7 challenges faced by a startup company in India
Startup and Entrepreneurship is the new wave in India. As the Startup India Scheme was introduced by the Indian Government this phenomena got a positive boost. With the success story of startups like Swiggy and Paytm inspiring a million minds, numerous new entrepreneurs are emerging in our nation. But before every success story comes a struggle story. As many of these entrepreneurs enter the market without any awareness about the possible risks they might face, their initial confidence is tainted with doubts.
To ensure your confidence in your idea stays intact, we have compiled a list of possible hurdles faced by every startup in India. Here is a list of 7 challenges faced by a startup company in India :
1. Lack of Skilled individuals
One of the biggest hurdles for an Indian Startup Company is the lack of skilled individuals. Indian youth are talented but not skilled. Unfortunately our restrictive education system frequently fails the Indian Youth. Indians are considered as one of the sharpest minds in the world but the Indian unemployment rate paints a paradox before us. The Indian education system still follows the outdated British education system that fails to serve the youth of this country. Much of the curriculum has no practical benefits for us. The standard style of theoretical education stands outdated as data has become available on fingertips, the education system needs to evolve and become more skill focused than theory focused. Algebra and geometry does not serve the collective student bracket of tenth standard but educating them about taxes will help them no matter what stream they choose for their higher education.
2. The Tricky Indian Market
The Indian Marketspace is a tough one to crack. The average Indian is a smart consumer but a very loyal one. Once a company does crack the market, the Indian consumers are also quite rewarding. It is hard to both get an Indian consumer’s loyalty and shake it off. Many of the biggest companies of the world have expressed their struggle in the Indian market. For it is a complex market to understand for any startup company. The dynamism of the Indian Market is not one with theoretical solutions. It is barely something the management studies can teach. Studying definitely helps a firm afloat but to really sail through, it is required to understand this landscape from the long running businessmen in this space. Most entrepreneurs get inspired from some US or Chinese startup and want to replicate the formula in the Indian landscape, but this kind of replication can’t happen without making some adjustments.
3. Economic and Political Instability
The Startup India Scheme helped many entrepreneurs initiate their startup journey. This flagship initiative by the Indian Government created an atmosphere of entrepreneurship in India and skyrocketed the startup culture in our country. Needless to say it was a great help to our domestic entrepreneurs but it comes with a crucial question. With the political party running the government changing every five years, what is the guarantee the next government will be as much of an Startup India enthusiast as this one? One top of that the taxes and market fluctuations post covid has become a big hassle for many small startups. Recession, Inflation and Government policies add on to this dilemma.
