DECEMBER 20229focus on the funding component as a result of rising operational costs and declining revenue, which dilutes their attention to the core principles of business. Therefore, generating revenue is essential, necessitating effective burn rate management, which is simply the rate at which companies spend money in the beginning. It is more difficult to develop and maintain growth than it is to raise adequate money.Supporting Infrastructure:Numerous support systems, such as incubators, science and technology parks, business development and centersare important in the lifespan of startups. Failure risk increases if these support systems are not available.Financial Resources:For entrepreneurs, having access to capital is essential, but it's never easy to obtain enough. Numerous sources of funding are accessible, including family members, friends, loans, grants, angel investors, venture capitalists and crowdfunding. As the business develops, the necessity starts to rise. Business expansion demands timely cash infusion. The success of startups depends on effective cash management.Creating Awareness in Markets:Due to a disregard for market constraints, startups fail. Due to the novelty of the product, the environment for a startup is typically more challenging than for an established company. For a new product, the issue is more challenging because the firm must create everything from the beginning.Government Policies:Government is the sun, and the single biggest facilitator of entrepreneurs is the planets in the solar system. Although it must be emphasized that India still retains a terrible ease of doing business ranking according to the World Bank study, government policies are gradually and steadily improving. India has more laws and regulations than most other countries in the world, making it more difficult for entrepreneurs to launch businesses there. Once they do, it becomes even more difficult for them to comply with the sector, department, state, and federal legislation.Talent:Due to businesses growing to a particular size and then shrinking to improve efficiencies, employment at startups is unpredictable. This issue is minor in comparison to locating qualified talent and keeping that talent. Since they have experienced widespread layoffs and downsizing in the past, skilled individuals are reluctant to join startups. Additionally, early-stage or pre-series startups get paid less than their corporate counterparts. Most startups recruit insufficient personnel without processes to grow, and they ultimately lose out.Funding:For startups, raising finance has been a protracted problem. It is simpler to acquire angel and seed funding because the sums are smaller, but it is much harder to participate in later-stage rounds because businesses burn through money too quickly and don't consider unit economics. It should be celebrated when an entrepreneur arrives at the starting line of the race rather than when they raise money. Larger cheques, which are a very rare source of finance, are available in India. In our environment (India), we patronize the entrepreneur rather than the company, and the founder occasionally gets sucked into the glamour of funding. Entrepreneurs should establish goals for the next five years and avoid being fixated on any one thing.In India, the economy is currently in expansion mode. With the introduction of liberal policies and programs for entrepreneurs like `Make-in-India', `Startup India',`MUDRA' and more, the Indian government is gradually demonstrating greater eagerness to improve the GDP rate of growth from grassroots levels. Indian startups have wonderful potential because to `Make-in-India'. The startup industry has numerous difficulties ranging from finances to human resources and from launch to tenaciously sustaining the expansion. The prospects and difficulties for startups in India are both enormous. To overcome these obstacles, the government and start-ups will need to work together.
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