INDIA'S MICRO & SMALL ENTREPRENEURS: A DISTRESSED LOT. THEY SELF-EXPLOIT

INDIA’S ENTREPRENEURIAL spirit is evident in its vast network of over 72 million enterprises.

- Vikas Singh

Behind the impressive number of micro-entrepreneurs lies a stark and grim reality: economic desperation and self-exploitation. This surge in microenterprises also reflects a systemic failure to create sufficient quality jobs.

The dearth of formal sector jobs often forces many individuals into entrepreneurship, not as a preferred or a strategic choice but as a distressed one. They are forced into self-employment as a means of survival. These entrepreneurs often work long hours under precarious conditions, earning barely enough to subsist.

While micro, small and medium enterprises (MSMEs) in countries like the United States and China play a pivotal role in driving economic growth, Indian MSMEs particularly the small and micro-entrepreneurs, struggle to achieve their full potential.

The Burden of Being Small.A Huge Cost: Entrepreneurs, face significant social and economic costs when they remain small. These costs, coupled with vulnerability to shocks, hinder MSME productivity, which is often only a third of its potential. This leaves them susceptible to exploitation and financial hardship.

India’s entrepreneurial landscape faces significant challenges and is marred by a hostile business environment. The complex bureaucratic maze is unsurmountable, excessive regulations and a culture of red tape stifle innovation and growth. As businesses expand, they encounter a barrage of compliance requirements, audits, and potential corruption, discouraging most from scaling up.