Startup Problems

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Startups are very small commercial enterprise with progressive in nature and always observe the ways or strategies for development in less time. As the indian government launched various schemes to promote the small scale startups, local business etc, but it’s not easy to grasp the benefits of every scheme. Startup business is undeveloped business with accessible business model built on know-how and innovation where the founders foresee the demands on product or service in which they deal through disruption of existing or by forming completely new market.

Startup Problems Intro
Problems desc


A startup venture is a new business which is in the initial stages of operation are usually financed by an individual or small group of individuals. An idea can be establish into a commercial undertaking via startup. Startup is all about generating prosperity. Many innovative people who have vision of starting their own business, lack the resources to do so. As a result, their ideas, talent and capabilities remain unused and the country loses out on economic growth, affluence and employment.

Reasonable budget: Most of the startup doesn’t have enough resources of capital so they rely on outside funding. Finance handiness is always a serious problematic for the startups. This is required at the initial level of business progress and scaling requires a timely infusion of capital. There must be a proper cash management for the success of the startup as it is a biggest problem faced by entrepreneur.

Engagement with right person: To engage with right person with business skills who can help to meet the customer expectations is one of the biggest problems for a business. Normally startup founder start the business with the team of trusted members having complementary skill sets. Generally each member is dedicated in a particular area of operations. Gathering a good team is the primary and foremost requirement for the startup, if fails it can lead to break the startup.

Revenue generation: Mostly startup fails due to poor revenue generation during the business nurtures. As the operation increases, expenses also develop with reduced revenues constraining startups to more focus on the funding aspect, thus, reducing the focus on the basics of business. Hence, revenue generation is very critical for startup as it came from efficient management. The test is not to generate enough capital but also to enlarge and sustain the growth.

Awareness creation among customers: The existence of startup in competitive environment is usually more difficult than for an established firm due to distinctiveness and uniqueness in product. Startup is required to build everything from scratch so it’s more challenging phase at initial level.

Infrastructure: There are a number of support mechanisms that play a significant role in the lifecycle of startups which include incubators, science and technology parks, business development centres etc. Absence of infrastructure mechanism increases the chances of establishment failure.

Customer outlooks:The entrepreneur should have thorough domain knowledge to counter competition with appropriate strategies. Nowadays new technologies are emerging, due to which it’s become necessary for startup to upgrade the product over and above an earlier innovation. The biggest challenge is to make reinvention in existing one and come up as per the customer expectations.

Guidelines : Starting a business requires a number of permissions from government agencies. Though mostly requirement towards guidelines are streamline but still there is challenge faced by entrepreneur. Regulations pertaining to labour laws, intellectual property rights, dispute resolution etc. are also problematic for startup to comply with all.

Lack of a upright branding approach Absence of an effective branding strategy is another issue that prevents startups from flourishing at a faster pace.


As the business starts to take shape, it requires every bit of awareness to sustain the flow. As discussed above, these are few challenges that a new startup faces in India. If problems exist then solution is also available at the same time to overcome such challenges.

Understanding about the product : Numerous times the startups become unsuccessful in understanding the response of customers about the products in which they deal. It must be refined as per the needs of the customers. Sometimes startup accepts the needs of customer but fail to realise the actual demand of product. It became important for them to survey accordingly, handles the situation and meets the customer expectation so that they can capture the market and appreciates in good terms.

Proper preparation with timelines: Mostly startup fails in first 3 years due to lack of proper planning. In the beginning, when a start-up operates, the cost for running the organisation is comparatively low but when as it starts grow, it is hypothetical increase the cost of running as well. Startup begins to provide heavy discounts in the beginning that can make whole business echoing from inside.

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  • Define startup india scheme?

    Startup india scheme is significant government scheme launched on 2016, dated 16 January with a determination to support the new entrants in india by providing bank funds. This initiative is taken by Prime Minister Shri. Narendra Modi with the goal to bring development and innovation among products and services which leads to increasing the employment rate in india.

  • What are the benefits of startup india?

    These are some benefits that generate from the startup india scheme are:

    Monetary welfares : Entity having a startup registration can get the financial benefits. Most of the startups produce irreplaceable goods or process. At the time of patent registration, they can get the benefit of reducing its cost. Other benefits can be enjoyed under income tax head. The government exempts their income tax for 3 years from the incorporation year.

    Registration welfares :Every person believes that registration of business is most difficult as compares to running it. Just because it seems the long and complex process. Now incorporation process has been streamline with digitalization process and everything registers online so no need to visit physically just for getting registration.

    Government welfares : Every business person seeks to obtain government tenders as it helps to make high revenue and brand image in society. Due to startup, government of india launched the policies and framework in which they can easily register themselves and get the opportunity to work with them.

    Networking opportunities : Startup portal provide the opportunity to make networks with various stakeholder at particular place for particular project. They all can discuss and reach to the high networking.

  • Define the action plan of startup india scheme?

    Basically startup india scheme work on simplification of work and finance support so that they can easily grasp the market and compete with the existing one. This plan simplifies the work of new entrants just to motivate and stable them. They have taken the initiative to stimulate the work related with registration and now it can be access anywhere and anytime. If startup facing the problem in ongoing then they can wind up within 90 days of incorporation according to the Insolvency and Bankruptcy Bill, 2015. Along with above, government provides various financial supports to startups.

  • What is the eligibility for registration under startup india scheme?

    For getting registration under startup india scheme, one must have all the below mentioned requirements,

  • What is the information required to be submit while applying for exemption under section 80IC?

    Entity can get the exemption u/s 80IC by submitting the form online.

    Required information is,

    Name of the startup

    Date of incorporation of startup

    Incorporation number

    Address and business location

    Nature of business

    DIPP number

    Name of the startup

    Contact details of startup like phone number, email address and pan of startup

    Information about the product in which startup deals

    Details of certificate granted under section 56 of income-tax Act, 1961

    Attachments are,

    MOA, AOA, LLP agreement

    Board resolution

    Financial statement for the last three financial years of the startup

    Income tax returns for the last three financial years

    Startup video link



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