DISCUSSION ON STARTUP INDIA

Submitted in partial fulfillment of the requirements

for the award of the degree of

Bachelor of Business Administration

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by:

Dr. Mamta Rani Jai Pratap Tyagi

(Associate Professor)
Roll No:
71780001723

GITARATTAN INTERNATIONAL BUSINESS SCHOOL

DELHI-110085

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 BATCH (2023-2026)
Certificate
I, Mr./Ms. Jai Pratap Tyagi, Roll No. 71780001723, certify that the Project

Report/Dissertation (BBA 114) entitled Discussion On Startup India is completed by

me and it is an authentic work carried out by me at Gitarattan International Business

School . The matter embodied in this project work has not been submitted earlier for

the award of any degree or diploma to the best of my knowledge and belief.

Signature of the student

Date:

Certified that the Project Report/Dissertation (BBA-312) entitled Discussion On

Startup India done by Mr./Ms. Jai Pratap Tyagi Roll No. 71780001723, is completed

under my guidance

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Countersigned

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 Acknowledgment

I would like to express my sincere gratitude and appreciation and

appreciation to all those who have contributed to the completion of the
project.

First and foremost, I am deeply thankful to Dr. Mamta Rani, for their
Invaluable guidance, support and encouragement throughout the duration of
this project. Their expertise, patience and constructive feedback have been
instrumental inshaping the direction and quality of this work.

I extend my heartful thanks for their effort, dedication and teamwork. Their
contribution has enriched the project and made it possible to achieve our
objectiveseffectively.

I am also grateful to Gitarattan International Business School for providing the

necessary resources, facilities and infrastructure essential for carrying out this
project.

Last but not least, I would like to express my profound gratitude to my

family and friends for their unwavering encouragement, understanding and
patience during thecourse of this project.

This project would not have been possible without the collective support and
encouragement of all those mentioned above. Thank you for being an integral
part ofthis journey.

Jai Pratap Tyagi

E2B

71780001723
Date

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 Table of contents

S. No. Topic Page No.

1 cover page I
2 Certificate II
3 Acknowledgement III
4 List of Symbols IV
5 Executive Summary 5
6 Chapter- 1: Introduction 7
7 Chapter- 2: Conceptual Review 24
8 Chapter- 3: Data Presentation, Analysis and 34
Interpretation
9 Chapter- 4 Findings and Conclusions 41
10 Bibliography 45

List Of Symbols

S. No. Symbol Nomenclature and Mening

1 " Quotation Mark
2 % Percent Sign
3 , Comma
4 - Hyphen-Minus
5 : Colon
6 ; Semi-Colon
7 . Full Stop

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 STARTUP INDIA

Executive Summary
India is a country of many great legends that were famous all over the world because
of their work, sharp mind & high skills. Youths in India are very talented, highly
skilled & full of innovative ideas. But they don’t get opportunity due to lack of solid
support & proper guidance in right direction. In this way, BJP government launched
“START UP INDIA” scheme on 16th January 2016 to help the youth of India to go in
right direction using their new & innovative ideas. This scheme was launched to
motivate & promote new comers towards business & grow their career as well as
economy of the country.
This programme was a big start to enable Start-ups through financial support so that
they can use their innovative ideas in the right direction. There were tremendous
opportunities for Start-ups entrepreneurs in India. The Key areas are like Textile,
Media, Health, Sector, Event, Planner, Tourism, Automobile etc. So, there were
various opportunities where entrepreneurs can start their Start-Ups.
But along with opportunities there are some challenges also that the Start-ups
entrepreneurs have to face like Infrastructure, Deficit in India, Risk Factor and Right
Talent Acquisition etc. Despite all these advantages the start up entrepreneurs faced
many disadvantages also. Also of these challenges faced, The Government as well as
Start up entrepreneurs should have had work together to face these challenges &
makethis programme effective.
This study focuses on these Start ups and the challenges which are faced by the Start
up and the Start up entrepreneurs. The objectives of a start up are to be ones own
boss and to create employment to others. A successful start-up cannot start business
with just passion and an idea.
A high level of leadership skills with clear understanding of market, excellent
communication skills, maturity to see things in the right perspective along with the
ability to take calculated risks are required on the part of the
entrepreneur(Aggarwal,2017). Lack of awareness, multiple clearences, unorganised
market, poor infrastructure in Tier 2/3 cities, lack of mentoring, stringent exit
policies,

corruption/red tape, technological risks, regulatory obstacles and lack of reforms

keeping pace with the fast evolving market changes are some of the challenges faced
by start up companies as stated by Rashmi Guptey, Principal(Legal) of Lightbox
IndiaAdvisors Private limited.

