Title: Barriers to small business creations in India

Authors: Amarjit Gill, Nahum Biger, Vivek Nagpal

Addresses: College of Business Administration, TUI University, 5665 Plaza Drive, CA, 90630, USA. ' Academic Center Carmel, Shaar Palmer 4, Haifa, 33031, Israel. ' Technical Support Group (NLMA), MHRD Directorate of Adult Education Government of India, 10 Jam Nagar House, New Delhi – 110011, 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.

Keywords: small business; lack of capital; lack of skills; capital losses; lack of confidence; compliant costs; entrepreneurship; India; skills shortage; small firms; new ventures; start-up barriers; start-ups; entrepreneurial finance.

DOI: 10.1504/IJESB.2011.041835

International Journal of Entrepreneurship and Small Business, 2011 Vol.13 No.4, pp.395 - 410

Available online: 07 Aug 2011 *

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