#5 Shutting down the business is difficult

If an entrepreneur needs to shut down his business, it would take a long process because he or she needs to meet all creditors, appoint liquidators, and distribute company’s assets. Most importantly, the entrepreneur needs to submit a winding up petition to the court and wait for court hearings which may take many years.

It is also a shame to know that India is much behind, at no 94 in rank as compared to Denmark and Singapore which are first and second in the global index that ranks countries with the least amount of corruption.

#4 Policy related issues for E-Commerce and mobile industry

E-Commerce startups in India face certain issues related to the policies that have been recently implemented. These services face a ban on foreign direct investment, which is otherwise the only way for online retailers to raise funds from foreign investors.

Mobile added value services face regulations such as ban on bulk SMS’s and over-regulation of Do Not Call registry. Bulk SMS providers, telemarketing agencies, mobile value added service providers and daily deal startups are the most affected in this case.

The result is layoffs, closure and acquisitions of these companies. The telemarketing industry is also greatly affected with this obstacle.

Read: 5 Ingenious Tips To Save Your e-Commerce Startups