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So in this study there are elements of start up companies and how they face various
challenges in forming up these start up companies. This study also records the
various reactions of various people what they think about these start up companies
and how arethe challenges faced by these start up companies.
Objectives
Objective of the study implies the purpose for conducting the research.The main
objective of this study is to study the start up companies and their entrepreneurs and
how the challenges are faced to form these start up companies and to understand the
opinion of people on these start-ups. This study is also carried out to know the
opinion of various people by carrying out surveys that what they think about these
start ups and what day to day or forming challenges are faced by these start up
companies and to also compare the challenges faced by start up with an established
company.

ABSTRACT
The objectives of a start up are to be one’s own boss and to create employment to
others which warrants lot of endurance and sacrifice. Large population with high
percentage of middle income group, educated youth with technical background, IT
domination, high internet and mobile penetration are some of the drivers that have
thrown opportunities for spreading startup revolution in India. The ‘Make-in-India’
initiatives and other government schemes have also given a boost to start-ups with
many individuals entering the fray. Starting a venture is a well planned and
disciplined exercise with due consideration of both internal and external factors that
may impact the sustainability of the venture. The idea behind the venture, market
size, revenue and profit targets are some of the important factors that need to be
clearly defined before embarking on the journey. Time, team work and tenacity are
important elements which determine entrepreneurial success. Infrastructure,
government regulations and availability of finance at various stages of growth could
be some of the challenges of start-ups . In-fact, history is replete with examples of
start-ups which began with big fanfare but ended as damp squibs within a short span
of time due to various reasons. The paper discusses few issues and challenges that an
Indian startup has to face and the opportunities that the country can provide in the
current ecosystem. Key words: Entrepreneur, Employment, Finance, Make-in-India,
Startup.

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 CHAPTER – 1

Introduction
Start up companies can come in all forms and sizes. A critical task in setting up a
business is to conduct research in order to validate, assess and develop the ideas or
business concepts in addition to opportunities to establish further and deeper
understanding on the ideas or businessconcepts as well as their commercial potential.
Business models for startups are generally found via a bottom-up or top-down
approach. A company may cease to be a startup as it passes various milestones, such
as becoming publicly traded in an IPO, or ceasing to exist as an independent entity
via a merger or acquisition. Companies may also fail and cease to operate altogether.
Investors are generally most attracted to those new companies distinguished by their
risk/reward profile and scalability. That is, they have lower bootstrapping costs,
higher risk, and higher potential return on investment. Successful startups are
typically more scalable than an established business, in the sense that they can
potentially grow rapidly with limited investment of capital, labour or land.
While Silicon Valley is known for entrepreneurs and start-up visionaries, other
regions like Sao Paulo, Brazil and Bangalore (India) have turned into successful start-
up hubs over the pastdecade. Other regions that are working towards becoming start-
up centres include Dublin, Shenzhen,Sweden,Vietnam, Zurich among others. In
recent years, the Indian start-up ecosystem has succeeded in crafting a niche in the
global market. Funding, consolidation programs, evolving technology and
flourishing domestic market are the key driving factors behind this success. The
number of startups in 2014 was 3100, and is projected to increase to 11500 by 2020.
CityLab startup ranking also showed Bangalore as 19th within the world’s startup
ecosystem that went up to 15th by 2015. In terms of funding,it ranks 6th.‘Nasscom
10,000 Start-ups Report’ revealed that India is the 4th largest base for startups, after
U.S. and China. Majority of startups are brainchild of successful professionals who
have held/lead many MNCs and Indian Tech Companies. Some of the successful
names ruling the market in India today are Flipkart, Housing.com, Redbus, Paytm,
AdPushup, InMobi and Ola. To encourage the scenario in India, Reserve Bank of
India has decided to ease regulations to Enable startups to raise foreign funds.
Startups are emerging in their own right, driving economic growth, creating jobs and
positivelyimpacting the economy. It is not only changing the business landscape, but
also the way we work today.

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 What is a start up company?

