Challenges faced by Start-ups in India

The challenges a start-up faces vary at different level. Some challenges are small, and some are beyond the control of the founder, and it entirely depends on how the founder or founders handle the given situation.

Some of the facts which we have come across from our experience and discussions with many start-up founders are that family support and selecting the right investor is the biggest challenge an entrepreneur faces. Many of our alumni entrepreneurs mentioned that finding the right and affordable workforce who shares the same passion is another challenge that they have come across.

With the influx of venture capital funding into the start-up environment, many businesses still struggle to stay afloat and may eventually have to shut down operations because of the lack of well-defined vision, foresightedness, competition underestimation, improper research, and therefore inhibiting the development and viability of start-ups in the Nation. Some of the major difficulties are-1. Inadequacy of affordable talent

Even while skilled workers are not in short supply in India, the average wages of the Indian workforce are continuously increasing, and hence entrepreneurs simply cannot always afford them. It is quite difficult to discover the multi-skills needed to create start-up success stories.

2. The absence of risk-taking

Educated youth today are afraid of taking a risk. They simply want a safe and comfortable 9 to 5 job because of turnaround times or financial constraints.

3. Unable to find the right mentors – There is a dearth of good, experienced, and ethical mentors who can take the start-ups to the beta stage. Being business-savvy always keeps one step ahead of the competition. This may be a much more serious problem than raising money. One can build up energy over time if you are vigilant and take small steps at a time.

4. Addressing the escalating customer expectations

Online start-ups continually attempt to strengthen their reputation and brand image by providing a good experience. In a time when customer satisfaction is paramount and established e-commerce players push online shopping to the proverbial "next level" with anticipatory shipping techniques, it is challenging for the entrepreneurs  to meet the constantly shifting customer preferences.

Start-ups should start assessing their eCommerce trends and focus on using this data to build personalized customer experiences to meet the required customer expectations for a great user experience. Customers must feel appreciated and acknowledged as soon as they start using your service. For instance, send them notice notifications or product updates to help with this customer connection.

5. Data Security

Cybersecurity is another aspect where start-ups are facing challenges because hacks can lead to losses in money, information, and a company's general viability. Protecting both own and customers' data when it comes to eCommerce is crucial. The loss of client data due to a cybersecurity system breach might have a major impact on the trust and reputation the company has worked so hard to establish.

6. Insufficient marketing techniques

inadequate data in marketing systems and insufficient use of marketing techniques are other drawbacks in start-up ecosystems. Each state in India is interested in its own culture, cuisine, customs, language, attire, etc. What is therefore selling like hotcakes in Maharashtra might remain spotless in Tamil Nadu. Before diving into the perilous seas of new businesses, it is of utmost importance to have a thorough understanding of the area's insightful demand and realistic market analysis.

7. Peer Influence

There will be social pressure while beginning a business, and the following things tend to discourage people:

No support: To be honest, not many people would help a business. You won't have many people with whom to share ideas or get advice.

Mockery: People would make fun of you, which hurts a lot and is very depressing. People are trying to make fun of you while you strive to develop something.

You Can't Do It: As you are all aware, any start-up, whether it is established or expanding, will experience difficult times. You would be instructed to either sell the goods or cease selling them.

Even though there are many challenges faced by start-ups in India, young entrepreneurs can overcome them by believing in themselves and doing hard work.

About the authors

The article has been written by Dr Arpita Pandey, Head of Entrepreneurship cell and Dr Sarit Prava Das, Dean of ITM Business School

 

 

 

 

 

 

 

Note: The views expressed in this article are solely author’s own and do not reflect/represent those of Shiksha