Barriers to entrepreneurship:
Below are the points discussed for the barriers of entrepreneurship
1. Environmental barriers:
Raw material: Non-availability of raw materials required for production during the peak season. This leads to an increase in the price of raw materials due to competition.
1. Shortage of skilled labor
2. Lack of committed and loyal employees.
3. Quality and quantity of labor.
Machinery: Machines are necessary but they are also expensive and due to top change in technology they become obsolete and require replacement which requires cash in hand. It becomes very difficult for the small business organization to keep its production process updated.
Land and buildings: The acquisition of land and construction of a building at a prominent place requires huge expenditure. If the land is rented, it becomes a fixed cost and a constant concern for the entrepreneur.
Infrastructure support: Adequacy of electricity, proper road, water and drainage facilities, etc. Development authorities have little support due to red-tapism and corruption.
2. Financial constraints:
The availability of funds is a major concern. Delay in starting or running business results in a delay in the source of finance.
3. Personal barrier:
These are due to the emotional block of a person. They cause a mental blockage. They are: –
Lack of confidence: They feel that they will never get a successful business idea and will be unable to attract the necessary resources. Therefore, they reject the idea of being self-employed.
Lack of dependence on others: The entrepreneur’s aim is to gain their additional expertise through trial and error and experience rather than seeking further development or personal help from others.
Motivation: Loss interest and lack of motivation when thoughts do not work.
Lack of patience: When entrepreneurs faced with business challenges/problems in the first attempt, the desire to achieve success or to become rich immediately, in which they lose interest. They give up during the initial loss
Inability to dream: Sometimes entrepreneurs are short of vision or satisfied with what they have achieved till now and lose interest in further expansion of their business enterprise.
4. Society barrier:
1. Socio-cultural norms and values.
2. The degree of approval or disapproval of entrepreneurial behavior.
3. Financial stability and family background
4. Caste and religious affiliation
5. Political barrier:
1. Government incentives and concessions.
2. Facilitating socio-economic settings
3. Interest in the economic development of society.
Entrepreneurship Scope in India:
Individuals are choosing entrepreneurship as a career for reasons like –
1. The desire to control one’s future.
2. Higher profits.
3. Lack of employment opportunity.
4. Government measures to promote entrepreneurship.
Entrepreneurship provides people with a source of employment and earnings. This helps to reduce the monopoly of the rich businessman and achieve balanced regional growth and growth in the economy. To identify the entrepreneurial potential, the Government of India is running a development program and the entrepreneur is being provided with assistance from financial and non-financial institutions. Entrepreneurship training institutes have been set up and financial and operational support is being provided to young entrepreneurs in India.
Also read: Concept of entrepreneurship , Types of entrepreneur , Process of entrepreneurship , Need of entrepreneurship , Control process , Types of control , Control techniques , Theory of motivation