SPECIFIC ENTREPRENEURSHIP CHALLENGES IN INDIA
The following are the important challenges faced by Indian Entrepreneurs.
1. Family Challenges:
Convincing to opt for business over job is easy is not an easy task for an individual. The first thing compared is – Will you make more money in business of your choice or as a successor of family business. This is where it becomes almost impossible to convince that you can generate more cash with your passion than doing what your Dad is doing.
2. 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. This is also a big challenge before Indian entrepreneurs. They must balance between earning high profit and doing social-welfare activities. They must use modern machines without causing unemployment and harm to the environment. They must earn a profit without reducing quality of their goods and services. They must earn a profit without charging high prices for their products. They must not cause any type of pollution in the society. They must accept their communal responsibilities and donate a small part of their profit (money) for social causes. They must pay all their taxes and duties. They must not use unfair and unethical practices to fight cutthroat competition.
3. Technological Challenges:
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So, it is always better to replace outdated technology with the new technology.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. 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.
4. 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.
5. Policy Challenges:
Now and then there is lot of changes in the policies with change in the government 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.
6. 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.
7. Hiring right talent
During the earlier days of our start-up, the biggest challenge was to find the right team who share a common vision about the goals and work towards making that a reality.