A Study on Financial Problem Faced by Start-Ups

A Project Submitted to

University of Mumbai for partial completion of the degree of Bachelors in

Commerce (Banking & Insurance)

Under the Faculty of Commerce

In

ST. ANDREW’S COLLEGE OF ARTS, SCIENCE & COMMERCE

Submitted by:

MEET MAHESH SANGHAVI

8251

Of TYBBI (23-24)

Under the Guidance of

DR. SHIRLEY PILLAI

Head, Dept. of Banking & Insurance

Of

ST. ANDREW’S COLLEGE OF ARTS, SCIENCE & COMMERCE

ST Dominic Road, Bandra West, Mumbai, Maharashtra 400050.

1
I the undersigned Mr. Meet Mahesh Sanghavi here by, declare that the work embodied in this
project work titled "Financial Problem Faced by Start-Ups" forms my own contribution to the
research work carried out under the guidance of DR. SHIRLEY PILLAI is a result of my own
research work and has not been previously submitted to any other University for any other
Degree/Diploma to this or any other University. Wherever reference has been made to previous
works of others, it has been clearly indicated as such and indicated in the bibliography. I hereby,
further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

2
 ST. ANDREW'S COLLEGE OF ARTS, SCIENCE & COMMERCE

St. Dominic Road, Bandra West, Mumbai, Maharashtra 400050

CERTIFICATE

This is to certify that Mr. (Meet Mahesh sanghavi) has worked and duly completed his Project
Work for the degree of Bachelor in Commerce (Banking and Insurance) under the faculty of
Commerce in the subject of PROJECT WORK and his project is entitled,

" Financial Problem Faced by Start-Ups " under my supervision

I further certify that the entire work has been done by the learner under my guidance and that no
part of it has been submitted previously for any Degree or Diploma of any University.

It is his own work and facts reported by her personal findings and investigations

College Seal and Signature of Signature of Guiding Teacher

the Principle DR. SHIRLEY PILLAI

Signature of coordinator Name & Signature 3

DR. SHIRLEY PILLAI External Examiner
 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous

I would like to acknowledge the following as being idealistic channels and fresh dimensions in
the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project

I would like to thank my Principal Dr. Marie Fernandes for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our Chief Coordinator Dr. Shirley Pillai and Course Coordinator
Prof. Prajna Shetty for their moral support and guidance.

I would also like to express my sincere gratitude towards my guide Dr. Shirley Pillai whose
guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project

I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my
project.

4
Sr.no Topic Page no
1 Introduction to the 9-17
Industry
1.1Definition of Start-up
1.2Start-up India
1.3Start-up Company
1.4Here are the 19 plans
given by Government
1.5Entrepreneurship
2 Literature review 18-22
2.1 Imperfect education
system & conservative
lifestyle
2.2 Lack of support
system &
entrepreneurship
Ecosystem.
2.3 India lacks enough
angel investors
2.4 Human Talent
2.5 Women Entrepreneur
3 Research Methodology 19-54
3.1 Objectives of the study
3.2 Data Collection Method
3.3 Women Entrepreneur in
India 3.4 Reasons for limited
start-up in India
3.5 Importance of Finance
Agency’s in India
3.6 Entrepreneurial
Development Plan
4 General Analysis 55-64
 PESTLE analysis
 Challenges and
Opportunities
 Challenges faced by women
entrepreneur
5 5.1 Findings 65-67
5.2 Suggestions
5.3 Conclusions
6 6.1 Article 68-71
6.2 Case Studies

5
. INTRODUCTION TO THE COMPANY

1.1 Definition of Start-up :

A start-up company or start-up or start-up is a young company that is just

beginning to develop. Start-ups are usually small and initially financed and

operated by a handful of founders or one individual. These companies offer a

product or service that is not currently being offered elsewhere in the market, or

that the founders believe is being offered in an inferior manner. In the early stages,

start-up companies' expenses tend to exceed their revenues as they work on

developing, testing and marketing their idea. As such, they often require financing.

Start-ups may be funded by traditional small business loans from banks or credit

unions, by government sponsored Small Business Administration loans from local

banks, or by grants from non-profit organizations and state governments.

Paul Graham says that "A start-up is a company designed to grow fast. Being

newly founded does not in itself make a company a start-up. Nor is it necessary for

a start-up to work on technology, or take venture funding, or have some sort of

"exit". The only essential thing is growth. Everything else we associate with start

ups follows from growth.

1.2 Start-up India:

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 Startup India is an initiative launched by the Government of India, first announced
by Prime Minister Narendra Modi during his address from the Red Fort in New
Delhi on 15th August 2015. The initiative aims to foster entrepreneurship and
promote innovation in the country. The action plan of Startup India revolves
around three main pillars:

Simplification and Handholding: The initiative focuses on simplifying the process

of starting and operating a business in India. It includes measures to reduce
bureaucratic hurdles and provide support and guidance to aspiring entrepreneurs.

Funding Support and Incentives: Startup India provides funding support and
incentives to start-ups to help them grow and scale their businesses. This includes
access to funding through various government schemes, tax benefits, and
incentives for investors in start-up ventures.

Industry-Academia Partnership and Incubation: Startup India encourages

collaboration between industries and academic institutions to foster innovation and
entrepreneurship. It promotes the establishment of incubation centers and
accelerators to provide mentorship, infrastructure, and support services to start-
ups.

In addition to these pillars, Startup India also focuses on eliminating restrictive

policies at the state level, such as the License Raj, Land Permissions, Foreign
Investment Proposals, and Environmental Clearances. The initiative is
spearheaded by the Department for Promotion of Industry and Internal Trade
(DPI&IT).

A start-up, as defined under this initiative, is an entity headquartered in India, established

less than seven years ago, and with an annual turnover of less than ₹25 crore
(approximately US$3.5 million). Startup India has launched various programs and

7
schemes to support start-ups, including the I-MADE program aimed at helping Indian
entrepreneurs

Source- Google

The start-up landscape in India has witnessed a significant transformation in recent

years, largely due to increased media coverage and government initiatives like
"Start-up India." This initiative, launched by Prime Minister Narendra Modi, aims
to foster, support, and encourage entrepreneurial efforts in the country. Start-ups
are no longer a foreign concept in India; instead, they are seen as vehicles for
innovation and economic growth.

1.3 Startup Company:

Start-ups in India are distinguished by their focus on introducing new products or

processes to the market, often driven by innovative ideas. Unlike small businesses,
the primary differentiator for start-ups is their emphasis on innovation. The
government's Start-up India initiative has been well-received, with various state
governments also launching similar efforts to promote entrepreneurship.

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India stands at a crucial juncture, ranking third globally in technology-driven start-
ups, with a significant focus on technology-based ventures fueled by young
graduates, especially from institutions like the IITs. The start-up ecosystem in
India is characterized by ventures in unconventional sectors such as healthcare.

The impact of start-ups on the economy is evident, with successful ideas leading to
tangible outcomes. To support this burgeoning ecosystem, the government is
creating an enabling environment by addressing challenges such as access to
finance, land permissions, and regulatory clearances.

Collaborations between the government, academia, and industry are crucial for
nurturing entrepreneurship. Initiatives like setting up startup support hubs in
educational institutions and establishing incubation centers contribute to this
ecosystem's growth.

Moreover, India has attracted significant investments from global players like
SoftBank and Google, reflecting confidence in the country's start-up ecosystem.
The government's efforts, coupled with private investments, have fueled the
growth of start-ups across various sectors.

The results of the Startup State Ranking highlight the states' efforts in promoting
entrepreneurship, with states like Gujarat, Karnataka, Kerala, Odisha, and
Rajasthan emerging as top performers.

Furthermore, states like Kerala, Telangana, Andhra Pradesh, Madhya Pradesh, and
Rajasthan have introduced policies and initiatives to bolster their start-up
ecosystems. These include setting up incubation centers, providing financial
assistance, and organizing start-up conclaves to facilitate networking and
collaboration.

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In conclusion, the start-up scenario in India is promising, with significant
government support, private investments, and state-level initiatives contributing to
its growth. With a conducive environment and a burgeoning entrepreneurial spirit,
India is poised to emerge as a global hub for innovation and entrepreneurship.

The Ministry of Human Resource Development and the Department of Science

and Technology have agreed to collaborate on an initiative to establish over 75
startup support hubs across National Institutes of Technology (NITs), Indian
Institutes of Information Technology (IIITs), Indian Institutes of Science
Education and Research (IISERs), and National Institutes of Pharmaceutical
Education and Research (NIPERs).

The Reserve Bank of India has announced its commitment to taking measures to
enhance the ease of doing business in the country and fostering an environment
conducive to the growth of startup enterprises.

SoftBank, headquartered in Japan, has injected a total of US$2 billion into Indian
startups, with plans to invest an additional US$10 billion. Google has announced
the launch of a startup initiative, wherein the top three startups, determined by
votes, will be granted entry into the next Google Launchpad Week, with the final
winner potentially receiving US$100,000 in Google cloud credits.

Oracle has disclosed plans to establish nine incubation centers in various Indian
cities, including Bengaluru, Chennai, Gurgaon, Hyderabad, Mumbai, Noida, Pune,
Trivandrum, and Vijayawada.

In December 2018, the Department of Industrial Policy and Promotion (DIPP)

unveiled the results of the inaugural startup state ranking. The assessment was
based on criteria such as policy framework, availability of incubation hubs,
promotion of innovation at the seed stage, fostering innovation at the scaling stage,

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 regulatory reforms, procurement policies, communication strategies, and
initiatives specific to North-Eastern and hill states.

2018 Start-up State Ranking are as follows:

 Best performer: Gujarat

 Top performers: Karnataka, Kerala, Odisha, and Rajasthan.

 Leader: Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh, and

Telangana

 Aspiring leaders: Haryana, Himachal Pradesh, Jharkhand, Uttar Pradesh, and West
Bengal
 Emerging states: Assam, Delhi, Goa, Jammu & Kashmir, Maharashtra, Punjab,
Tamil Nadu, and Uttarakhand
 Beginners: Chandigarh, Manipur, Mizoram, Nagaland, Puducherry, Sikkim, and
Tripura

Kerala has introduced a government startup policy known as the "Kerala IT

Mission," aiming to attract investments totaling ₹50 billion (US$700 million) to
bolster the state's startup ecosystem. Additionally, Kerala established India's
inaugural telecom incubator, Start-up Village, in 2012. The state matches funding
raised by its incubator from the central government on a 1:1 basis.

