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Problem Faced by Entrepreneur

1. Entrepreneurs face both internal and external problems. Internal problems include issues with planning, implementation, production, labor, marketing, and finance. External problems relate to infrastructure, financial capital, and government policies and regulations. 2. Only 5% of adults in India go on to establish their own business, one of the lowest rates in the world. The business discontinuation rate in India is also high at 26.4%. 3. Most consumer internet startups in India are not profitable and rely on discounts, with cumulative losses of over 19,200 crore rupees on revenues of 26,090 crore rupees for fiscal year 2017.

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428SHUBHASHEESH SAXENA
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633 views

Problem Faced by Entrepreneur

1. Entrepreneurs face both internal and external problems. Internal problems include issues with planning, implementation, production, labor, marketing, and finance. External problems relate to infrastructure, financial capital, and government policies and regulations. 2. Only 5% of adults in India go on to establish their own business, one of the lowest rates in the world. The business discontinuation rate in India is also high at 26.4%. 3. Most consumer internet startups in India are not profitable and rely on discounts, with cumulative losses of over 19,200 crore rupees on revenues of 26,090 crore rupees for fiscal year 2017.

Uploaded by

428SHUBHASHEESH SAXENA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Problems faced by Entrepreneurs

Problems faced by Entrepreneurs

• Internal Problems

• External Problems
Internal Problems
1. Planning
▪ Technical feasibility: Old tech. technical know-how
▪ Economic viability: BEP is too high, Choice of idea,
Faulty Planning Etc.

2. Implementation
Cost over-runs resulting from delays in getting licenses, sanctions,
inadequate mobilization of funds

3. Production
1.Production management 4. Marketing Management
2.Labor management 5. Administrative Management
3. Financial Management
Cont.
• Production: Poor quality, inappropriate product mix,
poor capacity utilisation, high wastage, poor
inventory, Product defect etc. (Maruti, Car recall)
• Labour: Wage structure, strikes, labour productivity,
excess labour, training, labour relation (Tesla giving
pink slips)
• Marketing: Defective pricing policy, wrong product
choice(Blue Pepsi)
• Finance: Costing, funds, debt/equity ratio, dividend,
credit sales
• Administrative: Centralisation, overall coordination
(Metro project)
External Problems
1. Infrastructural
Location, Electricity, Water, Communication,
Transportation, Availability of raw material etc.

2. Financial
Capital, Working Capital, Long Term Funds, Credit
Recovery, Taxation, Inspections, Government
policy, Admin hurdles, Technology etc.
Capacity building for Entrepreneurship
• Create the right environment for success
• Ensure that the entrepreneurs have access to the
right skills- (Entrepreneurial skills and Functional
skills)
• Ensure that entrepreneurs have access to “smart”
capital.
• Enable networking and exchange
Despite cutting costs, Consumer internet
start-ups struggle to turn profitable-
Mint 2018

• Analysis of 43 consumer internet firms’ results


shows cumulative losses of more than Rs
19,200 crore on revenues of Rs26,090 crore
for fiscal 2017
• The financials of the 43 start-ups reveal that
the consumer internet economy is still on
shaky ground and confirm the fact that most
start-ups still rely heavily on discounts to drive
sales.
Only 5% of Adult Indians establish their
own businesses, finds report

• Only 11% of adult population in India is engaged in


‘early-stage entrepreneurial activities’, and only 5% of the
country’s people go on to establish their own business, a
survey has found.
• This rate is among the lowest in the world, while the
business discontinuation rate in India is among the highest
at 26.4%, the report says. The survey was conducted among
3,400 respondents aged between 18 and 64 years to assess
the level of entrepreneurial activity.
• Among the BRICS (Brazil, Russia, India, China and South
Africa) economies, Brazil has the highest rate of established
business ownership (17%) and South Africa has the lowest
(3%). China has a slightly higher rate of 8%, while it is 5% in
both Russia and India, the report says.

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