Download - Challenges Faced by Indian Entrepreneurs

8/12/2019 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 organization she works for. This ultimately pays an employer a good return over

his kind and humane investment. Along with handling women in the workforce, Indian

entrepreneurs also face a great challenge to tackle young-generation in the workforce. Today,

managers hired by most companies are young, energetic and ambitious graduates that have

big dreams to accomplish. These managers are eager to work hard but expect a good reward

in return, which is satisfactory to their monetary, physical and psychological needs. These

restless youngsters must be continuously motivated by keeping them engage in challenging

tasks and interesting work assignments, providing attractive salaries, incentives, perks or

employee benefits, etc. If not, they will resign and leave the company and then join the

competitors. Loyalty is not a big factor now-a-days as it was a few years ago. The Indian

entrepreneur has to face this challenge by training and developing these young minds and

motivating them continuously.


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MARKETING IS A BIG CHALLENGE

Today, companies have formulated many new techniques to market their products and

services. High pressure salesmanship is used. Children are often targeted in the many

advertisements. It is so since kids compel their parents to buy products they are lured by.

Advertising is done to propagate marketing message and this is done through various media

like television, newspapers, magazines, the internet, radio, cell phones, hoardings, etc.

Advertising is now become an inseparable part of modern marketing. Marketing is a big

challenge before every Indian entrepreneur. He has to select an efficient and experienced

marketing team. He must train and develop this team into a result-oriented one. He must

motivate his marketing team with high salaries, attractive incentives and good commissions.

Indian entrepreneur must try his level best to satisfy needs and expectations of his customers.

He must use marketing research and produce his product by taking into consideration the

consumers likes and preferences.

He must sell high-quality goods at lower prices. He must also provide after-sale services. In

short, he must make his business a consumer-oriented and service-oriented one. He must

always give his customers full value for their money. If not, they will lose trust in his brand

and go to the competitors.


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MANAGING THE FINANCE OF BUSINESS

Finance is the life blood of a business. It can either make a business or break it. Under-

capitalization and Over-capitalization are very harmful to the business. Managing the finance

of his business is a big challenge for an Indian Entrepreneur. He must manage both Fixed and

Working capital properly. He must borrow money from the right source. He must manage his

Cash Flow properly. He must invest his excess funds correctly.

He must create sufficient Reserves and surpluses. He must provide enough depreciation for

his fixed assets, so that he can replace them when they become old and outdated. He must

provide for repairs and maintenance of machines. He must also take steps to provide for but

avoid bad debts.

CHALLENGES IN THE FIELD OF PRODUCTION

The Indian entrepreneurs have to face many challenges in the field of production. They must

replace all outdated plants and machineries with new modern ones. They must provide


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SOCIAL CHALLENGES

Family challenges are always at the top because that is what matter the most but at times

social challenges also are very important. It is happening in terms where you will have lot of

challenges to be faced because the improvement in the business will be a quite delay than

being an employee but the future growth is very large which patients is very important. On

looking the people when the entrepreneur lose the confidence inside him/her then it will be a

failure which should be taken care of.

TECHNOLOGICAL CHALLENGES

Indian education system lags too much from the Job industry as a whole but then it lags even

more when it comes to online entrepreneurship. This does makes entrepreneurs life that much

more difficult on technology front.


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FINANCIAL CHALLENGES

Financial challenges are a lot different in India especially for online entrepreneurs. When you

are starting out as an entrepreneur you dont opt for venture funding b ut try to go with

funding from small to medium business people. Many such non technical business people

dont understand the online business models as a whole and so getting an initial business

funding from them becomes challenging.

TEAMING CHALLENGES

Indians are more inclined towards job in big companies than towards a partnership or even

working in small start-ups. You can have the hardest time finding the right team of people to

get yourself moving. This problem to find the right balance of people to work is very

difficult.


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MOTIVATION AND DEDICATION

Indian women/men come across several barriers before coming for a working environment it

is not only India but all the continents, countries, states, cities. The thing that is more needed

for the growth of the organization is that the employees should be treated in a good manner

that they work with dedication. The thing to make them do the work with a piece of

dedication it is done by appropriate actions taken by the entrepreneur. The entrepreneur

should make a more number of activities which motivates them and which makes them self

dedicate them self to get into the business.


