Page 101 - Design Thinking C11

• Startups and small businesses differ in their
approach to financial investment. Startups
generally turn to angel investors or venture
capital firms for capital, whereas small businesses
typically use loans and grants. A significant
number of Indian startups have obtained funding
from global investors.

• Startups are built on innovative ideas. At the
same time, they prefer to receive advice and
mentoring from an expert. Most company
founders join numerous groups on a local and
worldwide scale to receive ongoing help from
experienced mentors and investors. The Government of India's flagship initiative, ‘Startup India,’ aims to
create an ecosystem for the growth of startup businesses.

• The Indian states have developed startup policies. If they meet the criteria, new businesses
in India can benefit from regulatory and tax perks, capital gain exemption, and access to
government funding under this scheme. (For more information on Startups, visit (http://www.
startupindia.gov.in/).

Barriers to Entrepreneurship
Entrepreneurs confront numerous obstacles on their journey to success. There are several barriers that can
prohibit one from pursuing one's passion for entrepreneurship, whether it is lack of education or lack of
financing. Here are few of the most prevalent barriers.

Environmental Barriers
Environmental factors are one of the most significant roadblocks for businesses. There might be a variety of
environmental influences. The following are the most common ones:

Inadequate resources Inadequate skilled Inadequate machinery Inadequate monetary
or raw materials labour and other infrastructure resources on time

These obstacles are easily solved by thoroughly researching the market prior to making a business decision.
Such roadblocks can be overcome via research, market surveys, and mentorship. The Indian government
has devised a number of programmes to assist small business owners in obtaining finance. Among them are
the following:

• Mudra Yojana of the Government of India — https://www.mudra.org.in/

• Credit Guarantee Scheme — https://www.cgtmse.in/

• Stand-Up India Scheme — https://www.standupmitra.in/

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