Indian Start-ups start fast but grow slow. Why?

##How prepared are we for the challenges?

These days, there is lot of euphoria and talk about Indian start up ecosystem thanks to some of the recent success stories like Flipkart, Snapdeal, Ola cabs, Redbus, Housing etc. Various sources indicate that we now have close to 3500 startup companies, ranking us 3rd or 4th largest in the world. But, how do we actually stack up against rest of the countries on various KPIs? We are way behind in terms of the most valuable companies, the most innovative companies and the most number of patents. What does it take for our startups to actually standup and become counted amongst global brands? The chart below summarizes the good, the bad and the ugly part of the current state of Indian startups.

Number of Patents filed indicate a country’s Innovation quotient. China is 70 times ahead of India

Some of the serious challenges faced by Indian startups today are:

  1. Societal apathy towards entrepreneurship and its high risk of failure
  2. Lack of patience to build products and global brands for long term value and growth
  3. Lack of access to significant institutional capital especially early to pre-revenue stage
  4. Ease of doing business from registration to taxes to raising capital to stock options
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Market adaptability, the TRUST is yet to be built.
Most of the startups have great initiation and energy, but as the market adaptability is a large criteria for success and failure in right marketing approach leads to slow growth. We in India have a mindset and love for foreign products to show status. Though we have great products here in India, the people tend to buy branded foreign products. The trust for local made products is very low. This need to change with-in us to help our own fellow business owners and encourage them.

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This is very true. But, we believe it is changing. It is a bit of chicken and egg issue. There are examples of great Indian products and success in the market place. We just need to deliver quality products that are of world class. No short cut. We can’t expect customers to buy products because they are Indian.