Barriers Faced by Entrepreneurs of Micro, Small and Medium Enterprises in Bihar

Abstract

The Micro Small and Medium enterprises are known as the backbone for the Indian economy. This sector contribute second highest employment opportunity after the agriculture along with contribution of 8 percent GDP, 45 percent in production and 36 percent in Export. The problems are faced by the entrepreneurs while setup the organization as well operationalization of the organization. The Universe study constitutes the micro small and medium enterprises in state of Bihar. The paper is based on the explanatory nature of work where data mainly used from the primary survey. The primary purpose of the work is to find out the constraints faced by entrepreneurs while setup the organization as well marketing and financial constraints faced during the operation of the unit. The samples are collected from 4 large district of the state with 10 from each district. Data would be obtained through structured schedule and distributed questionnaire. From the research, it emerged that the MSMEs sector financial and administrative constraints while setup the organization and promotion of the products. The cost of advertisement and lack of knowledge in the entrepreneurs is the major barrier in the operation stage. In overall the MSMEs in Bihar faced huge disappointment from the administrative and banking institution to promote the organization.