Unit IV - Problems of Indian Entrepreneurs

Unit IV
Problems of Indian Entrepreneurs

Responsibilities and Accountabilities of Entrepreneurs

A. Responsibilities and Accountabilities to the Employees
1) Pay Wages and Taxes:- Entrepreneurs have the responsibility to pay their
employees of their business at least the minimum hourly wage in their
locality and to pay each employee money owed from working per pay
period, including overtime, sick leave, and vacation wages. Paychecks should
always be on time and without delay so the workers can meet individual
financial obligations. The government also requires entrepreneurs to pay
Phil Health, Social Security, taxes out of employee wages for each
employee working their business.
2) Create and Maintain a Safe Workplace:- The government requires
businesses to create and maintain a safe working environment for their
employees as per standards. Entrepreneurs must also make employees
aware of areas in their business that have a high risk for injury and train
their employees in safety procedures to minimize the risk of injury.
Continual inspection of their facilities and employee knowledge of safety
standards is necessary to make certain their workplace remains as safe as
possible.
3) Facilitate Workers’ Compensation Insurance:- Despite business owners’ best
efforts to maintain a safe working environment, accidents will happen.
When injuries occur through no fault of their employees, it’s their
responsibility to file a claim with their workers’ compensation insurance
provider. This coverage provides for medical care and wage replacement for
their injured employee. Businesses must treat their injured employee with

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respect and file the claim without attempting to cause a delay in

processing or attempt to defer the worker from filing a claim at all. This
is illegal and can cost the business hefty fines and possible jail time if the
entrepreneur refuses to honor their commitment and requirements as a
business owner.
4) Enforce Anti-Discrimination Law:- It is illegal to discriminate against
anyone according to their culture. This means not only race, religion, and
country, but also age, gender, sexual preference, disability, a way of life
and beliefs. “EEO” stands for “Equal Employment Opportunity”, which
means that employees cannot be disadvantaged, dismissed, or not given
employment for any of these reasons. It is the employer’s responsibility
to ensure that all staff is trained and aware of their obligations under
anti-discrimination laws.
5) Create and Maintain a Favorable Working Environment:- As an
entrepreneur and employer, you should try to provide a healthy working
environment, which respects each person and their opinion is considered.
Listen to all your collaborators and worry about their welfare. Remember
that they are working for your company exists and is profitable and that
as better feel, the better they will do their job.
6) Respect Human Rights:- Business operations are interrelated with a wide
range of peoples and societies throughout the world, and implements and
enforces a code of conduct that fosters respect for human rights.
7) Support Career Development:- Human resources development system that
supports the careers of employees, a self-development support program,
and transfer opportunities for willing employees. 8.
8) Train and Educate Employees:- Promoting knowledge is important in
changing the business environment. Acquisition of new knowledge and skills
through the professional and personal development of employees is a
prerequisite and a guarantee of business success. .

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9) Manage Performance:- "What gets measured gets done" is an expression

you will often hear when talking about performance management and the
simple meaning behind this statement is the key to our philosophy of
rewarding and managing performance. We want all our employees to have
clearly defined goals, which they defined themselves with their managers,
on the basis of business goals, through three main performance areas
profit, process, and people.
10) Give Rewards and Benefits:- We reward our employees fairly and
attractively, in line with the prevailing conditions on the local market. We
gather data from the labor market on a regular basis, ensuring that our
reward structures remain competitive. Our reward system is well
structured and transparent in its application. It:
• Allocates appropriate people to appropriate job positions
• Set requirements and standards, outcomes and measures
• Provides effective orientation, education, and training
• Provides ongoing coaching and feedback
• Designs a foundation for effective systems that reward people for their
contributions
• Provides promotional/career development opportunities for employees

B. Responsibilities and Accountabilities to the Government

In any country, the government tries to preserve the community and improve
its conditions. In that respect, the business has to extend its cooperation to
the government. If the business discharges its responsibilities the government
sincerely and effectively, the government can function more efficiently.

