Thesis Scientist

Startups Need Support from the Government to Reduce the Rate of Failure

The success rate of startups in India is not good. Why it is? It is crucial to find the actual cause of startups failure, but, some people think that the Indian startup ecosystem is not efficient to solve this issue as compared to other countries all over the world. “Indian startups look for government support to cut down the failure rate,” the Federation of Indian Chambers of Commerce and Industry (FICCI) mentioned in its new report.

Startups Face Challenges Since Idea Evolution


There are several challenges that Startups in India have to face at various phases in terms of fund raising, incorporation and hiring and they seek for enough support to overcome these problems and to reduce failure rate, says a report. Incentives to investors in startups and direct funding should be provided by the government based on the monitoring and evaluation as India has the power to become a larger hub for startups.

In global hubs like in London, Startup failures are accepted which is missing in India. At the same time, India’s entrepreneurs are considered brave enough as they take higher risks in case any unfavorable situations

As we know about some governmental programs like Digital India, Make In India, Startup India as well as employment generation which provides a huge platform for many startup ideas.

“There are various challenges for Indian startups, from the stage of incorporation through the stages of hiring resources, raising capital, scaling up and making an exit.”

“There is a requirement to address such issues to reduce failures and assure that the startups graduate to becoming scale ups,” FICCI said.

Corporate Can Join Together

Corporate can work as a centre for co-creation with startups, give market opportunities through procurement and provide support to a wider culture of entrepreneurship.

Furthermore, the government should take technology scale-up focused trade delegations to innovation hubs all over the world and look for successful outcomes from such delegations to include MoUs between Indian and foreign accelerators and incubators. Startups that are related to innovation and technology have increasingly become the strength of a new India and could be important drivers for some government’s programmes, i.e. Digital India, Make in India, Startup India as well as employment generation.

On one side, startup has become a new trend, but very few of them are looking to solve the actual problem. In addition, the Indian government programmes like “Startup India” also didn’t get success to support startups and the result is just opposite to the belief. So, on this issue, India requires to work seriously.

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