3 reasons causing startup failure In India


The dawn of startup failure:

If you represent a 20-something flock of India, then you probably dream of being an Entrepreneur someday. And, if you apply yourself exceptionally well, you may even go on to become a startup founder. But, when you become an entrepreneur you realize that the odds are always against you and the stakes are higher than usual, all of which will lead to a startup failure.


Startup scenario in the US:

In the United States, nearly 9 out of 10 startups end up failing. Some due to the lack of funding, and some because of weaker business models.

Regardless of the product’s manufacturing costs, the American investors still try the idea behind a product and make proper use of the research dynamics to shapeshift the American consumer mindset and predict the probability of a new and innovative product in their markets. Since the American consumerism is susceptible to modern ideas, some ideas to work. Undoubtedly, the competition persists and many startups meet their demise.

Startup Scenario in India:

When the statistics shift to India, the entire concept takes a flip. In India, one must test their product profusely before launching it on a large-scale. Here, as an entrepreneur, it becomes your primary duty to ensure that the Indian customer will like it in the first go.

Since India has the world’s third-largest mobile user base, and most of them are catching up to using smartphones for their personal and business usage, the competition is truly very high to make a user feel the need for such an abrupt change.

No amount of marketing and advertising is enough to change the minds of several working class Indians (who make up the majority of the user base). There are a few things that a lot of Indians tend to see in a product:

  • What’s the price of the product?
  • What’s in it for them?
  • Why should they trust you?

The lack of risk-taking attitude prohibits the majority to go with a newly launched company. Although, in the recent times, the mindset is changing but it is not catching quick enough, which seems to hamper the acceptance and the progress of a startup enterprise.

Realizing and assessing the market risk can prevent startup failure
Chances To Grow In Startup


What leads to a startup failure in India?

Remember, as an Entrepreneur, you will not only face professional hardships, but a plenty of personal sorrows and regrets will soon tag along.

The Stereotype

A stereotype in India prevents many young men and women not to pursue their dream of becoming a businessman or a businesswoman. According to a survey by World Bank, the poverty trend between the years of 2010-2015, nearly 250 million people were surviving on $1.90 per day. The national average for the same survey was about the same.

So you must feel very fortunate to have parents who supported you and paid for your education. But, the off-side to this sentiment is that parents and society put so much faith in you to do good, that you have no other choice than to follow their wishes. You tend to give up your dreams or put them on an indefinite halt until you can accomplish all of your set responsibilities.


Business Plan can save you from startup failure
Written Business Plan

Disruptive Work-life Balance

Most of the working youth in India has a full-time job that keeps them busy for more than 10 hours per day and also forces them to reside in metropolitan cities which are expensive.

The zest to start a company either individually or with a team of friends or colleagues remains just a dream after long hours of work and meager pay.

Building a business from scratch requires lots of sacrifices, all of which does not seem fair to the new and inexperienced entrepreneur and that causes a startup failure.


lack of writing goals can cause startup failure
Goals Write-up


Lack of a healthy routine

Many budding entrepreneurs make the most common mistake of killing all their hobbies and interests in the pursuit of ambition.

The benefits of physical activity are highly emphasized in today’s world. It affects not just the body but also the mind, by increasing the blood circulation and oxygen to the brain, which results in a sound business mind.

When you’re brainstorming for new ideas, you should go out for a walk, or a run, to think better and feel rejuvenated.

Having some sort of physical workout will help you avoid a massive startup failure caused by the lack of safe and healthy habits in your daily lifestyle.

Also, refrain from cigarette smoking and alcohol. It is one of the bad habits that most entrepreneurs develop during stressful periods that they encounter.



Other factors, such as lack of proper planning, failure to adapt to changing situations, or lacking proper organizational structure also influence a startup failure. Success comes at a heavy cost, so be sure to tackle them.