1) Observe Laws, Rules, and Regulations:- A number of legislative are

formed from time to time by the government for proper regulation

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and control of the business. Businessmen should comply with all

legal requirements, execute government contracts, pay taxes
honestly and in time, make services of executives available for
government, suggest measures and send proposals to enact new laws
for the business.
2) Pay Taxes:- Businesses must pay taxes and fees to the government
in the course of carrying out their operations. These can include
taxes on revenues, tariffs on imported products, and a number of
administrative fees necessary to register the business. Withholding
these payments, particularly taxes, is considered a crime.
3) Follow Environmental Regulations:- Many companies, particularly
those in the industrial and manufacturing sectors, face heavy
regulations regarding the number and variety of pollutants that
they are allowed to emit. Some companies, feeling a "social
responsibility" toward the common good, may seek to limit their
pollution more than the law requires.
4) Abide by Labor Laws:- Businesses that hire employees must abide
by a slew of laws relating to how they treat their employees. These
include laws related to how much an employee can be paid, how
many hours he may work, and the criteria under which he can be
hired and fired.
5) Avoid Restrictive Trade Practices:- Companies are forbidden from
engaging in certain kinds of restrictive trade practices that limit
competition. For example, most companies may not develop
monopolies within a particular sector or provide substantial barriers
for new companies to compete with them. Restrictive trade
practices of this kind can often reduce the quality of products
available to consumers and drive up prices.

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6) Disclose Financial Statements:- Companies must disclose a number of

financial statements to the government in the form of tax returns,
and, if the company makes ownership of shares of stock commonly
available, to the public as well. This financial transparency helps to
ensure that the company is not violating any laws, such as
withholding taxes and to aid the public in deciding whether to invest
in the company.
7) Avoid Corruption:- The commercial organization should not take any
type of favor from government officials by bribing or influencing
them.
8) Assist in Implementing Socio-Economic Policies:- The government
expects co-operation and help from the business sector to help in
implementing programs and policies relating to social and economic
development.
9) Help Earn Foreign Exchange:- The government also expects from a
business organization that it will earn foreign currency by exporting
goods in the foreign market. The government requires this foreign
currency for importing valuable and important products.
10) Advise the Government:- The business organization has to
provide timely advice to the government in respect of framing
important policies such as Industrial policy, Import & Export policy,
Licensing policy, etc.
11) Contribute to Government Treasury:- The commercial organization
must contribute the funds to the government during emergencies
and natural calamities like floods, earthquakes, etc.
12) Contribute to Political Stability:- The commercial
organizations should work towards the political stability of the
country. The stable government often brings more return and peace
in a democratic country.

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C. Responsibilities and Accountabilities to the Creditors

1) Give Correct Information:- Shareholders who are the owners of the

business should be provided with correct information about the company
to enable them to decide about further investments.
2) Provide Fair Return on Investment:- The company should provide a fair
return on the investment made by shareholders. If shareholders do not get
the proper dividend, then they will hesitate to invest additional funds.
Shareholders should be kept fully informed about the working of the
company for healthy growth of the business. The Companies Act 1956 also
requires the company to give full disclosure in the published statements.
3) Strengthen Share Prices:- The company should strengthen the share
prices by its growth, innovation, and diversification. At the same time,
shareholders should also offer wholehearted support and co-operation to
the company to protect their own interests.

D. Responsibilities and Accountabilities to the Suppliers

In strict business structure, the suppliers are primarily responsible for providing
or delivering the raw materials and resources that a company needs in the
production. Suppliers indirectly affect marketing and business aspects such as
product quality, price, and production of goods. Good quality raw materials also
mean quality-made final products and fair market price. Availability of supplies
determines production workload and quantity.

1) Practice Fair Pricing and Licensing:- Companies must seek fairness and
truthfulness in all dealings with suppliers especially pricing and licensing.
2) Avoid Coercion and Litigation:- Companies should make certain that any
business transaction with suppliers must be free from any form of coercion
and unnecessary litigation.

