IRJMSH Volume 4 Issue 1 online ISSN 2277 – 9809 International Research Journal of Management Sociology & Humanity Page 581 http:www.irjmsh.com Opportunities and Challenges in Small Business in the Indian Economy Jainendra Kumar Verma, Rajiv Gandhi National Fellow at Dept. of Applied Economics, University of Lucknow Abstract According to the quick result of the Fourth All India Census of MSMEs (2006-07), there are 26 million MSMEs in India which provides employment to about 60 million people. The sector contributes about 40 % GDP, beside 45% to the total manufacturing output and 40 % to the exports from the country. There could be many opportunities identification hidden inside the challenges for small business concerns. This paper examines various opportunities and challenges in small business in Indian economy. More precisely the paper explores, rewards for starting a small business, myths about small businesses, new opportunities, four forms of entrepreneurship, identification practices among first generation and major challenges in small business. Keywords Small business, Owners and entrepreneurs, Rewards for starting, Myths, Opportunities, Forms, Opportunity identification, Challenges Introduction Small business contribute to the economy in no. of ways, particularly by creating new jobs and innovations as well as small business provide jobs for all us at the same time adds taxes to the government and products and services to the public. Persons interested in becoming entrepreneurs must have the ability to generate a large number of ideas so that at least one of the ideas has the potential for a business opportunity. Objectives of the Study The objectives of the study are: To explore small business owners and entrepreneurs To explore rewards for starting a small business