Entrepreneurship has highlighted as launching a business independently and bears all the risks of the business by the entrepreneur; isa personal described as the owner or manager of any business or enterprise and who is ready to bear risks and take the initiative with anattempts to make profits. It is the willingness and capacity of the entrepreneur to manage, organize and develop the business venture individually and bear all the risks related to that venture.The term entrepreneurship decoded from the French word‘entrepreneur’ literally explained “one who undertakes” or who do (Dollinger, 2008). There are tons of efforts to define the terms, but mostly limited in their perspectives and context. However, with reference to works of earlier researchers, Dollinger (2008) has identified creativity, innovation, resource identification, acquisition, marshaling, economic organization, opportunity for gain for under risk and uncertainty has  and its relationship with innovation, economic growth and uncertainty;  as one among the common charearristics of entrepreneurship. He defined entrepreneurship as a process“control and deployment of resources to create an innovative economic organization (or network of organizations) for the purpose of gain orgrowth under conditions of risk and uncertainty” (Dollinger, 2008).


In India, the history of Entrepreneurship is claimed to started right from the Indus valley civilization(Swetha & Rao, 2013).The evidence of Entrepreneurship has been witnessed since the inception of the Kingdom of India(Bhavan, 2017). However, it is pertinent to mention that the majority of Entrepreneurs were from a dominant caste. When we see the evolution of entrepreneurship over the ages and sustainable Eco System needs to be developed for matching the traditional business(Bhavan, 2017).In 19th-century after three decades, the factors such as lack of effective communication, political and social stabilities left a negative impact over Entrepreneurship in India(Soni, 2019).Initially, a small business is the prime choice for the young professionals as the risk factor is comparatively less in a small business and this risk factor does not affect the large businesses so that entrepreneurship was not encountered in the large hotels but with the fewer investments Entrepreneurship in budget and small hotels has emerged as prospects of this flourishing hospitality industry. Although the Centre of attraction for the industryprofessionals, researchers and academician was always large chain hotels and budgeted hotel were neglected by them. This limitation andentrepreneurship as a new dimension for small hotels serve as the primary reason for conducting the present study.



For the conceptual clarity a discussion has been conducted to identify Present Status of Entrepreneurship in Small Business in Hospitality Industry, Scope for the Young Entrepreneurs in the Industry, Opportunities available for the Entrepreneurs in Hospitality Industry and the Challenges faced by Entrepreneurs in the Hospitality Industry.

Present Status of Entrepreneurship in Small Business in Hospitality Industry

The Prime Minister of India Sh. Narender Modi, Former Finance Minister Sh. Arun Jaitely and Present Finance Minister & Former Minister of State for Independent Charge Smt. Nirmala Sitharaman jointly released an Action Plan for the entrepreneurship Start Up India at Vigyan Bhawan on Jan 16, 2016. With the launch of this action plan the 2016 has become the milestone year for the entrepreneurs to become an inseparable  part of the ecosystem. With the Govt. involvement and encouragement to the young entrepreneurs the entrepreneurship in small and budget hotels has come up as new dimension to the Hospitality Industry. Ritesh Agarwal the Founder and Owner of OYO hotel chain, one of the largest chain of budget hotels in India contemplate the flourising present status of Entrepreneurs in Budget Hotels in India. He has launched his business in May,2013 and manage to spread the business all over India with the Room Capacity of 1,25,000 with the estimated annual turnover of Rs.327 crores as per the present data With the graphic presentation we can easily identify that out of 100% there are 59% entrepreneurs are still running the business actively and seeking their future in this area only. With the study we have estimated a stable present status of the entrepreneur in the industry.

Source: Entrepreneurial Motivation Survey, N=1000, all respondents

 Challenges to Entrepreneurship in Small Business in Hospitality Industry

In the study, we have identified that Entrepreneurs have a very bright future in the Hospitality Industry, although entrepreneurs faced specific challenges, especially in a Small/Budget Hotel.

By the study conducted by Soni P. (2019) have identified three areas of challeneges such as Financial Area, Human Resource & Development area. But with our study, observation,literature review and view we have identified that a part from these three area following are the challenges faced by an entrepreneur in the bdget hotel in india.