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3) Maintain Stability:- Firms must promote long-term stability in their

relationship with the suppliers to pay back the good value, quality, and
reliability they gained.
4) Maintain Confidentiality:- Dealing with suppliers properly means sharing
information with them and making them part of the planning processes.
They must keep their clients and purchasers abreast of any new
information on new technology and latest raw materials. Confidentiality
must be strictly practiced. This means no unnecessary disclosure of
information shared by the company and its activities.
5) Pay on Time:- One of the best ways to deal with suppliers is to be
responsible for making timely payments according to the agreed terms and
conditions of the trade.
6) Select Suppliers with discernment:- A business that aims at succeeding
must have a good discernment in selecting suppliers. There are three
fundamental requirements every company must need from their suppliers:
legal compliance, quality control, and environmental conservation.

E. Responsibilities and Accountabilities to the Consumers

A business cannot work without the consumer. The survival and growth of a
business depend on consumer satisfaction, service, and support. The commercial
organization should win the confidence of the customers. This is possible by
following a positive attitude towards customers and fulfilling following social
responsibilities towards them.

1) Ensure Quality of Products and Services:- Your responsibility is to offer

customers the highest quality in your products and services provide the
best care and never lie to get a sale. A good entrepreneur is honest and
gives a good price/ benefit. Never use marketing to deceive or sell false
expectations. Quality goods should be produced and supplied. Distribution

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system should make goods easily available "to avoid artificial scarcities and
after-sales service should be prompt. Buying capacity and consumer
preferences should be taken into consideration while deciding the
manufacturing policies.
2) Ensure Consumer’s Health and Safety:- A key consumer issue is the
quality and safety of products. Customers need clear instructions for safe
product use, including assembly and maintenance. To avoid customer harm
and danger, anticipate potential risks of your product and services in the
design stage and throughout the product lifecycle, from R & D to
manufacturing, storage, and distribution, use and disposal, reuse and
recycling. Whether or not legal safety regulations exist, products should be
safe for their intended use and if mi used in a way that can be foreseen.
3) Provide Free Training:- The commercial organization should arrange to train
the customers either free or for a fee. It must be in the case of
computers, etc.
4) Be Fair with Prices:- The customers should not be cheated by charging
high prices. It is not possible to fool the customer at all the time. Thus,
fair price converts a customer into a permanent customer.
5) Be Honest in Advertising and Marketing:- The customers want to know
the facts, features, advantages, side-effects, etc. of the product. The
advertisement conveys this information. Thus, the company must see that
the advertisement is not being misleading and it must be done by
providing the true and actual information.
6) Be Honest in Dealings:- Never lie to your customers. It is foolish to cook
false stories. You will be caught. In today's world, where information is
just a click away, everyone does his/her thorough research before
purchasing something. Unnecessarily you will lose your respect in front of
them. If you can't deliver something, please mention it clearly. They might
not invest in that particular product but believe me, would definitely

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come back to you in near future just because you were honest, and guided
them correctly. It is pointless to badmouth your competitors.
7) Attend to Complaints:- The consumer complaints must be attended
immediately. When major issues occur, employ a system for making quick
and accurate decisions on steps and measures to take while placing top
priority on not inconveniencing the customers.
8) Service Even After Sales:- The company is expected to provide after sale
service for maintenance of goods during the period of warranty. Efficient
and effective after sale service helps to establish a good relationship
between the customers and the company.
9) Respect Customers’ Time:- Respect your customer's time. Do not decide
the time and venue as per your availability and comfort. If the customer
wants to meet you at 6 in the evening, make sure you are there on
time. Neither arrives too early nor too late. Do not keep your customers
waiting. Do not forget that there are several options available in the
market. Your loss is someone else's gain.
10) Treat Customers well:- Treat your customers as kings and do not
think of them only when you have a pressure to meet your targets within
the stipulated time frame. Understand that a customer buys your
products or services only when he/she trusts your brand and most
importantly believes in you. Understand the needs and requirements of
your clients. Find out as to why they need a particular product and how
your product would benefit them. You need to build a strong relationship
with your customers for them not only to remain your loyal clients but
also bring more people along with them. It is the responsibility of the
organization to give correct suggestions and feedbacks to customers. Avoid
making fake promises and commitments which you yourself know are
difficult to fulfill.

