FAILURE IN THE START-UPS
India is struggling for becoming third largest startup ecosystem in the world for which it has provided the ground for many new startups in last few years still 90% of startup fails within 5 years, the main reason behind this failure is lack of uniqueness and also 98 out 100 young entrepreneurs copy the western ideas they have lack of information and knowledge about new technical innovative ideas for their business.
According to the study of IBM institute of business value (IBV) conduct the survey in collaboration with Oxford Economics to know about India startup ecosystem and the main reason behind the failures in Startups is lack of innovation, non-availability of skilled workforce and insufficient funding. As India is giving a chance to many new startups and a young businessman still there is a high rate of unemployment in India also the main reason is an increase in the population and lack of proper knowledge about work.
IBM said that “77% venture capitalist surveys believe that many Indian startups lack pioneering innovation based on new technologies or unique business models. Indian startups are prone to emulate already successful global idea”.
According to experts, India is follower market however, artificial intelligence machine is mainly restored in retail and banking.
Through the global study, it has been found that India comes in the bottom-most countries in terms of global innovation and the report state the reason behind this is a poor education system. On the Global Invitation Index (GII) India comes on the 66th rank also there is no doubt about India can become a global driver because we have potential to do work, a pool of talent and cultural innovation.
Also, IBM states that 70% venture capitalist claim that the main problem faced by the Indian startups are an investment of talent and there is limited availability of important skills.
Another report suggests that there were around 6’000 IT companies in the year 2016 which came down to 800 in just nine-month of 2017 this means there is a big loss in startups and also many people are getting unemployed
Head of marketing intelligence firm Rishabh Lawania also shared his view by saying “Since 2015 as many as 1,503 startups have closed down in India. The major reason is due to the replication of western ideas and not lack of subsequent funding from investor”
The main failure is being faced by eCommerce and food technology.
The chief digital officer of IBM India/South Asia Nipun Mehrotra said “the Indian startup community ranked third globally in terms of the number of startups, has been creating new job opportunities and attracting capital investment. We believe that startups need to focus on Societal Problem, including health care, sanitation, education, transportation alternate energy management and others which would help deal with the issue that India and world face. These require investment in deep technology and product which are built to scale globally”.
Now, due to pandemic situation, India’s economy is facing crucial time and for stabling, these new young entrepreneurs should come up with innovative ideas and skilled workforce which will help India to regain its economy and also soon it will be the third-largest startup country in the world and for all this hard work and creative mind is required.