Challenges of Pharmaceutical Entrepreneurship in India: The SME Sector

Abstract

Evolution of Indian pharmaceutical industry per se will always revel the fact that growth path adopted by the Indian pharmaceutical industry is having conceptual difference in comparison to the growth pattern of organizations from other developed countries; however pharmaceutical industry is always knowledge as well as research and development driven. Number of Indian registered pharmaceutical companies has grown to approximately 24000 out of which only 250 to 300 companies could make a presence in Indian market by capturing almost 70 per cent market share. Alike other sectors, government could provide enough support to small and medium enterprises of Indian pharmaceutical industry which in return can achieve higher volume of production to meet domestic as well as international demand. A paradigm shift in business model could well be observed while conducting a rave review of literature on entrepreneurship in pharmaceutical industry-SME sector. Present study attempts to evaluate the conceptual framework on pharmaceutical industry-SME sectors modes of organization, resource acquisition, opportunity exploitation along with performance measurement on selected companies from Gujarat. Study is based on literature review along with personal interview for selected entrepreneurs with the help of a structured questionnaire. Further, study focuses on problem areas faced by the sector and outcomes may provide possible solutions to the identified problems and provide adequate inputs to practitioners for a strategic decision making.