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WHY INDIAN MIDDLE CLASS FAMILIES DO NOTENCOURAGE ENTREPRENEURSHIP???

Entrepreneurship is not about running a company; it is about running a company rightly. The

courage and smartness required to perform any entrepreneurial activity is itself challenging but

this also comes with rejection and worried attitude amongst parents and caretakers. In a

developing nation like India where people still believe in the notion of inheritance and secured

government jobs, entrepreneurship is definitely not a favorably welcomed.

Most Indian parents feel that working in a MNC or having a secured government job with regular

and timely pay checks being delivered at the doorstep is everything. The value of

entrepreneurship is never considered and overlooked. This country is blessed with great

entrepreneurs who have broken the silence to march towards their entrepreneurial vision. So here

are the reasons why Indian middle class families do not encourage entrepreneurship.

THE WOES OF MARRIAGE

While parents and caretakers itself put down the concept of entrepreneurship, in-laws and relative

going against it must not come as a surprise. In India, entrepreneurship is often picturised as a

sinking boat and hence it becomes difficult for one to get a good bride or a groom, by having the

word entrepreneur in ones profile.


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REPAYING LOANS AND CREDITS

India is a developing country and the numbers of middle class families are high. Most of these

families have various loans above their head and a life of an aspiring entrepreneur is directed

towards it. The list goes on and on with various types of loans like car loan, housing loan and

educational loan and the worst part is not many would be ready to share this responsibility.

FEARING FAILURE

People still think entrepreneurship is all about risk and only risk. They overlook the actual facts

of running a startup and de-motivate budding talents. The biased mindset of people is slowly

changing but this does not mean that there is uplift because though people are slowly getting used

to the concept of entrepreneurship, their fear for failure is immense and firm.


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MINDSETS OF THE PEOPLE

Sometimes it is easy to convince the family members about an idea or a plan but people

in the society disown entrepreneurs as they think people who have relentlessly failed

think about starting a company. Society and social circles have a huge impact on

entrepreneurship, though people say that failures are the stepping stone, Indian

community doesnt encourage a person who has failed in a venture.

NOT A RESPECTABLE JOB

Yes! In India entrepreneurship is something that people do post retirement. If a teenager wishes

to become a startup entrepreneur he is considered to be a black sheep. Parents and caretakers find

it difficult to answer the social circle about their kids entrepreneurial passion. He is up to

something and we dont know is the general answer given by pa rents of startup entrepreneurs in

India.


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ACADEMIC SYSTEMS ARE BUILT FOR JOBS

Students at schools and colleges are given rigorous training to develop their skills to adopt

the corporate environment, in fact there were no institutions in the country that focused in

developing entrepreneurial skills. Entrepreneurship is considered to be a taboo and it is now

that the government is realizing the importance of entrepreneurship by promoting it in

academics and through various programs.

LIABILITIES AND PROBLEMS

This is not something that is seen only in India but the crowd here thinks that liabilities and

problems only revolve around them and they consider entrepreneurship a pain for all the

time, money and attention it demands. The main problem creat or here is the dependency

syndrome; family members strongly feel that working in a corporate is better than a startup

failing to realize that they are being very dependent.


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ESSENTIALS TO FACE THE CHALLENGES

RELIABLE SUPPORT FROM HONEST AND EFFICIENT GOVERNMENT

INSTITUTIONS IS ESSENTIAL .

It is not easy to start a business in India. When asked about the difficulty of starting a

business, 46% of Indians say the government makes it hard to start a business, while 26%

think the opposite. Little progress has been made on this front. To some degree, widespread

corruption might be contributing to the low efficiency and high costs of starting a business in

India. Perceptions of a corrupt business community could give business owners incentive to

do unscrupulous things, such as paying bribes to get work done, which could exacerbate the

lack of respect for entrepreneurs among the Indian public. Less than half (48%) of Indians

consider business owners to be good role models for the country's youth, Gallup research

shows.

INDIAN ENTREPRENEURS NEED MORE LOCALIZED FUNDING AT THE

INITIAL STAGE.