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F. Responsibilities and Accountabilities to the General Public

To maintain a positive public image and attract new clients, a company must
understand its corporate responsibilities to the public. Ultimately, any business
that encounters the public has responsibilities.

1) Be Fiscally Responsible:- One of the actions that prompted failure

of companies such as Enron and Adelphia occurred when executives
gave themselves loans using company funds, according to RR
Donnelley. While it can be disappointing to consumers that
companies need legislation to be fiscally responsible, it would be
naive to allow company executives to keep raiding corporate bank
accounts for their own needs. When a company is caught up in a
scandal caused by executive greed, it can be fiscally fatal for that
company. That is why a company needs to enact and enforce
guidelines of its own that agree with the law but also apply
specifically to the company, to avoid misuse of company funds.
There is a bond of trust between a consumer and a company that is
broken when fiscal fraud occurs. This goes for public or private
companies.
2) Consider Public Input:- A company should be able to operate under
its own rules and ideals, but a company should also take into
account the input of its customers to remain competitive, according
to the World Bank Institute's report titled "Public Policy for
Corporate Social Responsibility." A company should reach out to its
customers and benefit from the insight of what customers are
looking for in product improvements. A company that creates an
advisory board of a cross-section of its target audience gathers
recommendations on how to keep in touch with the customer base
and how to improve the company's public image. It is the

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responsibility of the company to remain accountable to its

customers; otherwise, the company will lose its customers and cease
to exist.
3) Take Care of the Community:- A company exists because of the
customers it serves and the community in which it is located. The
community provides most of the employees for the company, and
the community provides all the public services the company enjoys,
such as electricity and firefighting protection. In some cases,
companies are given breaks on their utilities and taxes in order to
entice them to establish a location within the community. The
company has a responsibility to give back to the community that
supports it with tax breaks and a labor force. When there is a
community event, the company should contribute volunteers,
money, or something that would support the event. The company
should use local suppliers as much as it can to help support local
businesses.

G. Responsibilities and Accountabilities to the Environment

1) Comply with Environmental Legislation:- There is a range of environment

rules your business may have to follow: Comply with legislation regarding
emissions into the air.
• Store waste safely and securely, make sure it is treated appropriately,
ensure it is collected by an authorized organization and complete a waste
transfer note or consignment note when waste is handed over.
• Manage your business waste for recycling by separating paper, card,
plastic, metals, and glass prior to collection.
• Join an approved compliance scheme if you handle more than 50 tons of
packaging. • Make sure that you comply with restrictions on the storage
and use the hazardous substances.

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2) Dispose Waste Properly:- Appropriate steps should be taken to prevent

environmental pollution and to preserve ecological balance. The industrial
waste should be disposed of carefully or if possible can be recycled to
minimize pollution. The toxic wastes, excessive noise, chemical pesticides,
automobile exhaust etc. need to be checked from time to time.
3) Recycle:- Businesses are required to separate the following forms of
commercial waste for recycling: paper, card, plastic, metals, and glass. If
your business processes prepare or distribute food and produce over 50kg
of food waste per week, you are required to separate food waste. It is
illegal to dispose of food waste directly or indirectly into a public drain or
sewer.
4) Conserve and Protect Biodiversity:- Biodiversity refers to all species of
plants and animals, including any genetic variations within those species,
and the complex ecosystems they live in. The world is losing b10diversity
at an ever-increasing rate as a result of human activity. All types of
business operating near protected areas should be aware of their
responsibilities for conservation and protect biodiversity. This doesn't just
apply to land-based industries such as forestry or farming, but to all
offices, factories and other business activities based on or near these
areas.

Challenges Before Indian Entrepreneurs

1. Challenge of globalization

A few years back the Indian entrepreneurs had to fight regional and
national competition. However, today, the scenario has changed and become
much more complex than what it was earlier. Now, almost all countries have

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opened up their economies, and the world (globe) has become one giant global
market.

