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Protection of property rights – When small
enterprises make fixed investments and expand
their businesses, a predictable system of taxation
helps the enterprise and the entrepreneur. In
situations of conflicts or break down of law and
order, it is important that the entrepreneur has the
protection of certain rights.

Making the process of small and medium
enterprises politically viable – This is necessary for
ascertaining sustainable growth. In spite of having
reforms, expanding competition and bringing in
new technologies, the lack of skill and education
may hamper the capacity and ability to actually
benefit from such facilities. Entrepreneurship
doesn’t have widespread political acceptance
which is why expansion of capabilities is vital.

Basic safety net- A safety net enables entrepreneurs
to take risks. Making an exit in case of failure should
be smooth and a safety net helps. India has started
to create such safety nets by providing access to
reasonable minimum health care, minimum old age
insurance and minimum unemployment insurance.
There is an utmost need to create a safety net which
is affordable by the state and nation, so that people
have the motivation and confidence to take risks.