Covering 1,000 entrepreneurs, the study conducted by consultancy firm KPMG and The Indus Entrepreneurs considered factors like finance, governance, infrastructure, local environment and ecosystem, manpower and regulatory issues.

While the national weighted average has worked out to be 3.31 on a scale of 1 to 5, where 1 is “poor” and 5 is “excellent”, Bengal has scored only 2.5.

The state has scored only 1.98 in governance, the national average being 3.01. In all the parameters, the state’s score is below the national average (see box).

The study shows that while the per capita income has improved in the last few years, the state has achieved low scores from its entrepreneurs across all parameters other than infrastructure where it is close to national average. Growth has been observed in sub-sectors like banking, real estate and hotels, while sectors like textiles, paper, paper and chemicals have also contributed significantly.

According to the study, the entrepreneurs in the state feel that thrust should be on creating a culture of entrepreneurship, and increasing the efficiency of the government procedure.

Rajiv Singh, secretary-general of the state unit of the Indian Chamber of Commerce, however, said there is nothing wrong in the state’s investment environment.

“The fault lies with the issue of taking care of smaller entrepreneurs.

The speed of processing applications is slow compared to other states. The time taken to get projects off the ground is more. Efficiency in this area would be a welcome step,” Singh said.

Overall, he added, the investment climate is comparable to all the leading states.

“Bengal is among the top five states in attracting new projects. As for its industrial history, Bengal has given leading entrepreneurs to the nation, but several have shifted elsewhere due to labour issues and the policies of the state government,” Singh said.

According to S Radhakrishnan, ex-president, Bengal Chamber of Commerce & Industry, the reason for the state’s poor overall performance could be attributed to the mindset of the people.

“Traditionally, people prefer to go in for education and jobs. Entrepreneurial skills should be taken to the educational forums. Some chambers of industry have started this, but much needs to be done,” he said.