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International Journal of Business and Management Studies

Yıl 2010 , Cilt 2 , Sayı 1

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Factors affecting new venture creation: a study in the indian scenario

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Panjab University1
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The paper aims to verify, a) whether entrepreneurship in India is confined to the traditional business communities only; b) to identify factors which serve as major obstacles in the way of entrepreneurs in a third world country such as India; c) and to establish whether entrepreneurs hailing from business and non-business communities (castes) face similar problems. The data have been obtained from a total of eighty entrepreneurs from the northern regions of India. They suggest that although the business castes still dominate the entrepreneurship scene, yet there is an emerging trend of more and more non-business community participation in this sphere. Also, in comparison with the economic environmental factors, the psychological and socio-cultural factors have a relatively lesser role to play in determining the degree of success in the setting up of a new enterprise. Of the various dimensions of the industrial economic environment, state regulation and lack of training and guidance facilities pose the major problems to the debutante entrepreneurs, while the general economic conditions of the society and the inadequacy of infrastructural facilities are not so significant.

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