Impediments in the growth of entrepreneurs in India

Abstract

The Indian government defines a micro-entrepreneur as a business with an investment of less than one crore Rupees and a turnover below five crore Rupees. The Ministry of Micro, small and medium enterprises is responsible for the micro-entrepreneur in our country and have various schemes targeted towards their support and growth. Uttar Pradesh has the most significant number of MSMEs in our country, with West Bengal and Tamil Nadu in second and third place. India, a nation of shopkeepers, sees only 12 percent of its retail trade in an organized or modern format. The major chunk is supported by retailers, small & marginal traders, and Kirana store owners. Their contribution is much more significant in the food and grocery business where 95% of the business is handled by the traditional retailers. An omnipresent part of the Indian retail landscape, Kirana stores hold a strategically crucial place in the Indian retail sector, contributing almost 11 percent to the Indian GDP and employing around 8 percent of the total workforce. Distributed all over the country, this informal segment of roughly 13 million Kirana stores is under pressure to adapt to the changing market dynamics. With the changes in customers’ needs and preferences like a move towards buying online or from large supermarkets, Kirana stores are consistently losing their customer base. Amidst these changing customer preferences and increasing competition, Kirana stores need to reinvent themselves in order to serve the neighbourhood and subsequently grow.