Indian Startups: Challenges & Opportunities

Startups can be divided into two categories. An entrepreneur who builds something from scratch from the ground up. Once established, this type of start-up generally experiences remarkable growth. Those who do not want to recreate the wheel make up the majority of the second type of startups that we see around us. To create something fresh and unique, they are similar to putting old sauce in a new dish.

Any startup in India faces a unique set of problems and opportunities, no matter what type of startup it is. The challenges can be broken down into three categories:

Culture: Enterprise and startups are relatively new in the United States. People in the United States have just recently made the transition from being job seekers to job producers in the previous 15 years. Starting a business is difficult, and there are more failures than successes in any country. Oftentimes, an entrepreneur must be prepared to deal with failures and unimaginable challenges. However, failure is frowned upon in our culture and we are not taught how to fail. As a result, a society that does not value commercial failures stifles innovation and creativity before it even gets started. Entrepreneurs often learn from setbacks by learning what not to do and what to do instead.

Mentoring: Starting a business is a risky and often lonely endeavor. Co-founders may exist, but you may not have the commercial sense to succeed. Being a smart thinker is not the same as being able to turn that brilliant concept into a successful business. Having mentors that have been through the same process or have business expertise is crucial for a startup. An excellent mentor is often the difference between success and failure since he or she provides significant insights to the student. However, there is no institutional mentoring system in place in the country to assist businesses. As a result, mentoring occurs on an as-needed basis. Even though investors can provide some type of mentoring to startups that have raised money, it’s rare to find an honest, unbiased business mentor. Finding a suitable mentor for a company might be a difficult undertaking.

Policies: In the entrepreneurial ecosystem, the government is the biggest enabler. Success relies heavily on the government’s role in making doing business easier and assisting new enterprises get started. The World Bank’s newest ease of doing business ranking (out of 189) places the country at 142, with the ranking for starting your own business coming in at even lower, at 158. For whatever reason, it’s impossible to start a business in India due to the sheer number of laws and regulations. The government’s role has thus far been confined to providing grants and loans, but without an effective, enabling environment, execution is far from the goal. A recent announcement of a Startup Fund will be fascinating to see in this regard. The government has a lot of work to do in order for startups to exist and succeed, and it must grasp the value of entrepreneurship in economic growth.

Hiring: Economic conditions have changed, and the days of rapid development are long gone. If you’re starting a business in an uncertain market where demand is unknown, it’s very challenging to accurately estimate the number of people you’ll require. It’s a minor issue compared to the larger one of getting skilled workers. For example, the National Skill Development Corporation (NSDC) was expected to train 150 million Indians by 2022. Talent and qualified individuals are particularly tough to attract and hire for a company. A startup’s salaries are frequently lower than those of larger organizations, and jobs at a startup aren’t considered to be stable. As a result, startups have a difficult time finding qualified candidates and are forced to settle for the next best alternative.

Funding: Starting a business has always had difficulty with money and access to money. A number of businesses are still struggling to attract financing from institutional sources, despite the fact that angel investors, venture capital, and private equity have helped in the past several years. In addition to the seed rounds, there are additional crucial Series A and B rounds to consider. Due to the restricted number of significant cheque-writing investors in India, it’s still incredibly difficult for a startup to raise funding.

The opportunities

Demographic Factors: According to the latest UN statistics, India has the biggest concentration of youth population with 356 million 10–24-year-olds, although having a smaller population than China. When education and health care are provided in an appropriate and timely manner, the country’s economy will flourish as a result. A nation’s future leaders will be shaped by its youth. A country’s demand and consumption patterns are also influenced by youth. When it comes to startups, teenagers make up the workforce that they so sorely require.

India has a unique mix of difficulties that necessitate innovative solutions from outside the country. There are specific problems in health, education, infrastructure, and sanitation that can’t be solved by western solutions. Start-ups can take advantage of any crisis to tackle a pressing need while also creating a business. As a result, many of the issues facing growing economies are the same, and solutions that work here can also work in many other African countries. This enables Indian entrepreneurs to go up even further and make a real contribution on the world stage at the same time.”

Large Population: For startups in the country, going overseas isn’t a requirement. Over one billion individuals make up India’s domestic market. Brands are in high demand due to increased disposable incomes and rising ambitions of an expanding middle class. Because of this, consumer spending has increased as well, which has helped to boost supply and production. Startups that aim to solve a problem or provide a service to a large population in one of the world’s most important consumer markets are likely to succeed.

High Mobile Penetration: Tele-density in India reached 76.55 percent, with 95.76 crore subscribers, according to the latest Telecom regulatory authority of India numbers. There are now 95.76 million wireless subscribers, slightly shy of the 100 million barriers. Urban and rural India’s high mobile penetration has changed the country’s economy and how goods and services are offered. As a result, there have been improvements in efficiency and productivity. Businesses have benefited from faster decision-making, improved logistics, and even access to bank accounts as a result of the technology. This has led to an increase in financial inclusion and credit flow to the unbanked. It’s no secret that mobile phone penetration is on the rise. Data-enabled smartphones have changed the nature of startups and businesses. Starting up companies that create applications for smartphones, for example, must appeal to an ever-increasing market of users.

A billion people’s aspirations have forced India to a crossroads. A billion minds are needed to become a worldwide power, and existing frameworks may be insufficient. In order to become a knowledge powerhouse, the greatest route forward is through startups and entrepreneurship