Factors Relevant for the Development of Small Business Management in Andaman and Nicobar

Abstract

The paper explores the key factors relevant to the development of micro and small businesses in the Andaman and Nicobar Islands. This study specifically focused on the relevant factors from the islands' perspectives. This study used primary sources of data collected in the South Andaman Islands (Andaman and Nicobar Islands), and the obtained data were analyzed using SPSS. The findings of the study proved that tourism business and marine and wood-based businesses have huge potential in the Andaman Islands. The study's findings highlighted the significance of subsidies and incentives for island promotion and sustainable development, which could be accomplished through capital investment, as well as transportation subsidies, which are critical for new and existing businesses on islands. Cargo transportation from the mainland to islands is the primary mode of sea transportation and the only mode between island regions. Under this situation, the Andaman and Nicobar Islands totally rely on manufacturing or service businesses as a lifeline. Hence, micro- and small businesses will play a vital role in employment generation, production, investments, and the growth of a small business. As a result, the administration of the islands should implement appropriate policy measures based on the relevant factors in the islands' region. The local administration needs to support and provide easy access to finance, transportation, and other facilities for small businesses in the Andaman and Nicobar Islands.