De­spite In­dia’s en­tre­pre­neur­ial strength, the startup econ­omy still has not reached full ma­tu­rity and more than 90% of star­tups fail within the first five years.

Dataquest - - TALENT & LEADERSHIP | COVER STORY - Source: IBM In­sti­tute for Busi­ness Value (IBV)

Lack of in­no­va­tion: 77% of ven­ture cap­i­tal­ists sur­veyed be­lieve that many In­dian star­tups lack pi­o­neer­ing in­no­va­tion based on new tech­nolo­gies or unique busi­ness mod­els. In­dian star­tups are prone to em­u­late al­ready suc­cess­ful global ideas.

Lack of skilled work­force: 70% of the ven­ture cap­i­tal­ists be­lieve that tal­ent ac­qui­si­tion is one of the big­gest chal­lenges faced by In­dian star­tups, and lim­ited avail­abil­ity of nec­es­sary skills im­pedes growth. As per a study, 80% of engi­neer­ing grad­u­ates in In­dia are deemed un­em­ploy­able and 48% of employers in In­dia face dif­fi­culty in fill­ing va­can­cies.

Lack of suf­fi­cient fund­ing: In­dian star­tups face fund­ing road­blocks both at en­try and exit stages while suc­cess­ful global startup ecosys­tems are well sup­ported by ac­tive in­vestor com­mu­ni­ties. 65% of ven­ture cap­i­tal­ists re­vealed that fund­ing is one of the ma­jor chal­lenges for th­ese com­pa­nies.

Other road­blocks in­clude in­ad­e­quate for­mal men­tor­ing, poor busi­ness ethics and lack of ex­pe­ri­enced lead­er­ship.

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