ISSN : 3049-1754 (PRINT) ISSN : 3048-8966 (ONLINE)
ENTREPRENEURIAL CHALLENGES IN A SOUTHERN INDIAN STATE: EXPLORING FINANCIAL AWARENESS, CREDIT ACCESS AND RELATED BARRIERS TO ENTREPRENEURSHIP
Anu B & Ajith C
Affiliations:
Student , Christ University, Bengaluru
Principal Consultant, Centre for Management Development, Trivandrum
Abstract:
This study examines the challenges faced by entrepreneurs in the business environment of Kerala, a southern Indian state, by analysing the results of a survey conducted with 310 respondents. It focuses on key factors such as financial awareness, access to credit, and other barriers to entrepreneurship, while also highlighting the opportunities within the region. Findings reveal significant gaps in entrepreneurial awareness, over half of respondents were unaware of procedures and credit sources, and only 18% had attempted entrepreneurship, with most facing barriers like limited credit access and bureaucratic inefficiencies. With only 30.49% of women aware of business procedures compared to 57.98% of men. While 46% perceived improvements in the business environment, systemic challenges such as job security preference, gender disparities, political instability, and licensing hurdles persisted. This may contribute to perceived financial risks that shape entrepreneurs' behaviour, decision-making, and their ability to innovate or grow their businesses. These risks are influenced by their financial knowledge, past experiences, and the business environment they operate in. The study highlights the need of focused awareness campaigns, offering tools, resources, and support to help entrepreneurs succeed. It calls for simplifying processes, minimising perceived risks and building a supportive environment with high accessibility to strengthen Kerala's entrepreneurial ecosystem and encourage inclusive growth. Based on the findings, this study concludes by discussing key areas and outlining a list of recommendations for policymakers and stakeholders to address challenges, improve public awareness, and reduce barriers to entrepreneurship, thereby enhancing Kerala's business environment and fostering a more supportive ecosystem.
Keywords:
Business Environment , Entrepreneurship Challenges, Financial Inclusion, Credit Access, Entrepreneurial Ecosystems, Resource Gaps, Policy Barriers
Publishing Chronology:
Received - 24/03/2025
Revised - 26/07/2025
Accepted - 30/07/2025
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