5 Challenges Of Starting A New Business In India


So, you are probably a fresh graduate from BBA in Entrepreneurship or have no background in business whatsoever, and are ready to start your own enterprise in India. Well, you are certainly not alone in that aspect. Thousands of start-up aspirants, young entrepreneurs and talented graduates take this route in the country. But it is all not as easy as it sounds.

India is definitely a land of opportunity, but it’s also a land of fierce competition and intense struggle. Given that it has the second-largest population in the world, India is teeming with BBA graduates who take the leap into setting up a new business straight out of college. Everyone wants to stand out and deliver the right product or service to the right people at the right price, and the probability of doing so depends equally on the entrepreneur’s individual merit and the industry scenario.

While the start-up bubble might have burst some time back, India is still a highly lucrative market for businesses and investors. In spite of all this, challenges remain. Here, we take a look at the five key challenges in starting a new business in India:

Lack of Expertise:

Since there are significant challenges in the business industry of the country, successfully navigating it and coming out on top requires expertise and business acumen. Getting into a BBA or MBA college is a bit difficult in the country, which is why so many people start a business without any prior experience or knowledge. As someone who dreams to be an entrepreneur or wants to build on a family business, getting into experiential learning courses like BBA in Family Business is a must.

Government Policies:

Despite recent government policies favouring start-ups and calling for more entrepreneurs in the country to ‘Make in India’, India’s business establishment ecosystem remains quite inopportune. India’s world ranking of 100 on the Ease of Doing Business scale has steadily grown over the last few years, but still remains extremely low. Setting up a new business means dealing with a lot of rules and regulations, and then complying with regulations. These are quite a few hurdles that might overwhelm a new businessman. Then, the policies of GST, E-way bill, demonetisation, etc. are still gradually evolving, making it an unstable territory for a businessman. However, with successful acumen, knowledge and patience, this hurdle can be navigated.


Any new business requires significant and continued investment from the right set of individuals. Finding such investors in India is quite difficult as one has to fight tooth and nail to come up with an extraordinary and convincing business proposal. While seed investment and angel investment are still easier to obtain, going beyond this stage is difficult in India.


As mentioned earlier, there are thousands and thousands of small and large companies who compete in the same segment in the country. This is where being a new entrant in business in India is extremely difficult. Unless you have something disruptive, unique or cost-effective, beating the competition is quite difficult.

Finding the right Talent:

Finding and retaining skilled talent already in short supply for your new business is a huge challenge. In India, the best professionals prefer to stay away from start-ups, which makes it difficult for new entrepreneurs to convince them to join the team.