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Home/Questions/Q 2776
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Anonymous
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Anonymous
Asked: July 23, 20212021-07-23T01:26:52+05:30 2021-07-23T01:26:52+05:30In: General

How many startups fail in India?

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How many startups fail in India?
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  1. Admin Administrator
    2021-07-28T00:10:36+05:30Added an answer on July 28, 2021 at 12:10 am

    In India, around 90% of startups fail and collapse in the first 5 years of their tenure. This rate is the same across all the industries and there are several strong reasons behind this which we will discuss further. Lack of Research- India has the 3rd largest ecosystem for startups but still the faRead more

    In India, around 90% of startups fail and collapse in the first 5 years of their tenure. This rate is the same across all the industries and there are several strong reasons behind this which we will discuss further.

    1. Lack of Research- India has the 3rd largest ecosystem for startups but still the failure percentage is huge it is because most of the people are entering the market without proper research. Research about the market, the scope in long terms, what needs of consumers are we going to satisfy, and what additional benefits we are giving to our users, who are leading the market already, how can we compete or stay in the competition. These are the things that should be properly considered before entering any market otherwise the chances of survival for your startup is very less.
    2. Lack of Funds- India has unique talents in every street but even after having awesome ideas and innovations in your head some are still not able to implement them or market them because of lack or insufficiency of funds.
    3. Lack of Patience- We Youth of our country who are trying to give a better shape to our nation are sometimes lacking patience. Founders of newly established businesses sometimes give more priority to scaling it up to different levels where the visions are not clear, the models are not analyzed and things are complicated. This is one of the major reasons why startups are failing in India. Sometimes giving sufficient time at a sufficient stage is necessary otherwise your business will not take time to collapse.
    4. Following the herd- It has been found that most of the startups with huge initial investments are coming with common ideas where the market is already established and now growing in that market is very difficult unless you have something additional. This is also one of the reasons why startups are failing in India.
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