Telangana has inaugurated the largest incubation center in India named "T-Hub."
In Andhra Pradesh, a Technological Research and Innovation Park spanning
17,000 square feet has been designated as a Research and Development laboratory.
The state has also established an "Initial Innovation Fund" of ₹100 crore (US$14
million) to support entrepreneurs.

The government of Madhya Pradesh has partnered with the Small Industries
Development Bank of India (SIDBI) to establish a fund totaling ₹200 crore
(US$28 million). Similarly, Rajasthan has introduced the "Start-up Oasis" scheme.

11
On November 28, 2016, the Odisha state government arranged a two-day Start-up
Conclave in Bhubaneswar with the goal of promoting startups.

1.4 Entrepreneurship

Entrepreneurship involves the process of conceiving, launching, and managing a

new business endeavor, often starting with a small-scale operation. Individuals
who initiate and manage these ventures are known as entrepreneurs. Traditionally,
entrepreneurship is defined as the ability and willingness to develop, organize, and
oversee a business venture, including managing associated risks, with the goal of
generating profits. However, given the considerable challenges involved in starting
a new venture, many startups face closure due to various factors such as
insufficient funding, poor business decisions, economic downturns, or lack of
market demand.

A broader interpretation of entrepreneurship, particularly in economics, extends

beyond simply starting and operating businesses. In this context, an entrepreneur is
an entity capable of identifying and seizing opportunities to transform inventions
or technologies into new products or services. This involves recognizing the
commercial potential of innovations and marshaling resources like capital, talent,
and other assets to convert them into commercially viable innovations. Therefore,
entrepreneurship encompasses not only the innovative activities of new ventures
but also similar endeavors undertaken by established firms to drive growth and
competitiveness.

Entrepreneurship is the practice of being an entrepreneur, defined as the individual

who, through risk-taking and initiative, manages a business enterprise with the aim
of generating profits. Entrepreneurs serve as managers who oversee the
establishment and development of a venture. The steps involved in the
entrepreneurial process are seeing a business opportunity, gathering the required
resources, and putting them to use.French economist Jean-Baptiste Say, in the
early 19th century, provided a broad perspective on entrepreneurship, describing it

12
as the movement of economic resources from less productive areas to more
productive ones.

Entrepreneurs are creators of novelty and innovation—they introduce new ideas or

products that alter or enhance existing values. Regardless of the scale of the
enterprise, entrepreneurs can seize opportunities for entrepreneurship. Four criteria
are essential for someone to become an entrepreneur: the presence of opportunities
to combine resources profitably, differences among individuals, a willingness to
take risks, and the organization of people and resources.

The study of entrepreneurship traces back to the works of Richard Cantillon and
Adam Smith in the late 17th and early 18th centuries, though it received limited
theoretical attention until the late 19th and early 20th centuries. Economist Joseph
Schumpeter, in the 20th century, significantly contributed to the understanding of
entrepreneurship, emphasizing the role of entrepreneurs in converting new ideas
into successful innovations. Schumpeter's concept of "creative destruction"
illustrates how entrepreneurs introduce superior innovations that replace inferior
ones, driving industry dynamics and long-term economic growth.

There are debates within academic economics regarding the extent to which
entrepreneurship contributes to economic growth. While some argue that
entrepreneurship is a primary driver of economic progress, others suggest that
many innovations are incremental improvements rather than radical changes. This
perspective, proposed by Israel Kerzner, emphasizes the gradual evolution of
products and processes rather than disruptive innovations.

Entrepreneurs are creators of novelty and innovation—they introduce new ideas or

products that alter or enhance existing values. Regardless of the scale of the
enterprise, entrepreneurs can seize opportunities for entrepreneurship. Four criteria
are essential for someone to become an entrepreneur: the presence of opportunities

13
to combine resources profitably, differences among individuals, a willingness to
take risks, and the organization of people and resources.

The study of entrepreneurship traces back to the works of Richard Cantillon and
Adam Smith in the late 17th and early 18th centuries, though it received limited
theoretical attention until the late 19th and early 20th centuries. Economist Joseph
Schumpeter, in the 20th century, significantly contributed to the understanding of
entrepreneurship, emphasizing the role of entrepreneurs in converting new ideas
into successful innovations. Schumpeter's concept of "creative destruction"
illustrates how entrepreneurs introduce superior innovations that replace inferior
ones, driving industry dynamics and long-term economic growth.

There are debates within academic economics regarding the extent to which
entrepreneurship contributes to economic growth. While some argue that
entrepreneurship is a primary driver of economic progress, others suggest that
many innovations are incremental improvements rather than radical changes. This
perspective, proposed by Israel Kerzner, emphasizes the gradual evolution of
products and processes rather than disruptive innovations.

14
2. LITERATURE REVIEW
2.1 The Imperfect Education System and Conservative Lifestyle:

The education system in India presents a significant hindrance to the growth of start-ups. While
colleges often equip students with advanced technical skills, they often lack crucial knowledge in
areas such as marketing, sales, operations, and leadership—skills essential for building and
scaling their own enterprises. This gap between academic learning and real-world business
requirements impedes the ability of aspiring entrepreneurs to succeed in the competitive start-up
landscape.

Moreover, the conservative lifestyle prevalent in Indian society adds another layer of obstacles
for budding entrepreneurs. The cultural emphasis on familial stability and financial security often
leads families to prioritize traditional career paths over entrepreneurial pursuits. There is a
prevailing skepticism towards unconventional career choices, with families preferring options
that offer a steady income and stability. Consequently, individuals aspiring to start their own
ventures face familial pressure and societal expectations, which may discourage them from
pursuing their entrepreneurial dreams.

This dichotomy places considerable strain on aspiring entrepreneurs, forcing them to navigate
between fulfilling familial obligations and pursuing their entrepreneurial ambitions. Many find
themselves torn between providing for their families and following their entrepreneurial
aspirations, often feeling conflicted about pursuing what may be perceived as risky or
"whimsical" ventures.

Addressing these challenges requires a multifaceted approach, including reforms in the education
system to incorporate practical business skills and entrepreneurship training. Additionally,
societal attitudes towards entrepreneurship need to evolve, with greater acceptance and support
for individuals pursuing innovative ventures. Encouraging a culture of risk-taking and innovation

15
while providing adequate support systems for budding entrepreneurs can help overcome the
barriers imposed by the imperfect education system and conservative lifestyle norm

2.2 Lack of Support Networks and Entrepreneurship Ecosystem:

One of the significant challenges faced by aspiring entrepreneurs in India is the lack of robust
support networks and entrepreneurship ecosystems. Unlike many Western countries where
specialized institutions such as incubators, start-up accelerators, and entrepreneurship
competitions abound, India struggles with a shortage of such facilities, particularly in smaller
cities and towns.

While first-tier cities in India are gradually witnessing the emergence of incubators, accelerators,
and competitions to support start-ups, the availability of these resources is still insufficient to
meet the demand. Consequently, many start-ups fail to progress beyond the ideation stage due to
the absence of necessary guidance and support. Unlike in mature ecosystems, where these
institutions play a pivotal role in facilitating interactions between investors and entrepreneurs, in
India, they often serve merely as platforms to connect the two parties.

This shortage of support infrastructure exacerbates the challenge of securing funding for start-
ups. Entrepreneurs struggle to find investors willing to back their ventures, while investors face
difficulties in identifying promising entrepreneurial endeavors. Even when entrepreneurs manage
to attract investors, they encounter additional hurdles.

Indian culture traditionally values stability and job security, often favoring employment in
established organizations over entrepreneurship. The societal emphasis on risk aversion further
discourages individuals from pursuing entrepreneurial ventures. Family expectations compound
these challenges, as familial pressure often steers aspiring entrepreneurs towards conventional
career paths rather than riskier entrepreneurial pursuits.

This cultural bias against entrepreneurship creates a hostile environment for

aspiring entrepreneurs, stifling innovation and hindering economic growth. To
16
 address these challenges, there is a need to foster a culture that embraces risk-
taking and rewards entrepreneurial endeavors. Additionally, efforts should be
made to expand the entrepreneurship ecosystem by establishing more support
networks, providing mentorship opportunities, and promoting a conducive
regulatory environment for start-ups to thrive. By nurturing a supportive
ecosystem, India can unlock the full potential of its entrepreneurial talent and drive
sustainable economic development

2.3 Lack of Sufficient Angel Investors in India's Start-up Ecosystem:

India's start-up ecosystem faces a significant challenge due to the inadequate presence of angel
investors, according to industry body NASSCOM. Unlike Western countries, where angel
investors play a crucial role in fuelling the growth of start-ups, India lags behind in this aspect.
Rajat Tandon, Vice-President of NASSCOM, highlighted the need for more angel investors to
support budding entrepreneurs from the early stages of their ventures.

Despite India's position as the third-largest start-up ecosystem globally, with over 4,200 new-age
companies, the lack of angel investors poses a barrier to the ecosystem's development. In
countries like the US, there is a robust culture of investing in promising companies, whereas in
India, investors are often hesitant due to the high risk associated with start-up investments and the
absence of supportive policies.

Tandon emphasized the importance of providing incentives and tax benefits to attract investors to
the start-up ecosystem. The Government's "Start-up India; Stand up India" campaign, announced
by Prime Minister Narendra Modi, aims to promote bank financing for start-ups and provide
incentives to encourage entrepreneurship and job creation in the country.

NASSCOM is actively encouraging investors to participate in the start-up ecosystem and is

advocating for policies that support start-up investments. Additionally, the organization is
promoting mentorship opportunities for start-ups, with established industry leaders like Ratan
Tata and Azim Premji setting examples by investing in and mentoring young entrepreneurs.

