Entreprenurial Development in the Industrial Estates of Chennai – Financial Views and Challenges

Abstract

The profound success of the globalized Indian economy during the third millennium demonstrates how entrepreneurial development could make a powerful impact on the development of any given economy. Though numerous programs have been formulated for the development of small scale firms across the state of Tamil Nadu, however, most of these programs fail to rescue firms becoming sick. Though stringent measures have been implemented strategically, small scale firms encounter numerous challenges in the areas of production, marketing, finance and operation and the alike. The root cause of the problem stands undiagnosed and the number of sick units continues to increase substantially over the years. This trend also continues unabated even in 2009. Our study identifies the cause and effect of these factors responsible for retarding entrepreneurial success and development across the state of Tamil Nadu. The determinants of a successful “Chennai Small Scale Entrepreneur” (CSSE) are economic, legal, social, political and technological forces that influence his/her motivation(s), dictating his/her entrepreneurial behavior, thereby necessitating the pursuance of current empirical study. Our research study also analyzed the discouraging factors of entrepreneurial development impeding the growth of small scale firms across the industrial estates of Chennai. Our study’s findings have revealed that factors that were not considered to be of high importance in the years bygone were education, knowledge and training, that do play crucial role in motivating most of today’s entrepreneurs in the contemporary times. There exists a necessity for the relevant governmental agencies and other sponsoring agencies to look into these determinants by encouraging upcoming young entrepreneurs to participate in entrepreneurial drives in order to generate wealth for themselves, facilitating the growth of state and national economies. Most of the CSSEs launch entrepreneurial ventures because of the perceived opportunities available to make appreciable profit in a short span of time. However, financial impediments discourage their behavior and retard the operations of their firms causing enormous anguish to them as governmental financial programs (resilient on paper) fail on the ground during execution phase for variety of reasons. Hence, governmental agencies ought to help CSSEs by executing pragmatic financial assistance programs especially during the gestation period, facilitating the success of these ventures and thereby accelerating the growth of state and national economies.