The Great Indian Startups.!
Startups are the new trend!! Everywhere you go, everyone you see has ideas to create something new, to establish their name, to build an empire. But the question is how many of them work out? And just because you have an idea, will you be able to take it forward? Is it easy to start something of your own just because your idea is unique?
Ideas are stepping stones to a startup. It can be of two types — a unique, ground-breaking idea which no one has ever thought of or an idea which builds on something that is already there. The first kind of startup is difficult to establish but once done, it sees enormous growth.
Challenges in setting up a startup in India
- Culture: Entrepreneurs and startup are something new to the society. It is in the last decade or so that some people had a transition from job seekers to job creators. Even though the scenario of obtain-a-degree and then join a MNC or get a government job is changing, a person is not said to be successful among the society-people unless a) you own a million dollar company or b) you work in a MNC. Startups may progress to the category (a) but will take some time to establish it. Also every startup may not be a success and failure is not welcomed by anyone. So startups are frowned upon by many. The idea is to overcome or ignore these. Just because you started one company, it doesn’t mean that it will succeed. You have to accept failure too the same way you accept success. Failure teaches an entrepreneur what to do and what not to do. Also just because you failed once doesn’t mean that you will fail every time. So if you have a better idea or improvised versions of the older one, don’t hesitate to carry it forward. And if at one point you realize that it’s not your cup of tea, stop!
- Mentoring: Starting a company of your own is tough and you may have to face many unprecedented hardships. You may have a brilliant idea but transforming that idea into a business success is different. It is a lonely and tiring journey. So for this you need mentors, people who have the experience of starting a venture or already own a successful one. A good mentor can provide you valuable inputs and thereby help you to uplift your startup to huge heights. But in India, it’s in its early stages to form a formal mechanism. The investors often offer some kind of mentoring but unbiased and honest mentors are difficult to find.
- Policies: If you want to establish a company in India, it has to undergo a lot of paperwork and has to abide by the myriad rules and regulations of the Government which is quite difficult. It takes roughly 2 months to establish a startup in India whereas it takes hardly 15 days to establish one in Silicon Valley or so. Government decides whether a company has to come up or not. A government that ensures doing a business or setting up a company is easy, will be able to increase the number of startups coming up a year in India. India is ranked at 142 among the 189 countries in the World Bank Ease of Doing Business. For startups to succeed and thrive in a country like India, the government has to do a lot of things and also understand the importance of entrepreneurship in today’s economy.
- Funding: Funding is a major problem as far as startups are concerned. Angel investors, private equity and venture capital are some sources of successful funding but majority of the startups grapple to raise funds. Angel investors are your family or friends who invest some money in your startup for you to succeed and not expecting a huge profit out of it. Whereas, private equity firms are those that can provide you large sums of money for a large amount of time. It demands a lot of waiting period for the money to turnaround. Venture capital allows the investors individually to fund a startup in the early stages of growth or when the investors see a huge potential in the company at a later stage. The number of investors who invest in a startup until it is established and showing a growth, is less.
- Hiring: A startup cannot afford to match the salaries that any other large company is giving out and the job can never be considered as a steady job. Therefore startups have a lot of challenges regarding the hiring process. They may not be able to attract the best or a skilled worker of that extent and may have to settle for a less skilled or talented manpower.