Financing Difficulty for Indian Entrepreneurs

Today, India seems poised for phenomenal growth and this could be just fine.
observed at the beginning of the new millennium. India is becoming a priority destination for different foreign investors and venture capitalists. India’s current knowledge-based economy is considered fertile ground for future entrepreneurs. As a result, Indian companies are now adapting the
global competitive environment. But previously, this was not the case; most of the early entrepreneurs had to face obstacles in the way of their success due to
various reasons such as inadequate opportunities, shortage of capital, lack of technology and many other factors.

India is a conservative nation and most of the people prefer a regular monthly payment.
instead of embarking on any commercial venture on his own. In India, people do
They have innovative ideas, but translating these ideas into commercial ventures carries many risks that are difficult for them to address. This has led to a set
cautious mindset among upcoming entrepreneurs. Even if an individual decides to start a business, he does not get the right motivation, financial backing and the right sources of funding. The most common difficulties faced by Indian businessmen are the lack of availability of good credit schemes and the complexities of acquiring long or short term loans. Also Indian banks show a lack of interest in business projects and hinder the processing of funding requests. These limitations put an entrepreneur at a disadvantage in starting any kind of business venture.

The reasons behind the funding difficulties compounded by the communication gap
between venture capitalists or financial agencies and entrepreneurs. The absence of good credit schemes as well as inadequate presentation skills also contribute to the
financing difficulties faced by Indian entrepreneurs. Many banks also do not offer
long-term loans for start-up units. Most of the time, investors and finance companies do not fully understand the concepts newly introduced by entrepreneurs. It would be useful for funding agencies and venture capitalists to keep abreast of newly developed technologies and their potential profitable uses.

However, financing difficulties can be resolved through different business practices. The important aspect for entrepreneurship is the attitude to make the entrepreneur-investor partnership based on mutual trust. In this, one partner possesses the innovative idea and skills required to implement a venture, while the other partner has the capital required for execution. This type of partnership can contribute to the ultimate success of a company. Finance companies, funding agencies and banks must develop certain processes to assess the viability of any new business venture and, based on this, they must facilitate loans for good proposals. These investors, financing agencies and banks should also try to introduce credit schemes that are favorable to entrepreneurs and add to the economic development of the country.