Challenges and Opportunities of Small Business Management and Start-Ups in India.
Potluri, R.M., Lee, J.W., Khan, S.R., & Vali, S.M. (2012). Challenges and Opportunities of Small Business Management and Start-Ups in India. Journal of Distribution Science, Vol.10, No.7, pp.5-11.
7 Pages Posted: 27 Dec 2017
Date Written: July 30, 2012
The core objective of this research article is to investigate different challenges and opportunities in management as well as start-ups of small businesses in India. The prudence behind this research is to examine various problems in front of the small businesses and to offer vital support and cooperation to overcome those with the support of concerned institutions through consultancy and training programs. The researchers have an intention to make available the research results to the governmental agencies, concerned small business institutions and also to the educational institutions which are continually design plans, programs, policies and strategies to upgrade the managerial and technical dexterities of the small business Indian operators. After thorough revision of relevant literature on small businesses and its management, the researchers used a well structured questionnaire and in-depth personal interviews with 586 small business operators selected from manufacturing, trading (retailing and wholesaling), finance, servicing/repair businesses which are located in the coastal districts of Andhra Pradesh in India. The researchers have used convenience sampling and collected data was analyzed with the support of Microsoft Excel and frequency distribution. Noticeably, majority of the small businessmen in India are facing myriad number of challenges both in management and at the time of establishment of their business operations. In particular, 72.47 percent of small businesses operators’ have substantiated their strong opinion towards the challenges they are facing particularly finance, marketing and other problems while managing their businesses. The researchers also attempted to get the opinions on problems of the various categories of small businesses while starting their operations. A staggering 68percent of respondents identified the problems related to preparation of business plan, location selection, marketing and other problems like lack of proper credit facilities, skilled manpower, and other infra related problems while setting up of their businesses. On an average, 64.62 and 63.51 percent of small businesses are facing various kinds of problems both at the time of day-to-day management as well as start-up of their businesses respectively. The present research confined with the opinions of only four categories of small business operators articularly from the manufacturing, finance, trading (retailing and wholesaling), and servicing/repair which are continuing their business operations from the nine coastal districts of Andhra Pradesh in India.
Keywords: Small Businesses, Industrial Policy Resolutions, Manufacturing Sector, Trading, Finance, Service Sector, Andhra Pradesh, India
JEL Classification: L25, L26, L50, L51
Suggested Citation: Suggested Citation