Why Do 90% of Indian Startups Fail

Why Do 90% of Indian Startups Literally Face Their Doom Faster?

It is well said that those thinking aloud and determinative enough as out of the box thinkers are the successful entrepreneurs. Do all of them retain that zeal, energy and determination to let their startups sustain and grow with fast pace particularly while they are bound to face numerous challenges in today’s cutthroat competition? The common phenomenon is that while too many risks are involved, the rewards of incepting and running startups are equally intrinsically high at the top of the prism to write success stories which are lauded by all and sundry.

Looking at the other side of the coin is equally crucial. Undoubtedly, startups fail all over the world, and India is not an exception. Starting something up is hard, but it requires lots of extensive efforts and careful planning to take that at a success path that too while facing innumerable known and unknown hurdles. It should be noted that successful entrepreneurs always learn from their own mistakes and even all the mistakes which others do by the means of trying to avoid them. They never ever repeat the mistakes and also ensure that blunder of others which cause doom for them aren’t incorporated in others’ case while striving to escalate their own startups at the greater heights.

A study by Oxford Economics found that 90% of the Indian startups fail within the first five years of their inception. Of late, India has emerged as the third-largest startup ecosystem in the world today, but it still lacks successful innovation, skilled workforces, adequate funding, inadequate formal mentoring and also poor business ethics. All such factors play a key role in inviting doom of India’s failing startups.

Here we have enlisted the most common reasons for the failures of the startup in India

indian startup fail

1. Identify the Market Problems at the Right Time

The saying is true that ‘Time is Money’. You need to find out the markets’ unsolved problems at the right juncture and so do your ideas should fulfill all those unsolved problems which invite unnecessary hindrances in the business operations. Through implying promptness and ensuring that time is valued, you can definitely start to attain success thus make decent money in a process while getting recognized too.

It should also be kept in consideration that ‘identifying the correct market problem is not as easy as it seems’. The need is to develop a strong team of your dedicated workforce that should have solutions for each and every problem handy. There should be strong willpower to take the responsibilities with a zeal that nobody has or is insignificant.

Timing plays a greater role to bring startups on a success path. Take for example if the promoters of Netflix had launched it in 2009, while Internet and smartphone uses were negligible, it would have inevitably died naturally.

2. Have Digital Marketing Strategies in Place

Latest digital marketing strategies for startups can also help them find new customers with ease. Professionally created digital marketing strategies are always helpful to create brand awareness, generate traffic and therefore boost the sales. With the increased use of the Internet and smartphones today, online avenues for marketing have become a must for each and every entrepreneur. Let them understand this crucial element to give wing to their startups thus maintain the distinction in their respective genre.

3. Run Out Of Cash

Financial stability is one of the most important aspects for a startup to retain its stand and therefore keep businesses alive to counter rest subsequent challenges. If you don’t have a smooth cash flow, then your ideas will gradually start to fail as the enthusiasm will ultimately die down. No matter how much passionate you are and perhaps you are a creative doyen willing to prove your mettle through the team of professionals having great creative ideas, often lack of funds makes it impossible to let the ideas materialize. Funding is one of the easiest yet essential means to let a company remain financially sound thus establish with the innumerable support from whichever marketing avenues you are going to explore with a backup resource.

You may Also Like: 10 Things to Know Prior to Investing in Startups

4. Lack of Vision

Whether you are bootstrapping or you raise external funding through all possible means, the first task is to have a clear understanding of your goals and also to have a focused idea on how to achieve that. The founders of a startup not only require to have the vision but also a bigger goal which people can look up to, especially if things are not going in the right direction. Employees and partners should be motivated towards their goals. Lack of vision of founders can ruin any startup in the long run.

5. Lack of Market Understanding

Before launching of the products and/or services into the market and before the target consumers, you need to understand that particular market sector thoroughly as well as keenly whether your willingness to target that is worthy or not. Knowing the market where your products/services stand would be a crucial phase of energizing the motivation. Thus, you would be at the right path to overcome the issues which are bound to occur in the targeted market. You will be able to know how you need to reach your goals as important ones in the capacity of a founder achieving the big dream—incessant success.

Once you launch your products or services, there is a maximized possibility of you definitely starting to receive multiple types of feedback from potential customers. Some of them would be in a positive tone while a good number of others might also harshly criticize your attempts. Apart from maintaining the quality of your products and services, you must keenly check the associated services including shipping to timely deliveries, etc. You need to remain a troubleshooter at every point in time.


The points which have been mentioned above are primary reasons for being the ones having a practically causal relation with most startups in India to face failures. If you are a founder-entrepreneur, you should keep the above-mentioned points into consideration to overcome all such hurdles to gain an irrefutable success in your endeavor as an entrepreneur.

However, keep your minds open to adopting the newly introduced developments to establish and to flourish your startup without lagging behind. A startup always seeks patronization from a mentor who guides the founders into the long run.

Whether you need website content writing or SEO services for your startups, we are available round the clock to serve you with updated and latest advanced strategies to help you escalate further.

Suggest your ideas on how to take a startup to the next level.

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