

    An entrepreneur is one who always searches for change, responds to it and exploits it

    as an opportunity. Innovation is the basic tool of entrepreneurs, the means by which they

    exploit change as an opportunity for different business of service.

    --Peter Drucker

    To put it very simply an entrepreneur is someone who perceives opportunity,

    organizes resources needed for exploiting that opportunity and exploits it. Laptops, mobile

    phone, Motor Bikes, Credit Cards, Courier Service, and Ready to eat Foods are all examples

    of entrepreneurial ideas that got converted into products or services.

    ENTREPRENEURSHIP

    A systematic innovation, which consists in the purposeful and organized search for

    changes, and it is the systematic analysis of the opportunities such changes might offer for

    economic and social innovation.

    -- Peter Drucker

    Entrepreneurship is the practice of starting new organizations or revitalizing mature

    organizations, particularly new businesses generally in response to identified opportunities.

    Entrepreneurship is a creative human act involving the mobilization of resources from one

    level of productive use to a higher level of use. "It is the process by which the individual

    pursue opportunities without regard to resources currently controlled."

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    Entrepreneurship involves a willingness to take responsibility and ability to put mind to a task

    and see it through from inception to completion. Another ingredient of entrepreneurship is

    sensing opportunities, while others see chaos, contradiction, and confusion. Essence of

    Entrepreneurship is going against time with maturity and serving as a change agent.

    Entrepreneurship is considered to be a significant determinant of economic development.

    New entrepreneurial activities play a vital part in the process of creative destruction that

    fosters innovation, employment, and growth. While India has traditionally been an

    entrepreneurial country, it fares poorly in numerous global studies exploring the

    entrepreneurial and business potential of countries but, on the other hand on the most

    conservative basis, our domestic consumption, in virtually any sector, has the potential to at

    least double, or treble, from current levels perhaps, just to catch up with a country like

    China. Then, there is the entire global opportunity, across diverse sectors internationally; the

    "Made in India" tag is now an increasingly respected brand, valued for quality, reliability,

    and competitiveness. Truly, with economic reforms in the country, and with the virtual

    removal of all trade barriers, the world is now our market and our opportunity. The pursuit of

    these opportunities requires an indomitable spirit of entrepreneurship. Entrepreneurship is

    often a difficult undertaking, as a vast majority of new businesses fail. Entrepreneurial

    activities are substantially different depending on the type of organization that is being

    started. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur

    only part-time) to major undertakings creating many job opportunities. Many "high-profile"

    entrepreneurial ventures seek venture capital or angel funding in order to raise capital to build

    the business. Angel investors generally seek returns of 20-30% and more extensive

    involvement in the business.

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    INDIAN ENTREPRENEURSHIP

    E ntrepreneurship in India before 1991, Business was a little successful because of the limited

    ambition, licenses, contacts with the government organization and understanding the other

    functions. Decisions were made on connections than on competition. Goals of the business

    was reflection in the swadeshi movement which promoted to attain the freedom economic

    way. In this period entrepreneurship was not very much exposed and capitation was limited

    and India had a few successful stories. In 1991 government of India liberalized the economy.

    Indians take up their family businesses usually which made the other nationals to defeat the

    Indian market easily because they had super technologies, financial power and resources.

    Indian businesses was put up in a situation where they had to change the way in which they

    outlook the situation.

    Even later only few Indian families adapted themselves in the new policies which was even

    tougher for other families to get into this kind of changes. Recently the IT business get into

    introduce which paved a way for new owners and employers giving up more wealth which

    probably now India is growing in terms of business economically. Liberalization changed the

    nature of every family in India. For a large business to be successful the family should make

    them self flexible to see the competitive environment. IT business was a success because they

    focused and managed the customer professionally. After liberalization the business in India

    was better. A number of entrepreneurs were born and started to grow in large numbers such

    as the realtors, distributing personnels and the developers. Success followed when the

    efficient capital been allocated and proper execution and knowing the angle in which the

    customer may think of. Later the businesses started to joint venture with the companies and

    grow the capital.

    To maintain a business the Indian entrepreneurs separated the control which operates the

    business for the benefit of the owners and family succession. Indian businesses should have

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    to make professional managers for the proper development. The management controls should

    be with the professionals and it should be performed in an efficient way which benefits the

    employee and the owner who can still provide the vision and connection. As Indian business

    became very professional the opportunities to get the global business which made the tie ups

    with the countries abroad increased.

    RISKS TO INDIAN BUSINESS GROWTH

    The entrepreneurs in India will develop and grow if the economy continues to grow on a

    sustainable basis. The risk to the Indias growth is Terrorism, Corruption (Politically) etc. As

    investment increases foreign businesses can invest in India.

    1. Terrorism:

    Terrorism is attributable to religions and naxals. The terrorism creates uncertainty and delays

    the investment in any countries. So its necessary to comprehend a country culture,

    constitution and the response to terrorism. Culture is there in myths, television, religion and

    history. Indian culture is tolerable and has many differences. To distinguish between the

    Europe and India Indian has many divergent countries. Whereas Europe has independent

    countries. The skill in entrepreneurship and flexible to grow in spite of all the challenges.

    2. Political risks:

    India is a country with the lot of complexities and the political parties that are in India is

    abundant. The parties have involved addressing the needs and they gave the lower groups a

    way to the national level. The future will characterize with the combining of the politics into

    business. As the middle class families in India grow the caste Religious differences will fade

    giving rise to the new economical development positively with the uncertainties in the market

    place.

