“Startup” one of the buzz word in recent days for young entrepreneurs who aspiring to grow. It gives a hope to small businessmen to enhance their business both in India and foreign countries. Indian government reacted quickly on the buzz word and started promoting bank ventures to boost young entrepreneurs, eliminated several government policies, and provided several benefits to concentrate on the startup growth rather than following typical government policies for adherence. Offers like free from mystifying inspections, no tax for the capital gain and zero tax on the profit for initial 3 years were really helpful for the young entrepreneurs.
Not only indian government, top heads from various MNCs, traditional businessmen, world leading banks, foreign investors started investing in start up to encourage the new businessmen. Alien words like incubator, crowd funding, seed funding, private equity and venture capitals become common for Indian startups founders. 846 startups were funded $6338.83mn between 2011 to 2015 helps the SMEs to execute their thoughts without any hitch. 280 startups were funded since Jan’16 to ensure smooth day to day transaction.
Most of them are facing challenge in executing due various factors though the numbers are looking good and hassle-free investments pouring on startups. Recent news on the Flipkart valuation dip of 27%, shutting down of R&D team by a major transport startup, struggling to pay salary by a food startup, challenge in raising fund by other E-commerce giant are pretty evident.
A stat says 59% of the startup failed because of the poor product and non-availability of market needs in India. We need to wait some more days to understand the startup market better…….