Having struggled with on and off jobs for some time, I was struck with an idea of starting my own online business.
Opportunities for budding entrepreneurship in India has been limited. Although the government has started several initiatives including Micro Units Development and Refinance Agency Bank (Mudra Bank), Skills India and Make In India, it’s not easy for everyone to start a business. There are various hurdles which come in the form of licenses, permits and approvals from local civic bodies, state and central government departments.
Red-Tapism And Approvals
Despite the much-hyped ease of doing business and single window clearance by the BJP Government, the would-be entrepreneurs are forced to overcome insurmountable bureaucratic hurdles while cutting through the red-tape in every government department.
Raising Funds
Even if you come from a rich family background with lakhs to fund your business or someone with a chunk of savings, big organisations like venture capital and angel investors can be extremely tough to get, considering how they filter people based on your degree from an IIT and an IIM. Additionally, wanna-be entrepreneurs have to submit numerous documents including approval from local bodies simply to get a bank account.
We don’t have that many role models either.
Most Indian entrepreneurs try opening small businesses based on successful models abroad, particularly in the US, and rarely do they succeed. We don’t have many examples to look up to other than Paytm, Redbus or Bigbasket.
Logistics Hassles
India is far behind in logistics connectivity. It starts with the slow delivery of your products to far away locations due to non-reliable transport service. Additionally, the GST has made it too complicated to sell products outside the state.
GST Complications
The government says that you don’t need GST unless you are not crossing 40 Lakh turnover, but the government also says you need one to sell online, and to sell across India which contradicts the former.
Power Disruptions
Many places in India still continue to face power disruptions and low voltage. Electricity is required for computers and other office equipment. Further, one can’t keep depending on inverters and power backups all the time.
Renting An Office
The worst part is that renting a place for setting up office costs a chunk. The co-working places like We Work patronize big startups or the ones with VC money flowing in. You rarely find a place there or support, especially if you are struggling to set up a business.
In short, many youngsters move abroad to Canada and Australia to start a business, which they struggle to put together in India. Even today, India is perhaps not the best place to do business. The ones who like to argue otherwise should know that you can register a business in Canada in less than 3 hours, and in the US in 2 hours. I suppose only God knows how long it takes in India!