Lack entrepreneurs. Due to the lack of this understanding

Lack
of Governmental Support:  There is no formal recognition as a sector in
their own in the Government which deprive the people to understand what the
actual difference between social entrepreneurs and other entrepreneurs. Due to
the lack of this understanding there is no key investment policy specific to
this sector been formulated by government which makes social entrepreneurs
deprive of any incentives, tax concessions including tax holiday and subsidies.
Lack of such governmental support creates hindrance for social business
development in India

Lack
of Entrepreneurial education: There is no
curriculum for entrepreneurship development in current education system and is
mostly limited to management institutes. Hence young generation do not
understand its importance and are not able to foster their thinking in that
direction. Even the management schools lack the term Social entrepreneurship
making it difficult to find a skilled and experience promoter for social
enterprises.

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Poor
financial assistance: In India, social entrepreneurs face
lack of financial assistance Usually Banks avoid to provide loan to the social
entrepreneurs. They have a belief that they are like charity organisation and
won’t be able to run long time business and hence won’t be profitable. Hence
many social entrepreneurs either spend their own funds or try to raise fund
through local lenders or venture capitalists.

Social
and Cultural effect: Usually people belief that all new
ventures are profit driven organisation and hence become reluctant to the new
methods and technology provided by them. They are not able to distinguish the
difference between a social enterprise and a profit driven enterprise,
resulting to the detoriation of social business development

Government
bureaucracy: In India, it has been seen that funding
to social enterprises is mainly through foreign funding. This is because there
is no difference in terms of government policy between regular entrepreneur and
a social entrepreneur which makes assess to government fund very cumbersome.Getting
approvals is time consuming  and requires
involvement of many departments