17
Ratan Tata has made significant investments in companies such as Ola, Snapdeal, Paytm, Urban
Ladder, and Bluestone, while Azim Premji's investment arm, Premji Invest, has funded
companies like Myntra and Amagi. Their involvement serves as inspiration for other investors
and entrepreneurs alike, fostering a culture of mentorship and support within the start-up
community.

Overall, addressing the shortage of angel investors and creating a conducive environment for
start-up investments are essential steps towards fostering the growth of India's start-up ecosystem
and unlocking its full potential for innovation and economic development.

1,4 Human Talent

Small startups face significantly greater challenges in recruiting compared to large, established
enterprises. This is p primarily because startups are unable to offer competitive salaries or
extensive career advancement opportunities, as their focus is on building their business from
scratch. Additionally, working for a startup in China is perceived as less appealing than in
Western countries due to cultural disparities. For startups, especially those struggling to stay
afloat, the pressure to execute their business plans flawlessly to survive is immense, making the
situation even more challenging.

1.5 Women Entrepreneur

Melanne Verveerin emphasizes the crucial role of women entrepreneurs in driving economic
growth, despite facing significant challenges in achieving full economic participation. The GEM
Women's Report provides essential data that enhances our understanding of small and medium-
sized enterprises (SMEs) led by women. V. Krishnamoorthy and R. Balasubramaniam conducted
a study identifying key motivational factors for women entrepreneurs and their impact on
entrepreneurial success. These factors include ambition, skills and knowledge, family support,
market opportunities, independence, government subsidies, and satisfaction. The study concluded
that ambition, knowledge, skill, and independence significantly influence entrepreneurial success.
18
Jalbert (2000) conducted research to investigate the role of women entrepreneurs in the global
economy and how women's business associations can bolster their position in business and
international trade. Utilizing fieldwork methods such as surveys, focus groups, interviews, and
analysis of existing research, the study demonstrated that women business owners make
noteworthy contributions to global economic vitality and national competitiveness.

Bowen & Hirsch (1986) conducted a comparative evaluation of various research studies on
entrepreneurship, including women entrepreneurship. Their analysis suggests that female
entrepreneurs generally possess a good level of education but may lack specific management
skills. They tend to exhibit a high internal locus of control and may hold more masculine or
instrumental values compared to other women. Female entrepreneurs are also more likely to have
had entrepreneurial fathers, be first-born or only children, and avoid starting businesses in
traditionally male-dominated industries. Additionally, they may feel a need for additional
managerial training.

Singh (2008) identified the reasons and influencing factors behind women's entry into
entrepreneurship. He talked on the traits of women-owned companies in India and emphasized
the difficulties and barriers they encounter.

. These obstacles include limited interaction with successful entrepreneurs, social unacceptance
of women as entrepreneurs, family responsibilities, gender discrimination, lack of networking
opportunities, and reluctance by bankers to provide loans to women entrepreneurs. Singh
proposed remedial measures such as promoting micro-enterprises

These obstacles include limited interaction with successful entrepreneurs, social unacceptance of
women as entrepreneurs, family responsibilities, gender discrimination, lack of networking
opportunities, and reluctance by bankers to provide loans to women entrepreneurs. Singh
proposed remedial measures such as promoting micro-enterprises, improving institutional
frameworks, and fostering growth and support for successful women entrepreneurs. The study
emphasizes the need for synergy among women-related ministries, economic ministries, and
social and welfare development ministries within the Government of India.

19
3. Research Methodology

3.1 Objectives:

(A) Meaning:

A research objective is a clear, concise, declarative statement that provides direction for
investigating the variables under study.

The objectives of a research project summarize what is to be achieved by the study.

(B) Characteristics:

Research objectives should be concrete and SMART: Specific, Measurable, Attainable, Realistic,
and Time-bound.

They should also be relevant, feasible, logical, observable, unequivocal, and measurable.

Objectives should represent purposes that can reasonably be achieved within the expected
timeframe and with the available resources.

Research objectives summarize the intended accomplishments of the study, including obtaining
answers to research questions or testing research hypotheses.

(C) Objectives of the study are as follows:

To study the financial problems faced by start-ups in India.

To examine the status of women entrepreneurs in India.

To identify the reasons behind the limited number of start-ups in India.

20
To emphasize the significance of financing agencies for start-ups in India.

To understand the Entrepreneurial Development Plan.

In summary, the research objectives provide a clear roadmap for the study, outlining the specific
areas of investigation and the intended outcomes. These objectives guide the research process and
help ensure that the study remains focused and aligned with its purpose.

Source- Google

.2 Data Collection Method:

(A) Meaning:

Secondary data refers to data that have already been collected and analyzed by someone else.
Researchers utilize secondary data from various sources, eliminating the need to collect original
data. Secondary data can be either published or unpublished and are available from sources such
as government publications, technical journals, books, reports, and historical documents.
Unpublished data sources include diaries, letters, unpublished biographies, and records held by
scholars, research workers, and organizations.

21
providing valuable background information.

Validity and reliability: Secondary data generally have a pre-established degree of validity and
reliability, reducing the need for re-examination.

B) Advantages and Disadvantages of Secondary Data:

Advantages:

Time-saving and cost-efficient: Secondary data are readily available and eliminate the need for
data collection.

Coverage: Secondary data may cover larger or smaller samples of the population in detail,
including groups less likely to respond to traditional data collection methods.

Background work: Previous literature reviews, case studies, and analyses may have been
conducted, providing valuable background information.

Validity and reliability: Secondary data generally have a pre-established degree of validity and
reliability, reducing the need for re-examination.

Disadvantages:

Outdated or inaccurate data: Secondary data may be outdated or inaccurate, leading to potential
biases in analysis.

Limited coverage: Data collected for different research purposes may not cover specific
population samples or lack sufficient detail.

Accessibility: Administrative data may not be readily available in research formats or may be
difficult to access.

Overall, while secondary data offer numerous advantages such as efficiency and coverage,
researchers must carefully consider the limitations and potential biases associated with using
existing data for their research.

3.3 Women Entrepreneurs in India:

Women entrepreneurs in India are defined as women or groups of women who initiate, organize,
and operate business enterprises. The Government of India specifies that women entrepreneurs
22
must own and control at least 51% of an enterprise's capital and provide at least 51% of the
employment generated by the enterprise to women. Women entrepreneurs are motivated by both
push and pull factors, including the desire for independence and decision-making in their lives
and careers. Over time, there has been significant progress in the status of Indian women
entrepreneurs, with increasing numbers taking leadership positions in both private and
government organizations.

(A) Status of Women Entrepreneurs in India:

India's performance in women entrepreneurship has been poor compared to other countries, as
highlighted by a gender-focused global entrepreneurship survey. India ranked 16th out of 17
surveyed countries, with countries like Turkey, Morocco, and Egypt outperforming it. Women's
participation in large-scale industries and technology-based businesses remains limited, and their
involvement in small-scale industries is also low. Census data shows that only a small percentage
of micro and small enterprises in India are owned and managed by women. Women entrepreneurs
face significant obstacles, including a lack of capital, strict social constraints, and limited time
and skills.

(B) Reasons for Becoming Women Entrepreneurs:

Women's entry into business in India is traced back to their traditional kitchen activities, such as
making pickles, powders, and papads. However, as education spreads and time passes, women
are shifting away from these activities and entering various lines of business. Women
entrepreneurs are breaking through glass ceilings and participating in diverse industries. Their
entry into entrepreneurship is fueled by a desire for economic independence and a sense of
empowerment. Despite facing challenges such as social constraints and limited access to
resources, women entrepreneurs are increasingly venturing into business and contributing to
economic development. their skills, knowledge, and adaptability in business. These women are
motivated to meet their personal needs and achieve economic independence. They possess a
strong desire to make a positive impact in both their family and social life. With the rise of media
exposure, women are becoming more aware of their rights and opportunities in the workforce. In
the digital era, women are presented with growing challenges and opportunities, leading many to
transition from job seekers to job creators. Traumatic events like divorce, pregnancy
discrimination, or corporate barriers may prompt women to start their own businesses. However,
23
a new wave of women entrepreneurs is emerging, leaving behind corporate careers to pursue their
own paths. They are thriving in various sectors such as design, interior decoration, exporting,
publishing, garment manufacturing, and are continuously exploring new avenues for economic
participation.

(C) Role of Government in Developing Women Entrepreneurs in India:

Since independence, the development of women has been a key policy objective of the Indian
government. There has been a shift from a welfare-oriented approach to a development-focused
one, recognizing the importance of women's contribution to the economy. Various Five-Year
Plans have emphasized women's education, training, and empowerment. In the Seventh Five-
Year Plan, specific measures were introduced to integrate women into development programs,
including targeting them as a specific group, providing training facilities, developing new
technologies, offering marketing assistance, and involving them in decision-making processes.

During the Eighth and Ninth Five-Year Plans, the government launched several schemes to
promote women entrepreneurship. These initiatives aimed to increase employment opportunities
for women, especially in rural areas, by providing training, financial support, and marketing
assistance. Special programs like the Trade Related Entrepreneurship Assistance and
Development (TREAD) scheme, Women Component Plan, and Swarna Jayanti Gram Swarozgar
Yojana were introduced to empower women entrepreneurs. Additionally, institutions like the
Consortium of Women Entrepreneurs of India, NGOs, voluntary organizations, and self-help
groups collectively support women entrepreneurs in their endeavors. Various training programs,
financial schemes like Mahila Vikas Nidhi and Rastriya Mahila Kosh, and recognizing the
importance of women's contribution to the economy. Various Five-Year Plans have emphasized
women's education, training, and empowerment. In the Seventh Five-Year Plan, specific
measures were introduced to integrate women into development programs, including targeting
them as a specific group, providing training facilities, developing new technologies, offering
marketing assistance, and involving them in decision-making processes.