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    3. Economic Reforms

    Growth needs to continue and India needs another dose of reform, aimed at markets for

    inputs, from electricity to labor and land. If we are to continue to maintain the growth

    trajectory, the market for inputs needs to be liberalized. These are difficult political decisions

    and coalition politics will make the process slower and difficult. It will be easier for the

    government to address and repair old infrastructure through public private partnerships. India

    is going through a structural not a cyclical change; hence, the process is slow and driven by

    the political process. We need investments in power, roads, ports and bridges. An important

    area of reform is the power sector, as no industry can achieve a successful transformation

    without sufficient power. This is why the Indian government needs to push through the

    reforms on power generation, transmission and distribution. It is difficult to dampen the

    Indian entrepreneurial spirit. It has grown and competed in the global market despite the

    controls of the Indian.

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    CHALLENGES FACED BY INDIANENTREPRENEURS

    CHALLENGE OF GLOBALIZATION

    A few years back the Indian entrepreneurs had to fight regional and national competition.

    However, today, the scenario has changed and become much more complex than what it was

    earlier. Now, almost all countries have opened up their economies, and the world (globe) has

    become one giant global market. To survive this competitive era of globalization, Indian

    entrepreneurs must prepare themselves with new, better, and innovative business tactics and

    skills. They must accept this global challenge willingly and try their best to seek business

    opportunities to establish their dominant place in this ever-changing and always challenging

    open market. In this global competitive scenario, the Indian entrepreneurs have to compete

    with well-established giant foreign companies. For example, if they decide to start a beverage

    company, their competitors are likely to be large multinational corporations such as Coca-

    Cola and Pepsi.

    Giant multinational corporations have tremendous money power (surplus funds), branches all

    over the world (global presence), efficient teams of wise managers and experienced

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    employees (skilled human resource); they sell high-quality goods and services at lower

    prices, and also use superior marketing techniques. These solid advantages of multinational

    corporations make it very difficult for Indian entrepreneurs to compete. Hence, this is a big

    challenge before them. Indian entrepreneurs will have to improve in all departments of

    business such as Production, Marketing, Finance, etc. They will have to use modern

    technology, new methods and efficient and highly motivated manpower to fight this

    competition.

    LIBERALIZATION IN INDIA, 1991

    Liberalization is a process of giving liberty or freedom to someone to do something, which

    was previously restricted, banned or prohibited. In context of this article, liberalization means

    removing all restrictions imposed on the entry and growth in trade or business. The

    Government of India (GOI) started the process of liberalization in India in year 1991. With its

    initiation, private entrepreneurs were granted liberty (freedom) to start any business in any

    open domain (unreserved sector) of choice.

    However, this openness came with few exceptions that were strictly restricted only for Indian

    government to operate and manage, this included Railways, Water Supply, Defense, and

    other reserved public sectors. India's liberalization of 1991 opened a gift-box of many new

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    business opportunities for entrepreneurs. Now, the challenge before Indian entrepreneurs is

    how to take optimum advantage of these business opportunities in India. The Ambani family

    that handles Reliance Group of Industries took full advantage of liberalization in India.

    Other entrepreneurs must also analyze their footsteps and try to follow them by making their

    own individual ways in a wise manner. Again this is not an easy task to accomplish, rising

    cut-throat competition has made it much more difficult for both Indian and foreign

    companies. However, Indian entrepreneurs can beat this enormous competition by focusing

    more on selling high-quality yet unique goods and services at lowest prices feasible.

    ADAPTING A MODERN TECHNOLOGY

    With each passing day, Science and Technology are developing rapidly. Modern technology

    not only improves quality of produced goods and services, but it also helps to reduce their

    cost of production. It speeds up their process of production. High-quality commodities, lower

    cost of production and faster production rate makes any company a highly competitive one.

    Therefore, it becomes mandatory for every company to keep pace with new emerging

    technologies and adapt it regularly to remain as cutthroat as possible. So, it is always better to

    replace outdated technology with the new technology. Old machines must be replaced by

    modern machines.

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    This is a big challenge before an Indian entrepreneur. If he has a financial problem, then he

    must try to maintain a good balance between old and new technology. He also has a

    challenge to train his staff well to make them able to use (handle) the modern machines and

    technology properly.

    CHANGING WORKFORCE IN INDIA

    In the recent decade, the workforce in India has undergone a remarkable change. Statistics

    indicate the dominance of men in the workforce is shrinking day-by-day. A new breed

    (generation) of highly educated Indian women has entered the workforce in India. Breaking

    all traditional and social barriers, they have established themselves as efficient employees and

    professional managers. Today, it is very common to see a lady professional working in a

    corporate office. This presence of women in the workforce has brought new challenges

    before Indian entrepreneurs.

    To handle women's workforce-related challenges efficiently, Indian entrepreneurs must know

    and follow all the special Labour Laws for women. They must provide women staff with

    better working conditions, safe environment, and other essential facilities. Special care must

    be taken to see to it that they are treated with dignity and respect. Their grievances or

    complaints, if any, regarding physical or mental harassment must be addressed immediately

    and seek prompt actions. Working women experience more stress than their male

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    counterparts. It is so since they perform dual duties on a day-to-day basis. Along with

    managing their professional jobs they also have to look after their children, family and

    domestic chores. This overall increases their personal responsibilities and causes them both

    mental and physical stress. Understanding women's dual roles, an employer can try to some

    extend alleviate their stress by granting satisfactory maternity leave, providing separate toilets

    and washrooms, implementing favorable work timings that don't disturb their domestic lives,

    providing a health insurance or at least a free routine medical checkup, employee benefits

    that can improve their lives.

    Employer must remember that a happy, sincere and hard-working woman always gives her

    best to the organizatio...

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