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Last updated: 16 Oct, 2018  

startup.thmb.jpg Nearly 80 pc of Indian startups are unsuccessful: Survey

startup-india-20102016.jpg
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SME Times News Bureau | 16 Oct, 2018

Despite the Startup India Mission, a flagship venture of the central government, which aims to achieve long-term growth of start-ups, nearly 80 percent of Indian startups are failing, finds a a new survey.

According to the survey by social media community platform Local Circles, around 80 per cent of startups said that they haven’t benefited in any way from Startup India Mission.

As for the reasons cited in the study for such poor performances of the startups, lack of skilled workforce and funding, inadequate formal mentoring and poor business ethics came out to be the primary ones.

Interestingly, this insight comes at a time when 'status report' of Startup India reveals that out of 4,536 companies, recognized as ‘startups' by the Department of Industrial Policy & Promotion (DIPP), only 74 could get approval for the tax benefits.

However, at the same time, the report also suggests that with Rs. 605.7 crore promised to 17 Alternate Investment Funds and about 75 startups already funded, Government is a commitment towards its goal to strengthen startup India mission.

Apparently, despite Government’s support, somehow startups are failing to avail the benefits of current policies and incentives. Possibly this is because of widening gap between government policies and their understandings by the entrepreneurs.

According to industry experts, most startups in India are completely giving a miss to customer privacy and data security, leading to business failure.

Abha Kashyap, Managing Partner,  Kashyap and Kashyap Law firm, said, "Establishing a business goes beyond making good proposals, availing tax benefits and understanding market dynamics. What entrepreneurs need to understand that we are living in the times of accessibility of services and information. While this framework is now crucial for the startups to conceptualize a business model, what they don’t realize that this, inevitably, also puts their own privacy at risk."

In fact, the recent event about Facebook and Cambridge Analytica is a fine example to highlight the value of customer privacy and data security in a business set-up, no matter big or small, she said.

"To keep their company and employees compliant with laws, entrepreneurs should consult an experienced lawyer beforehand and not when they actually land in some legal trouble. This can save the startups a lot of time and money later in the process," she added.  

 
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