As Assessment of Business Environment & New Vistas for Entrepreneures in India

The Indian Economy is in a stage of flux. The statistical growth figures produced by the Government, tries to project that everything is hunky-dory. India’s GDP growth is likely to be above 8 percent, its non-urban (Semi-urban & rural) areas are expected to grow at a faster pace than urban areas, expenditure (public & private) on health, education, and infrastructure is rising. If these trends continue forward in unhindered manner, most likely outcome shall be reduction in poverty, rise in productivity & consumption; and a likely kick-off of a “virtuous growth cycle”. Naturally, quite a few foreign Investors are taking note of this and are weighing various options for entering the country.

 The challenges India faces are also tremendous, such as high fiscal deficit (for central as well as state government), high current account deficit, High level of corruption which is now showing even at policy formulating level (i.e. Central Cabinet Ministers; although it always existed at operational level) and thus a rise of Political risk & stability. This being so because in a democracy like India, a change of guard/political change, which debunks policies of past government with popular public support, can never be ruled out. This may lead to policy changes that are to the detriment of existing business units. The Judiciary though independent, is so pathetically slow in delivery of justice that it may not be considered reliable option for businesses to rely on to protect their commercial interests. High inflation and price volatility, endemic poverty levels, poor education & unruly labour etc. are some other causes of anxiety for business persons to tackle. Overall poor level of infrastructure such as Power supply, water resource management; Transportation, environmental protection etc. are among some other areas of concern. These challenges are nerve-wrecking for Investors. Now Corporate India, in its vigour to attain first mover advantage, is trying to overturn all rulebooks (of course with tacit approval from people in power; politicians and bureaucrats) and is venturing into areas hitherto a domain Medium, Small and Tiny entrepreneurs. It is in this backdrop that this paper tries to analyze new opportunities that are emerging for Medium, Small and Tiny entrepreneurs.

To read further, click on the link:

http://www.scribd.com/doc/57115930/An-Assessment-of-Business-Environment-New-Vistas-for-Small-Medium-Tiny-Entrepreneurs-in-India-Yr-2011