Why does Most Startup fail in India?

Why does Most Startup fail in India?

Starting a business is no small feat. It requires hours of hard work, dedication, and perseverance in order to make it successful. Unfortunately, however, not all startups are able to reach their goals or even stay afloat. In India alone, the startup failure rate has grown to an alarming level. With this in mind, this blog post will discuss the percentage of startup failure in India, why startups fail in India, and what the startup failure rate could be for 2022. Read on to learn more about why startups may not be making it through the country’s often-challenging market conditions and how you can avoid becoming part of this unfortunate statistic.

why does startup fail in India?

It is no secret that the startup ecosystem in India is not as developed as it is in developed nations. This is one of the main reasons why startups fail in India. A lack of access to quality resources, mentors, and funding are some of the other primary reasons for startup failures in India.

The first step to ensuring your startup’s success is to have a clear understanding of why startups fail in India. Once you know the main reasons for failure, you can take steps to avoid them. With a little bit of hard work and dedication, your startup can be a success story!


percentage of startup failure in India:

As per a recent report by KPMG and Google, startup failure rate in India is as high as 90%. The main reasons cited for the same are lack of innovative business model (42%), followed by running out of cash (29%), and then poor team management (23%). Other reasons include not having the right market fit (21%) and regulatory issues (19%).

The report further states that 66% of startups in India shut shop within the first two years of operation. This is largely due to the fact that most startups in India are founded by first-time entrepreneurs who lack the domain expertise and industry know-how to navigate the challenges of starting up a new business. Additionally, Indian startups also face stiff competition from well-funded global players, making it difficult for them to survive and scale up.

So, why do startups fail in India? Lack of innovation, tough competition, poor management, wrong market fit and regulatory hurdles are some of the key reasons. However, with the right support and mentorship, many of these issues can be overcome.

startups fail

Startup Failure Rate in India:

It is not a secret that the startup failure rate in India is quite high. In fact, it is one of the highest in the world. There are many reasons why startups fail in India, but some of the most common ones include:

  1. Lack of proper planning and research: Most startups in India lack proper planning and research. They do not have a clear idea about their target market, their business model or their revenue model. This lack of planning and research leads to improper execution and eventually failure.
  2. Lack of funds: Startups need a lot of money to get off the ground, but most Indian startups do not have access to adequate funding. This shortage of funds often leads to cut-throat competition and an inability to scale up operations, both of which can be fatal for a young company.
  3. Lack of experienced team members: Startups in India often lack experienced team members who can provide valuable guidance and advice. This lack of experience can lead to poor decision-making and ultimately failure.
  4. High level of competition: The startup ecosystem in India is extremely competitive, with new companies springing up every day. This high level of competition can make it very difficult for startups to survive and thrive.
  5. Regulatory hurdles: The regulatory environment in India can be very tough for startups to navigate. There are many rules and regulations that must be followed, which can be time-consuming and expensive. Additionally, the constantly changing

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