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Government of India launched Startup India campaign to encourage entrepreneurship in India’s young generation who despite being skilled and able to launch their own ventures become dependent upon various types of jobs and remain under employed.

Startup is great idea…needs encouragement

India’s demographic dividend is conducive to Startps with high potential. India as the youngest nation in the world and huge overall population has one of the largest consumer base in the world. For every unique need of every segment of population there is opportunity for new venture. Our infrastructure, healthcare, education systems are in dire need of up gradation where startups can make huge difference.


Problems faced by Startups:

  • Startups find it difficult to have access to credit. Attracting investors to fund ventures or getting loans from banks are perennial problems for startups.
  • Despite all the commitment, Banks are not giving loans to startups without prior credit history.
  • Many times despite raising sufficient initial capital, startups find it difficult to survive as they can’t match revenue and burn rate mostly because of changed economic factors.
  • Finding right skilled human power is another biggest challenge before startups.
  • Compliance issues
  • Location is another hurdle. Location depends on investment activities also. 


For a startup, it is difficult to attract and hire talent and skilled workers, since they cannot match salary level given by large, established companies and also cannot offer job security on long term basis. Startup failures are looked down upon. Failures are not met with encouraging advices in most of the cases. People are sensitive towards risks and rewards and Indian economy which is highly price sensitive, worsens the situation. Right kind of mentorship is not available. Available mentorship and skill enhancement may not be accessible in all the cases. So though someone has potential to start something and may be that idea is really revolutionary but if that doesn’t meet right guidance to turn it into a successful business then that idea remain irrelevant. Huge, diverse demographics makes it really hard to capture consumer’s mindset in Indian Market. Literally after every 30-40 km region, one can find change in taste, traditions and habits. If a firm is able to capture consumer mindset, it cannot cater to all of their needs. Most startups get stagnant in figuring out strategies and they eventually shut down. 


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