Advantages for Start-up business in India and the reason for failure

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Advantages for Start-up business in India and the reason for failure

Before determining Start-up business opportunities in India, we must know about supporting regulations and the success probability of start-up in India.

India has the largest young population globally. With full of energy and aspiration, Indian youths have high chances of success internationally. And Government of India provides the platform for start-up businesses with the ‘Make in India’ initiative. Many youths are choosing entrepreneurship over 9-5 jobs. However, not everyone becomes successful.

There are many skill development courses like Data Analyst, Financial Analyst, Understanding Design Thinking, Digital transformation, etc. to empower business-minded youth. Not only has this but also provided support with financial support, income tax support, registration support, etc. But India is improving in ‘ease of doing business ranking 37 positions in 2017. On the other side, 80-90% of start-ups failed within the first 5 years.

Here, read the discussion on why India is now a perfect place to start a new business, along with the reason for the gap between start-up business and success rate.

Criteria categorizing your business as a start-up business:

If the business has not completed 10 years it will fall under start-up criteria.
It has to be a private ltd. company or registered as a partnership firm.
It must have an annual turnover of fewer than 100 crores.
The business is working for innovation, improvement of products, and development of products or processes.

The advantages for Start-up business in India:

In India if you want to start a venture you will get benefits in the following ways:

Financial Aids: The Govt. of India help start-up by providing financial aid. When a start-up applies for a patent, the government aids it by giving 80% of reimbursement in fees. Also, the patent registration process and intellectual property rights will be faster than previous.

Ease of Registration: Now you can register your business in a day with the help of a mobile application or a web portal. The procedure is also easy and requires only a single-window clearance.

Income Tax benefits: Start-up businesses can be eligible for three years of tax exemption. One can claim the benefit after obtaining a certificate from the Inter-Ministerial board set up for the purpose.

Government Tender: Now, the start-up can apply for government tenders easily because now tenders are exempted from required experience as previous.

The reason for a failure Start-up business:

Lack of Research and Innovations: Many young people in start-up businesses feel enthusiastic at first but with time they forget to research their products and services. Also, they tend to focus only on money rather than solving problems. Also, they tend to focus only on money rather than solving problems. Problem-solving is a necessity. And the necessity is the mother of all inventions.

The invention makes businesses successful. Currently, Indian entrepreneurs are not focused for continue inventions that give them poor results.

Lack of Funds: The lack of funds or capital doesn’t allow the development of products or services, marketing, and sales. That means they can’t compete in the market and become a failure.

Lack of Focus: Building a business is not like eating a piece of cake. It requires risk-taking gut, finance, time, patience, and constant work. But many entrepreneurs are not dedicated and focused on that.

Leadership failure: A successful company has resulted from good leadership that leads a good team. Lacking constant motivation and leading quality is another reason for start-up failure.