Real Hurdles Faced by Start‑ups in India
A 2-minute brutally honest read about the actual hurdles faced by Indian startups.
India’s vibrant start‑up ecosystem has come a long way, registering over 159,000 DPIIT-recognised startups and creating 1.66 million direct jobs as of October 2024. Yet, for every success, there are pitfalls that early-stage ventures must navigate.
Common Barriers:
Market demand mismatch: Despite the hype, over 42% of startups fail because they build without verified market demand.
Talent shortages: Around 55% of Indian startups struggle to hire skilled tech professionals, restricting growth and innovation.
Funding constraints: Though funding reached $30.4 billion in 2024—a 6.5% decline from 2023 —just 12% went to early-stage startups, pushing many into bootstrapping or limited-scale operations.
Infrastructure gaps: Rapid tech adoption (954 million internet users in March 2024) is unevenly matched by logistics and rural internet infrastructure.
Red tape: Compliance issues, like GST non-adherence and angel tax concerns, continue to pose operational and financial hurdles.
The Outcome:
These factors—talent scarcity, regulatory burdens, capital shortage, and lack of market-fit—create a fragile foundation. One misstep, especially in GTM, can drain resources and end promising ventures.
Sources: Press Information Bureau / WinSavvy / Wikipedia / The Economic Times / Reuters / LinkedIn