INTRODUCTION

Entrepreneurship is an act of transforming worthwhile ideas into products that

are useful and successful in the marketplace. Entrepreneurship is also the critical
driver of innovation, responsiveness and productivity in today’s dynamic market
with vigorous changes in supply and demand. Therefore, today entrepreneurs
work on more risky and uncertain business environment than ever. However,
combination of strong desire to launch an enterprise and well thought new idea
along with comprehensive planning and team effort can lead to achieving
tremendous financial rewards. A startup as an "organization formed to search for
a repeatable and scalable business model." The start-ups are the kind of
companies which are innovative in their course of development, analysis,
evaluation, research for the target segment.
Startup India is an initiative of the Government of IndiaThe campaign was first
announced by Indian Prime Minister, Narendra Modi during his 15 August 2015
address from the Red Fort, in New Delhi. The action plan of this initiative, is based
on the following three pillars:

1. Simplification and Handholding.

2. Funding Support and Incentives.
3. Industry-Academia Partnership and Incubation.

Some of the startups are:

SUCCESS FAILURE
1. Swiggy 1. Paper Boat
2. Oyo Rooms 2. Subhiksha
3. Ola 3. Ask Me
4. Car dekho 4. Card Back
5. Zomato 5. Hotels Around You
BACKGROUND OF THE PROBLEM

 The major reasons for failure of startups, a survey based on analysis of 101
firms showed that 42% failed as the product had no market, 29% firms ran
out of cash, 23% did not have the right team,18% closed due to pricing
issues, 17% firms had poor product, 14% failed due to poor marketing and
8% had no investor interest
 The main problem that are being faced by startup company is:

Reason 1: Market Problems

A major reason why companies fail, is that they run into the problem of their
being little or no market for the product that they have built. Here are some
common symptoms:

 The market timing is wrong. You could be ahead of your market by a few
years, and they are not ready for your particular solution at this stage.
 The market size of people that have pain, and have funds is simply not large
enough

Reason 2: Business Model Failure

the most common causes of failure in the startup world is that entrepreneurs are
too optimistic about how easy it will be to acquire customers. They assume that
because they will build an interesting web site, product, or service, that
customers will beat a path to their door. That may happen with the first few
customers, but after that, it rapidly becomes an expensive task to attract and win
customers, and in many cases the cost of acquiring the customer (CAC) is actually
higher than the lifetime value of that customer (LTV).

Reason 3: Poor Management Team

An incredibly common problem that causes startups to fail is a weak management

team. Weak management teams make mistakes in multiple areas:

 They are often weak on strategy, building a product that no-one wants to buy
as they failed to do enough work to validate the ideas before and during
development. This can carry through to poorly thought through go-to-market
strategies.
 They are usually poor at execution, which leads to issues with the product not
getting built correctly or on time, and the go-to market execution will be
poorly implemented.
 They will build weak teams below them. There is the well proven saying: A
players hire A players, and B players only get to hire C players (because B
players don’t want to work for other B players). So the rest of the company
will end up as weak, and poor execution will be rampantetc.

Reason 4: Running out of Cash

A fourth major reason that startups fail is because they ran out of cash. A key job
of the CEO is to understand how much cash is left and whether that will carry the
company to a milestone that can lead to a successful financing, or to cash flow
positive.

Reason 5: Product Problems

Another reason that companies fail is because they fail to develop a product that
meets the market need. This can either be due to simple execution. Or it can be a
far more strategic problem, which is a failure to achieve Product/Market fit.
Most of the time the first product that a startup brings to market won’t meet the
market need. In the best cases, it will take a few revisions to get the
product/market fit right. In the worst cases, the product will be way off base, and
a complete re-think is required. If this happens it is a clear indication of a team
that didn’t do the work to get out and validate their ideas with customers before,
and during, development.
 - Significance of the study: -

This study helps in finding out whether followings aspects are considered or not
before starting a business: -

1. MONEY: -

Financial aspect plays a vital role in any startup because cash flow issues will hit
you hard, either delaying the roll-out of products, hiring key staff, or fitting out
new offices.
There is also a need of capital to fund software or product development, office
space, marketing (yes, you’ll need that too), and yet from it most success flows.
The last thing a startup needs is to trim back costs, and shed staff, just when it
needs to focus its energies elsewhere.

2. LACK OF PLANNING: -

Many startups falter because they forgot to plan. Or perhaps they did, but just
never covered all the bases. Key areas like sales, development, staffing, skills
shortage and funding should be part of your business plan or be flexible enough
to cope if events take an unexpected turn.

