Study of Development of Entrepreneurship and Availability of Credit Facilities - Analysis of Bank Lending’s and Venture Capital Financing

Entrepreneurship development is the backbone of nation’s economic development. It’s not big giants, large cap companies who add value to the national wealth but it is entrepreneurship or MSME’s. Contribution of MSME’s in employment generation, GDP, export, industrial output and most importantly balanced regional growth is incredible in case of India and also witnessed by all developed and developing countries across the world. Countries like US, China, UK, Israel, Japan and Taiwan has experienced the impactful role of small scale industries in their respective economies. In recent years technology based start-ups have played significant role in overall MSME sector. Techno based firms have shown multifold growth over a shorter period of time. Not only in terms of scalability but also in terms of social development, technology businesses have solved many problems where people were stacked for decades. In India, companies like Flipkart, Paytm, redbus, travellyaari and many more other techno start-ups have boosted the speed of people’s personal as well as social life. Entrepreneurial activity in almost every country has been considered as a prime area of focus in national policy framing and economic development planning and same is the case with Indian government. In spite of all this, there are number of challenges faced by entrepreneurs during their journey towards entrepreneurship. Lack of basic infrastructure, skilled manpower, resources and on top of the list business finance. This research paper highlights the relation between entrepreneurship development and availability of credit facilities with special reference to bank lending’s and venture capital investment.