TOPIC: BARRIERS OF ENTREPRENEURSHIP

- 119006 AINA DUTTA

119015 APARNA SHINE
119026 BHAVYATA VERMA
119060 MANISHA MALIK
119078 PUJA SHARMA
INTRODUCTION
• Entrepreneurs not only create new job opportunities but also contribute to the economic growth of a
country.

• Entrepreneurship can be defined as the process of creating something new, devoting ample amounts
of time and effort, and keeping in mind the accompanying risk.

• The journey of becoming an entrepreneur is not an easy one, still, it remains one of the popular
choices of people, it may be a good opportunity or simply a necessity.

• In developing countries like India, Egypt, Vietnam, and the Philippines, which are mainly
agricultural-based economies, more and more people are starting to consider entrepreneurship as a
good career choice and it is seen that entrepreneurs are given high status in society.

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 These nations are
agricultural-based economies
but a significant change has
been observed in the terms
• THE GEM REPORT CLASSIFIES of entrepreneurship gaining
INDIA AND OTHER recognition among the
DEVELOPING COUNTRIES citizens of these nations,
SUCH AS THE PHILIPPINES, especially the youth.
VIETNAM, IRAN, AND A FEW
OTHER COUNTRIES AS
FACTOR-DRIVEN ECONOMIES.
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 THERE ARE SEVERAL FACTORS TO BE TAKEN INTO ACCOUNT
BEFORE AN INDIVIDUAL COULD DECIDE WHETHER OR NOT
HIS/HER BUSINESS WOULD BE ABLE TO SURVIVE UNDER THE
GIVEN CIRCUMSTANCES OR NOT. IT IS NOT ONLY IMPORTANT
THAT AN INDIVIDUAL IDENTIFIES AN OPPORTUNITY AND TURN IT
INTO AN INTERESTING BUSINESS PROPOSITION BUT THE PERSON
MUST HAVE SELF-BELIEF AND SELF-CONFIDENCE ALONG WITH
THE TECHNICAL SKILLSET.

THE REPORT CONTAINS PROFILES OF ENTREPRENEURS,

MULTIPLE PHASES OF ENTREPRENEURSHIP, INCLUDING
DEMOGRAPHIC, MOTIVATION, AMBITION, CHARACTERISTICS OF
THE BUSINESS. FROM THE REPORT, WE CAME TO KNOW ABOUT
THE DEMOGRAPHIC PROFILE OF ENTREPRENEURS, IMPACTFUL
ENTREPRENEURSHIP, THE SUCCESS RATE OF ENTREPRENEURSHIP
OF ALL KINDS, SUSTAINING ENTREPRENEURSHIP,
ENTREPRENEURIAL ACTIVITIES ACROSS THE GEOGRAPHY, AND
ALSO ABOUT THE SUPPORT AND ENTREPRENEURIAL POTENTIAL.
BARRIERS TO ENTREPRENEURSHIP: THESE ARE THE FOLLOWING
BARRIERS MENTIONED IN THE 5 GEM REPORTS FROM 2015-2020.

To run a start-up or a business we have to keep in mind the

financial condition. The main challenge of an entrepreneur is
Financial barriers the financial crisis. To overcome the financial barrier
entrepreneurs should mainly focus on minimizing meaningless
expenditures and improving savings. They have to plan from
the basic needs of the business keeping in mind the financial
risk and their financial budget. They should also monitor the
financial progress .

Government policy, Government Entrepreneurs are important sources of economic growth. Governments need
entrepreneurs for innovations, to bring innovative and new products to market,
entrepreneurship programs introduce new technologies and create employment. The government should
promote entrepreneurship, targeting small scale businesses .

To be an entrepreneur people have to be well educated and have good observation

Entrepreneurship power. People with more entrepreneurial ideas have a tendency to get success in their
life. It is a long learning process that should start at elementary school and progresses
education through all levels of education. Entrepreneurship education develops new skills to bring
innovation.

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BARRIERS TO ENTREPRENEURSHIP: THESE ARE THE FOLLOWING
BARRIERS MENTIONED IN THE 5 GEM REPORTS FROM 2015-2020.

It includes the very basic physical structure, which is necessary

Importance of physical infrastructure for an economy to function and survive. Infrastructure increases
the connection and linkages and also facilitates the recognition
of entrepreneurial opportunities.

Socio-cultural norms including the degree of entrepreneurial behavior,

Social and cultural barriers family background, and financial support, religious affiliation all play
an important role in determining the entrepreneurship culture.

Research and To be an entrepreneur people have to be well educated and have good observation
power. People with more entrepreneurial ideas have a tendency to get success in their
development transfer life. It is a long learning process that should start at elementary school and progresses
through all levels of education. Entrepreneurship education develops new skills to bring
innovation.

Entry regulation in the To enter a market and to compete, entrepreneurs should keep in mind the market
strategy. They should think about the timing of entry, entry mode, and market
entrepreneurial journey selection.

