Challenges Start-ups Face For Survival in Fastest-Growing Economy of India

by Media Team

Posted on March 28, 2017 at 10:48 AM

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Lately, there have been quite a many endeavors to present India as one of the most investment-friendly nations in the world map. Among them, manufacturing sector rules the roost for it is being emerged as one of the highest growth spots in India. Thanks to the 'Make in India' movement that has given push to the Indian manufacturing industry whilst giving it a whole new recognition as well. Add to more, there's yet another campaign called 'Standup India' which helps the start-ups with funding and encourage the spirit of entrepreneurship among aspiring, young Indians. In fact, the Indian Government has set up an ambitious target of accelerating the contribution of manufacturing units to 25 per cent of GDP by 2025.

The Government has no doubt, taken various measures to form a favorable environment for manufacturing start-ups such as online systems for environment clearance, simplification of FDI policy and procedures, creation of state-of-the-art infrastructure (Delhi Mumbai Industrial Corridor) and several other industrial corridor projects.

In spite of an array of initiatives established for the betterment of manufacturing sectors in India, there are many challenges that exist within; thereby creating hindrance to our manufacturing start-ups.

Awareness and Culture

Entrepreneurship is all about taking risk. The start-ups are more concerned about profits than understanding the loopholes and solving the prevailing issues. Our Indian culture is conditioned to 'spend less' and is always encouraged to raise opinions for those who fail rather than encouraging them. Likewise, the start-ups should start accepting failures and be more open-minded.

Social Matters

Since Indian markets are largely unorganised, they create issues for any start-ups. Add to this almost all struggling start-ups blame lack of proper guidance or quality mentorship. Then, there is another obstacle of location as India is a nation of varied taste and therefore every new product is not favourably or equally accepted!

Technology Barrier

A full-fledged IT infrastructure is the need of the hour for Indian start-ups as there's upsurge in online customers. It has become essential for any start-ups to employ technology in a bid to sustain in the cut-throat competitions. On the other hand, with the inclusion of digitization, many start-ups fear of cyber security as well.

Financial Issues

Most of the start-ups are backed by family funds with limited employees and without proper financial records. Due to lack of proper financial planning and strategies, they might face various obstacles leading to shut down. However, the Government has launched various funding options but they're not available to all sort of businesses. Furthermore, during initial phase, start-ups do not receive funds from banks without enough credit checkups.

Regulatory Woes

Even though the Government has launched e-Biz portal, there are many more visits to be made to the government offices to obtain clearance for any start-up. Beyond a doubt, this discourages the budding entrepreneurs.

Roaring Taxes

For any start-ups taxes create big worries. Taxes such as excise, octroi and VAT create huge trouble for a start-up business. Even the NASSCOM has tried for the exemption of both indirect and direct taxes for the start-ups in India. Believe it or not, taxation has handicapped budding entrepreneurs some or the other way!

Enormous Gap Between Capacity Seekers & Capacity Owners:

Proper connection at the right time is the best privilege any start-up can have! But unfortunately, there is a huge gap between industry owners and capacity seekers because there's no such effective platform that can help connect the needy at the right time. Just think of a scenario where any start-up can utilize their skills even when they don't have required resources. Not to mention they can even be guided regarding financial & technical due diligence, product development, audits etc. Or rather they can easily communicate, collaborate and work out on the mutual benefits without wasting their money, time and energy.

Fortunately, there has come one platform to the rescue called, ' Shareconomy'. It's an ultimate digital platform that breaks down the barriers among businesses while helping the Capacity Seekers & Capacity Owners to meet and share their business needs just a click away!

With Shareconomy, Business Alliances Just Got Simpler!

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