  • Financial Challenge: Finance is the procurement of funds from different sources. We have lots of sources of finance available to get funds still the budget/ small hotels are facing issues to fulfil the requirement of funds. Especially in the hospitality industry to have productive assets are not sufficient the liquidity maintenance and productive investment is also required to fulfil the funds required during operations and to meet out routine expenses. For the procurement of the fund, the loans are the most suitable source of finance but in India, getting a loan from any Financial Institution or Bank is a complicated task.In this study, we have diagnosed that the financial area is also influenced by the gross income and expenditure as well.
  • Supply Challenges: With the limitation of the services the budget hotels faced challenges related to supply of the services. Budget hotels can’t increase the supply as the demand increases which led to influence guest satisfaction as well as decrease the numbers of visitors towards the property. With this loophole the entrepreneur is not able to relish the peak season and get maximum revenue out of that.
  • Long Working Hours Challenges: Hospitality Industry has a working pattern of 24*7*365 days which makes the working hours very long. Due to limited number of staff members in a Budget Hotel, all the operation work has to be distributed among those staff members only. Due to this challenge it makes employee tired and effect the efficiency of work which effets the guests expectations. With this the Budget Hotel also faced the challenege to meet out the expectations of the guests too.
  • Labour Turnover:Employees working in the service sector in general Hospitality Industry, in particular, are experiencing a high level of job stress. The nature of work within hotels,“include hard deadlines, unexpected interactions with guests, long working hours, night and evening work, repetitive work, high emotional demands, low influence (control), shift work, high workspace and problems with coordination of work” (Sampson & Akyeampong, 2014). Due to long working hours and occupational operational stress, the hospitality industry is still struggling to retain effective employees.One more reason that affects the employees’ retention is that in the Hospitality Industry the employees need to start with the basic remuneration which leds to dissatisfaction among the employees that held many employees to switch their field as well to get in a job where they can get a good salary with the convenient working hours.
  • Government Policies: Government Policies also emerged as one of the challenges faced by young entrepreneurs with increased legislation although is to protect the businesses but also forced the entrepreneur to be get into a long procedure of paper work and lawful activities. With the changes of government new policies introduced by the Govt. and the Young Entrepreneur needs to start with again by that procedure and utilize its valuable time into get the things done.The Laws govt. has established several federal regulatory agencies :“the food and drug administration, consumer products safety commission etc. Increased emphasis on ethical behavior and social responsibility.”


Scope for Entrepreneurship in Small Business in Hospitality Industry

With the data collected from Ministry of tourism established report in 2018 the study has diagnosed a demand of 1,70,000 rooms with the availability of 1,25,000 rooms in India for the tourists and visitors. With the use of these datas we can easily estimate that the Demand more then the supply of rooms and there is a good scope for entrepreneur to contribute towards increase the supply for meet out the visitors and gets need. OYO Rooms is the biggest example in India who managed to spread the business in india with the limited services and affordable price. Now OYO has become the Ist choice in room accommodation by the Middle and Lower Class. Same as the Jumbo Burger the Food Outlet makes a Simple VadaPav a prime snakes choice for every one in India. That was the effort and choice of the entrepreneurs who decided to take the risk and choose to expand and grow the business inspite of the downfall. The entrepreneurship ship is a true feeling to check the ground reality of the market.





Opportunities for Entrepreneurship in Small Business in Hospitality Industry

With the vast scope for the Entrepreneurs in the Hospitality Industry, entrepreneurs  can easily associated with upcoming opportunities for entrepreneurship in Small Business in Hospitality Industry:

  1. With the tourists arrivals the opportunities have increased for the entrepreneurs to fulfill the supply under the increased demands for rooms.
  2. Guests and visitors are more interested to get innovative and new flavoursand wanted to do experiments with their taste buds which leds the new opportunities to the young entrepreneurs to explore the industry to grab that opportunity





This blog has written to understand the current status and the future growth of Entrepreneurship in Small/ Budget Hotel in Hospitality Industry. It  has achievable outcomes for the entrepreneurs in the Budget Hotel and also to identify the future prospects and challenges faced by the entrepreneurs with available opportunities for future growth. Entrepreneur especially in a Budget hotel has emerged as a contemporary concept and practices can be adopted by many young entrepreneurs who are seeking their career in this area with capability of taking risks for that. The study also concluded to get a framework of potential areas to entrepreneurs where achievement of goals are likely to be effortless. Furthermore, lots of operational challenges confronted by the entrepreneurs in small hospitality firms have the potential to be grapple through entrepreneurial practices. Although more research is to be done, on the basis of available literature and evidence, it shows that small and budget hotel will continue to address as an important role for the entrepreneurs to develop the Hospitality Industry with the context of the Budget Property in the next century.



Assistant Professor, Lakshay College of Hotel Management,Panipat

Best specialization to choose for B. Tech CSE:

Data science and machine learning:

Artificial Intelligence: