Analyzing the Impact of Non-Revenue Generating Investments on Entrepreneurial Growth in Tamil Nadu

Entrepreneurs, particularly small and medium-sized enterprises, often face significant financial challengesdue to various non-revenue generating investments (dormant investments). These dormant expenses,ranging from compliance fees and building charges to digital presence, create a substantial financial strainon the operations of the entrepreneurs. This study is descriptive in nature, analysing the various non-revenuegenerating investments that entrepreneurs face in their day-to-day operations, which leads to a financialburden. A structured questionnaire was developed to identify various non-revenue generating investmentsand the financial strains they caused, and responses from 1079 entrepreneurs across micro, small andmedium enterprises in different districts of Tamil Nadu were collected. The responses received from theentrepreneurs depicted that non-revenue generating investments weigh heavily on business operations. Thestudy aims to provide strategic policy modifications to help entrepreneurs tackle these non-revenuegenerating investments and focus on their growth. Entrepreneurs are inclined to adopt strategies that lowerneedless expenses and streamline their business processes, allowing them to allocate resources towardsinnovation and growth.