What is taken as granted in organized sector by first generation entrepreneurs and existing entrepreneurs, is not available to those in unorganized sector. Entrepreneurship ecosystem does not exist in rural and peri-urban areas.


Micro and Small Enterprises, which are unregistered, in India


Those in rural areas


Those in urban and peri-urban


“Over 93% of the micro and small enterprises in India are unregistered. Of these, 60% are in rural areas while rest are in urban and peri-urban areas. Out of total number of Micro and Small Enterprise¬†accounts with the banks, the accounts covered under the Credit Guarantee Scheme are just 2.64% of total accounts.” – MSME Annual Report 2012-13

“For every five, only one entrepreneur sees light of the day. Majority of existing ones are ‘necessity entrepreneurs’ who run a business as a last resort for survival. Lack of market intelligence for startup ideas acts as show stopper. Herd behavior leads to overcrowding in markets. There is also negligible financial linkage owing to lack of credit history & business books of accounts.” – Ex-Secretary, Rural Development, Government of India

“The entrepreneurship development schemes in India are limited to the privileged lot who have luxury of attending classroom or residential courses, that too at district level. Majority of potential entrepreneurs in unorganized sector are apprentices, daily wage earners and women, who stay in peri-urban & rural areas and who do not have luxury of time, travel and resources.

The entrepreneurship ecosystem for micro entrepreneurs just does not exist. This translates to paucity of financial products, lack of enabling environment and dearth of knowledge & skills. There is huge scope for bridging the gap between micro entrepreneurs and resources. There is scathing need of last mile enabler.”¬†