The genesis of every startup is the challenge at each level. The journey isn’t just about achieving milestones but overcoming the barriers that are posed to the startup founders geographically, socially, physically and economically. Several factors come into the play as far as the barriers are concerned.
90% of the startups fail in India within 5 years.
What goes wrong? Is it lack of innovation? Resources? Team? Scale-up maintenance? Funds? Many things could go wrong and here we have a few top founders from Indore who have been working since 5 years (and more). Let’s check what they have to say -
One of the most dedicated and successful data center that’s making waves internationally is RackBank located at Crystal IT Park, Indore.
(Image Source: Narendra Sen)
Narendra Sen, Founder & CEO says, “According to me, that 90% of the startups tried and then experienced failure is a good start for India. I would say - Kudos to them! I have not interacted with a lot of Indore startups, so what I say might not come up to be true. From whatever I have personally experienced and what I have gleaned from others, I believe that Perseverance and right kind of mentoring is the key to success. That’s something most startups miss on.”
(Image Source: Yourstory.com)
Another long-standing startup that has grown big; IndiaInfotech was founded in 2008 by Shashank Chourey. There are lots of aspects into the failure scenario according to him. “A lot of reasons are there for failure. Especially in Indore, I have noticed that there are lack of updated and adequate resources, education system is dismissal, innovative streak is missing and too much time and efforts have to be focused on training people.”
So the education system is the root cause of problem according to Shashank. Added to it, it isn’t updated, making it difficult to push innovation into the team building.
(Image Source: YoSuccess.com)
Wittyfeed, world’s second largest viral content company co-founded by Vinay Singhal, Shashank Vaishnav and Parveen Singhal, has won accolades from all fronts. With offices in India and overseas, they are working across various geographies. Vinay Singhal opines,
“It is absolutely true that 90% of the startups fail within 5 years. Infact, I believe the percentage might even be higher.
The sheer nature of starting up is that there is a huge amount of risk involved. You are betting on an idea and a hunch that it will work. There are a lot of factors that come in play once you start to work on it. Ecosystem, right mentors, core team, talent, funding, industry evolution and more importantly the way you execute the idea.
It is absolutely true for Indore also. The ecosystem in Indore is still in its nascent stage so it becomes all the more difficult.”
(Image Source: crazyengineers.com)
He was called “Engineer Babu” by everyone in his village. What started as a loving way to refer to him led to the beginning of an IT Company in Indore. Mayank Pratap, Co-Founder and CEO of EngineerBabu has undergone many experiences that led to the start of his startup and therefore he elaborates on his thoughts about startup challenges and failures.
“I think startups, or for that matter, any business fails solely if there is not enough zest and hunger amongst the entrepreneur to achieve its purpose.
I have witnessed countless people starting-off their venture without even properly researching their domain and having proper skills required. Starting a venture literally requires blood, sweat, and tears, and some people aren't just ready to sacrifice their comfort and position for that. So, I don't believe place matters as much as willingness does. You need to be up for making sacrifices for your dreams. You'll need to trade your leisure weekends for work and then only will you make it big.
Lastly, to answer your question, 90% of startups fail because people aren't ready to trade what they already possess for the greater good. Startups like Gramophone, ShopKirana and even ours have made it big in small cities like Indore. So, I literally don't believe geography is any limitation, but dedication is.”
Admittedly, everyone does agree to the fact that the startups are facing a great challenge and failure is part of it. However, given the means, resources and supportive framework, one can bypass failure and keep hustling towards success. Indore, being a tier-2 city boosts of more than 150 startups in various fields. The possibility of retaining them is not impossible. To know how eChai supports startups at various growth stages in your city, check: https://echai.in/events/upcoming