Entrepreneurs least confident about Delhi: SurveyDecember 16th, 2008 - 5:36 pm ICT by IANS
New Delhi, Dec 16 (IANS) The national capital is last on an entrepreneurial confidence perception survey that was released Tuesday.The evaluation, prepared by global consultancy KPMG and The Indus Entrepreneurs (TiE), a Silicon Valley-based non-profit network of entrepreneurs that aims at fostering entrepreneurship, was based on a survey of over 1,000 entrepreneurs in 15 states.
On a scale of one to five, Andhra Pradesh, known for its IT services sector, has the highest confidence score of 4.14 for existing ventures, followed by Goa and Rajasthan.
Karnataka, Madhya Pradesh, Uttar Pradesh, Haryana, Kerala, West Bengal and Delhi have been rated below the national average of 3.31.
However, according to the survey report, Gujarat is the most preferred destination for entrepreneurs if given a chance to start all over again. Gujarat is followed by Maharashtra and Haryana.
Finance, closely followed by infrastructure and manpower, emerged as the three most important factors considered for fostering entrepreneurial growth.
Respondents said they wanted improvement in infrastructure, even while acknowledging the government’s efforts to develop this sector.
The report noted that “despite a surge in the number of venture capitalists and private equity money available in India, there seems to be a gap in the demand for and supply of funds for entrepreneurial ventures”.
New banking initiatives towards funding start-ups and small and medium enterprises (SMEs) were also perceived as deficient due to several procedural issues and high collateral requirements.
“Through this study, we aim to identify challenges of entrepreneurs, assess the approach of various states while creating awareness amongst stakeholders, and suggest a plan to spur action which drives the economic growth fuelled by entrepreneurial ventures,” said Pradip Kanakia, KPMG India head - markets, in a statement.
The research suggests that while the government has managed to instill confidence among entrepreneurs, much still needed to be achieved in order to create a better entrepreneur-friendly environment.
“With a slower economy, it is critical to … motivate aspirants to make the leap to a full-time entrepreneur and to enable current entrepreneurs to stay in the game”, said Jehil Thakkar, KPMG India executive director.