Page 15 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes and threats to their business, government policies, developments in international economic
scene, technological changes, etc. Institutions have to be established to keep the
entrepreneurs informed about all these matters of their interest and also to enable them to
present their problems before the authorities in the government.
5. Financial: The needs for fixed and working capital should be adequately needed; if the
new enterprises are to serve and grow. The lack of financial resources deters potential
entrepreneurs to start new ventures. The problems become more acute in the capital short
developing countries where the business and industry how to put up with underdeveloped
capital market. The governments, in these countries should see that the capital market is
developed with newer and innovative capital market instruments and strong financial
institutions.

6. Procedural: The bureaucratic procedure of government offices, industries departments
and financial institutions is a great hindrance to the growth of new enterprises. The
entrepreneurs have to run to different jobs; and complete a number of offices in government
for different jobs; and complete a number of formalities prescribe) by several laws, rules
and regulations. It would be better for the potential and existing entrepreneur, if the
number of procedural and legal restrictions of the entrepreneurs is reduced and an
administrative mechanism is developed to look after all the needs and requirement the
entrepreneurs.
7. Communicational: The information gap pushes many entrepreneurial ventures towards
extinction. Unless an entrepreneur known about the market potentials, competition in the
market, technological and other developments, the entrepreneurs is not likely to succeed
in the venture. The government departments, organizations of entrepreneurs, financial
institutions and business consultants have a role to play in this regard. It is very important
for an entrepreneur to succeed.
8. Information technology and communication: Modern technology such as Information
Technology has entered every walk of human life. Faster mode of communication through
email, networking, web technologies have revolutionized the industrial scene with the
fast and up to date information at different levels of management, the management processes
also have gone considerable changes in decision making and implementation.
9. Rapid Changes: IT and communication revolution, the networking within the industry
and outside the industry has increased many fold. The exchange of information and
availability of resources is bringing changes in the industry faster than ever before in the
history.
10. Large size: There is considerable increase in automation and introduction of computerized
production and process controls in industries. The demand for the goods and the
geographical reach is bringing large size industries as well as services. The size gets
advantage of economies of scale in manufacturing marketing.
11. R&D Technology: Companies today are investing lots of money in R&D activities to
develop new products and new processes to compete in the global market.

12. Stakeholders: The stakeholders of today are more knowledgeable and get up to date
information about the industry developments as well as the progress of particular industries
were interested. Thus there is awareness by the stakeholder, which gives him closer
involvement than ever before.
13. Globalization: Now business operates in an open environment, as there is no geographical
boundaries exist. So competition has become very intense. To survive in today’s market
company has to be very competitive in terms of quality, price and delivery.

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