The most helpful factor in becoming an entrepreneur in India is access to funding. India has

attracted the attention of global investors in recent years because of its growth and optimistic

expectations for its future. The key problem for entrepreneurs seems to be less about the

availability of funding and more about finding the right type of funding. The majority of

existing venture capital funds for startups are focused on export- oriented IT or mobile

solutions. Few seem to facilitate startups that offer the high-demand products and services in

the healthcare or energy sectors in India's massive domestic market. Another potential

problem with funding lies in the disconnect between investment funds and local

entrepreneurs. Foreign investors could make inaccurate assumptions based on funding

arrangements that have worked well in their home countries or other emerging markets and,

in turn, ignore that India is unique in its market demands, talent supply, and business culture.


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INDIAN ENTREPRENEURS NEED MORE ACCESS TO TRAINING AND

MENTORSHIP, PARTICULARLY IN RURAL AREAS.

The best mentorship comes from successful business owners who have personal experience

overcoming entrepreneurial challenges. India has some high-profile entrepreneurs who can

serve as inspirational icons. India has taken significant steps to promote entrepreneurial

education and has established a list of national institutions to provide special training for

entrepreneurs. Entrepreneurial education also shares many of the prevalent problems

regarding the general education system in India, including a shortage of quality educators and

an absence of quality content, which hinder entrepreneurial growth

ENFORCING AGREEMENTS IS NECESSARY TO PROTECT TRUSTING

BUSINESS RELATIONSHIPS.

India has a large youth population, which tends to be more willing to take risks compared to

the older population. The lack of judicial infrastructure on enforcement does little to protect

the trusting relationship between entrepreneurs and business partners or between

entrepreneurs and customers. A lack of trust inhibits collaboration and significantly increases

the risk an entrepreneur takes, ultimately slowing the growth of the MSME sector.

A. Skilled Manpower: For a great business plan with an excellent business model but for the

sustainability of the enterprise and the scalability of the idea, you need people with the

required skill-sets at all levels. While manpower may be cheap in India but the quality leaves

a lot to be desired. Safety and security of government sector was the driving factor followed

by lure of the bucks offered by private sector. So the youth don't just lack the required skills,

rather they aren't mentally prepared either to work in a startup.

B. Funding: According to research firm Venture Intelligence, 64 startups - companies that

are less than three years old have a venture capital funding. According to industry experts

there is need for at least 10-foldincrease in early stage risk capital. Given the high interest


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rates and lengthy process involved; debt, as a source of funding, in not even an option for

these startups. Also there is every reason to suggest that the euphoria of the past year and half

has made way for a more circumspect funding environment.

C. Uncertainty: India is a developing country and unlike its developed western counterparts,

it carries more risk. While an entrepreneur is one who is geared up to take risks and deal with

uncertainty but systemic risks may simply be too hot to handle even for them.


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WOMEN ENTREPRENEURS

Women entrepreneurs face a series of problems right from the beginning till the enterprise

functions. Being a woman itself poses various problems to a woman entrepreneur, The

problems of Indian women pertains to her responsibility towards family, society and lion

work. The tradition, customs, socio cultural values, ethics, motherhood subordinates to ling

husband and men, physically weak, hard work areas, feeling of insecurity, cannot be tough

etc are some peculiar problems that the Indian women are coming across while they jump

into entrepreneurship.

Women in rural areas have to suffer still further. They face tough resistance from men. They

are considered as helpers. The attitude of society towards her and constraints in which she has

to live and work are not very conducive.

Besides the above basic problems the other problems faced by women entrepreneurs are as

follows:

1. FAMILY TIES :

Women in India are very emotionally attached to their families. They are supposed to attend

to all the domestic work, to look after the children and other members of the family. They are

over burden with family responsibilities like extra attention to husband, children and in laws

which take away a lots of their time and energy. In such situation, it will be very difficult to

concentrate and run the enterprise successfully.

2. MALE DOMINATED SOCIETY:

Even though our constitution speaks of equality between sexes, male chauvinism is still the

order of the day. Women are not treated equal to men. Their entry to business requires the

approval of the head of the family. Entrepreneurship has traditionally been seen as a male

preserve. All these put a break in the growth of women entrepreneurs.


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3. LACK OF EDUCATION:

Women in India are lagging far behind in the field of education. Most of the women are

illiterate. Those who are educated are provided either less or inadequate education than their

male counterpart partly due to early marriage, partly due to son's higher education and partly

due to poverty. Due to lack of proper education, women entrepreneurs remain in dark about

the development of new technology, new methods of production, marketing and other

governmental support which will encourage them to flourish.