A company that is in the first stage of its operations is called a start up company.
These companies are often initially bank rolled by their entrepreneurial founders as
they attempt to capitalize on developing a product or service for which they believe
there is a demand. Due to limited revenue or high costs, most of these small-scale
operations are not sustainable in the long term without additional funding from
venture capitalists.
In the late 1990s, the most common type of Startup Company was a dotcom.
Venture capital was extremely easy to obtain during that time due to frenzy among
investors to speculate on the emergence of these new types of businesses.
Unfortunately, most of these Internet startups eventually went bust due to major
oversights in their underlying business plans, such as a lackof sustainable revenue.
However, there were a handful of internet startups that did survive when the dotcom
bubble burst. Internet booksellers Amazon.com and Internet auction portal eBay are
examples of suchcompanies.
A startup company or startup is a company or temporary organization designed to
search for a repeatable and scalable business model. These companies, generally
newly created, are in a phase of development and research for markets. The term
became popular internationally during the dot-com bubble when a great number of
dot-com companies were founded.
Lately, the term startup has been associated mostly with technological ventures
designed for high-growth. Paul Graham, founder of one of the top startup
accelerators in the world, defines a startup as: "A startup is a company designed to
grow fast. Being newly founded does not in itself make a company a startup. Nor is it
necessary for a startup to work on technology, or take venture funding, or have some
sort of "exit." The only essential thing is growth. Everything else we associate with
startups follows from growth."

Evolution of a startup company

Startup companies can come in all forms, but the phrase “Startup Company” is often
associated with high growth, technology oriented companies. Investors are generally
most attracted to those new companies distinguished by their risk/reward profile and
scalability.
That is, they have lower bootstrapping(lower interest costs, positive cash flows, less
money borrowed) costs, higher risk, and higher potential return on investment.
Successful startups are typically more scalable than an established business, in the
sense that they can potentially grow rapidly with limited investment of capital, labor
or land.

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 Startup Financing Cycle

Startups encounter several unique options for funding. Venture capital firms and
angel investors (An angel investor or angel (also known as a business angel or
informal investor) is an affluent individual who provides capital for a business start-
up, usually in exchange for convertible debt or ownership equity.) may help startup
companies begin operations, exchanging cash for an equity stake. In practice though,
the founders themselves initially fund many startups. Factoring is another option,
though not unique to start ups. Some new funding opportunities are also developing
in crowd funding.

A critical task in setting up a business is to conduct research in order to validate,

assess and develop the ideas or business concepts in addition to opportunities to
establish further and deeper understanding on the ideas or business concepts as well
as their commercial potential.If a company's value is based on its technology, it is
often equally important for the business owners to obtain intellectual property
protection for their idea. The newsmagazine TheEconomist estimated that up to 75%
of the value of US public companies is now based on their intellectual property (up
from 40% in 1980). Often, 100% of a small startup company's value is based on its
intellectual property. As such, it is important for technology-oriented start up
companies to develop a sound strategy for protecting theirintellectual capital as early
as possible.

Startup companies, particularly those associated with new technology, sometimes

produce huge returns to their creators and investors – a recent example of such was
Google, whose creators are now billionaires through their share ownership.
However, the failure rate of startup companies is very high.While there are startup
businesses created in all types of businesses, and all over the world, some locations
and business sectors are particularly associated with startup companies. The Internet
bubble of the late 1990s was associated with huge numbers of Internet startup
companies, some selling the technology to provide internet access, others using the
internet to provide services. Most of this startup activity was located in Silicon
Valley, an area of northern California renowned for the high level of startup company
activity:

The spark that set off the explosive boom of “Silicon startups” in Stanford Industrial
Park was a personal dispute in 1957 between employees of Shockley Semiconductor
and the company’s namesake and founder, Nobel laureate and co-inventor of the
transistor William Shockley... (His employees) formed Fairchild Semiconductor
immediately following their departure... After several years, Fairchild gained its
footing, becoming a formidable presence in this sector.
Its founders began to leave to start companies based on their own, latest ideas and
were followed on this path by their own former leading employees... The process
gained momentumand what had once began in a Stanford’s research park became
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a veritable startup avalanche... Thus, over the course of just 20 years, a mere eight of
Shockley’s former employees gave forth 65 new enterprises, which then went on to
do the same.A company may cease to be a startup as it passes various milestones,
such as becoming profitable, or becoming publicly traded in an IPO, or ceasing to
exist as an independent entity via a merger or acquisition. Companies may also fail
and cease to operate altogether. Recently the patent assets of these failed startup
companies are being purchased by what are derogatorily known as "Patent trolls"
who then take the patents from the companies and assert those patents against
companies that might be infringing the technology covered by the patent.

