Is this the right time for Entrepreneurs ?

If you are thinking to put your foot in business, check a look – if is this the correct time for you to enter the market!!

Many entrepreneurs fail with their start-up, as they land up entering the market in wrong time. Clinching investment from a venture capital fund may be seen as an endorsement of an entrepreneur's abilities. But raising money is also fraught with risks. The current economic scenario of our country does show up a tough sight for any new Biz leader to intrude the market at this time. Bad economy, worse doing currency, huge deficit, bad reforms are adding woes to it. Free fall of Indian Rupee was not something which Raghuram Rajan India's incumbent Reserve Bank Governor would have not predicted but the question is whether he had the gumption of warning the political class like a more independent analysts?

Rupee has been brewing for several years as the current account deficit and external debt has been growing dangerously due to lack of political will to curb the triple whammy of Government populism, corruption and bad policy. The current account deficit that was $46 billion in FY 2010-11 jumped to $78 billion in year ended March 2012 and to $ 88 billion during the current year. Trade deficit widened to $50.2 billion during the first quarter of this year from $42.2 in first quarter last financial year which would have further impacted the ever growing CAD. 

Additionally the short term debt that needs to be paid back this year is a whopping $ 172 billion over 3 times the amount when UPA II assumed office. This picture of the UPA as a wrecking crew, targeting its own home, has one empirical flaw: all the scams summoned to call this the most corrupt government in history date back to UPA-I, whether the 2G, Coal or Commonwealth Games scams. The problem is not just with the UPA but with the entire polity. We tend to lose out in making reforms as the unstable coalition government ponder to first save their helm at centre rather than thinking about the down slide of economy.

And our purchasing power of Gold has never been to a halt. Our affinity towards this metal has been growing and making a worse as imports of Gold are predicted to rise up to 1000 tones. The uncertain economic conditions and mostly criticized disastrous reforms have already led JP Morgan to downgrade our economy while the threat of downgrade of our sovereign rating from Moody’s can be possible.

Thanks to our service industry mainly IT sectors who are making the most money out of the Dollar rise, posting good quarter profits. The only smile what we can get is from Euro Zone. Stronger growth in the Euro zone's two largest economies, Germany and France, helped the euro zone to emerge from its longest recession to date in the second quarter, confirming expectations a fragile recovery was under way.

Seeing these economic conditions, it’s vital for entrepreneurs to be choosy about whom — and under what terms — they accept funds from and which market they press their move in.