To survive this competitive era of globalization, Indian entrepreneurs must

prepare themselves with new, better, and innovative business tactics and skills.
They must accept this global challenge willingly and try their best to seek
business opportunities to establish their dominant place in this ever-changing and
always challenging open market.

In this global competitive scenario, the Indian entrepreneurs have to

compete with well-established giant foreign companies. For example, if they
decide to start a beverage company, their competitors are likely to be large
multinational corporations such as Coca-Cola and Pepsi.

2. Liberalization in India, 1991

Liberalization is a process of giving liberty or freedom to someone to do

something, which was previously restricted, banned or prohibited.

In context of this article, liberalization means removing all restrictions

imposed on the entry and growth in trade or business.

The Government of India (GOI) started the process of liberalization in

India in year 1991. With its initiation, private entrepreneurs were granted
liberty (freedom) to start any business in any open domain (unreserved sector)
of choice. However, this openness came with few exceptions that were strictly
restricted only for Indian government to operate and manage, this included
Railways, Water Supply, Defence, and other reserved public sectors.

India's liberalization of 1991 opened a gift-box of many new business

opportunities for entrepreneurs. Now, the challenge before Indian entrepreneurs
is how to take optimum advantage of these business opportunities in India.

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The Ambani family that handles Reliance Group of Industries took full
advantage of liberalization in India. Other entrepreneurs must also analyse their
footsteps and try to follow them by making their own individual ways in a wise
manner. Again this is not an easy task to accomplish, rising cut-throat
competition has made it much more difficult for both Indian and foreign
companies.

However, Indian entrepreneurs can beat this enormous competition by

focusing more on selling high-quality yet unique goods and services at lowest
prices feasible.

3. Adapting a modern technology

With each passing day, Science and Technology are developing rapidly.
Modern technology not only improves quality of produced goods and services, but
it also helps to reduce their cost of production. It speeds up their process of
production. High-quality commodities, lower cost of production, and faster
production rate makes any company a highly competitive one. Therefore, it
becomes mandatory for every company to keep pace with new emerging
technologies and adapt it regularly to remain as cutthroat as possible.

So, it is always better to replace outdated technology with the new

technology. Old machines must be replaced by modern machines. This is a big
challenge before an Indian entrepreneur. If he has a financial problem, then he
must try to maintain a good balance between old and new technology. He also
has a challenge to train his staff well to make them able to use (handle) the
modern machines and technology properly.

4. Changing workforce in India

In the recent decade, the workforce in India has undergone a remarkable

change. Statistics indicate the dominance of men in the workforce is shrinking

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day-by-day. A new breed (generation) of highly educated Indian women has

entered the workforce in India. Breaking all traditional and social barriers, they
have established themselves as efficient employees and professional managers.
Today, it is very common to see a lady professional working in a corporate
office. This presence of women in the workforce has brought new challenges
before Indian entrepreneurs.

To handle women's workforce-related challenges efficiently, Indian

entrepreneurs must know and follow all the special Labour Laws for women.
They must provide women staff with better working conditions, safe
environment, and other essential facilities. Special care must be taken to see to
it that they are treated with dignity and respect. Their grievances or
complaints, if any, regarding physical or mental harassment must be addressed
immediately and seek prompt actions. Working women experience more stress
than their male counterparts. It is so since they perform dual duties on a day-
to-day basis. Along with managing their professional jobs they also have to look
after their children, family and domestic chores. This overall increase their
personal responsibilities and causes them both mental and physical stress.

Along with handling women in the workforce, Indian entrepreneurs also

face a great challenge to tackle young-generation in the workforce. Today,
managers hired by most companies are young, energetic and ambitious graduates
that have big dreams to accomplish. These managers are eager to work hard but
expect a good reward in return, which is satisfactory to their monetary, physical
and psychological needs. These restless youngsters must be continuously
motivated by keeping them engage in challenging tasks and interesting work
assignments, providing attractive salaries, incentives, perks or employee benefits,
etc. If not, they will resign and leave the company and then join the
competitors. Loyalty is not a big factor now-a-days as it was a few years ago.