During the Eighth and Ninth Five-Year Plans, the government launched several schemes to
promote women entrepreneurship. These initiatives aimed to increase employment opportunities

24
for women, especially in rural areas, by providing training, financial support, and marketing
assistance. Special programs like the Trade Related Entrepreneurship Assistance and
Development (TREAD) scheme, Women Component Plan, and Swarna Jayanti Gram Swarozgar
Yojana were introduced to empower women entrepreneurs. Additionally, institutions like the
Consortium of Women Entrepreneurs of India, NGOs, voluntary organizations, and self-help
groups collectively support women entrepreneurs in their endeavours. Various training programs,
financial schemes like Mahila Vikas Nidhi and Rastriya Mahila Kosh, and promotional
organizations further contribute to the development of women entrepreneurs in India.

25
Various organizations play a crucial role in promoting and supporting women entrepreneurs in
India:

Federation of Indian Women Entrepreneurs (FIWE): Established in 1993, FIWE aims to provide
networking opportunities and services to women entrepreneurs' associations across India. It
serves as a platform for collaboration and support among women entrepreneurs at both national
and state levels.

Federation of Ladies Organization (FLO): Formed in 1983, FLO is a national-level forum

dedicated to women's empowerment. It undertakes various activities to promote women
entrepreneurship and enhance professional excellence among women.

World Association of Women Entrepreneurs: This international organization brings together

women qualified to take active roles in employers' organizations worldwide. Its objective is to
empower women to lead and participate in various professional spheres alongside their male
counterparts.

National Women Development Corporation (NWDC): NWDC focuses on promoting women's

development, particularly in rural and urban poor areas. It provides support and resources to
empower women through entrepreneurship and economic initiatives.

Association of Women Entrepreneurs of Karnataka (AWAKE): Established in 1983, AWAKE has

gained global recognition for its efforts in promoting entrepreneurship among women. It is
affiliated with the Women's World Bank in New York and is dedicated to the development of
women entrepreneurs.

Women’s India Trust (WIT): Founded in 1968 by Kamila Tyabji, WIT operates with the goal of
promoting women's economic empowerment. It engages in various activities such as exporting

26
products produced by women in India and providing training programs, including plans to offer
computer training for women.

Women’s India Trust (WIT): Founded in 1968 by Kamila Tyabji, WIT operates with the goal of
promoting women's economic empowerment. It engages in various activities such as exporting
products produced by women in India and providing training programs, including plans to offer
computer training for women.

Consortium of Women Entrepreneurs of India (CWEI): Launched in 2001, CWEI serves as a

common platform for women entrepreneurs to access resources and support for innovation in
production, marketing, and finance. It addresses the need for technological advancement in the
context of India's evolving economy.

Self-Help Groups (SHGs): SHGs are small, economically homogeneous groups voluntarily
formed by rural and urban poor individuals. They pool their resources and make collective
decisions, including lending funds to members based on group agreements, fostering economic
empowerment and self-sufficiency.

Source- Google

3.4 Reasons behind limited start-ups in India:

27
he failure of startups in India has emerged as a significant challenge within the startup ecosystem.
Research on failed startups in the country has revealed several key reasons behind their lack of
success. These factors, ranging from a disconnect with societal needs to challenges in accessing
funding and talent, pose significant hurdles for entrepreneurs aiming to establish new ventures in
India's dynamic market.

Misalignment with Societal Needs:

Many successful business ideas stem from addressing societal needs. However, due to intense
academic competition and the prevalence of a tech-focused lifestyle among millennials,
entrepreneurs often lose touch with the demands of society. The pressure of education further
exacerbates this disconnect, hindering entrepreneurs' understanding of societal needs.

Lack of Innovation:

The Indian market is saturated with numerous startups attempting to solve similar problems. This
saturation necessitates entrepreneurs to be highly innovative and push the boundaries to stand
out. However, the intense competition often leads entrepreneurs to prioritize market share over
genuine innovation, resulting in the creation of products that fail to meet consumer demands.

Talent Shortage:

The startup ecosystem in India faces a shortage of skilled professionals, exacerbated by issues
like brain drain. In the competitive startup environment, there is little inclination to invest
resources in training new employees. Consequently, the absence of experienced personnel
hampers startups' ability to deliver quality products from the outset.

Funding Constraints:

Securing funding for startups in India is a daunting task. Many entrepreneurs rely on personal
savings or contributions from friends and family to kickstart their ventures. However, access to
angel funding or venture capital remains limited, with investors often favoring ideas with a high

28
potential for return on investment. Consequently, a lack of funding prevents many promising
startups from sustaining their operations.

Gap Between Technical and Management Teams:

Effective collaboration between technical and management teams is essential for startup success.
However, a common challenge arises from the disparity in expertise between technical and
management graduates. This knowledge gap often leads to miscommunication and inefficiencies
within startups, undermining their ability to execute strategies effectively.

High Salary Expectations:

Startups in India struggle to attract experienced professionals due to a shortage of talent. To

incentivize skilled individuals to join their teams, startups often offer high salaries. However, this
practice depletes the startup's resources, leading to financial instability and poor decision-making.

High Salary Expectations:

Startups in India struggle to attract experienced professionals due to a shortage of talent. To

incentivize skilled individuals to join their teams, startups often offer high salaries. However, this
practice depletes the startup's resources, leading to financial instability and poor decision-making.

Lack of Interpersonal Skills:

Many entrepreneurs in India lack essential interpersonal and soft skills, such as communication
and negotiation. Poor communication skills hinder their ability to compete internationally and
pitch their ideas effectively to potential investors.

Scalability Challenges:

Successful startups often face scalability issues as they expand to serve a growing consumer base.
Without adequate mentorship or awareness, entrepreneurs struggle to adapt their products to meet
evolving consumer needs, leading to eventual failure.

29
Ignorance of Market Dynamics:

Rapid changes in market dynamics require startups to adapt quickly. However, inadequate
industry insight and a failure to conduct thorough market research leave startups ill-prepared to
respond to shifting trends and consumer preferences.

Role Ambiguity:

In startups with multiple founders, clarity in leadership roles is crucial. When every founder
attempts to lead, it leads to confusion and inefficiency. Establishing a clear vision and assigning
responsibilities is essential for effective decision-making and organizational stability.

In summary, addressing these challenges is essential for fostering a conducive environment for
startup success in India's ever-changing market landscape.

(A) Venture Capital:

Venture capital refers to financing provided by professionals who invest in and manage rapidly
growing companies with the potential for significant economic impact. According to SEBI
regulations, a venture capital fund is a fund established as a company or trust that raises capital
through various means and invests in high-risk, potentially high-return enterprises. Venture
capitalists not only provide investment capital but also offer management expertise, networking,
and marketing support to innovative startups. In India, venture capital funds can be classified into
different categories:

Public Bank Promoted Funds: Venture capital funds promoted by public banks, such as SBI
Capital Markets Ltd and Can bank Venture Capital Fund.

Central Government-controlled Development Finance Institutions: Funds promoted by

development finance institutions controlled by the Central Government, like IFCI Venture Capital
Funds Ltd (IFCI Venture) and SIDBI Venture Capital Limited (SVCL).

30
State Government-controlled Development Finance Institutions: Funds promoted by state
government-controlled development finance institutions, such as Hyderabad Information
Technology Venture Enterprises Limited (HITVEL), Kerala Venture Capital Fund Private
Limited, and Gujarat Venture Finance Limited (GVFL).

Overseas Venture Capital Funds: Venture capital funds from outside India, such as BTS India
Private Equity Fund Ltd. and Walden International Investment Group.

Private Sector Company Promoted Funds: Funds promoted by private sector companies, like
Infinity Venture India Fund and IL&FS Trust Company Limited (ITCL).

(B) Bootstrapping:

Bootstrapping, or self-funding, involves financing your startup without external support, relying
on personal resources or funds borrowed from friends and family. It allows flexibility in funding
and avoids the need to be answerable to external entities. While advantageous for startups with
modest requirements, it may not be suitable for those needing significant funding from the outset.

(C) Crowd Funding:

Crowdfunding involves raising capital from the public by pitching business ideas on platforms
where individuals can contribute funds in the form of donations or pre-buying orders. It not only
provides financing but also generates support and visibility for the startup, attracting potential
investors in the future.

(D) Angel Investors:

Angel investors are wealthy individuals or retired executives who invest directly in small firms,
typically at early stages. They provide not only financial support but also experience

C) Crowd Funding:

31
Crowdfunding involves raising capital from the public by pitching business ideas on platforms
where individuals can contribute funds in the form of donations or pre-buying orders. It not only
provides financing but also generates support and visibility for the startup, attracting potential
investors in the future.

(D) Angel Investors:

Angel investors are wealthy individuals or retired executives who invest directly in small firms,
typically at early stages. They provide not only financial support but also experience, contacts,
and technical or managerial knowledge. They often prefer smaller investments and may take an
active role in company management.

(E) Incubators & Accelerators:

Incubators and accelerators offer programs to support startup growth, providing funding,
mentorship, and networking opportunities. Incubators provide space and equipment, while
accelerators offer seed capital and access to a mentor network in exchange for equity stakes.

(F) Government Programs:

Government initiatives, such as startup funds and credit guarantee schemes, provide incentives
and support for startups. These programs offer financial assistance, mentorship, and lower
interest rates, but awareness and eligibility criteria are important considerations.

(G) High Net-worth Individuals:

High net-worth individuals invest their financial resources in startups, expecting significant
returns within a short timeframe. They offer customized investment options and charge lower
fees compared to other sources of funding.

(H) Bank Loans:

32
Bank loans are a common option for startup financing, requiring a solid business model and
documentation for approval. Loans offer flexibility and control over profits or losses, but timely
repayment is crucial. Interest rates are typically lower compared to venture capital funding.

Seeking funding from friends and family

can be a viable option for entrepreneurs, as these individuals are often familiar with your
capabilities and may be willing to support your business venture. However, there are both
advantages and drawbacks to obtaining loans or investments from this source. While family and
friends may have faith in your abilities and provide financial backing, they may lack the expertise
and guidance offered by angel investors. Additionally, financial transactions with loved ones can
strain relationships if the investment does not yield expected returns.

It's important to approach fundraising from family and friends in a professional manner, clearly
outlining the risks involved and treating them as investors rather than merely supportive
individuals. Choosing family members or friends with business knowledge can enhance the
likelihood of a successful investment.

