Problems and barriers to entrepreneurship in India?

Answer 1

1. Finance: National experts considered problems with finance to be one of the principal factors hindering entrepreneurship in their country and the relationship between finance and levels of entrepreneurship activity was confirmed in the data. The availability of early-stage finance, either from informal sources such as individuals or formal sources such as venture capital funds, is greater among countries that have higher levels of entrepreneurial activity.

2. Education: Education plays a vital role in entrepreneurship. The study identified that if the level of participation in post-secondary were the only factor used to predict entrepreneurial activity, it would account for 40 percent of the difference between the study countries. Providing individuals with quality entrepreneurship education was one of the top priorities identified by national experts.

3. Fundamentals: The study also argued that policies geared toward boosting entrepreneurial activity should not be confined to the entrepreneurship sector per se but also extended to the macro-economic fundamentals of the country like markets, competition and regulation. In particular, the most entrepreneurially active countries had a greater ease of doing business with the government, more flexible labor markets and lower levels of non-wage labor costs.

4. Social Legitimacy: The perceived social legitimacy of entrepreneurship was also argued to make a difference. It was found that measures such as

(a) the extent to which fear of failure acts as a deterrent to starting a new firm and

(b) respect for those starting new businesses were associated with differences in levels of entrepreneurial activity.

Caring too much for the product than the customers

A startup is a baby of an entrepreneur and it is his duty to ensure that the product has great quality to satisfy the needs of the consumers. In India, entrepreneurs are very attached to their business which makes them focus too much on the startup and the product avoiding the most important factor - 'consumers'. Indian entrepreneurs must have a balanced chart to ensure that their focus is on the startup and the customers because customers and consumers determine the future of an entrepreneur and his startup.

Indian entrepreneurs fear failure

It might be a bold statement that Indian entrepreneurs fear failure but the fact never changes. Entrepreneurs around the world have a fear on guiding their startup to the right direction but in India the scenario changes quite a bit making it more difficult for these men as they are not let to take up risk bearing responsibilities. Indian families do not encourage their youth to run their own business as it might bring in loss and such thoughts are induced into these men at a very early stage.

Too much interference in everything

An entrepreneur is an all rounder but that does not mean he gets into every activity of the business with too much concern. It would in fact be his own company but an entrepreneur must be smart enough to choose his responsibilities and priorities within an organization.

Decisions must be bold

While most entrepreneurs have the ability to make and take quick decisions Indian entrepreneurs find it a little difficult to master this skill due to various external reasons. An entrepreneur must have the courage to take bold decisions and march forward but in our country things turn out to be a little different as entrepreneurs are emotionally attached and are answerable to various emotional questions that put them in the state of dilemma.

Few Indian entrepreneurs do not have the passion

Passion is a key factor that determines an entrepreneurial journey and without this zeal an entrepreneur cannot reach his goal.