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The Indian entrepreneur has to face this challenge by training and

developing these young minds and motivating them continuously.

5. Marketing is a big challenge

Today, companies have formulated many new techniques to market their

products and services. High pressure salesmanship is used. Children are often
targeted in the many advertisements. It is so since kids compel their parents to
buy products they are lured by. Advertising is done to propagate marketing
message and this is done through various media like television, newspapers,
magazines, the internet, radio, cell phones, hoardings, etc. Advertising is now
become an inseparable part of modern marketing.

Marketing is a big challenge before every Indian entrepreneur. He has to

select an efficient and experienced marketing team. He must train and develop
this team into a result-oriented one. He must motivate his marketing team
with high salaries, attractive incentives and good commissions.

Indian entrepreneur must try his level best to satisfy needs and
expectations of his customers. He must use marketing research and produce his
product by taking into consideration the consumers likes and preferences. He
must sell high-quality goods at lower prices. He must also provide after-sale
services. In short, he must make his business a consumer-oriented and service-
oriented one. He must always give his customers full value for their money. If
not, they will lose trust in his brand and go to the competitors.

6. Managing the finance of business

Finance is the life blood of a business. It can either make a business or

break it. Under-capitalization and Over-capitalization are very harmful to the
business. Managing the finance of his business is a big challenge for an Indian
Entrepreneur. He must manage both Fixed and Working capital properly. He

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must borrow money from the right source. He must manage his Cash Flow
properly. He must invest his excess funds correctly. He must create sufficient
Reserves and surpluses. He must provide enough depreciation for his fixed assets,
so that he can replace them when they become old and outdated. He must
provide for repairs and maintenance of machines. He must also take steps to
provide for but avoid bad debts.

7. Challenges in the field of production

The Indian entrepreneurs have to face many challenges in the field of

production. They must replace all outdated plants and machineries with new
modern ones. They must provide continuous training to their production staff.
They must use good quality raw-materials to produce high quality finished goods.
They must have a good Inventory Control system. This will avoid Over-stocking
and Under-stocking. Over-stocking will block the working capital, and Under-
stocking will block the production process. Indian entrepreneurs should use a part
of their profits for Research and Development (R & D). They must pay special
attention to Quality Control (QC). Now-a-days most companies also use Total
Quality Management (TQM) to ensure their finished goods are of good quality.

8. Balancing economic and social Objectives

This is also a big challenge before Indian entrepreneurs. They must balance
between earning high profit and doing social-welfare activities. They must use
modern machines without causing unemployment and harm to the environment.
They must earn a profit without reducing quality of their goods and services.
They must earn a profit without charging high prices for their products. They
must not cause any type of pollution in the society. They must accept their
communal responsibilities and donate a small part of their profit (money) for
social causes. They must pay all their taxes and duties. They must not use
unfair and unethical practices to fight cutthroat competition.

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PROBLEMS FACED BY ENTREPRENEURS

1. Financing

Getting funds for your business is one of the main issues that all
businesses face and have to tackle to survive. While you might have saved initial
money to start a business, it won’t help you survive for long. Steady cash flow
is crucial for businesses to endure, and you always need to have extra funds to
take care of rainy days.

You need to ensure you have a well-prepared business strategy ahead of

time, which consists of funds set aside for the worst-case scenario. Remember,
when you are new in business, you will certainly have restricted accessibility of
funds, and also hence you have much less room for error.

2. Lack of Planning

It’s impressive the number of start-ups fails since they “failed to

remember” to do the planning. Or perhaps they did strategize, yet they did not
cover all the bases. Key locations like sales, development, and funding aren’t
afterthoughts. They need to all belong to your business plan right from the
start. Not just that, however, you require to prepare for the important things
you cannot prepare for, also. That is, even if you cannot plan for every
possibility, you require to recognize what you’re most likely to do when (not if)
events take an unforeseen turn.

