Entrepreneurs are generally by demand, by opportunity, by chance, or by compulsion.
By demand means when the person has reached a social status and position to bring out new innovative ideas in the community or the market.
By opportunity is when a person has a full proof plan and he gets to meet a VC to fund him.
By chance is when a person meets an incident and leads him to thinking of a new change.
By compulsion is when a person turns out to be an entrepreneur for earning his daily bread.
Believe me or not, entrepreneurs by compulsion excels far better than the other types, only succeeded by entrepreneurs by opportunity.
In newspapers, almost daily I see articles that some people made it big from scratch to earn their daily bread. And these fit into this final category mostly in my country, whereas a country is supposed to be rich in its development and culture by the amount of innovative ideas for sustainable growth it has.
In the case of India, the natural haven for the entrepreneurship is badly missing here. And that makes us largely a entrepreneur by compulsion. And even then there are a lot of challenges faced.
The issues and challenges are:
- Opportunity meeting Demand – Many people have ideas that may seem weird to the peers. But it might be a great business plan which fails to recognize the potential of the idea.
- Limited amount of seed funding – The VC culture is not so predominant in this country.
- Exit Challenges for the start-up company– Low levels of exit by boy-outs or mergers or acquisitions are missing badly in the scene.
- Very little access to the risk Capital– many people have ideas, but do not know where and how to start the concept to a full-fledged business design.
- Traditional Mindset of the people who are always in their comfort zones of bread winning in a traditional way.
- Social Stigma Attached to the risk taking venture. Basically we are risk averse, not risk taking.
- Tax Benefits Missing to encourage entrepreneurship at the grass root level.
- Failure of private banks to ward off debts for a failed scenario.
- Absence of the breeding ground of institutions to teach natural proclivity to entrepreneurship. Although ISB and IIT B has entrepreneurship cells, this is just a small part.
- Absence of business acumen in functional aspects to target market gap and demand as the functional specifications are missing badly in the individual running the company.
To encourage entrepreneurship at the grass route level, this challenges has to be met.