Major Problems Faced by Startups In India -getinstartup

Major Problems Faced by Startups in India

Have you heard of the theory “Survival of the fittest”, it totally fits in the world of startups. You might have heard of 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 start a startup in the future you would be facing problems too, 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 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 existing or by creating entirely brand new markets.

Major Problems Faced by Startups In India 1-getinstartup
Source: https://www.indianchamber.sk/en/programs/startup-india/303-start-up-india-the-most-fundamental-questions

It has been widely reported that 9 out of 10 startups fails, however new research suggests 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 fails within the first five years, that’s really a big loss and a big problem to be resolved as soon as possible. This all researches and surveys leads 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 would not 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 faces a lot of problems in starting and maintaining a startup.

Startup in India is about creating prosperity in India. Many enterprising 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 wealth creation, economic growth and employment.

Major Problems Faced by Startups In India 2-getinstartup
Source: https://ec.europa.eu/jrc/en/facts4eufuture/blockchain-now-and-tomorrow/on-the-rise
Trends in total blockchain startups across main world players.

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

It is one of the biggest challenge faced by all the startups in this digital age, Selecting a suitable candidate that fits a job well enough is peculiarly tricky task.

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Source: https://www.shutterstock.com/image-photo/man-hiding-under-laptop-400718536

2. Intense Competition

Digital World is quite fierce. There is always a competition going on between the best of the best for the survival of a startup business.

In order to survive in this competitive startup business environment that covers both traditional and online businesses, the startup needs to play their best cards at the right time and play aggressively in order to survive in this business.

3. Lack of Risk Appetite

Experiments can provide answers to many problems, which are must in startup business. Without risk there are no rewards, Many business owners have taken 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.

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 startups.

5. Financing a Startup

Finding funds is stressful. Whether you’re starting a business or trying to find funds 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.

6. Peer Pressure

Yes, there will be social pressure when starting a startup, The things that bugged many people are:-

  • No support: Mostly, Not many people would support it, You won’t be able to discuss ideas with much, won’t get suggestions from much.
  • 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.

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 world’s richest and successful entrepreneurs also faced many ups and downs in their life to be on the top. But they succeed 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 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
  3. How can you start with us – Get in Startup?

14 Thoughts to “Major Problems Faced by Startups in India”

  1. Gurasees Singh

    Yeh bhi shi hai 👌👌🔥

  2. Jatin Parashar

    Good work 👍

  3. Damanpreet

    Well written 👍

  4. Deepanshi

    Good going⚡

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