SMALL BUSINESS OPPORTUNITIES & PROBLEMS

Business And Entrepreneurship form an integral part of a healthy national economy. In recent year various factors such as the impact of liberalization, Globalization, Privatization & specialization in industry etc. The valuable contributions of such small businesses are widely recognized by all sectors of society at state and local level. Enterprises have their own set of problems which are faced by them. Previously such problems were not considered seriously, but govt. of India is keen on Providing solution to such problems through various departments.

Problems Of Small Business In India

Small Businesses are constantly faced with problems before they can claim success. The micro, small and medium enterprises face problems at every stage of their operation, Whether it is buying of raw materials, Manufacture of products, Marketing of goods or raising of finance.

Problems Of Small Business In India

   

  

Obsolescence of technology being used Managerial Problems Finance Related Problems Problems related to quality of Raw Material or product Problems related to Human Resources Problems Related to Marketing & Competition Other Problems

Obsolescence of technology being used

As far as sourcing technology is concerned, small businesses face the following three crucial problems:  Obtaining information about technology is the first important Issue.  The information is obtained but there are barriers to import of technology and other problems relating to technology.  Acquiring finance for technology up gradation is the another problem.

Managerial Problems
Few initiatives have been undertaken by the government are as following:
 

Management Training programmes National Institute For Micro, small and medium Enterprises ( NI-MSME) NINational Institute For Entrepreneurship and small Business Development ( NIESBUD)

Finance Related Problems

For Finance Related Problems Government has undertaken several measures:
 

Priority sector lending Small Industries Development Bank of India (SIDBI) State Financial Corporation (SFCs) Credit Guarantee Cover Fund Scheme

 

Infrastructure related problems



  

Inadequate infrastructural facilities create the problems of shortage of basic raw materials, especially those which are scarce and need to be imported from distant places. Incomplete construction or non- existence of basic nonroads/highways. Lack of proper airways and waterways facilities also restrict the growth of medium/small scale firms. Small and medium scale enterprises face shortage of power supply, due to which they are unable to make full utilization of plant capacity. Some entrepreneurs are located in rural areas or remote areas of country, due to which it is difficult to communicate with people outside the region.

Problems related to Marketing & Competition



Small and medium entrepreneurs face tough competition from the product and sales/marketing strategies of large scale business entrepreneurs. Most of the entrepreneurs do not have their own marketing network. Small and medium entrepreneurs also lack the resources and funds needed for effective sales promotion. Entrepreneurs also have to sell their products at throwaway prices due to their weak bargaining power( especially in dealing with big buyers) and urgent needs of funds.

Opportunities for small businesses in India



 

Business opportunity in India: In India business opportunity is huge in every sector. Indias engineers, scientists, technicians, managers and skilled manpower are among the best in world. Increased purchasing power & consumerism drives the business scenario in India. The polices are made as per investor requirement. More mergers and acquisition to build brand value of individual companies. The capital markets in India are one of the fastest growing markets in the world, attracting huge investment

Few of the Indias Rapidly Growing Sectors



Indian Retail Industry: It is the largest, among Industry: all the industries, accounting for over 10% of the countrys GDP and around 8% of the employment. Indian retail is expected to grow 25% annually. Hospitality Industry In India: India is a destination for hotel chains. India ranks 18th in travel and tourism. Hospitality industry in india is set to grow at 15% a year.

Few of the Indias Rapidly Growing Sectors Indian Pharmaceutical Industry: This industry is estimated to be growing at about 8% to 9 % annually. Pharmaceutical industry in India meets around 70% of countrys demand for bulk drugs, chemicals, tablets, capsules and injectibles. Indian Automobile industry: It holds 10th position in the world. 2nd position in two wheelers and 4th position in commercial vehicles. Two wheelers having a maximum market share of more than 75%.