4. SOCIAL BARRIERS:

The traditions and customs prevailed in Indian societies towards women sometimes stand as

an obstacle before them to grow and prosper. Castes and religions dominate with one another

and hinder women entrepreneurs too. In rural areas, they face more social barriers. They are

always seen with suspicious eyes.

5. SHORTAGE OF RAW MATERIALS:

Scarcity of raw materials, sometimes, availability of proper and adequate raw materials

sounds the death-knell of the enterprises run by women entrepreneurs. Women entrepreneurs

really face a tough task in getting the required raw material and other necessary inputs for the

enterprises when the prices are very high.


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6. PROBLEM OF FINANCE:

Women entrepreneurs stiffer a lot in raising and meeting the financial needs of the business.

Bankers, creditors and financial institutes are not coming forward to provide financial

assistance to women borrowers on the ground of their less credit worthiness and more

chances of business failure. They also face financial problem due to blockage of funds in raw

materials, work-in-progress finished goods and non-receipt of payment from customers in

time.

7. TOUGH COMPETITION:

Usually women entrepreneurs employ low technology in the process of production. In a

market where the competition is too high, they have to fight hard to survive in the market

against the organized sector and their male counterpart who have vast experience and

capacity to adopt advanced technology in managing enterprises

8. HIGH COST OF PRODUCTION:

Several factors including inefficient management contribute to the high cost of production

which stands as a stumbling block before women entrepreneurs. Women entrepreneurs face

technology obsolescence due tonon-adoption or slow adoption to changing technology which

is a major factor of high cost of production.


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9. LOW RISK-BEARING CAPACITY:

Women in India are by nature weak, shy and mild. They cannot bear the amount risk which is

essential for running an enterprise. Lack of education, training and financial support from

outsides also reduce their ability to bear the risk involved in an enterprises.

10. LIMITED MOBILITY:

Women mobility in India is highly limited and has become a problem due to traditional

values and inability to drive vehicles. Moving alone and asking for a room to stay out in the

night for business purposes are still looked upon with suspicious eyes. Sometimes, younger

women feel uncomfortable in dealing with men who show extra interest in them than work

related aspects.

11. LACK OF ENTREPRENEURIAL APTITUDE:

Lack of entrepreneurial aptitude is a matter of concern for women entrepreneurs. They have

no entrepreneurial bent of mind. Even after attending various training programmes on

entrepreneur ship women entrepreneurs fail to tide over the risks and troubles that may come

up in an organizational working.


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12. LIMITED MANAGERIAL ABILITY:

Management has become a specialized job which only efficient managers perform. Women

entrepreneurs are not efficient in managerial functions like planning, organizing, controlling,

coordinating, staffing, directing, motivating etc. of an enterprise. Therefore, less and limited

managerial ability of women has become a problem for them to run the enterprise

successfully.

13. LEGAL FORMALITIES:

Fulfilling the legal formalities required for running an enterprise becomes an upheaval task

on the part of a women entrepreneur because of the prevalence of corrupt practices in

government offices and procedural delays for various licenses, electricity, and water and shed

allotments. In such situations women entrepreneurs find it hard to concentrate on the smooth

working of the enterprise.

14. EXPLOITATION BY MIDDLE MEN:

Since women cannot run around for marketing, distribution and money collection, they have

to depend on middle men for the above activities. Middle men tend to exploit them in the

guise of helping. They add their own profit margin which results in less sales and lesser

profit.

15. LACK OF SELF CONFIDENCE:

Women entrepreneurs because of their inherent nature, lack of self-confidence which is

essentially a motivating factor in running an enterprise successfully. They have to strive hard

to strike a balance between managing a family and managing an enterprise. Sometimes she

has to sacrifice her entrepreneurial urge in order to strike a balance between the two .


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CURRENT SCENARIO OF ENTREPRENEURSHIP IN INDIA

According to the Global Entrepreneurship Monitor (2007) report, Indias High -Growth

Expectation Early-Stage Entrepreneurship (HEA) rate is only one-fifth of that of China.