Entrepreneurship Development Plan:

Entrepreneurship involves setting up one's own business and is crucial for economic
development, creating opportunities for employment and professional growth. Despite its
significance, many individuals do not pursue entrepreneurship as a career. Encouraging
entrepreneurship requires deliberate efforts to educate people about its potential and create
conditions for them to choose this path.

Entrepreneurship is a systematic, purposeful, and creative activity aimed at identifying needs,

mobilizing resources, and delivering value to customers while generating returns for investors. It
involves risk-taking, innovation, and organization of production, contributing to income and
wealth generation.

Entrepreneurship is characterized by systematic activity, lawful and purposeful conduct,

innovation, organization of production, and risk-taking. Entrepreneurs play a vital role in creating
33
value, introducing innovations, and organizing resources to meet market needs. They take
calculated risks and thrive in challenging circumstances, driving economic growth and
development.

Relations between Entrepreneurship and Management:

Entrepreneurship is closely linked to business startups and innovations. It emerges during the
inception of a new venture, diminishes during the stabilization phase, and resurfaces when
changes are required in products, markets, technologies, or structures. Some argue that everyone
displays entrepreneurial traits when they introduce new ideas or combinations, but these
characteristics wane once the business becomes established and operated conventionally.

In developed countries, there is a clear division between entrepreneurship, focused on startups,

and management, which handles routine operations. It's often suggested that once a project
reaches maturity, entrepreneurs should step aside for managers to take over. In contrast, in
developing countries, entrepreneurs typically remain closely involved in day-to-day operations,
and their lack of managerial skills is often cited as a reason for business failures. However, it's
essential for entrepreneurs to possess managerial abilities for venture success, whether they
delegate management responsibilities or assume them themselves.

The necessity for entrepreneurship exists in both developed and developing countries.
Developing nations rely on entrepreneurs to kickstart development processes, while developed
ones depend on entrepreneurship to sustain growth. In India, for example, where traditional
employment avenues are shrinking, entrepreneurship has the potential to drive economic growth
significantly. Studies, such as those conducted by the Global Entrepreneurship Monitor, show
that differences in entrepreneurial activity levels contribute to variations in economic growth
rates. Understanding the functions of entrepreneurs in economic development and business
enterprise underscores the importance of entrepreneurship in driving progress and innovation.

Generation of Employment: Every new business venture creates employment opportunities for
individuals with varying skills and qualifications, providing livelihoods and personal satisfaction.

34
Entrepreneurship thus serves as a significant source of employment, especially for those lacking
capital or land.

Increasing Economic Efficiency: Entrepreneurs enhance economic efficiency by improving

processes, reducing waste, and introducing technological advancements. Through these efforts,
they strive to achieve greater output with the same input, thereby boosting productivity.

Broadening Economic Activities: Entrepreneurship leads to diversification across geographic,

sectoral, and technological scopes, breaking cycles of underdevelopment. By organizing domestic
production for exports and mobilizing local and overseas resources, entrepreneurs facilitate
economic growth and transformation.

Impact on Local Communities: Small-scale entrepreneurship, particularly in marginalized

communities, empowers groups like women, SC, ST, and OBC by providing opportunities for
economic advancement. Initiatives by corporations and local governments further support
entrepreneurship clusters, fostering socio-economic development.

Fostering Exploration and Experimentation: Entrepreneurs challenge traditions and beliefs by

embracing change and pursuing innovative ideas. Their spirit of exploration, experimentation,
and daring creates fertile ground for economic development and institutional change.

In summary, entrepreneurship plays a crucial role in driving economic development by

organizing production, contributing to GDP, fostering capital formation, generating employment,
enhancing efficiency, broadening economic activities, impacting local communities, and fostering
exploration and experimentation.

Role of Entrepreneur in Relation to Their Enterprise:

35
Using an analogy from musicology, one can liken an entrepreneur to not only the composer of a
musical score and the conductor of an orchestra but also a one-person band. In the context of a
developing country like ours, the roles and functions of entrepreneurs become even broader.
These elements are not necessarily sequential, and entrepreneurs may need to address them
simultaneously. However, individual entrepreneurs may prioritize certain aspects based on their
backgrounds. For instance, technicians may focus excessively on production, while those with
marketing backgrounds may emphasize creating a market. Investor-type entrepreneurs may be
overly concerned with project returns. It's important to avoid viewing the business solely from
one's narrow perspective.

Opportunity Scouting: Entrepreneurial opportunities must be actively sought. This can be done
through personal observation, contacts, networks, experience, or research. Entrepreneurs need to
develop a mindset that sees opportunities where others see mere consumer desires.

Identification of Specific Product Offering: After identifying general business opportunities,

entrepreneurs must narrow down to a specific product or service idea. This decision requires
creativity and innovativeness, along with an understanding of market demands and differentiation
strategies.

Feasibility Analysis: The proposed product or service idea must be technically, economically, and
financially feasible. Entrepreneurs need to assess whether the idea can be realized with available
resources and whether it aligns with market demands and legal requirements. This analysis
typically culminates in a comprehensive business plan, which is crucial for securing funding and
guiding project implementation.

Entrepreneurial roles and functions are extensive and demanding. While entrepreneurship may
present challenges, it also offers opportunities for growth and innovation. Developing
competencies, values, and attitudes suited for entrepreneurship is essential for success in this
field.

36
The Process of Entrepreneurship Development:

Entrepreneurship development is not spontaneous but results from a dynamic interaction between
individuals and their environment. Factors such as economic conditions, cultural attitudes,
institutional support, and individual characteristics influence the perception of entrepreneurship
as a desirable and feasible career option.

Individuals with a sense of efficacy and willingness to pursue entrepreneurship are more likely to
engage in entrepreneurial activities. However, perceived barriers such as lack of resources,
knowledge, or skills can hinder entrepreneurial aspirations.

Enablers such as supportive socio-cultural environments, favorable economic conditions, and

dedicated entrepreneurship development institutions contribute to fostering an entrepreneurial
mindset and activity.

Understanding the role of individuals in entrepreneurship development involves assessing their

willingness and ability to pursue entrepreneurial opportunities. Those who possess both
willingness and ability are considered a ready source of entrepreneurship, while others may face
barriers that impede their entrepreneurial endeavors.

Overall, entrepreneurship development involves a complex interplay between individual

characteristics, socio-cultural factors, and economic conditions, all of which shape perceptions
and opportunities for entrepreneurial activit

Entrepreneurial Competencies:

Every successful entrepreneurial endeavour requires a specific set of competencies, which

encompass a combination of knowledge, skills, and psychosocial attributes. For instance, the
ability to communicate a vision involves much more than just proficiency in writing or speaking;
it requires clarity of vision, understanding of the audience, media knowledge, effective delivery,
37
and impact assessment. Competency-based approaches to entrepreneurship development,
pioneered by David McClelland, emphasize the importance of defining job performance based on
actions rather than personal characteristics.

Entrepreneurship Development Institute of India (EDI) has identified 15 competencies essential

for entrepreneurial success:

Initiative

Opportunity recognition

Efficiency orientation

Systematic planning

Persistence

Information seeking

Concern for quality

Commitment to task completion

Problem-solving

Self-confidence

Assertiveness

Persuasion

Use of influence strategies

Monitoring

Concern for employee welfare

These competencies can be developed through a combination of acquiring knowledge and

practicing skills. For example, presentation skills required for persuasion and the use of influence
strategies can be honed through thorough preparation and practice.

38
Entrepreneurial Motivation:

Entrepreneurial motivation is driven by various factors, including the need for achievement (N-
Ach), power (N-Pow), affiliation (N-Aff), autonomy (N-Aut), and preserving personal work
ethos. The need for achievement entails a desire to accomplish challenging tasks independently,
often associated with self-actualization and personal accomplishment. Power motivation involves
influencing others to achieve desired objectives, while affiliation motivation focuses on
interpersonal relationships and conformity to social norms. Autonomy motivation reflects a desire
for independence and responsibility, often leading individuals to pursue entrepreneurship to avoid
working for others.

Understanding these motivational factors is crucial for promoting entrepreneurship, as motivated

individuals are more likely to pursue entrepreneurial opportunities and acquire the necessary
competencies for success.

Entrepreneurial Values and Attitudes:

Entrepreneurial values and attitudes encompass the behavioural choices individuals make in
pursuit of entrepreneurial success. These choices are influenced by personal values, attitudes, and
orientations towards entrepreneurship. For example, entrepreneurs may prioritize client
satisfaction over bureaucratic procedures, as exemplified by the engineer who started a turbine
repair company to uphold his value of prioritizing client needs.

In summary, entrepreneurial competencies, motivations, values, and attitudes collectively shape

the actions and decisions of entrepreneurs, ultimately contributing to their success in starting and
managing businesses.

In summary, entrepreneurial competencies, motivations, values, and attitudes collectively shape

the actions and decisions of entrepreneurs, ultimately contributing to their success in starting and
managing businesses. The role of the individual in Entrepreneurship Development:

39
Mr. Narayan Reddy had the desire to start a small-scale industry and possessed the efficacy or
readiness to pursue it, considering his qualifications, experience, values, attitudes, and
motivation. Individuals like him, who exhibit both willingness and ability, are a prime source of
entrepreneurship. They eagerly seize opportunities as they arise, as demonstrated by Narayan
Reddy when he encountered the chance to start his venture after meeting two returning medics
from the Gulf.

However, many individuals who aspire to start their own businesses may face self-perceived
barriers to entrepreneurship due to a lack of resources, knowledge, know-how, or skills. These
barriers collectively constitute competencies, which are crucial for entrepreneurial success.
Competencies encompass a combination of knowledge, skills, and psychosocial attributes that
determine an individual's effectiveness in a given task.

The competency approach to entrepreneurship development, pioneered by David McClelland,

emphasizes the importance of defining job performance based on actions rather than personal
characteristics. McClelland identified competency variables that could predict job performance
without bias based on race, gender, or socio-economic factors. Entrepreneurship Development
Institute of India (EDI) has identified 15 competencies crucial for entrepreneurial performance
and success, including initiative, opportunity recognition, efficiency orientation, systematic
planning, persistence, information seeking, concern for quality, commitment to task completion,
problem-solving, self-confidence, assertiveness, persuasion, use of influence strategies,
monitoring, and concern for employee welfare.

