Consequences Of Using Pirated Software In India
Problems Faced by Entrepreneurs While Starting Business in India. Problems Faced by Entrepreneurs While Starting Business in India are 1. Bureaucracy, 2. Corruption, 3. Regional Sentiments, 5. Grey Market and Counterfeit Goods and 6.
Social Capitals! Not everybody will call the factors discussed here problems, but these can lead to problems if not managed properly. These are the factors you have to take into account if you are operating in India. If managed correctly, these can be advantages; otherwise these can lead to serious problems for the enterprise. Bureaucracy: The word bureaucracy comes from the French word bureau, which refers to an .
According to Weber, some of the main characteristics of bureaucracy are as follows: 1. Official business is conducted on a continuous basis. Official business is conducted according to written rules. Roles and responsibilities are defined within a hierarchy, with rights of super. Official and private business and income is strictly separate. Public offices are set up for the good of the people and the officials manning the posts are referred to as public servants. But, if left unchecked, these public officials can become self- serving and corrupt.
Firstly, there are a large number of procedures to be followed and clearances to be obtained to start and operate a business. Secondly, each of these procedures can take an inordinately large amount of time. Procedures are established to safeguard the interest of the common man. But, sometimes, the rules and regulations stop serving the purpose they were designed for.
Rules become tyrannical in nature and an enormous wasted effort is directed towards compliance with rules and regulations. Lack of resources is one of the major problems faced by entrepreneurial firms.
In this situation, new ventures find it extremely taxing to divert time and attention to time- taking procedural issues. Corruption: While under no circumstances, corruption can be justified, it is a bitter truth that it is rampant in many government departments. Even private sector is not spared by it. We have to make a collective effort to curb this social evil.
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As it hampers growth of the business, it is a challenge for budding entrepreneurs. Sometimes, people pay money to just hasten processes and do not ask for any undue favours. According to Kauffman and Wei (1. For example, the bank is not releasing money even though it has sanctioned release of funds. There might be some official who has raised an unwarranted objection. In such cases, some people are tempted to grease the palms to get things flowing.
Some people also pay bribes to get something beyond the scope of what is fairly due to them, for example paying bribe to get money released from bank even though the paperwork is not in order. Sometimes, this is carried to a ridiculous extent such as paying money to ensure that the competitor’s funds are not released from the bank. Many entrepreneurs have experienced a higher degree of corruption among employees of large private- sector companies than in the government. How you prefer to deal with corruption is your personal choice. There are some entrepreneurs who have taken the difficult path and have played it by the book. Many entrepreneurs have chosen the middle path and have given in to corruption in some instances but later have fought vehemently against it and succeeded.
There are also some dangerous entrepreneurs who use their access to corrupt officials as a competitive edge. But, such practice does not give them success in the long run.
Corruption has also spawned a business of . Some entrepreneurs use them to secure funding from banks, get approvals for constructions, and for periodic submissions relating to labour laws, taxes, and industrial approvals. The situation is now changing rapidly and there is hope that corruption will come down in the near future.
The factors likely to lead to a lesser degree of corruption are as follows: 1. There is greater transparency in procedures to be seen across government departments. A number of departments have initiated e- governance initia.
The right to information (RTI) Act has significantly changed the situation by giving greater access of government records to interested or affected mem. Vr Soccer 96 March 31 1996 Jeep on this page. The media too has played an active and visible role by conducting sting op. The public humiliation suffered by officials caught in these operations has served as a deterrent to corruption.
Labour: Lack of manufacturing capability in India has been attributed to red tapism and corruption, but the low productivity of labour is also a big factor. In the early days of offshoring, firms from the US and Western Europe preferred to set up manufacturing facilities in Thailand, Mexico, and China, rather than in India. Though these countries too had an equally bad record of red tapism and corruption, the labour in these countries was found to be more productive. In spite of our huge population and high economic growth, it was only in 2. India overtook that of Mexico in terms of GDP. An active workers’ union is not bad, but sometimes, in India, there may be more than one union (e.
CITU and the other to AITUC), with differing agendas, claiming to represent the workers’ interests. Since India is a secular country, religious beliefs of every religion are respected. So, it has holidays on occasions such as Christmas, Good Friday, Holi, Diwali, Muharram, Id- ul- Zuha, Guru Nanak’s Birthday, Buddha Jayanti, and Mahavir Jayanti. There are also holidays on occasions of national importance. As a result, the number of working days in a year is reduced.
Furthermore, long breaks in work brought about by bandhs, regional unrest, and breakdown of supporting infrastructure in times of floods, earthquakes, and other natural calamities also disrupt the work. Welfare measures that restrict long hours of work, protect women workers, and prohibit underage employees are desirable; but, misuse of these clauses to halt legitimate business practices is harmful for the growth of industry.
The Indian labour is cheap because of a comparatively low wage structure. But, the productivity of the cheap labour is not always satisfactory. Employers often need to keep a regular check on their employees. How Do You Download A Dvd Into Your Itunes Music Session.
The manufacturing sector is now beginning to take off, and there has been a spectacular growth in the services sector. There is a tremendous shortage of skilled and semi- skilled manpower. There are not enough institutions in India geared to train employable youth on skills that are in demand in the job market. The manufacturing sector is facing a dearth of fitters, welders, draftsmen, and machine operators. The lack of elementary skills in many call centre and BPO employees has been very well documented by NASSCOM and other industry watchers.
Finally, stringent laws governing lay- off of employees make it very difficult to fire workers in case of non- performance or during times of financial distress when it becomes imperative to lay- off workers to maintain the financial viability of the business operations. Regional Sentiments: Many businesses have failed because they failed to take into account the sentiments of the local population. Many successful businesses have managed to identify and respond to local sentiments. Many outlets of international fast food chains such as Pizza Hut and Mc. Donald’s do not serve beef or pork as a sign of respect for local mores.
On the other hand, scores of businesses suffer because of anti- social elements trying to score political points by going on a rampage. The local community expects to gain from every business being set up in its vicinity. This is especially true when businesses come up in economically backward areas with very little industrialization. The local community expects employment in the firm and does not react favourably to employment of migrant workers. In case the business is also planning on marketing its end products in that area, some local businesses will be adversely affected.
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