Further, among medium and low income countries, while Chinas nascent and new

entrepreneurs appear to be the most growth-oriented, with more than 10 per cent of them

anticipating high growth. Early-stage entrepreneurial activity in India is marked by low levels

of growth expectation. This is despite the extremely high levels of potential entrepreneurial

activity as perceived by the non-entrepreneurially active population in the country. While

data on entrepreneurship is hard to come by, the following numbers are telling. According to

the NSS 62nd round, in rural India, almost 50 per cent of all workers are self-employed 57

per cent among males and nearly 62 per cent among females, while the corresponding figures

in urban India are 42 for males and 44 for females. The NSSO defines a self-employed

person as one who has worked in household enterprises as own-account worker; worked in

household enterprises as an employer or worked in household enterprises as helper. The

essential feature of the self-employed is that they have autonomy (decide how, where and

when to produce) and economic independence (in respect of choice of market, scale of

operation and finance) for carrying out their operation.

According to the 5th Economic Census conducted by the Central Statistical Organization

(CSO), there are 41.83 million establishments in the country engaged in different economic

activities other than crop production and plantation. Five states viz. Tamil Nadu (10.60 per

cent), Maharashtra (10.10 per cent), West Bengal (10.05 per cent), Uttar Pradesh (9.61 per

cent) and Andhra Pradesh (9.56 per cent) together account for about 50 percent of the total

establishments in the country. The same five states also have the combined share of about 50

per cent of total employment.


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Issues in the Current Framework

Finance: Access to credit is considered to be one of the key problems faced by entrepreneurs

in India. This problem is particularly acute at the start-up stage, where bank finance is hard to

obtain. Despite new sources of finance such as venture capital, angel funding and private

equity becoming increasingly popular, institutional finance is still not able to meet the current

entrepreneurial demands.

Regulation and governance: An entrepreneur has to deal with a host of regulatory and

compliance issues. These include registering ones business, obtaining government

clearances and licenses, paying taxes and complying with labour regulations. Cumbersome

paperwork, long delays and red tapism involved in such transactions create unnecessary

burdens for entrepreneurs, constraining their productivity and their ability to do business. As

seen in the Doing Business 2008 rankings, India performs poorly in these indicators. A study

investigating the effect of regulation on entrepreneurship using the GEM dataset shows India

to be having one of the worst regulatory indices. Moreover, lack of clarity on information

relating to legal and procedural aspects of starting an enterprise, as well as those relating to

clearances, licenses and government schemes further aggravates the problem.


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India s Ranking in Doing Business 2013

Topic Rankings DB 2013 Rank DB 2012 Rank Change in RankStarting a Business 173 169 -4Dealing with Construction Permits 182 183 1Getting Electricity 105 99 -6Registering Property 94 97 3Getting Credit 23 23 No changeProtecting Investors 49 46 -3Paying Taxes 152 149 -3Trading Across Borders 127 125 -2Enforcing Contracts 184 184 No changeResolving Insolvency 116 109 -7

(Source: Doing Business, World Bank, 2013)

Manpower: Availability of skilled manpower is another crucial issue for entrepreneurs. For

example, in a survey of entrepreneurs conducted by KPMG and TiE in 2008, skilled

manpower emerged as the second most important factor for fostering entrepreneurial growth.

Further parameters reflecting labour market efficiency and flexibility are dismal. In the

Global Competitiveness Index, India ranks 102nd in hiring and f ring practices and 85th in

employing workers in the Doing Business 2008 report.

Infrastructure: Indias physical infrastructure roads, rail, ports, power, and telecom is

also considered to be a bottleneck to the smooth operation of entrepreneurial activity. The

high transport and supply chain costs that poor infrastructure entails can be affect

competitiveness to a great extent, particularly for a small and medium enterprise. Enterprises

surveyed in the Global Competitiveness Report 2007-08, rated inadequate infrastructure as

the most problematic factor for doing business in India.
http://www.doingbusiness.org/data/exploreeconomies/india/#registering-propertyhttp://www.doingbusiness.org/data/exploreeconomies/india/#registering-propertyhttp://www.doingbusiness.org/data/exploreeconomies/india/#getting-credithttp://www.doingbusiness.org/data/exploreeconomies/india/#getting-credithttp://www.doingbusiness.org/data/exploreeconomies/india/#getting-credithttp://www.doingbusiness.org/data/exploreeconomies/india/#registering-property


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Education: While the influence of education on entrepreneurship is considered debatable,

Increasingly education is being seen as part of the larger ecosystem that impacts

entrepreneurship and entrepreneurial motivations. Greater practical exposure, critical

analysis, entrepreneurship curriculum, incubation and mentoring, industry-research linkages

can help in fostering entrepreneurship.