3. FINDING THE RIGHT PEOPLE: -

Certain skills are crucial not only for your business to survive, but also to grow.
Knowing the exact skills needed – and how to get those essential people – may
determine how well your startup thrives. Delays in finding the right personnel will
not only eat up valuable time but also lead to severe bottlenecks, perhaps delay
the rollout of new products or services. These are the delays no startup can
afford.

4. TIME MANAGEMENT: -

There’s never enough time. There are a million and one decisions to be made and,
last time I looked, there are only 24 hours in a day. So, start by eliminating or
minimizing distractions – anything that gets in the way of running your business.

5. SCALING UP: -

It’s not just a question of adding a few extra employees: they must be in the right
areas – perhaps HR (you suddenly have a lot more staff), administration, payroll,
support, perhaps even developers need a larger office space, or to set up offices
in other cities or abroad. Such is the price of success. If you have a plan and the
cash to fund all this, great. If not, then prepare for a painful process.

6. COMPETITORS: -

Despite your product or services being great, it’s a crowded marketplace. New
rivals may have altered the playing pitch, so having the right strategy, or being
able to think on your feet quickly and adapting to the new reality will define your
success – or failure

7. POOR MANAGEMENT: -

One thing startup can’t afford is ineffective management. A team that worked
well in the initial stages, may find itself exposed as the startup expands, or is
tested by everything from poor sales or market conditions. The issue needs to be
tackled urgently or the result will prove very damaging.
Global Scenario of startup: -

Top 4 Growing Sub-Sectors

1. Adv. Manufacturing & Robotics (189% 5-year increase in early stage

funding deals)
2. Agtech& New Food (171% 5-year increase)
3. Blockchain (163% 5-year increase)
4. Artificial Intelligence, Big Data & Analytics (77.5% 5-year increase)

Top 3 Declining Sub-Sectors

1. Gaming (27% 5-year decline in early stage funding deals)

2. Digital Media (27% 5-year decline in early stage funding deals)

East vs. West: The Rise of China and Diminishing U.S. Dominance

A major way we see the map of entrepreneurship changing globally with new
hubs of excellence is the increase of activity in Asia and the decline of U.S.
preeminence. The United States and Silicon Valley are still the top value creators
in the global startup ecosystem—but their dominance is not as sharp as it once
was.

For the past six years, the share of funding going to Asia-Pacific countries grew,
while the U.S. share declined. In 2017, VC funding for startups in the United States
compared to the Asia-Pacific region were even, with each accounting for 42% of
investment value. The USA is still a bit ahead but China is the primary growth
driver in this shift. In 2014, only 13.9% of current unicorns were from China. In
2017 and 2018 so far, that number has grown to 35%—while for the United States
it has decreased from 61.1% to 41.3%.
Indian scenario of startup: -

- India is currently the leading country in global economic growth rate

and with GDP growth rate of 7%. India is expected to become the
world's No. 1 most populous nation in 2050 with about half the
people being 28 years old or younger. This will enable India to support
a high labor economic growth rate in the future.

- India is in the third position just behind US and UK with 20, 000 start-
ups and 5200+ technology led start-ups which are poised to reach
10,500 by 2020 as reported by Start-up India and NASSCOM.

- 7 million college graduates per year and 55% of the youth prefer
working in start-ups over corporates.

- Median age of founders is 31 years. While metro cities like Bengaluru,

Delhi NCR and Mumbai continue to be the start up hubs with 66% of
overall start-up base.

- The advances in the technology like artificial intelligence and machine

learning, blockchain, storage and Computing as a Service and robotics
leading to better business opportunities to chase in India.

- Government support is increasing as the Indian government has

floated schemes for start-ups such as Single Point Registration
Scheme (SPRS), Bank Credit Facilitation Scheme and others.
Unlocking the potential of Indian Entrepreneurship
A working population of about 850 Million makes sheer size of the Indian
market as very large. Amongst the BRICs countries (Brazil, Russia, India,
and China), India has the highest percentage of people in the working
class (source: Goldman Sachs BRICS Report). Research shows that a very
large proportion of this working age population will go into self -
employment. The well-travelled, net-savvy Indian is identifying gaps and
opportunities and examining the possibility of converting these
opportunities into viable business models.

RESEARCH OBJECTIVES

 To identify the causes of failure company.

 Learning from the failure and success of prospective entrepreneur.
 To identify what business model, they adopted.
RESEARCH PROBLEM

 Who are competitors?

 How to reach the audience effectively?
 How to plan effectively?
 How to attract investors?

