LAST WEEK WE ASKED: Do you think entrepreneurs in India will be more successful if government provides them financial support?
Every entrepreneur needs a cushion of expertise and finance to ensure convertibility of ideas into products. As such, the government's strategy to encourage entrepreneurs must be two pronged. By helping out potential entrepreneurs with regard to finance, it is taking a huge responsibility which needs to be backed by proper expertise. At each stage of conversion, expertise is required to cut down costs, improve, market and ensuring success of the product which would ensure success of the entrepreneur. The government would be well advised to extend professional expertise with a financial safety net.
- Subhadra Nair, Rajagiri Public School, Cochin.
The government's fiscal and monetary policy has great impact on an entrepreneur's growth. As government's financial support pumps in money in the economy. it will have a multiplier effect. This is because the entrepreneur will be more successful and would look to grow his/her business within the country, thereby retaining the returns here and benefiting the domestic economy.
- Jimit Parikh, St. Kabir Institute of Professional Studies, Ahmedabad.
Government can help entrepreneurs by making such policies by which taking loans will be easy for them. However, there are still other problems that persist for entrepreneurs including lack of resources, infrastructure, legal support, and technical environment. If, however, the government provides these things to the entrepreneurs, the latter will be able to freely come up with ideas which will be beneficial not only for them but also for the country.
- Sumit Kanojia, St. Kabir Institute of Professional Studies, Ahmedabad.
For business to flourish, four things are essential – land, labor, capital and entrepreneurship. Entrepreneurs help provide employment in the economy where a major area of concern today is finance. With laborers demanding a high wage rate, prices of real estate increasing by the day, and interest rates high, it is getting difficult for entrepreneurs to finance investments in their business. The government must come in and help their cause by providing finance at nominal rates, but not free, after all its tax payers money and free lunches make people more dependent on them.
- Nikhil Goenka, Institute for Financial Management & Research, Chennai.
There goes a saying that money begets money. This means, a large amount of money is capable of drawing even more bigger amount. Though considering the fact that the risk involved is big, it also stands true that "no risk, no gain". While financial institutions provide a great help to entrepreneurs, an additional support from government in form of loans or flexible tax regime is always welcome.
- Shivam Chhabra, Integral University, Lucknow.
The most daunting task which an entrepreneur faces when starting a business is raising up capital. It takes a huge amount of creativity, energy and experience to locate funds, be it venture capitalist, angel investors, loans from banks, or through networking. These challenges are formidable for entrepreneurs who are young and involved with their first formal business venture or just out of school with limited work experience. So it will be a welcome move if government provides entrepreneurs with financial support for their start ups.
- Nilaya Mitash Shanker, Shri Ram Swaroop Memorial College of Engineering And Management (SRMCEM), Lucknow.
Entrepreneur is the person who initiates change by taking risk and also providing opportunities to others. Global economy has witnessed illustrative work of 'Indian entrepreneurs'. As the world walks towards the path of change, finance become a big hurdle for entrepreneurs in developing countries like India which results in killing the opportunity. To appreciate entrepreneurs, government can provide easy loan solutions and other financial helps like giving tax benefits or lower interest rate.
- Prashant Kachhela, St. Kabir Institute of Professional Studies, Ahmedabad.
Financial support, more likely during the inception of a business, makes the entrepreneur continue with their start-ups even in austere conditions. Therefore, government assistance in the shape of small start-up capital can result in a number of successful start-ups in future, which may be unperturbed by initial roadblocks. Entrepreneurship encourages research and innovation, which is an added incentive for the government to provide financial support to them.
- Akshay Chadha, NSIT, Delhi.
Post liberalisation period saw a tremendous growth in Indian economy and a large part of it is attributed to the entrepreneurs of the generation. But still the main hurdle in implementing a well marketable idea into a fully fledged business is the lack of capital. If government takes an initiative and provides financial support to the budding businessman it will not only help the economy but reduce unemployment. With more rural entrepreneurs it will increase the standard of living and per capita income and will reduce migration to cities thus providing a wholesome growth to the country.
- Rajeev Upadhyay, NITIE, Mumbai.
The initial phase for any startup is the most difficult and majority of them succumb to financial failures. But the government on their side will ensure a smooth transition of entrepreneurial ventures from their cocoon shell to a mature firm ready to survive by itself. Since entrepreneurship has the potential to bring about positive socio-economic changes, a favorable environment will breed more innovative ideas and a better society.
- Rahul Gautam, IIIT, Delhi.
Financial support is not the only thing for success of any person, but in case of entrepreneurs it is the initial requirement to start a new business. It has been found that more the financial support is given
more is the burden on government for it being a bad one. Though analysing the whole business plan and feasibility report, it may fail due to some reasons and thus causes NPA for banks or government institutions.
- Nirav N Choksi, SV Institute of Management, Kadi.
The major reason for slowdown is the ongoing rise in the monetary rates, devaluation of Indian rupee and inflation, which hampered the potential loan taking capacity of Indian entrepreneurs and the cost of day to day operations increases significantly. Entrepreneurs are the backbone of a industry and in order to strengthen it, there should be a relaxation in the monetary policy and a increase in govt expenditure to boost the industry, so that fiscal deficit can reduce significantly.
- Harsh Mehta, St. Kabir Institute of Professional Studies, Ahmedabad.
To promote frameworks of new innovation, quality assurance and training it is very necessary that the government must provide adequate operational and financial support. Not just through finance, but the involvement of government can be in a form of seminars, workshops, conferences and training programs and other trade promotional activities to create awareness and providing information to new and existing entrepreneurs in effectively managing and growing their business.
- Nandish Agarwal, Galgotias College of Engineering and Technology, Greater Noida.
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THIS WEEK'S QUESTION: Do you think the economic slowdown might result in lower number of start-ups this year?