Major Problems Faced by Startups in India

I am sure you must have heard of the theory “Survival of the fittest”? It totally fits in the world of startups. Warren Buffett, Steve Jobs, Mukesh Ambani, and Jeff Bezos, these are the world’s richest and successful entrepreneurs. They also faced many ups and downs to be on the top. Companies like Paytm, Flipkart are examples of what startups can achieve within a few years. Some of you might be thinking to begin any startup there might be hurdles in between, yes you are right. So, without further ado let me introduce you to ” Major Problems Faced by Startups in India “.

What is a startup?

For those who don’t know much about the term startup or are new to this term, let me help you to understand it in a simple and straightforward way.

A startup is a young entrepreneurial, protractible business model built on innovations & technology wherein the founders develop a product or service for which they anticipate the demand through interruption of current or by creating entirely brand new markets.

According to researchers, 9 out of 10 startups fail. However, new studies suggest that 92% or 11 out of 12 startups failed as of 2019.

According to the findings of a survey by the Institute for Business Value and Oxford Economics, 90% of India’s startups fail within the first five years, that’s really a big loss and a big problem that must be resolved as soon as possible. All these researches and surveys lead to only one question “why startups in India fail?”. What are the major problems faced by startups in India?

Starting a startup is not an easy task, there are some requirements given below to start a startup.

1. A business Plan.
2. Appropriate Fundings.
3. People with some experience and a great business mindset.
4. A location and build a website.

And many more which we won’t be discussing right now. Our major concern right now is what are the key factors which lead to the failure of startups in India. 

People face a lot of problems in starting and maintaining a startup.

Startup in India is about creating prosperity in the life of the countrymen. However, many aspiring people who dream of starting their own businesses lack the resources to do so.

As a result, their ideas, talent, and capabilities remain untapped and the country loses out on the wealth of creation, economic growth, and employment.

Major Problems Faced by Startups in India

Now let’s discuss some common and major problems faced by startups in India.

1. Hiring Suitable Candidates for Startups

One of the most important factors of all is, hiring suitable candidates for startups.

A good team consists of people with similar interests, determination to do work, and identical focus. Teamwork is a key factor in initiating a startup.

It is one of the biggest challenges faced by all the startups in this digital age. Selecting a suitable candidate that fits a job well enough is a particularly tricky task, which requires a lot of your time and attention.

2. Intense Competition

Digital World is quite fierce. There is always a competition going on, only the best of the best survives in the startup business.

In order to thrive in this competitive, the startup needs to play their best cards at the right time and play aggressively in order to survive in this business.

3. Financing a Startup

Finding funds is stressful. Whether you’re starting a business or trying to find investors to push your startup forward.

“Getting in front of the right investors is always a challenge, but even when you do that you are also competing against a lot of people for the same money,”

said Bill Raider, president, and CEO of Efferent Labs.

4. Branding and Growth Strategy

Branding and growth strategy are two other major components of a successful business.

Only a leader with a clear vision can survive in this modern competitive world. Hence it is a mandatory condition that every young entrepreneur must focus on it, as it plays an important role in business.

5. Lack of Risk Appetite

Experiments can provide answers to many problems, which are a must in the startup business. Without risk there are no rewards, Many business owners have taken a substantial amount of risk to get their businesses to where they are now.

Taking risks, however does not mean going into business blindly and then expecting great results.

6. Peer Pressure

Yes, there will be social pressure when starting a business, the things that inhibit people are:-

• No support: Honestly, not many people would support a startup, You won’t be able to discuss ideas with much, won’t get suggestions from much either.

• Mockery: You would be mocked by people, and it really hurts and it’s depressing too. You are trying to build something and people are trying to mock the shit out of you.

• You can’t do it: You all know there will be tough times too in any startup whether it just started or growing. You would be told to sell the products or to stop selling them. Even your near and dear ones, who support you in all aspects will suggest you to stop it because they have no idea what you are doing, or going through.

Believe in Yourself

If you are depressed, demotivated, or don’t know what to do next. It’s totally fine to go through these phases, take your time, “Good things take time”. Warren Buffett, Steve Jobs, Mukesh Ambani, and Jeff Bezos, these are the world’s richest and successful entrepreneurs and even they faced ups and downs in their life. But they succeeded because they never gave up on their dreams. Here are some motivational quotes to get you motivated.

Some Motivational Quotes

1.“Good ideas are common – what’s uncommon are people who’ll work hard enough to bring them about”

2. “You can’t climb the ladder of success with your hands in your pockets.”

3. “Never let go of your dreams.”

4. “People who are crazy enough to think they can change the world are the ones who do.”

5. “Hard work never brings fatigue. It brings satisfaction.”

I hope now you have an idea or are able to visualize this scenario in your mind that what are the major reasons for the failure of startups in India. Hope you like my article on ” Major Problems Faced by Startups in India “.

For more articles, you can refer to:

1. 6 Types of Entrepreneurial Businesses
2. 5 Important Steps of Market Research for Startups