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SCOPE OF ENTREPRENEURSHIP IN INDIA

In India there is a dearth of quality people in industry, which demands high level of

entrepreneurship development programme throughout the country for the growth of Indian

economy.

The scope of entrepreneurship development in country like India is tremendous. Especially

since there is widespread concern that the acceleration in GDP growth in the post reforms

period has not been accompanied by a commensurate expansion in employment. Results of

the 57th round of the National Sample Survey Organization (NSSO) show that

unemployment figures in 2003-04 were as high as 8.9 million. Incidentally, one million more

Indian joined the rank of the unemployed between 2005-06 & 2007-08. The rising

unemployment rate (9.2% 2008 est.) in India has resulted in growing frustration among the

youth. In addition there is always problem of underemployment. As a result, increasing the

entrepreneurial activities in the country is the only solace. Incidentally, both the reports

prepared by Planning Commission to generate employment opportunities for 10 crore people

over the next ten years have strongly recommended self-employment as a way-out for

teaming unemployed youth.

We have all the requisite technical and knowledge base to take up the entrepreneurial

challenge. The success of Indian entrepreneurs in Silicon Valley is evident as proof. The only

thing that is lacking is confidence and mental preparation. We are more of a reactive kind of a

people. We need to get out of this and become more proactive. What is more important than

the skill and knowledge base is the courage to take the plunge. Our problem is we do not

stretch ourselves.


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However, it is appreciative that the current generations of youth do not have hang-ups about

the previous legacy and are willing to experiment. These are the people who will bring about

entrepreneurship in India.

At present, there are various organizations at the country level & state level offering support

to entrepreneurs in various ways. The Govt. of India & various State Governments have been

implementing various schemes & programmes aimed at nurturing entrepreneurship over last

four decades. For example, MCED in Maharashtra provides systematic training,

dissemination of the information & data regarding all aspects of entrepreneurship &

conducting research in entrepreneurship. Then there are various Govt. sponsored scheme for

the budding entrepreneurs.

Recognizing the importance of the entrepreneur development in economic growth &

employment generation, Maharashtra Economic Development Council (MEDC) has

identified entrepreneurial development as the one of the focus area for Council activities two

years ago. Various Chambers of Commerce & apex institutions have started organizing

seminars & workshops to promote entrepreneurship. Incidentally, various management

colleges have incorporated entrepreneurship as part of their curriculum. This is indeed a good

development. This shows the commitment of the Govt. & the various organizations towards

developing entrepreneurial qualities in the individuals.


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CONCLUSION

Today's promising market conditions have been very encouraging to many young engineering

graduates who strongly believe that they have the technical knowledge and skills to attract

new customers. These young Indian entrepreneurs are not the typical and conventional

business entrepreneur. They are the children of many business professionals. As elite

graduates of IITs, National Institutes of Technology, Indian Institute of Science, and the

IIMs, this new young breed of worthy entrepreneurs have targeted their efforts on innovative

ways to technologically address the genuine needs of millions of people.

There are ample opportunities in small businesses in India and such opportunities will

transform India in the coming future. For such transformation to happen there needs to be

support both at the governmental and societal level. For the government it is important to

realize that the goal of small business owners will be to remain self-employed. Such people

may not need financial assistance but they will need marketing and legal assistance in order

to sustain themselves. Practical and cost effective programs need to be developed to address

their needs because self-employed people will represent an important segment in economic

revitalization. Entrepreneurship development is the key factor to fight against unemployment,

poverty and to prepare ourselves for globalization in order to achieve overall Indian

economic-progress


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REFERENCES

1.

http://www.articlesbase.com/entrepreneurship-articles/

2. http://knowledgeportal.in

3. http://dobato.blogspot.com

4. http://www.thehindubusinessline.com

5. http://courseblog-entrepreneurship.blogspot.in

6. www.wikipedia.com

7. http://entrepreneurindia.in

8. http://blogs.economictimes.indiatimes.com

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