Difference in business obstacles faced by firms across sizes: evidence from enterprise survey data of India

Economies across the globe are working on creating a business climate in their regions, which is favorable for the business firms. However, business firms still face a variety of obstacles in their day-to-day operations. This paper aims at analyzing the difference in business obstacles faced by firms across sizes using a comprehensive survey data of 9281 Indian firms conducted under the World Bank’s Enterprise Survey. The results of the analysis of variance for business obstacles across the size of firms indicate a significant difference in the mean values on 9 parameters of business obstacles out of 15 parameters. The small and medium enterprises (SMEs) perceive a comparatively lower level of obstacles than large firms due to a number of supports and provisions for SMEs in the country. Access to resources for managing the business operations, competition, and availability of qualified manpower are the major areas of concern for SMEs. This study is helpful in designing appropriate policies for promoting business enterprises in a focused manner.