This sector contributed 8.72% of India's GDP in 2009. But that does not meet the purpose, as entrepreneurs in India face challenges on education, knowledge and skills, entrepreneurial talent, social capital, access to credit, government regulations, technology and infrastructure, access to information and access to market.

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Lacks support from government organizations

India is ranked 166 among 183 countries in its "Doing Business 2012: Doing Business in a More Transparent World", by World Bank. This ranking clearly shows the attitude of government and other institutions towards setting a startup in the country.  After conducting a close study in this matter the results stated that 46 percent of Indians feels that the government makes it too hard to start a business while 26 percent thinks that the government is enough supportive in such ventures.

Another reason why India is a little behind in growth is because of corruption. The study has also done extensive research in corruption and has got shocking reposes as seven in 10 Indian adults believe that corruption is widespread in government while more than six in 10 agree that corruption is widespread in businesses.

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