These competencies can be developed through education and development processes. Knowledge
competencies can be enhanced through reading and interaction with knowledgeable individuals,
while skill competencies can be acquired through practice. For instance, presentation skills
required for persuasion and the use of influence strategies can be honed through thorough
preparation and practice. To excel in entrepreneurship, thorough preparation is key. This involves
conducting extensive research on what you want to convey, how you plan to convey it,
understanding your audience and their backgrounds, anticipating potential questions, and

40
practicing your delivery multiple times, whether in front of a mirror or with friends. By doing so,
you'll be better equipped to perform well when the actual situation arises.

Regarding entrepreneurial motivation, individuals with a perception of self-efficacy and a desire

for independence represent a potential pool of future entrepreneurs. Understanding what drives
individuals to pursue entrepreneurship is complex. For example, Mr. Narayan Reddy was
motivated by the opportunity to capitalize on his discovery of a molecule as a business venture,
driven by the need for self-actualization according to Maslow's hierarchy of needs.

The need for achievement (N-Ach) is often a primary driver of entrepreneurial behavior,
characterized by a desire to overcome challenges, excel, and surpass others. Entrepreneurship
offers a platform for individuals to fully utilize their talents, as opposed to traditional
employment structures that may stifle creativity and personal development.

Similarly, the need for power (N-Pow) manifests as a desire to influence others and achieve
envisioned objectives. Entrepreneurs may harness this power not only for personal gain but also
to make a positive impact on society.

Affiliation (N-Aff), or the desire for interpersonal relationships, may also influence
entrepreneurial behavior, particularly in cultures where family and community ties are strong.
Additionally, the need for autonomy (N-Aut) drives individuals to seek independence and
responsibility, often leading them to pursue entrepreneurship to avoid working under external
authority.

For entrepreneurship development, it's essential to cultivate the right motivation among
individuals. Entrepreneurship awareness and development programs focus on both motivation
and competency-building sessions, recognizing that motivation and ability can reinforce each
other. Entrepreneurs are often dreamers who take action to realize their aspirations, driven by a
combination of different needs and desires beyond simple profit maximization.

41
development programs focus on both motivation and competency-building sessions, recognizing
that motivation and ability can reinforce each other. Entrepreneurs are often dreamers who take
action to realize their aspirations, driven by a combination of different needs and desires beyond
simple profit maximization.

Entrepreneurial values and attitudes encompass the behavioural decisions individuals make to
succeed in entrepreneurship. These choices are crucial as they determine the course of action
taken in various aspects of starting and managing a business, such as career decisions, product
line selection, growth strategies, profit-making approaches, and social responsibility initiatives.
The choices made by entrepreneurs significantly impact their performance and outcomes.

For instance, consider the case of an engineer working in the public sector electrical industry.
Faced with challenges arising from bureaucratic inefficiencies in customer service, the engineer
found it difficult to reconcile this with his personal value system, which prioritized addressing
client needs promptly over bureaucratic paperwork. Consequently, he made the decision to
leave his job and establish a turbine repairing and refurbishing company.

Despite the higher costs associated with transportation and travel compared to turbine repair
and refurbishment, the engineer's decision resulted in reduced downtime for clients and
increased customer satisfaction. Over time, the company expanded its operations to include the
manufacturing of turbine parts and the commissioning of captive power plants on a turnkey
basis.

This example highlights how personal values and attitudes can drive entrepreneurial decisions
and ultimately contribute to business success. By aligning their actions with their values and
beliefs, entrepreneurs can establish businesses that not only meet market demands but also
reflect their principles and ethos. Such alignment often leads to superior performance and long-
term sustainability in entrepreneurship.

The concept of Need for Achievement (N-Ach) as a driver of economic and entrepreneurship
development was pioneered by McClelland, the Harvard professor known for his work on

42
competency-based approaches to human resource and entrepreneurship development.
McClelland's research aimed to understand why some countries are more economically
developed than others. He hypothesized that differences in the level of achievement motivation
could account for these disparities.

To investigate this hypothesis, McClelland analysed stories and readers from primary classes in
39 countries to determine whether they emphasized themes of personal accomplishment and
triumph over adversity. His research supported the idea that variations in achievement
motivation levels, as evidenced by the content of these stories, correlated with differences in
economic development levels among countries.

But how does achievement motivation drive economic development? McClelland observed that
entrepreneurship serves as the primary channel through which achievement motivation is
expressed and through which economic development is catalysed. Entrepreneurs, motivated by
a strong desire for achievement, are more inclined to take risks, pursue innovative ideas, and
overcome challenges in order to succeed in business ventures. In doing so, they create new
opportunities, generate wealth, and drive economic growth.

Furthermore, the relationship between entrepreneurship and economic development is

symbiotic. Entrepreneurs, through their innovative activities and job creation, contribute to
economic growth. Conversely, a thriving economy provides a conducive environment for
entrepreneurship to flourish by offering resources, infrastructure, market opportunities, and
supportive policies.

In summary, McClelland's research highlights the crucial role of achievement motivation in

spurring entrepreneurship, which in turn fuels economic development. This reciprocal
relationship underscores the importance of fostering a conducive environment that nurtures
and supports entrepreneurial endeavours as a means to promote overall economic growth and
prosperity.

43
Source- Google

Source- Google
44
Process of Establishing a Business

Roles and Responsibilities of the Entrepreneur within the Enterprise:

Identifying Market Opportunities

Acquiring Control over Limited Resources

Procuring Necessary Inputs

Promoting and Selling Products, and Adapting to Competitive Pressures

Governmental Affairs:

5. Engaging with Public Authorities for Approvals, Concessions, and Taxation Matters

Managing Internal Employee Relations

Cultivating Relationships with Customers and Suppliers

Management Oversight:

8. Supervising Financial Operations

Overseeing Production Processes

Technology:

10. Procuring and Supervising the Construction of Manufacturing Facilities

Implementing Industrial Engineering Techniques to Optimize Production Efficiency

Enhancing Production Processes and Product Quality

Introducing Innovative Production Methods and Product Offerings

45
Process of Establishing a Business:

Identification of Specific Product Offering:

Conducting an environmental scan to identify business opportunities.

Narrowing down to a specific product or service idea based on market research.

Compiling a country-product matrix to identify export potential and fast-growing import markets.

Ensuring the chosen product offering meets customer value expectations and creates a
competitive edge.

Feasibility Analysis:

Assessing technical feasibility, economic viability, and financial sustainability of the product
offering.

Ensuring compliance with environmental and legal regulations.

Deciding on the business structure (proprietary concern, partnership, company, cooperative

entity).

Compiling findings into a business plan for funding approval from institutions like the State
Finance Corporation.

Proceeding with project commissioning after securing funding, including setting up premises,
installing equipment, and sourcing materials.

Entrepreneurial Roles and Functions:

Continuing involvement in day-to-day operations, stability, and growth of the business.

Despite challenges, entrepreneurs drive forward with determination and resilience.

The Entrepreneurship Development Process:

46
Entrepreneurship is not spontaneous but evolves through dynamic interaction between
individuals and their environment.

Capitalist economies with favorable taxation, interest rates, and infrastructure foster
entrepreneurship.

Dedicated institutions and programs like Entrepreneurship Development Institutes and

Entrepreneurship Awareness Programs support entrepreneurship.

Societies that value individual freedom, encourage innovation, and celebrate entrepreneurial
achievements foster a sustainable supply of entrepreneurs.

The individual plays a crucial role in entrepreneurship development, as highlighted by the case of
Mr. Narayan Reddy, who possessed the desire and readiness to start a small-scale industry. His
qualifications, experience, values, attitudes, and motivation all contributed to his efficacy or
ability to pursue entrepreneurship successfully. This highlights the importance of both
willingness and ability in the entrepreneurial journey.

Entrepreneurial competencies encompass a wide range of knowledge, skills, and psychosocial

attributes that determine an individual's effectiveness in entrepreneurship. David McClelland
pioneered the competency approach to human resource development, emphasizing the
importance of competencies in predicting job performance. Competencies are not biased by
factors like race, gender, or socio-economic status, making them essential for understanding what
a person does rather than who they are.

Entrepreneurship Development Institute of India (EDI) has identified 15 competencies that

contribute to entrepreneurial performance and success. These competencies include initiative,
opportunity recognition, efficiency orientation, systematic planning, persistence, information
seeking, concern for quality, commitment, problem-solving, self-confidence, assertiveness,
persuasion, use of influence strategies, monitoring, and concern for employee welfare.

Each of these competencies plays a crucial role in entrepreneurial success. For instance, initiative
involves acting out of choice rather than compulsion, while opportunity recognition entails
having a mindset trained to identify business opportunities. Efficiency orientation emphasizes

47
conservation of time, money, and effort, while systematic planning involves breaking down
complex tasks and inferring about the whole.

Persistence is essential for maintaining a "never say die" attitude, while information seeking
involves consulting experts and staying open to ideas. Concern for quality ensures attention to
detail and adherence to established standards, while commitment involves taking personal
responsibility to complete tasks as scheduled. Problem-solving skills, self-confidence,
assertiveness, persuasion, and effective use of influence strategies are also critical for navigating
the challenges of entrepreneurship.

Monitoring progress and ensuring employee welfare further contribute to entrepreneurial success.
Overall, these competencies form the foundation upon which successful entrepreneurship is built,
highlighting the importance of continuous education and development in nurturing aspiring
entrepreneurs.

Each of these competencies plays a crucial role in entrepreneurial success. For instance, initiative
involves acting out of choice rather than compulsion, while opportunity recognition entails
having a mindset trained to identify business opportunities. Efficiency orientation emphasizes
conservation of time, money, and effort, while systematic planning involves breaking down
complex tasks and inferring about the whole.

Persistence is essential for maintaining a "never say die" attitude, while information seeking
involves consulting experts and staying open to ideas. Concern for quality ensures attention to
detail and adherence to established standards, while commitment involves taking personal
responsibility to complete tasks as scheduled. Problem-solving skills, self-confidence,
assertiveness, persuasion, and effective use of influence strategies are also critical for navigating
the challenges of entrepreneurship.

