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5 reasons why start-ups fail in India

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New Delhi: Prime Minister Narendra Modi’s highly publicised venture “Make in India” ushered in a new era in the Indian industrial sector with more and more start-ups sprouting up and contributing towards the development of the Indian economy.

While some of the start-ups flourished and went to the extent of challenging global giants like Microsoft, others perished or were limping towards an untimely death.

Despite the aspiration and the tenacity that the start-ups promise, they have some common flaws which trigger their downfall.

Lack of efficient workforce: Despite the presence of a pool of talent, selecting the exact fit becomes cumbersome for the start-ups. Fear of failure and uncertainty associated with the small companies deter talents. At the initial stage, the companies do not have the financial resources to rope in qualified people. The compromise that the companies make during talent acquisition later proves to be a thorn in their path of success.

Lack of training: Most employees learn tricks of the trade while working and being mentored properly. Since start-ups are lacking in resources the way big fish have, proper mentoring of the workers does not happen. This leads to a stagnancy and affect the productivity of the company. Most of the new small time organizations are brilliant with their ideas but have minimal professional experience. As a result, a gap is created which add to the woes of the organization.

Lack of marketing strategy: Constraints in the financial resources keep the start-ups away from spending too much on branding and marketing. As a result, even if the product is good it fails to reach the target customers. Hiring a marketing guy is also not possible for them. Moreover, the start-ups focus too much on the productivity and neglect their branding and marketing activities. The product, as a result, fails to get marketed.

The problem of copying: Most start-ups follow the models developed in the Western countries. In the process, they forget the environment they are working in. Instead of formulating a strategy focussed on the local needs, start-ups try to emulate companies of USA. This leads to a massive set back as what works in the US does not always work in India.

Strategic work plan, regular mentoring and adapting to the local situation might assist in the flourishing of the start-ups. But the government must formulate a policy and support them for developing a sustained economy.

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Top 10 startups funded by celebrities

The buzzword of Indian economy 'Startup' gaining the attention of celebrities

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Funds Ziddu. Wikimedia commons
Funds Ziddu. Wikimedia commons

Recently celebrities have been ready to invest in valuable startups. India has become one of the fastest growing startup ecosystems in the world, hence many celebrities seem to have growing business interests.

Here is the list of top 10 celebrities which are funding some major startups.

You may also like: Startup and a more competitive India

1. Ziddu funded by Amitabh Bachchan

Funds grouphomebuyers.com Wikimedia commons
Funds grouphomebuyers.com Wikimedia Commons

The actor decided to invest $250,000 in a startup based in Singapore, in 2015. Ziddu, a cloud service provider, was founded by Venkata Srinivas Meenavalli. It is run by Meridian Tech, and also offers free file hosting for documents, pictures, video, and audio.

2. Grouphomebuyers.com funded by Shilpa Shetty

A site which has a listing of new and upcoming residential projects from top cities. Shilpa Shetty is the co-founder of this website which has helped 200 families get properties at discounted prices.

3. Pulse funded by Chetan Bhagat

This new age photo-sharing mobile app was founded by Karthik Vaidyanath and Prakhar Khanduja. This app has a combo of articles and user-generated content. It is a bit like Snapchat, but one major difference is that you cannot take screenshots of this one. Many prominent people have participated in its funding, one name is Chetan Bhagat.

4. Healthians funded by Yuvraj Singh

One of the many startups that Singh has invested in, is Healthians. It is a home service health test platform that operated in NCR. It is now launched in Mumbai and Bangalore too.

Funds Qyuki. Wikimedia commons
Funds Qyuki. Wikimedia Commons

5. Qyuki funded by A.R. Rahman and Shekhar Kapur

They both joined hands in 2012 to launch a social media platform. Qyuki aims to engage Indian youth to new media content. It was built on Cisco’s cloud infrastructure and had received an investment from it too.

Read more: Bollywood celebs security trimmed

6. Yatra funded by Salman Khan

All of us know about Being Human. However, what we don’t know is that Salman Khan has a 5% stake in Yatra.com. He is also the brand ambassador for the company.

7. HealthEminds funded by Robin Uthappa

It was in March 2016 that Uthappa invested an undisclosed amount in HeathEMinds. The startup aims at helping people to deal with mental stress and depression. It was started in 2013, the startup offers video counselling without disclosing the identity of the caller.

Funds Muvizz. Wikimedia Commons

8. Muvizz funded by Manoj Bajpayee

Muvizz was founded by Bajpayee’s friends Abhayanand Singh and Piyush Singh. This startup offers cult, classic and independent films to lovers of cinema around the world. It is a Video-On-Demand platform.

9. GOQii funded by Madhuri Dixit

This startup designs wearable fitness bands, it also provides fitness training. Madhuri started out as an investor with GOQii founded by Vishal Gondal. Dr. Sriram Nene, Dixit’s husband, is the CMO of the company.

10. Indi funded by Anil Kapoor

It is video social network founded by Neel Grover which was launched in 2012. Kapoor invested an undisclosed amount in the startup.

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