Entrepreneurship does not emerge and grow spontaneously. It is dependent upon various environmental factors like social, political, psychological and economic etc. An entrepreneur cannot run an enterprise successfully and profitably unless all the above factors are favourable to him, because he is a person who combines various factors of production, processes the raw materials, converts it into a finished product and creates utility in the product, sales the product in the market in order to earn profit.

While starting a business enterprise, an entrepreneur needs to perform a series of activities some of which are beyond the control of the entrepreneur. Many entrepreneurs and specially those in the small scale sector lack technology related knowledge to take care of production and quality aspects. They require a lot of guidance and support at the initial stage and production stage of the industry. They face a lot of problems in marketing and promoting of exports of their goods manufactured by them. They fail to formulate, coordinate and monitor policies and programmes for promotion and development of their business activities. They fail to disseminate information on market potentials and conditions.

Besides the above, finance which is generally considered as the “life-blood” for an enterprise is a major stumbling block for the growth of small enterprises, because it facilitates the entrepreneur to procure land, labour, material, machine and so on from different parties to run the enterprise. Small entrepreneurs unable to raise adequate finance require for the development of infrastructure in the field of transport and communication.

Governmental assistance and concessions allowed for establishment of small enterprises are not sufficient to run the enterprises. Creation of infrastructural facilities require huge funds which small entrepreneurs are lacking. They also need a lot of guidance in the field of project report preparation, plant location and layout, selection of men and machinery, competition level, various marketing aspects etc. All the above problems of an entrepreneur can be solved from the support available to the enterprises from various institutions.