Co-Founders

Co-Founders are people involved in the cultivation of startup companies. Anyone can
be a Co- Founder, and an existing company can also be a Co-Founder, but frequently
Co-Founders are entrepreneurs, hackers, venture capitalists, web developers, web
designers and others involvedin the ground level of a new, often high tech, venture.
There is no formal, legal definition of what makes somebody a Co-Founder. The
right to call oneself a Co-Founder can be established through an agreement with
one's fellow Co-Founders or with permission of the board of directors, investors or
shareholders of a startup company. When there is no definitive agreement, disputes
about who the Co-Founders were can arise. One well-known example of a dispute
over who can be called a Co-Founder can be observed in the story of a lawsuit
against Elon Musk by a Co-Founder of Tesla Motors in which it was alleged that he
did not have the right to consider himself a Co-Founder merely because he
provided a large amount of capital and was instrumental in saving the company from
bankruptcy.
Finding a co-founder may be a complicated issue. Agreeing on the terms and
conditions of partnerships, exit strategies and compensations from the beginning,
improves the understanding of what is expected of each party. Due to the rise of tech
startups, Technical co- founders (programmers) are specially sought after. Some co-
founder dating sites are now available online to fill this gap.

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 Key Characteristics that define a great start up culture

1) No politics
In great start-up cultures, everybody is giving everybody else credit. Ideas are
judged on the merits, not on who came up with them. People feel comfortable that
they will get their due. In not-so-great start-up cultures, everyone wants to make sure
everybody else knows what he or she did, even if he or she didn’t do it.

2) It’s not a job, it’s a mission

Red fin’s CEO Glenn Kelman likes to talk about how invigorating it can be once
you realize that you don’t have to be doing what you are doing. Great start-up
cultures are comprised of people who could be doing a hundred other things, but
actually choose to work themselves silly over the particular product or service their
company is building. These cultures are often centered around the belief that the
company is working on something important.

3) Equity-driven:
Great start-up cultures create a sense that everyone on board is building something
significant, an enterprise that will be valuable long-term. Employees want a piece of
that future. Less optimal cultures are focused almost entirely on short-term cash
incentives. That’s not to say that short-term cash incentives are always bad; in fact,
in many cases, they can be helpful in driving toward short-term goals. But when
employees are focused solely on cash and not the least bit interested in equity, that’s
a sign that they may have lost faith in the business.

4) Perfect alignment
Great start-up cultures are well-aligned. The strategy makes sense and is aligned
with the vision. People are doing what they are good at and in the right roles. Every
employee, from the CEO to the office manager, is on the same page. McKinsey, the
well-known consulting firm, developed a good framework for assessing alignment.

5) Good Communications

Even in Bad Times. Transparent communication is a hallmark of a great start-up

culture. No one is confused about the vision and where the company is headed.
Communication is open and free flowing. Hard issues are addressed directly, not
ignored. Every start-up goes through ups and downs. The tendency is to not want to
share bad news. It’s not as much fun. In great start-up cultures, communication to all
stakeholders actually increases during the down times.
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6) Strong leadership

The leader of a start-up should the “cultural soul” of his or her company. A good
leader takes that responsibility seriously and leads by example. I love this quote by
former Secretary of State and Army General George Marshall about the importance of
leading by example and maintaining a positive attitude. “Gentleman, enlisted men
may be entitled to morale problems, but officers are not. I expect all officers in this
department to take care of their own morale. No one is taking care of my morale.”

7) Mutual respect

In not-so-great start-up cultures, the business guys think the technical folks are more
interested in cool technology than in building what the market wants. The technical
side of the house thinks the business side isn’t smart enough (or technical enough) to
understand what the market wants. The architects look down on the devs who look
down on QA. The sales team thinks marketing isn’t doing its job in generating leads.
Everyone thinks the sales team is overpaid and should be selling more. In great start-
up cultures, everyone shares a mutual respect for what each party brings to the table
and celebrates wins from wherever they come. Heated but healthy debate leads to
decisions that are accepted, even if not everybody agrees with them.

