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ENTREPRENEURSHIP CHALLENGES AND OPPORTUNITIES IN INDIA: AN

OVERVIEW

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Inspira-Journal of Commerce, Economics & Computer Science (JCECS) 145
ISSN : 2395-7069 General Impact Factor : 2.7273, Volume 05, No. 02, April-June, 2019, pp. 145-148

ENTREPRENEURSHIP CHALLENGES AND OPPORTUNITIES IN INDIA:

AN OVERVIEW

Dr. Sunita Pooniya

ABSTRACT

Entrepreneurship acts as a catalyst for the economic prosperity of a nation as it leads to

generation of employment, contribution in national income, rural development, industrialization,
technological development, export promotion etc. In India, various initiatives have been taken by the
government from time to time for entrepreneurship development in the country. Entrepreneurs face many
challenges in establishing, running and managing their enterprises. In this chapter, a discussion is
undertaken on the challenges faced by the entrepreneurs who were studied in the sample of field survey.
Besides challenges, there are unlimited opportunities for entrepreneurship development in the state.

KEYWORDS: Challenges, Opportunities, Entrepreneurship, Economic Development, SETU.

_______________
Introduction
Entrepreneurship plays a significant role in the economic development of a country. The
developed countries like USA, Russia and Japan supports the fact that entrepreneurship is the cause for
the economic development in their country. Entrepreneurship is the most powerful weapon in the hands
of one to fight against poverty and unemployment. It is widely accepted by every, big or small country,
that well motivated entrepreneurs are must for accelerating the process of economic development.
Entrepreneurship acts as a catalyst for economic prosperity of a nation as it leads to generation of
employment, contribution in national income, rural development, industrialization, technological
development, export promotion etc. The economic development of a Nation depends on its industrial
development. The industrial development is based on the entrepreneurial competencies of the people.
Challenges Faced by the Entrepreneurs
Challenges faced by the sampled entrepreneurs are classified as marketing, raw material,
and manpower, finance, power, procedural formalities and machinery. In addition to these,
entrepreneurs are also facing several other challenges. These are categorized as - social problems,
inadequate policy incentives and transportation cost. The challenges faced by the sample
entrepreneurs are discussed below:
 Challenges in Respect of Manpower
Non availability of suitable manpower is often cited as a major constraint to entrepreneurship
development. In the field survey, entrepreneurs stated inadequate supply of both skilled and unskilled
labour to be a major bottleneck. Besides, attitudinal problems among labour were also cited as another
major constraint.
 Challenges in Respect of Finance
Finance is considered to be life line of an enterprise. For smooth running of an enterprise
finance is the most important requirement. The field survey reveals that out of 200 sample entrepreneurs,
89 (44.5%) entrepreneurs considered mobilizing finance as a major challenge for them. The challenge of
finance takes different shapes from experiencing difficulties in getting credit to suffering delay in sanction
and disbursement, once credit is accessed.


