The immense opportunity presented by the large number of consumers in India has led to 2100 – 2500 enterprises being started in India per day and between 750-800 getting out of business or becoming dormant, as per a survey conducted by the India SME Forum and researched by SDRC India Advisors.
The survey has further revealed that challenges faced by all startups, micro, small and medium entrepreneurs, whether it is financial, sectoral, geographical or managerial are often quite common and so are the solutions that emerge from them. Most of the successful entrepreneurs either work hard at finding and applying solutions or are mentored either by a member of the family or one among their immediate friends and family circles.
A common link between the high death rate of small and medium enterprises in India, are the first generation entrepreneurs, who do not have adequate mentorship, access to industry or market best practices and are working in closed set ups, without access to successful entrepreneurs.
These first generation entrepreneurs have a tough time in not only navigating business downturns, but also in enabling sustainable growth of their enterprise, leading to shutting down their enterprises. Unfortunately, most successful entrepreneurs too work in closed set ups, without sharing or divulging much about their business strategies and the hurdles faced; while taking the success curve. Discussions on setbacks and ways to circumvent them are often discouraged, in turn, discouraging assimilation and amplification of best business practices in the industry.
The India SME Forum has been at the forefront of demanding a radical change in the way business is perceived and is committed to a paradigm shift in the Indian mindset, towards the next generation of entrepreneurs and the entire MSME sector, India’s Second largest Employment provider.