SOURCE OF DATA

 PRIMARY DATA COLLECTION

1. Questionnaire
2. Interview
 SECONDARY DATA COLLECTION
1. Research papers
2. Website
 RESEARCH METHODOLOGY

Source of data Primary and secondary

Research instrument Questionnaire, observation

Sample unit 10 startup companies

sampling Simple Random sampling

Statistical tool (RCA) Fishbone Diagram

Scope & Limitations

 Lack of Job Security

 Unstructured Environment
 Lack of Experience
 Market Excess
startups
recourse
because
Research
of
fail
scarcity
details
not because
toreveal
win, of
but
that
 SUPPLY CHAIN DRIVERS

1.PRODUCTION

This driver can be made very responsive by building factories that have a
lot of excess capacity and use flexible manufacturing techniques to
produce a wide range of items. To be even more responsive, a company
could do their production in many smaller plants that are close to major
groups of customers so delivery times would be shorter. If efficiency is
desirable, then a company can build factories with very little excess
capacity and have those factories optimized for producing a limited range
of items. Further efficiency can also be gained by centralizing production in
large central plants to get better economies of scale, even though delivery
times might be longer.

2.INVENTORY

Responsiveness can be had by stocking high levels of inventory for a wide

range of products. Additional responsiveness can be gained by stocking
products at many locations so as to have the inventory close to customers
and available to them immediately. Efficiency in inventory management
would call for reducing inventory levels of all items and especially of items
that do not sell as frequently. Also, economies of scale and cost savings
can be gotten by stocking inventory in only a few central locations such as
regional distribution centers (DCs).
 3.LOCATION

A location decision that emphasizes responsiveness would be one where

a company establishes many locations that are close to its customer base.
For example, fast-food chains use location to be very responsive to their
customers by opening up lots of stores in high volume markets. Efficiency
can be achieved by operating from only a few locations and centralizing
activities in common locations. An example of this is the way e-commerce
retailers serve large geographical markets from only a few central locations
that perform a wide range of activities.

4.TRANSPORTATION

Responsiveness can be achieved by a transportation mode that is fast and

flexible such as trucks and airplanes. Many companies that sell products
through catalogs or on the Internet are able to provide high levels of
responsiveness by using transportation to deliver their products often within
48 hours or less. FedEx and UPS are two companies that can provide very
responsive transportation services. And now Amazon is expanding and
operating its own transportation services in high volume markets to be
more responsive to customer desires. Efficiency can be emphasized by
transporting products in larger batches and doing it less often. The use of
transportation modes such as ship, railroad, and pipelines can be very
efficient. Transportation can also be made more efficient if it is originated
out of a central hub facility or distribution center (DC) instead of from many
separate branch locations.
 5.INFORMATION

The power of this driver grows stronger every year as the technology for
collecting and sharing information becomes more wide spread, easier to
use, and less expensive. Information, much like money, is a very useful
commodity because it can be applied directly to enhance the performance
of the other four supply chain drivers. High levels of responsiveness can
be achieved when companies collect and share accurate and timely data
generated by the operations of the other four drivers. An example of this is
the supply chains that serve the electronics market; they are some of the
most responsive in the world. Companies in these supply chains, the
manufacturers, distributors, and the big retailers all collect and share data
about customer demand, production schedules, and inventory levels. This
enables companies in these supply chains to respond quickly to situations
and new market demands in the high-change and unpredictable world of
electronic devices (smartphones, sensors, home entertainment and video
game equipment, etc.).
 Conclusion

Research details reveal that startups fail not because of recourse scarcity to win,
but because of the mistakes and mismanagement of an individual who is just
ready to be entrepreneur. Any well thought and well planned startup can succeed
if an entrepreneur identifies substantial business opportunity in the market,
focuses on customer and their need and develops the product accordingly,
implements team based approach to management and most importantly if he
believes in his own success. Moreover, the success of a startup doesn’t only
depend on its resources; it also depends on the skills, abilities and knowledge of
an entrepreneur. Overall, scrutinized analysis of startups reveal that successful
entrepreneurial ventures can be established through careful planning, organizing,
learning, accurate timing and being creative and innovative.
 REFRENCES

https://www.scmglobe.com/five-supply-chain-drivers/
https://www.google.com/search?q=problems+and+chalenges+of+5+startups+a
nd+5+faliures&oq=problems+and+chalenges+of+5+startups+and+5+faliures&aq
s=chrome..69i57.105120j0j7&sourceid=chrome&ie=UTF-8
https://inc42.com/resources/how-startups-are-leveraging-technology-for-
logistics-transport-services/