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Difference in business obstacles faced by firms across sizes: evidence from enterprise survey data of India

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Abstract

Economies across the globe are working on creating a business climate in their regions, which is favorable for the business firms. However, business firms still face a variety of obstacles in their day-to-day operations. This paper aims at analyzing the difference in business obstacles faced by firms across sizes using a comprehensive survey data of 9281 Indian firms conducted under the World Bank’s Enterprise Survey. The results of the analysis of variance for business obstacles across the size of firms indicate a significant difference in the mean values on 9 parameters of business obstacles out of 15 parameters. The small and medium enterprises (SMEs) perceive a comparatively lower level of obstacles than large firms due to a number of supports and provisions for SMEs in the country. Access to resources for managing the business operations, competition, and availability of qualified manpower are the major areas of concern for SMEs. This study is helpful in designing appropriate policies for promoting business enterprises in a focused manner.

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Data availability

The data for this study has been retrieved from the World Bank Enterprise Survey, which will be made available on request.

Abbreviations

ANOVA:

analysis of variance

SMEs:

small and medium enterprises

MSMEs:

micro, small, and medium enterprises

FDI:

Foreign Direct Investment

NAS:

National Accounts Statistics

CSO:

Central Statistics Office

GVA:

Gross Value Added

GEM:

Global Entrepreneurship Monitor

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Acknowledgements

The authors would like to thank the World Bank Enterprise Survey Group for database access, reviewers, and editor of the journal for their valuable feedback and support in preparing this manuscript.

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Authors and Affiliations

  1. ICBM-School of Business Excellence, Hyderabad, Telangana, India

    Zakia Jabeen

  2. Economics and Business Environment, Indian Institute of Management Jammu, Old University Campus, Canal Road, Jammu, Jammu & Kashmir, 180 016, India

    Jabir Ali

  3. Department of Economics, King Abdulaziz University, Jeddah, Saudi Arabia

    Nadia Yusuf

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  1. Zakia Jabeen
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  2. Jabir Ali
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  3. Nadia Yusuf
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Contributions

This paper has been conceptualized and prepared by all the authors jointly. ZJ worked on identifying the research theme and finalizing the research framework. NY undertook the literature review and prepared the draft paper. The corresponding author, JA, collected and analyzed the data. All authors read and approved the final manuscript.

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Correspondence to Jabir Ali.

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Jabeen, Z., Ali, J. & Yusuf, N. Difference in business obstacles faced by firms across sizes: evidence from enterprise survey data of India. J Glob Entrepr Res 11, 71–81 (2021). https://doi.org/10.1007/s40497-021-00274-1

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