Why in India do so many startups Fail?

After the US and China, India was ranked as having the third-largest startup

ecosystem globally in the Economic Survey 2021–22. According to a Nasscom

analysis, the number of start-ups has been increasing consistently, adding 10%

annually. India has become the second-largest startup hub in the world, according to

Prime Minister Narendra Modi.

Stats paint a positive picture, but actual circumstances appear to be different. Startup

valuations in India are declining. An excellent example is Paytm Mall, which lost its

Unicorn status in 2022.

A serious funding situation is approaching. In light of this, the largest IT investor in

India has disclosed a record loss of USD 26.2 billion. Over 5,000 workers have lost

their jobs in recent months from firms like Vedantu, Meesho, etc.

One of the major common reasons is that Business owners often think that they can

do all the tasks by themselves, especially founders of small businesses, but this

standpoint can limit a company’s growth potential.

Surprisingly, talent and skill deficiencies account for 23% of startup failures. One

would assume that it is one of the most readily fixable problems.

Unfortunately, it isn't. The causes?

1) Finding the best people takes a lot of time and effort for startups. Startups may

struggle to find a better candidate to replace a problematic employee under certain

circumstances.

2) Startups are frequently tight for funds and unable to afford to engage expensively

skilled or experienced workers.

What could startups do to resolve this issue?

Hire offshoring Services and this will result in the following ways:

 Get access to More Experts

 Things Get Done Quickly

 More Focus on What Matters

 Share Some Risk

 Reduce Costs

 Work 24/7

 Simplify Project Management

 Simplify Work Relationships

 Efforts Are More Targeted

 Get Peace of Mind

 Improves Performance

Whether you like it or not, offshoring work to a different country has undeniable

advantages for organizations.

The entirety or a portion of several corporate divisions can be offshored. IT is always

at the top of the list, but other common areas that can be outsourced include HR,

accounting, and procurement.

A survey found that 77% of respondents were happy to offshore their tax job, and

81% were happy to offshore the full financial department.

Addressing your startup’s drawbacks and challenges will only help you with the growth

path.

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