Assistant Professor, Shyam Lal College, University of Delhi, Delhi, India.
146 Inspira- Journal of Commerce, Economics & Computer Science: Volume 05, No. 02, April-June, 2019
 Challenges in Respect of Machinery
Repair and maintenance of machinery is considered to be challenge by 15 (7.5%)
entrepreneurs. Among them, for 12 entrepreneurs non availability of trained personnel to look after the
specific problem of machineries, poses a major problem. In the field survey it is found that this challenge
is mainly confined to the plastic based enterprises. Again, three entrepreneurs have stated that voltage
fluctuation has created machinery problem to their enterprises.
 Challenges in Respect of Marketing
Marketing poses a major challenge for most micro and small enterprises. Marketing efficiency
determines the success of an enterprise.
Opportunities for Entrepreneurship Development
In recent years, tremendous opportunities have been emerging in the country as well as in the
state in the field of entrepreneurship. The opening up of the Indian economy, process of economic
liberalisation, rise in purchasing power - particularly of the middle class people, have played an important
role in the creation of these new opportunities. New entrepreneurs can take advantage of these
opportunities. Opportunities are emerging in respect of manufacturing enterprises, service enterprises,
trade and commerce and agriculture and allied sector etc. Besides, growing awareness about self
employment and entrepreneurial career has also encouraged many people to come forward to take up
entrepreneurial career.
Recent Policy Reforms for Entrepreneurship Development
 Make in India
th
It is an initiative of the Government of India launched on 25 September, 2014 to encourage
multi-national, as well as domestic, companies to manufacture their products in India.
 'Start-Up' Initiative
It aims to encourage entrepreneurship among the youth of India. The 'Start-up India: Stand up
India' promotes bank financing for start-ups and offer incentives to enhance entrepreneurship and job
creation. Prime Minister, Narendra Modi said that, "Each of the 1.25 lakh bank branches should
encourage at least one Dalit or Adivasi entrepreneur and at least one woman entrepreneur". This
initiative will provide a new dimension to entrepreneurship and help in setting up of a network of start-ups
in the country.
 MUDRA Bank
th
Micro Units Development Refinance Agency (MUDRA) Bank has been set up on 8 April 2015
for development of micro units to encourage entrepreneurship in India and provide the funding to the non
corporate small business sector. MUDRA Bank provides refinance to Banks, MFIs, NBFCs etc. for loans
to micro units having loan requirement from Rs. 50000 to Rs. 10 lakh. Under MUDRA Yojana, MUDRA
Bank has launched three products names Shishu, Kishore and Tarun to signify the state of growth and
funding needs of entrepreneurs. Rs. 20000 crore has been allotted to MUDRA Bank for the SME sector
which will enhance credit facility to boost the growth of small businesses and manufacturing units.
 ATAL Innovation Mission (AIM)
It also called as AIM Platform was established through 2015 budget within National Institution
for Transforming India (NITI) to provide innovation promotion platform involving academicians, and
drawing upon national and international experiences to foster a culture of innovation, research and
development. The 2015 budget has earmarked Rs. 150 crores for the AIM Platform.
 Self Employment and Talent Utilization (SETU)
It is a Techno-Financial, Incubation and Facilitation Programme to support all aspects of start-up
businesses, and other self-employment activities, particularly in technology-driven areas. An amount of
Rs. 1000 crore is being set up initially in NITI Aayog for SETU. It also aims to create around 100,000 jobs
through start-ups.
India Specific Entrepreneurship Challenges Are
 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. Let us say you and your friend
graduated at the same time. You opted for entrepreneurship and your friend opted for a job. He
now has a flat, car and what not because he could easily get those with a bank loan but you still
have nothing to show off and this is where challenge comes.
Dr. Sunita Pooniya: Entrepreneurship Challenges and Opportunities in India: An Overview 147
 Financial Challenges: (Difficulty in borrowing fund): Financial challenges are a lot different in
India especially for online entrepreneurs. When you are starting out as an entrepreneur you
don't opt for venture funding but try to go with funding from small to medium business people.
Many such non technical business people don't understand the online business models as a
whole and so getting an initial business funding from them becomes challenging. The other
option you can think of is loan but bank loan is not at all an option in India for new online
entrepreneurs.
 Policy Challenges: Now and then there is lot of changes in the policies with change in the
government. Problems of TRIPS and TRIMS.
 Problems of raising equity capital.
 Problems of availing raw-materials
 Problems of obsolescence of indigenous technology.
 Increased pollutions Ecological imbalanced.
 Exploitation of small and poor countries, etc.
 Opportunities
 Free entry into world trade.
 Improved risk taking ability.
 Governments of nations withdrawn some restrictions
 Technology and inventions spread into the world.
 Encouragement to innovations and inventions.
 Promotion of healthy competitions among nations.
 Consideration increase in government assistance for international trade.
 Establishment of other national and international institutes to support business among
nations of the world.
 Benefits of specialization.
 Social and cultural development
 Challenges for Rural Entrepreneurs
 Growth of Mall Culture
 Poor Assistance
 Power Failure
 Lack of Technical know how
 Capacity Utilization
 Infrastructure Sickness
 Opportunities for Rural Entrepreneurs
 Crashed Scheme for Rural Development
 Food for Work Porgramme
 National Rural Employment Programme
 Regional rural Development Centres
 Entrepreneurship Development institute of India
 Bank of Technology
 Rural Innovation Funding
 Social Rural Entrepreneurship
Today's knowledge based economy is fertile ground for entrepreneurs, in India. It is rightly
believed that India has an extraordinary talent pool with virtually limitless potential to become
entrepreneurs. Therefore, it is important to get committed to creating the right environment to develop
successful entrepreneurs. The study of entrepreneurship has relevance today, not only because it helps
entrepreneurs better fulfill their personal needs but because of the economic contribution of the new
ventures. More than increasing national income by creating new jobs, entrepreneurship acts as a positive
force in economic growth by serving as the bridge between innovation and market place.
 148 Inspira- Journal of Commerce, Economics & Computer Science: Volume 05, No. 02, April-June, 2019
Conclusion
Entrepreneurs face a number of challenges in establishing and running an enterprise, such as
marketing, raw material, manpower, finance, power, machinery, and social challenges etc. Opportunities
also abound for entrepreneurial activities. In fact, more and more opportunities have been emerging in
the field of entrepreneurship. Considering the opportunities, projection is made on output, investment and
employment in the Micro and Small Enterprise sector for the year 2015. Result shows that newly
established MSEs in 2015 are projected to produce output worth Rs. 35232.68 lakh. The investment
requirement in these MSE units during that year is projected at Rs. 12818.32 lakh and finally the
manpower requirement for these new MSEs is projected at 16366.
References
 Acs, Z., & Szerb, L. (2007). Entrepreneurship, economic growth and public policy. Small
Business Economics, 28(2/3), 109-122
 Ahmad, N., & Hoffmann, A. N. (2008). A framework for addressing and measuring
entrepreneurship. OECD Statistics Working Paper, 2. Retrieved May 9, 2008, from:
http://ssrn.com/abstract=1090374
 ANI, "PM Modi Announces 'Start-up India' Initiative to Encourage Entrepreneurship", The New
Indian Express (August 5, 2015).
 Autio, E(2007). Global entrepreneurship monitor: 2007 Global report on high growth
entrepreneurship. Wellesley, MA/London: Babson College and London Business School.
 "Entrepreneurship: Proposed Scheme for Entrepreneurship Development", Ministry of Skill
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http://www.skilldevelopment.gov.in/nationalskillmission.html
 Entrepreneurship in India, NKC, 2008
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 Speech by Prime Minister Shri Narendra Modi at the Startup Event (27 September 2015, San
Jose, California)
 "Young Entrepreneurs turn Angels for Younger Startups', Times of India, June 30, 2014.
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