Barriers to small business creations in India

Abstract

This paper seeks to extend the studies of Hatala (2005) and Choo and Wong (2006) related to the barriers to new venture creations. In addition, this paper seeks to extend the study of Dana (2000) related to creating entrepreneurs in India. Individuals from India were surveyed to find out the barriers to small business creations. This study utilised survey research (a non-experimental field study design). Findings indicate that lack of capital, lack of skills, perception on capital losses, lack of confidence, and compliance costs create barriers to start-up a new small business in India. This paper offers useful insights for the Indian Government and investment advisors based on empirical evidence.

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