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
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.