Why is it Difficult to Start a Small Business in India?
The Indian economy is claimed as a fast growing economy, every huge multinational company is ready to establish its business in India. Government has liberalized the laws, rules and conditions for MNC companies to establish any business in India.
But on the other hand, many small Indian business owners have to face difficult situations. Many laws have changed in favor of small business enterprises, but far behind other countries.
There are many obstacles through which the small business can be started through the approval of Central Government, State Government and Local Body Sanction etc. All of them have their own rules and regulations.
There are several complex laws to follow labor, PAF, factory work etc.
Below are some key challenges that an entrepreneur faces facing a small business in India:
1. Land Acquisition:
In order to start any business, we need the land, the place of establishment of the firm. To get it, much effort and investment is necessary. It takes a lot of time to get clearance; There are so many titles to be cleaned. Documentation is too taking too long.
2. Obtaining the Construction Permit:
Once the land has been acquired, it takes a lot of time to get permission for construction. To pass the building plan by local authorities, sometimes you have to deal with unwanted practices, without which your It is very difficult to take the plan to the next level.
3. Receiving Electricity:
You can not imagine the world without electricity. It is equally important for any business in the world. In many states, the shortage of power is the biggest reduction.
Getting approval for new power connections becomes very difficult to get a long process to get the power supply to be followed. Sometimes you have a lot of difficulty in getting a power connection where there is a shortage of power in the state. Similar things should be followed to get water, drainage etc.
The main difficulty for starting a business is the labor problem. It is very difficult to fulfill new laws like food, safety and standards. Labor laws are such that they can not compromise on it.
There are many small business groups that have either closed down for labor troubles. Micro and small enterprises are afraid of any new investment and new recruitment.
A small business person needs financing to run smoothly, they find it difficult to get credit from banks or any other financial institutions. Even if they find, then they have to pay a higher rate of interest.
6. Skilled workers:
Building effective labor force is another challenge: An entrepreneur faces to start his business. India is the big country in the world, but difficulty is the skill power of the people is very bad. It is difficult to create skilled labor force for fast and quality production.
7. Survive in Competition:
With the growth of multinationals companies coming to India, a small business is tough to compete with them because they have not huge money power due to lack of poor sales, many small companies have closed down.
Small business person finds it very difficult to find solutions to any problem related to labor, government formalities, tax formalities etc. They can not hire a special person for this work.
Business is about building good relationships and trust is a very important factor for effective communication that you should consider during dealing with customers and colleagues. For any small entrepreneur is important for this knowledge of the local language.
There are 14 major languages and English as a widely accepted language in metro cities. Local language knowledge is essential for effective communication and coordination. Through which you can create a trustworthy environment between workers, management and customers.
If you want to start a business in India then you have a lot of money, great patience and courage to deal with any situation.
It was thought that establishing a small business in India is difficult, as a business owner, there is a great feeling for any entrepreneur-minded person. Nothing is difficult for a self-motivated person.
This article is not for demotivating you to start a business. There are many success stories that started with small businesses and are now a huge business empire.
Every business is a challenge in its own way. Therefore, if you have decided to start a business, then do not retreat, then carefully consider this article and start planning your business. Wish you a great success in business.