Monitoring progress and ensuring employee welfare further contribute to entrepreneurial success.
Overall, these competencies form the foundation upon which successful entrepreneurship is built,
highlighting the importance of continuous education and development in nurturing aspiring
entrepreneurs.
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3.5 Reasons behind limited start-ups in India:

The issue of failing start-ups has emerged as a significant challenge within India's start-up
ecosystem. Statistics reveal that a considerable number of entrepreneurs encounter failure in their
endeavors to establish successful businesses. After analyzing failed start-ups across the country, a
compilation of key reasons contributing to their downfall has been assembled. These factors
range from talent shortages to shifting market dynamics, presenting formidable obstacles for
entrepreneurs embarking on new ventures in the constantly evolving landscape.

One of the primary reasons behind failing business models is the failure to grasp the needs of
society adequately. Many successful business ideas originate from addressing societal needs.
However, due to the intense competition for academic success starting from high school,
individuals often become disconnected from societal demands. This divide between the
technology-driven lifestyles of millennials and the lack of awareness about societal needs
contributes significantly to the failure of business ventures. Experts attribute this lack of
understanding between people and society to various factors, including educational pressure,
among others.

Lack of fresh and Innovative Ideas:- In India, numerous startups are saturating nearly every niche
market, each striving to offer solutions to identical problems. In this competitive landscape,
entrepreneurs must demonstrate inventiveness and push the limits through innovation to
distinguish themselves. The intense drive to capture market share amidst competition often
exposes entrepreneurs to the risk of making errors, such as developing the wrong product.

Insufficient Availability of Experienced Individuals

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4.GENERAL ANALYSIS

PESTLE Analysis:

PESTLE analysis is a crucial business tool used to evaluate the overall macro-environment of a
business. PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental
factors. It forms a part of external analysis during market research, providing a comprehensive
overview of various macro-environmental factors that can impact business decisions.

Political Factors:

Political factors encompass the ways in which governments intervene in the operations of
enterprises. Government regulations are assessed for their ability to influence the business
environment and markets. Key issues in this domain include political stability, tax policies, trade
regulations, safety standards, labor laws, and business legislation.

Impact of Startups India Action Plan:

The action plans proposed by the government suggest that law enforcement agencies should
refrain from intervening in the operations of startups during their initial three years of
operation. However, after this initial period, companies are required to adhere to regulations.
For instance, startups are provided tax exemptions and allowed self-certifications for the first
three years.

Economic Factors:

Economic factors encompass aspects such as economic growth, interest rates, exchange rates,
and inflation rates. These factors significantly influence business operations and decision-making
processes.

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Impact of Startups India Action Plan:

The implementation of the Startups India Action Plan is expected to enhance the ease of doing
business, particularly for startups. This initiative is poised to boost entrepreneurship by
providing startups with access to a corpus fund at lower interest rates, thereby facilitating the
establishment of new businesses.

Social Factors:

Social factors significantly influence consumer behavior and purchasing patterns, thereby
impacting businesses. Trends in social factors, such as cultural preferences, lifestyle choices, and
demographic shifts, can shape the demand for products and services, as well as the operational
strategies of enterprises.

Impact of Startups India Action Plan:

The Startups India Action Plan is poised to transform consumer behavior by focusing on
innovative products and services driven by new technologies. This emphasis on innovation is
expected to reshape consumer preferences and drive demand for technologically advanced
offerings, thereby influencing buying patterns and market dynamics.

Technological Factors:

Technological factors encompass aspects such as research and development (R&D) activities,
automation, technology incentives, and the pace of technological advancements. These factors
can influence entry barriers, production efficiency, and outsourcing decisions in various
industries.

Impact of Startups India Action Plan:

While the Startups India Action Plan may not explicitly prioritize R&D activities, it is anticipated
to contribute significantly to technological advancements. The emphasis on innovation and the
adoption of new technologies, beyond traditional portals and mobile apps, is expected to drive
technological progress and foster a culture of innovation within the startup ecosystem.
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Legal Factors:

Legal factors include consumer protection laws, antitrust regulations, employment legislation,
and health and safety regulations. These factors can shape a company's operations, cost
structure, and market demand for its products and services.

Impact of Startups India Action Plan:

The Startups India Action Plan includes provisions such as exemptions from labor inspections for
the first three years, which are expected to enhance the business environment for startups. By
reducing regulatory burdens and compliance costs, the action plan aims to create a more
favorable legal framework for startup operations.

Environmental Factors:

Environmental factors encompass ecological and environmental considerations such as weather

patterns, climate change, and environmental regulations. These factors can have implications for
industries such as tourism, agriculture, and insurance.

Impact of Startups India Action Plan:

While the direct impact of the Startups India Action Plan on environmental factors may be
limited, its promotion of innovative and sustainable business practices could indirectly
contribute to environmental sustainability. By encouraging startups to adopt environmentally
friendly technologies and practices, the action plan may help mitigate environmental risks and
promote sustainable development in the long run.

Startups India Action Plan Impact:

While the announcements regarding the Startups India Action Plan do not specifically mention
mentoring, the fund allocated through the credit guarantee scheme is expected to provide
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coverage for any risks that may arise. This indirect support can offer startups a safety net and
mitigate some of the challenges they may face.

Challenges and Opportunities of Start-ups:

Indian startups encounter a unique set of challenges and opportunities, reflecting the country's
dynamic business landscape.

Challenges:

Culture:

Entrepreneurship and startups have emerged as a relatively recent phenomenon in India. Over
the past decade and a half, there has been a shift from a focus on job seeking to job creation.
However, the cultural perception of failure remains a significant challenge. In many cases, failure
is stigmatized rather than celebrated, which can hinder innovation and creativity. Embracing
failure as a learning opportunity is crucial for fostering a supportive ecosystem for startups.

Mentoring:

Starting a startup can be a daunting and solitary journey. While founders may have co-founders,
they may lack the necessary business expertise to navigate the challenges effectively. Access to
experienced mentors who can provide guidance and insights is essential for startup success.
However, formal mentoring mechanisms are lacking in India, making it challenging for startups
to access valuable mentorship opportunities.

Opportunities:

Despite these challenges, Indian startups also have significant opportunities for growth and
success:
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Innovation Ecosystem:

India boasts a vibrant innovation ecosystem, with a burgeoning startup culture fueled by
technological advancements and a growing pool of talent. The availability of skilled professionals
and access to cutting-edge technologies present opportunities for startups to develop innovative
solutions and disrupt traditional industries.

Market Potential:

India's vast and diverse market offers immense opportunities for startups to scale and expand
their operations. With a large population and increasing consumer spending, startups can tap
into various sectors such as e-commerce, fintech, healthcare, and agritech to address evolving
market needs.

Government Support:

The Indian government has introduced several initiatives and policies to support startups, such
as the Startups India Action Plan and financial incentives. These measures aim to create a
conducive environment for startup growth by providing funding, reducing regulatory burdens,
and fostering innovation.

Overall, while startups in India face challenges such as cultural barriers and the lack of formal
mentor

Mentoring:

Access to honest, unbiased, and experienced business mentors is crucial for startup success.
While startups that have secured funding may leverage their investors for mentoring to some
extent, finding quality mentors remains a significant challenge. Good mentors are scarce, and
startups often struggle to find suitable mentors, making it an uphill task.

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Policies:

The government plays a pivotal role as the primary enabler of the entrepreneurial ecosystem.
However, India's ranking in the World Bank Ease of Doing Business Index is relatively low,
indicating significant challenges in starting and operating businesses. Cumbersome regulations
and bureaucratic processes make it difficult for startups to comply, resulting in a prolonged
timeline for business setup. While the government has offered grants and loans, creating an
effective and supportive environment for startups requires comprehensive policy reforms. The
recently announced Start-up Fund in the budget is eagerly awaited to see how it addresses
these challenges and supports entrepreneurship for economic development.

Hiring:

In an uncertain economy, estimating demand and hiring skilled manpower pose significant
challenges for startups. India's massive skilling needs further exacerbate the difficulty in
attracting and retaining talented individuals. Startups often struggle to match the salaries
offered by larger corporations and face perceptions of job instability. As a result, startups
encounter hiring challenges and may have to compromise on talent acquisition.

Funding:

Access to capital remains a persistent challenge for startups. While angel investors, venture
capital, and private equity have provided some relief, many startups still struggle to secure
funding from institutional sources. Securing seed rounds, as well as Series A and B rounds,
continues to be challenging. The limited number of investors willing to write substantial checks
in India adds to the difficulty for startups seeking to scale their operations. Thus, raising
adequate funding for growth remains a significant hurdle for startups in India.

Opportunities:

Demographic Dividend:

India boasts the largest concentration of youth population globally, with 356 million individuals
aged 10-24. This demographic advantage presents immense opportunities for economic growth,

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driven by investments in education and healthcare. Youth are pivotal in fostering innovation,
driving demand, and shaping consumption patterns. For startups, harnessing the potential of
the youth workforce can fuel creativity and drive business expansion. Additionally, India's
youthful population serves as a talent pool for startups seeking skilled individuals.

Addressing Emerging Countries' Challenges:

India faces unique challenges in areas such as healthcare, education, infrastructure, and
sanitation. These challenges provide fertile ground for startups to innovate and develop
solutions tailored to the country's specific needs. Solutions originating from India can also be
adapted for similar challenges faced by emerging economies globally, offering startups the
opportunity to scale and make a global impact.

Large Population:

With over a billion people, India represents a vast domestic market for startups. Rising
disposable incomes and the aspirations of the growing middle class have spurred consumer
expenditure, driving demand for goods and services. Startups focusing on addressing pain points
or providing essential utilities in India's consumer market stand to thrive amidst the burgeoning
population.

High Mobile Penetration:

India's high mobile penetration, with a subscriber base nearing 100 crore, has transformed the
country's economy and business landscape. Increased mobile connectivity has led to greater
efficiency, productivity, and financial inclusion. Startups leveraging mobile technology, such as
developing mobile apps, can tap into this extensive market and cater to evolving consumer
needs. India's mobile revolution presents opportunities for startups to innovate and disrupt
traditional business models.