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METHODOLOGY:
A sample of 62
economies was used
to assess the
entrepreneurial Such a wide variety of respondents provides a
better understanding of people's perception about
inclination among starting a business since many of them can be
existing or potential entrepreneurs. GEM
different members of Entrepreneurship Spirit Index (GESI), this new
index is based on a combination of three yes/no
the population: questions related to entrepreneurial awareness,
employees, male and opportunity perception, and entrepreneurial self-
efficacy and is comparable across countries using
female entrepreneurs. data from the GEM APS.
 1. SOCIETAL AND CULTURAL
The social and cultural background of an economy is an indicator of
how entrepreneurship is regarded in society. As mentioned in the GEM
report about two-thirds of adults on average consider entrepreneurship
as a good carrier choice. On the other hand, positive media attention can
be a valuable means in creating a positive image and drawing the
required attendance of the people towards entrepreneurship. About
three-fourth individuals in a factor-driven economy state that
entrepreneurs have good careers and are well regarded by society. ANALYS
Cultural and social norms have a share of about 26.3% among the
constraints of entrepreneurship in India. IS

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SELF-PERCEPTIONS ABOUT
ENTREPRENEURSHIP:
In this GEM report we saw the self-perception of individuals
regarding entrepreneurship whether people see opportunities
around themselves or not, or whether they have fear of
failure or are capable of setting up a business. Factor driven
economy shows high opportunities and capability
perceptions.
The quantity and quality of the opportunities that people
perceive and their belief about their own capabilities will be
influenced by various factors like economic, environmental
and education & cultural factors. Almost two-thirds of the
people in Burkina and Faso think that entrepreneurship is a
good idea and they are capable of starting a business as well
as they have lower fear of failure rate.

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ENTREPRENEURSHIP ECOSYSTEM
We can say that physical infrastructure was rated the most positive condition of the
entrepreneurship ecosystem whereas the weakest condition is shown in
entrepreneurship education. In a factor- driven economy R&D transfer, finance, entry
regulations are highlighted as areas constraining entrepreneurship.

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 FEAR OF FAILURE
Fear of failure is there among people because of intrinsic
personality traits and by societal norms and regulations.
According to the GEM report, 2016 fear of failures is the
main concern that inhibits them from pursuing
entrepreneurial opportunities.

Besides this fear of failure rate is high in developed

countries because there are more alternative career
options. Women have a very much high fear of failure
that’s why there is a gender gap between males and
females. However, fear of failures slightly increased in
2017 compared to 2016.

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 GENDER AND AGE DISTRIBUTION:
• Factor-driven economies have low levels of gender inequalities. Factor-driven economies have the highest
average female TEA rates and the highest rate relative to men. According to the GEM report, 83% of the
females perceive they see good opportunities in their local area of business in comparison to the 80% of males.
• Gender disparity in entrepreneurship continues to deplete the stock of new businesses and reduce economic
potential. The age pattern in the factor-driven on the other hand shows a relative higher participation among the
two age groups mainly - oldest age group, the 55-64-year-olds, signalling a need to generate income to support
their needs since they might not have access to a pension, network, experience or resources.
• The second group comprises the youngsters between ages 18-24 - as a large proportion of school leavers do not
pursue higher studies and become part of the major labor force.
• Furthermore, younger people may be more willing to take more risks as they have few or no responsibilities.
The only barrier youngsters might face while engaging themselves in entrepreneurship might be a lack of access
to resources, including capital, experience, and knowledge, however, their awareness about the latest
technologies, innovative ideas, their risk-taking ability, the energy, and enthusiasm will major factors behind
making their venture successful.

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 • Entrepreneurship is a journey, on which
successful entrepreneurs don’t have an
expectation of arriving at some finish line as
expectations wouldn’t allow them to continue
to push themselves to step outside of their
comfort and grow.

CONCLUSIO • Just like any other journey, there will be

times of joy and setbacks. However,

N becoming a successful entrepreneur means

understanding the hard times and when one
needs to push.

• The barriers have to be acknowledged to be

overcome. Focus on the aspects that you can
control. Create a working plan, take help and
make decisions that are action-based. Learn
from the obstacles and barriers and use them
to make the business successfuL
 Policy decision makers: New and better policies,
rules, and regulations have to be developed and put into
action that allows for the rapid development of an
appropriate entrepreneurial environment which allows
new businesses to register and operate (Taxation schemes
that support new businesses and SMEs; reduce the
burden of bureaucracy at the national, regional,

SUGGESTIO
municipal, and city-level; introduce programs in support
of entrepreneurs in high growth, high impact, export-
oriented industrial sectors; monitor the effective

NS implementation of government policies, as a basis for

their continual improvement).

Business sector (Entrepreneurs, Small and Medium Size Enterprises

(SMEs), larger businesses, business associations): Familiarize with the
various government and non-government agencies that support
entrepreneurs and SMEs. Create social networks that can provide
mentoring, consulting, or advisory groups to assist in all the business
aspects. This is of particular importance to younger entrepreneurs and
women entrepreneurs, as indicated in the GEM 2017 survey.
Educational Institutes: Develop entrepreneurship programs at the
school stage and post-secondary educational institutions that can
involve the students in entrepreneurial activities throughout their
student life. Incorporate skill development necessary to make use of the
entrepreneurial opportunities into the educational system.
 Business sector (Entrepreneurs, Small and Medium Size Enterprises
(SMEs), larger businesses, business associations): Familiarize with the
various government and non-government agencies that support

SUGGESTIO
entrepreneurs and SMEs. Create social networks that can provide
mentoring, consulting, or advisory groups to assist in all the business
aspects. This is of particular importance to younger entrepreneurs and

NS women entrepreneurs, as indicated in the GEM 2017 survey.

Educational Institutes: Develop entrepreneurship programs at the

school stage and post-secondary educational institutions that can
involve the students in entrepreneurial activities throughout their
student life. Incorporate skill development necessary to make use of the
entrepreneurial opportunities into the educational system.