8) Customer-obsessed

Great start-up cultures are manically focused on defining who the customer is, what
the customer wants/needs, and what the customer will value enough to pay for now.
It starts well before a single line of code is written. These cultures value talking to as
many potential customers as possible before a product is conceived. They make
customer feedback a key part of the process once the product or service is delivered.
Great start-up cultures are rarely surprised by customer issues because they are
proactive and process-oriented about understanding everything they can about their
customers.

9) High energy level

One can literally feel it when you walk into a great start-up culture. The room
has energy. There’s a buzz. Doors are open. Whiteboards are filled with
hieroglyphics. People are getting stuff done. Meetings are short and to the point.
You might trip over a dog.

10) Fun Element

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 Start-ups should be fun. In great start-up cultures, everyone reinforces that fun is
happening, even if it isn’t at that particular time. Employees tell their friends how
much fun they are having. Whining is unacceptable.

11) Integrity

Great start-up cultures do not cut corners. They maintain the highest integrity in the
way they treat customers, handle employee issues, write code, and go about their
daily business. They have integrity when it is easy and, more importantly, when it is
hard. This kind of integrity should not be confused with lacking toughness. Integrity
in this sense means having a team with enough confidence in what it is building, and
then delivering to customers, that cheating in any form, or even just going halfway,
is unacceptable.

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 Challenges faced

Mistakes that kill start-ups :

In a sense there's just one mistake that kills startups: not making something users
want. If you make something users want, you'll probably be fine, whatever else you
do or don't do. And if you don't make something users want, then you're dead,
whatever else you do or don't do. So really this is a list of 18 things that cause
startups not to make something users want. Nearly allfailure funnels through that.

1. Single Founder :

Have you ever noticed how few successful startups just one person founded? Even
companies you think of as having one founder, like Oracle, usually turn out to have
more. It seems unlikely this is a coincidence. What's wrong with having one
founder? To start with, it's a vote of no confidence. It probably means the founder
couldn't talk any of his friends into starting the company with him. That's pretty
alarming, because his friends are the ones who know him best. But even if the
founder's friends were all wrong and the company is a good bet, he's still at a
disadvantage. Starting a startup is too hard for one person. Even if you could do all
the work yourself, you need colleagues to brainstorm with, to talk you out of stupid
decisions, andto cheer you up when things go wrong. The last one might be the most
important. The low points in a startup are so low that few could bear them alone.
When you have multiple founders,esprit de corps binds them together in a way that
seems to violate conservation laws. Each thinks, "I can't let my friends down." This
is one of the most powerful forces in human nature, and it's missing when there's just
one founder.

2. Bad Location :

Startups prosper in some places and not others. Silicon Valley dominates, then
Boston, then Seattle, Austin, Denver, and New York. After that there's not much.
Even in New York the number of startups per capita is probably a 20th of what it is
in Silicon Valley. In towns like Houston and Chicago and Detroit it's too small to
measure. Why is the falloff so sharp? Probably for the same reason it is in other
industries. What's the sixth largest fashion center in the US? Which is the sixth
largest centre for oil, or finance, or publishing? Whatever they are they're probably
so far from the top that it would be misleading even to call them centre. It's an
interesting question why cities become startup hubs, but the reason startups prosper
in them is probably the same as it is for any industry: that's where the experts are.
Standards are higher; people are more sympathetic to what you're doing; the kind of
people you want to hire want to live there; supporting industries are there; the people

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 you run into in chance meetings are in the same business. Who knows exactly how
these factors combine to boost startups in Silicon Valley and squish them in Detroit,
but it's clear they do from the number of startups per capitain each.

3. Derivative Idea :

Many of the applications we get are imitations of some existing company. That's one
source of ideas, but not the best. If you look at the origins of successful startups,
few were started in imitation of some other startup. Where did they get their ideas?
Usually from some specific, unsolved problem the founders identified. Our
startup made software for making online stores. When we started it, there wasn't
any; the few sites you could order from were hand- made at great expense by web
consultants. We knew that if online shopping ever took off, these sites would have to
be generated by software, so we wrote some. Pretty straight forward. It seems like
the best problems to solve are ones that affect you personally. Apple happened
because Steve Wozniak wanted a computer, Google because Larry and Sergey
couldn't findstuff online, Hotmail because Sameer Bhatia and Jack Smith couldn't
exchange email at work. So instead of copying the Facebook, with some variation
that the Facebook rightly ignored, look for ideas from the other direction. Instead of
starting from companies and working back to the problems they solved, look for
problems and imagine the company that might solve them.What do people complain
about? What do you wish there was?