3. Hiring the right talent

Particular abilities are important not just for your business to endure but
for the expansion. Recognizing the specific abilities you require– as well as
exactly how to obtain those crucial individuals aboard– could be the identifying
consider just how well your start-up grows. Hold-ups in discovering the best

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employees are expensive. For a small group, the employment procedure consumes
important time that could be invested in various other locations of business, yet
on the other hand, not having the right people can produce extreme bottlenecks
and also delay the rollout of new products or services. This is one of the issues
that no start-up can afford, particularly in the early days.

4. Effective marketing within a limited budget

Some start-ups assume they can ignore marketing strategies entirely and
hope that word of mouth will be sufficient. Being a start-up, it’s essential to
create visibility among your consumers. Effective marketing techniques within a
limited budget should be made to reach your target audiences. Yet it’s an
incorrect expectation to place your confidence in clients finding you unless you
make a collective initiative to grow them with a properly structured strategy to
promote your start-up.

5. Self-doubt and uncertainty

For first-time entrepreneurs, dealing with the uncertainties of the venture

can be a tough task. The entrepreneurs can often feel ultimately responsible for
the success or failure of their venture. There are also many detours and
deviations from the initial plan. All of this can take a toll on the entrepreneur.
The VUCA environment that most new businesses operate in should be accepted
as the reality and the changes accepted without much resistance. Entrepreneurs
should remain calm and true to their vision.

6. Dealing with criticism

When you are an entrepreneur, criticism comes as a part and parcel of the
job. Every decision of the entrepreneur can be met with criticism by the team,
partners, investors, customers, and even their family. Even established
entrepreneurs such as Ratan Tata must deal with this. The key in accepting

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criticism is to separate the waste from the truly helpful feedback that can
prove valuable. Once you have evaluated the criticism for its validity, you can
even ask to follow-up questions that can help you understand the criticism
better. You may even be appreciated for this or find some useful insight.

7. Attractive Customers

Getting customers for your product or service can be the difference

between success and failure for a business. Many businesses have started with
powerful ideas however could not survive simply because they failed to reach the
right customers. There are several ways of reaching the right customers, however
social media and SEO have proven to be useful tools for most. The entrepreneur
should invest time in understanding the customer expectations and if needed
leverage their network to reach the customers.

8. Making Decisions

Decision-making in a business situation can be daunting, especially when

there are so many things riding on each decision. Entrepreneurs can face a
dilemma while making a decision, especially when they have limited information.
Entrepreneurs must also guard themselves against getting overly involved in
decision-making and causing a delay which may delay the progress. They can
delegate the smaller decisions to their team of experts and ask them to come
up with alternatives before evaluating options and finally deciding.

9. Time Management

Even the best entrepreneurs struggle to manage their time properly. As

they take up roles out of their expertise, they can find it challenging to get
things done. The challenges often pop up when the entrepreneurs have to deal
with conflicting priorities and must let go of their perfectionist streak to move
the business process along. Plotting goals and making schedules can be a lifesaver

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 Unit IV - Problems of Indian Entrepreneurs

here. All that they need to do is ensure that their smaller goals tie up with
the larger goals and your business vision.

10. Office Infrastructure

Your workplace rent and associated costs are the first things that you
should look at when you start thinking of cutting costs, especially when starting
a new business. Moving to shared coworking space in Noida, Gurgaon and South
Delhi will save you approximately 32% on average in rent compared to
commercial office space. Coworking spaces allow business owners and start-ups to
operate in a fully-equipped workplace without worrying about setting up their
own private workplaces. One significant benefit of coworking is that it is the
best method to operate in a workplace with minimal financial investment. By
operating in a coworking space, you can run your business with fewer expenses as
contrasted to setting up a new workplace.

Launching a new company can be invigorating. Nonetheless, getting caught

up in the exhilaration as well as overlooking the details can cause failure. Since
we have shared a few of the common problems, we would certainly like to find
out about your start-up journey. Has your start-up encountered any specific
challenging obstacles? How did you manage them? Let us know in the comments
below. If you are venturing into the world of entrepreneurship, then start with
a coworking space in South Delhi, Noida, and Gurgaon near your residence at an
affordable price. A place with exciting people will enhance your connections, keep
you motivated, and will improve your social circle as well.

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