What are the limitations of Small business start-ups?

Owning a small business gives one the independence and freedom most people cannot enjoy. Owning a small business can also give the ability to connect with many other small-business owners through networking.

But before starting a small business one has to understand the limitations of small business start-ups, which are:

·         Low capital base,

·         Concentration of functions in one or two persons

·         Inadequate exposure to international environment

·         Inability to face impact of WTO regime

·         Inadequate contribution towards R & D

·         Lack of professionalism

And we have seen that due to slow down of economy in India and abroad, and particularly USA and European Union and enhanced competition from China, few small businesses have been facing a tough time. But those who have strong technological base international business outlook, competitive spirit, willingness to restructure themselves, could withstand the present challenges and come out with shining colours to make their own contribution to the Indian economy.