Analysing the process map of approvals required to start a business in Karnataka

Abstract

Starting a business in India involves astronomical capital. In addition to this, if an entrepreneur does not have local knowledge, the entire procedure to start up a business becomes more difficult. The initial setting up of a business requires approximately twelve sets of procedures, which takes almost a month on an average to complete. This timeline is much above the OECD average of 12 days. The process does not end here and goes on extending with several other permits and approvals required specifically for the sector of business, which again takes more than a year to complete. Corruption and arbitrariness only add to this problem. Understanding the peril that entrepreneurs go through in setting up their business, we intend to analyse the process map of approvals required in the state of Karnataka. Our study will not only improve the efficiency of the entire approval process but also encourage the entrepreneurs, who would otherwise be inactive.