A Study on Problems and Challenges of Young Business Entrepreneurs in Selected Districts of Karnataka

Author

Dr. Harish Kumar N

Abstract

 Entrepreneurship plays an important role in employment generation, innovation, income creation and economic development. Young business entrepreneurs are particularly important because they contribute to new business creation, technological adoption and local economic activity. However, young entrepreneurs often encounter financial, institutional and business-support constraints that may affect their ability to establish, manage and sustain their enterprises. Against this background, the present study examines the problems and challenges faced by young business entrepreneurs in selected districts of Karnataka, with particular emphasis on finance-related and support-related problems. The study covers six districts, namely Bengaluru, Tumakuru, Shivamogga, Chitradurga, Chikkamagaluru and Mysuru. A descriptive research design was adopted, and primary data were collected from 400 young business entrepreneurs using a structured questionnaire and a five-point Likert scale. The questionnaire covered twelve finance-related variables and twelve support-related variables. The data were analysed using descriptive statistics and multiple regression analysis. The finance-related regression model produced an R value of 0.886 and an R² of 0.784, indicating that 78.4% of the variation in the dependent variable was explained by the finance-related variables. The model was statistically significant with F = 117.325 and p < 0.001. Lack of adequate initial capital, difficulty obtaining bank loans, high interest rates, difficulty obtaining supplier credit and cash-flow management were among the statistically significant factors. The support-related regression model demonstrated an R value of 0.972 and an R² of 0.945, explaining 94.5% of the variation in the dependent variable. The model was statistically significant with F = 556.530 and p < 0.001. Marketing and promotional support, incubation and start-up support, technology and digital support, training and skill development, and entrepreneurship-development programmes showed statistically significant relationships. The study concludes that improving access to finance, strengthening entrepreneurial support systems, expanding training and incubation facilities, enhancing marketing assistance and promoting digital capabilities are important areas for supporting young entrepreneurs. The findings provide useful implications for policymakers, financial institutions, educational institutions, incubation centres and entrepreneurship-support organisations in Karnataka.

Keywords

Young Entrepreneurs; Finance-related Problems; Support-related Problems; Entrepreneurship Development; MSMEs; Karnataka.

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