In the last few years India has become a hub of new businesses. There are thousands of businesses which are opening every now and then in India but the irony is that most of them shut down at a very early stage. This is because they start their business but fail to manage them properly as per the financial and legal requirements. The challenges faced by the startup stand up due to regulatory ambiguity, improper infrastructure and to further expand the business. The startups provide support for the efficient growth of the economy and to provide beneficial employment. Hence to help them is the duty of the government and they are doing the same but to survive in the market is in the hand of the business owner and his or her strong and mindful decisions.
Key Challenges Faced by Startups in India and Their Solutions
There are many challenges which have been faced by the startups in India due to which they are struggling to survive in the market. Out of such challenges some of the key challenges which startups are facing every now and then are discussed below.
Improper Funding
Most Indian Startups tend to lack capital for business at the beginning of development and are very much limited in their funds. Stands out to be difficult for an investor to further fund new projects and other businesses in India, it is considered to be complicated over compliance with the rules and regulations. The business operations in India lack development as of the improper funding made towards the business and other operations. The below-mentioned are the possible sources for funding towards the business:
- Angel Investors are the investors who are responsible for the change of capital
- Venture Capitalist refers to the institutional investors who are investing in the beginning of a startup for business.
- Government Schemes are the funds provided by government programs which include Startup India and Atal Innovations
- Crowdfunding can further help to raise money from the people's form of contribution through online platforms.
- Accelerators and Incubators are only provided and other training
The Startup at the beginning of business operation should provide for the proper growth opportunities made with other programs and guide them to develop their careers through a strong team. This can help and further help the business to showcase its business potential. One can even look provided by the government to further help gain access towards resources and other growth.
Lacking Skilled Talent
It stands out as very important to find a professional workforce which is the most difficult part for Startups. Due to a lack of education, one does not get the proper skills for the startup programs, and towards a lack of development of skills for the business purpose fields of development. Hence most businesses struggle to hire employees to get hired towards high-end paying jobs. The below mentioned provides for the possible ways through which one can hire skilled talent:
- To collaborate with the educational institutions through which the startup programs in relation towards solutions.
- To provide for better incentives through which one can hire for their startups.
- To use various online and social media platforms that help for better business development and further help to hire professionals from all across the country.
- To provide for the developmental training that helps the business to flourish more effectively.
- Collaborate with another startup for the business and further help.
The Aspect of a Competitive Market
In the Indian economy, most startups are acquiring for, and this for businesses is followed by healthcare and education. The below-mentioned provides for the applicable strategies through which one can stand competitive in a market:
- One can gather around markets that help for the developmental strategies.
- To use through applicable user experience and further help to strengthen the business.
- To use modern technology and help the business to flourish effectively.
- To further collaborate for the effective growth of the business.
- To keep up with trends of the business and progress through.
Regulation Challenges
One is required to comply with the regulations through which the business can progress effectively. Thus the expansion of the business stands out to be the most difficult part as this takes most of the time and also the capital for further obtaining the license and other applicable permits for the expansion of business. The regulations and other compliance stand out to be very complex for the growth of the business and require compliance with the RBI i.e Reserve Bank of India as well as MCA i.e Ministry of Corporate Affairs.
One can further conduct in-depth research which is made for the proper navigation constraints to maintain transparency and other compliance with the regulations. This further helps the business to make the proper policy towards which one can progress effectively through the business.
Poor Infrastructure
This includes the structures or institutions that are very poorly developed and other educational facilities that are not very supportive of business development. One can use the public-private investment which is made towards the business development and the business infrastructures. Even coordination with the government can help the business to progress effectively.
Insufficient Knowledge of the Market
It is very one has knowledge about the can through which one can create an online presence of the business infrastructures. One can even use the latest technology through which one can seek for the growth of the business.
Management Issues
This tends to the difficulty in maintaining the responsible strategies through which the business can flourish effectively and to develop through which one productivity of the business constraints and further help the business to grow effectively and streamline the business operations. One can analyse and help the business to make proper development.
Lack of Legal Knowledge
In the initial stage when startups do not have that much money to spend on the things, they try to save their money. But sometimes they make wrong decisions like not hiring an expert who has sufficient legal knowledge. They think that they can manage their legal requirements on their own for which they had to pay one day.
You can resolve this problem faced by the startups in India mainly in two ways. Firstly you can hire an expert who has legal knowledge or secondly you can outsource your legal needs. This way you can save your businesses from many bad situations which come due to non compliance with the legal rules and regulations.
Conclusion
Problems come with the establishment of business, this is true but how to tackle them is completely in your hands. Hence in order to make your business successful in the market make sure to take help of experts wherever it is required. Expert here refers to people like HR professionals, lawyers, accountants, bookkeepers etc. They may charge some fees but definitely make your small business stand differently in the market. One can overcome all the challenges and problems of the business by maintaining a proper business strategy and effective business development plan for the stakeholders of the business.
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