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In summary, India's demographic dividend, unique challenges, large population, and high mobile
penetration offer fertile ground for startups to thrive and contribute to economic growth. By
addressing local needs and leveraging technological advancements, startups can drive
innovation, create employment opportunities, and propel India towards becoming a knowledge
superpower.

De-globalization:

While critics may view de-globalization as a challenge, it also presents opportunities for certain
sectors. Developments such as Brexit and potential changes in corporate tax policies in the USA
indicate a shift towards localized economies. Initiatives like Make in India further reinforce this
trend by promoting domestic manufacturing. For Indian startups, this represents an opportunity
to thrive in a more closed economy, with the potential for reduced brain drain as companies
abroad seek talent from India. Additionally, as larger corporations scale down operations,
startups can step in to fill the void, offering innovative solutions and services.

Connectivity:

India's telecom industry boasts nearly 100 crore subscribers, with mobile connectivity
penetrating both rural and urban areas. The government's digital initiatives are set to further
enhance connectivity and data accessibility. The race for affordable data has begun, leading to
disruptions across industries. Cheaper data rates democratize access to information and
markets, providing startups with easier avenues to reach customers and disrupt traditional
business models. Overall, improved connectivity creates a conducive environment for startups
to innovate and expand their reach.

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 Source- Google

4.3 Challenges faced by Women Entrepreneur

Conflicts between Work and Domestic Commitments:

Women face significant challenges in balancing their entrepreneurial endeavors with their
domestic responsibilities. In both developed and developing nations, women often bear primary
responsibility for childcare, household management, and caring for older family members. This
can limit their ability to devote sufficient time and energy to their businesses. Married women
entrepreneurs, in particular, must navigate the delicate balance between their business ventures
and their household responsibilities.

Limited Access to Finance:

One of the major hurdles faced by women entrepreneurs is the lack of access to finance.
Women often do not possess property in their names, making it difficult for them to provide
collateral for obtaining funds from external sources such as banks. Additionally, financial
institutions may perceive women as less creditworthy compared to their male counterparts Lack
of Confidence in Women's Capability:

A significant barrier faced by women entrepreneurs is the lack of confidence from family
members and society regarding their ability to successfully run a business. This lack of belief in
women's capabilities can undermine their entrepreneurial aspirations and hinder their progress.

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Limited Family Support:

Many women encounter resistance and guilt from their families when they prioritize their
business pursuits over household duties. Cultural traditions and societal expectations may
discourage women from venturing into entrepreneurship and pursuing their business goals.

Restricted Mobility:

Women in India often face limited mobility compared to men due to various factors such as
safety concerns and societal norms. This restricted mobility can impede women's ability to travel
for business purposes and fully engage in entrepreneurial activities, particularly in smaller towns
where opportunities may be limited.

Male-Dominated Society:

The prevailing patriarchal norms and beliefs in Indian society pose significant barriers to the
empowerment of women in entrepreneurship. Gender stereotypes and biases create a
challenging environment for women entrepreneurs, hindering their efforts to achieve equal
status with men in economic activities.

Emphasis on Family Ties:

Indian women place great importance on family relationships and ties, which can sometimes
conflict with their entrepreneurial pursuits. Married women, in particular, must strike a delicate
balance between their business responsibilities and family obligations, and the level of family
support they receive can significantly impact their business success.

Role Conflict:

Entrepreneurship demands a high level of commitment and dedication, leading to stress and
strain for women entrepreneurs who must juggle multiple roles. Role overload and conflicts

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between business responsibilities and family duties can create additional challenges for women
in entrepreneurship.

Lack of Education:

A major barrier to women's entrepreneurial career is the lack of proper education. In India, a
significant portion of women is illiterate, which hampers their ability to acquire the necessary
knowledge and skills for business success. Lack of access to information and limited educational
opportunities further exacerbate the challenges faced by women in setting up and managing
businesses.

Discrimination in Childhood:

From a young age, girls are often taught to be passive and discouraged from pursuing ventures
outside the family sphere, including entrepreneurship. This early conditioning perpetuates
societal norms that undermine women's assertiveness and confidence in taking up
entrepreneurial roles.

Low Need for Success:

Women may prioritize familial roles and derive satisfaction from traditional roles such as being a
daughter, wife, or mother, rather than seeking individual achievement or independence. This
mindset can hinder their motivation to pursue entrepreneurship and strive for success outside
of conventional roles.

Low Risk-Bearing Ability:

Due to societal expectations and limited exposure to economic independence, women in India
may have a lower tolerance for risk compared to men. Their lack of education, financial
dependence, and cultural upbringing may contribute to a reluctance to take entrepreneurial
initiatives or venture into unfamiliar territories.

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Lack of Self-Confidence:

Women's self-confidence may be undermined by the socio-cultural environment, where

traditional gender roles often dictate submissive behaviour. Despite advancements, women may
still face doubts from family members about their capabilities and decision-making abilities,
further eroding their confidence in pursuing entrepreneurial endeavours.

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FINDINGS, SUGGESTIONS & CONCLUSIONS

.1 Findings:

Many businesses embark on their journey with a dream, but the path to success requires more
than mere aspirations. It demands resilience to overcome the myriad challenges that confront
start-ups today. Establishing and growing a business entails significant time, effort, and
dedication. A critical concern for start-ups and small businesses is securing funding, particularly
in the aftermath of economic downturns. The economic challenges have made it increasingly
difficult to persuade investors and financial institutions to provide the essential capital needed for
early-stage growth. Access to credit remains tight, with uncertainty looming over when it will
ease. Moreover, the landscape of investment has evolved, with investors now expecting
entrepreneurs to undertake extensive groundwork before presenting their ventures for funding.

5.2 Suggestions:

Proposed Solutions for Addressing Reasons for Failures:

Entrepreneurs should conduct comprehensive market research to ascertain the societal needs
before proceeding with product design.

Entrepreneurs ought to analyze their business ideas critically and explore unconventional
approaches. For instance, while the e-commerce sector is saturated, there is often overlooked
potential in logistics-based start-up concepts.

Start-ups should prioritize hiring individuals who share the same passion and commitment to the
success of the venture.

Entrepreneurs should engage with multiple venture capitalists to identify those who are aligned
with the goals and vision of the start-up.

Business processes should include regular meetings between the management team and technical
teams on a weekly basis to ensure smooth workflow.

Start-ups should establish policies regarding salaries, offering the same compensation to all team
members and providing incentives for performance-based work. This approach can aid in
managing funding more effectively.
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Entrepreneurs can enhance their soft skills by enrolling in personality development classes or
hiring experienced individuals for business communication roles.

Entrepreneurs should monitor the growing demand for their products closely, focusing on
response time and capacity planning.

It is crucial for entrepreneurs to stay informed about changing market dynamics, anticipating
declines in demand for their products and taking necessary steps to ensure the profitability of the
start-up.

To Overcome Obstacles for Women Entrepreneurs:

Addressing the barriers to women entrepreneurship requires a shift in societal attitudes and
mindsets, going beyond simply creating opportunities for women. Awareness programs should
aim to instill in women a sense of identity and their significant contributions to economic growth.
Educational curricula should be designed to impart practical knowledge about enterprise
management from an early age. Structured skill training programs can provide women
entrepreneurs with the necessary tools, motivation, and support to achieve their goals.
Government schemes and initiatives should also be implemented to provide further assistance
and opportunities for women entrepreneurs.

World Bank-sponsored programs can be implemented to support women entrepreneurs by

designing courses focused on profitability, marketability, and practical management skills. These
initiatives should also address the challenge of balancing family and work life, offering training
in Information Technology for computer illiterate women to leverage new technology and
automation.

Established entrepreneurs can play a crucial role by interacting with aspiring women
entrepreneurs, serving as advisors to boost their morale and confidence. Government support is
essential in providing infrastructure such as industrial plots and sheds to women entrepreneurs,
with measures in place to prevent misuse of these resources by men in their name.

Despite advancements, many women entrepreneurs still rely on male family members for
marketing activities due to a lack of skills and confidence. Women development corporations
should organize frequent exhibitions and set up marketing outlets to showcase products and
services made by women, empowering them to take charge of their marketing efforts.
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5.3 Conclusion:

Start-ups are the future growth engines of our country and government

should do all it can to foster the growth of entrepreneurship culture in India.

Already Facebook, Google and Yahoo have acquired start-ups based in

India and the likes of Flipkart, Inmobi, MuSigma show us that world class

companies can have origins in India also. It just needs a little push in right

direction.

Government initiatives like the $1.68bn funds for the ‘Make in India’ and

the new company law are a step-in right direction

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6.1 Article

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Mr. K, a chartered accountant with a passion for technology, embarked on a new
journey in the eLearning space with two technically savvy partners. Despite his
extensive industrial experience and prior success with three startups, his latest
venture faced challenges. The startup initially focused on developing a grand

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 product based on Platform as a Service (PaaS) technology, which took 30 months
to build, leading to additional costs. However, they realized the importance of
planning for a Minimum Viable Product (MVP) with a product roadmap.

One case study, Cheez-burger, led by entrepreneur Ben Huh, illustrates the
challenges and successes of startup ventures. Huh faced financial difficulties with
his previous venture, Raydium, during the dot-com crash, which led to the closure
of the company. Despite this setback, Huh eventually acquired I Can Has
Cheezburger and built a successful blog empire. His experience taught him
valuable lessons about managing finances and maintaining a balance between
personal and business life.

WEBLIOGRAPHY

 Sharifi, Omid, PhD Scholar, Aligarh University, Understanding the

financing challenges faced by start-ups in India-Research Paper.

 Study on Women Entrepreneurship in India

https://www.researchgate.net.

 Start-up India-https://en.wikipedia.org/wiki/Startup India.

 Economic Times Website-Challenges and Opportunities

 Case Studies-www.entrepreneur.com

BIBLIOGRAPHY

 Mascarenhas, Romeo S, Business Planning and Entrepreneurship

Management, Published by-Vipul Prakashan ,2017.

 Article-The Economic Times News Paper

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