Empowering MSMEs with News & Insights

90% of start-ups in India fail in the first five years reveal IBM study

Updated: May 18, 2017 10:21:32am
image

New Delhi, May 18 (KNN) In a study conducted by the software giant, around 90 per cent of the startups tend to fail during the first five years of the inception of the startups in India.  The prime reasons for the failure ranged from lack of pioneering innovation to problems in availing funds. Other problems include lack of ethical business practices.

Majority of the startups in the India face the heat of fund crunch, which is opposite to the startup ecosystems abroad that have well funding support from the investors.  

According to the study, around 76 per cent of the Indian Startups feel that the economic openness is a major business advantage for them to be able to open a startup. 60 per cent of the respondents view availability of skilled workforce as a boon to the Indian industry. Also 57 per cent see the presence of a large domestic market as a big advantage that encourages the startups in India.

The study further revealed that to achieve higher success of the startup economy in the country, dynamic involvement of the various stakeholders including established businesses, government departments and educational institutions in essential in order to evolve into a more conducive ecosystem for the startups.

Venture capitalists who were a part of the study opined that a major problem with the Indian Startups is the lack of talent and skills, which is very important for a startup to grow and sustain.

Also in the study, many key Indian business leaders did acknowledge the importance of collaboration with the startups to accelerate new ideas in the industry.

The study titled “Entrepreneurial India” was conducted by IBM recently to explore various dimensions associated with the Startups in the country. The universe of the study included officials from government departments, established companies, startup entrepreneurs, venture capitalists and educational organizations. (KNN/ DA)

COMMENTS

    Be first to give your comments.

LEAVE A REPLY

Required fields are marked *