WHY IS STARTING UP HARD IN INDIA?
August 7, 2022
Especially in the pandemic era, startups have gotten a lot more attention than ever. The number of startups in India is rapidly increasing, and more support is now available in all areas, thanks to Shark Tank India being telecasted on Sony which mainly focused on revolutionizing the Indian Startup ecosystem. But the question is- Why is it so tough to start and grow a business in India? Despite having 1.3 billion people and a voracious appetite for consumption and demand, the country still struggles to develop a successful business. Let's understand this. Corruption- Yes, you will know someone or the other who greases their hand to get something done in their lifetime. This loop keeps on going so massively that it is actually wreaking havoc on our country's economy, along with extremism, poverty, education, and healthcare, to name a few. Access to finance: To start or build a business, every company requires capital. Although the startup ecosystem has developed and grown in tandem with government programs such as mudra, sidbi, and stand up India loans, access to financing remains uncertain, especially for those living in rural areas with limited access to organized financial institutions. Lack of innovation- 77 percent of venture capitalists believe Indian businesses lack originality or innovative business strategies, according to a poll. According to a survey done by the IBM Institute for Business Value, 91 percent of startups fail during the first five years, with lack of innovation being the most common cause. Although India is said to have the world's third-largest startup environment, it lacks meta-level companies such as Google, Facebook, and Twitter. Indian startups are also noted for copying global startup models rather than developing their own. Product Market Fit- A majority of startups fail for one simple reason: their products aren't needed by their customers. Is your product beneficial to customers? Are there people who want to buy your product? Is your product in line with the cutting-edge ideas that your firm was created for? A lot of times, entrepreneurs strive to produce goods quickly that don't have a market or try to increase the market for a product that doesn't have one. Business model failure- Many entrepreneurs believe that having a decent product, an impressive website, and a large advertising budget will be enough to attract clients and business. They overlook the fact that customer acquisition and retention are expensive, and that the startup requires a fail-safe business strategy to survive and profit. Taking care of your startup's shortcomings and difficulties can only help you progress.