4. Hiring Bad Programmers :

This is not a serious problem for them. They might accidentally hire someone bad,
but it's not going to kill the company. In a pinch they can do whatever's required
themselves. But when I think about what killed most of the startups in the e-
commerce business back in the 90s,it was bad programmers. Business guys who
thought the way startups worked was that you had some clever idea and then hired
programmers to implement it started a lot of those companies. That's actually much
harder than it sounds—almost impossibly hard in fact—because business guys can't
tell which are the good programmers. They don't even get a shot at the best ones,
because no one really good wants a job implementing the vision of a business guy.
In practicewhat happens is that the business guys choose people they think are good
programmers (it sayshere on his resume that he's a Microsoft Certified Developer)
but who aren't. Then they're mystified to find that their startup lumbers along like a
World War II bomber while their competitors scream past like jet fighters. This kind
of startup is in the same position as a big company, but without the advantages. So
how do you pick good programmers if you're not aprogrammer? I don't think there's
an answer. I was about to say you'd have to find a good
programmer to help you hire people. But if you can't recognize good programmers,
15
 how would you even do that?
5. Choosing the Wrong Platform :

A related problem (since it tends to be done by bad programmers) is choosing the

wrong platform. For example, I think a lot of startups during the Bubble killed
themselves by deciding to build server-based applications on Windows. Hotmail was
still running on FreeBSD for years after Microsoft bought it, presumably because
Windows couldn't handle the load. If Hotmail's founders had chosen to use
Windows, they would have been swamped. PayPalonly just dodged this bullet. After
they merged with X.com, the new CEO wanted to switch to Windows—even after
PayPal cofounder Max Levchin showed that their software scaled only 1% as well
on Windows as Unix. Fortunately for PayPal they switched CEOs instead.
Platform is a vague word. It could mean an operating system, or a programming
language, or a "framework" built on top of a programming language. It implies
something that both supports and limits, like the foundation of a house. The scary
thing about platforms is that there are always some that seem to outsiders to be fine,
responsible choices and yet, like Windows in the 90s, will destroy you if you choose
them. Java applets were probably the most spectacular example. This was supposed
to be the new way of delivering applications.Presumably it killed just about 100% of
the startups who believed that. How do you pick the right platforms? The usual
way is to hire good programmers and let them choose. But there is a trick you could
use if you're not a programmer: visit a top computer science department andsee what
they use in research projects.

6. Slowness in Launching :

Companies of all sizes have a hard time getting software done. It's intrinsic to the
medium; software is always 85% done. It takes an effort of will to push through this
and get something released to users. [3] Startups make all kinds of excuses for
delaying their launch. Most are equivalent to the ones people use for procrastinating
in everyday life. There's something that needs to happen first. Maybe. But if the
software were 100% finished and ready to launch at the push of a button, would they
still be waiting? One reason to launch quickly is that it forces you to actually finish
some quantum of work. Nothing is truly finished till it's released; you can see that
from the rush of work that's always involved in releasing anything, no matter how
finished you thought it was. The other reason you need to launch is that it's only by
bouncing your idea off users that you fully understand it. Several distinct problems
manifest themselves as delays in launching: working too slowly; not truly
understanding the problem; fear of having to deal with users; fear of being judged;
working on too many different things; excessive perfectionism. Fortunately you
can combat all of them by the simple expedient of forcing yourself to launch
something fairly quickly.
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7. Launching Too Early :

Launching too slowly has probably killed a hundred times more startups than
launching too fast, but it is possible to launch too fast. The danger here is that you
ruin your reputation. You launch something, the early adopters try it out, and if it's
no good they may never come back. So what's the minimum you need to launch?
We suggest startups think about what they plan to do, identify a core that's both (a)
useful on its own and (b) something that can be incrementally expanded into the
whole project, and then get that done as soon as possible. This is the same
approach I (and many other programmers) use for writing software. Think about the
overall goal, then start by writing the smallest subset of it that does anything useful.
If it's a subset, you'll have to write it anyway, so in the worst case you won't be
wasting your time. But more likely you'll find that implementing a working subset is
both good for morale and helps you see more clearly what the rest should do. The
early adopters you need to impress are fairly tolerant. They don't expect a newly
launched product to do everything; itjust has to do something.

8. Having No Specific User in Mind :

You can't build things users like without understanding them. I mentioned earlier that
the most successful startups seem to have begun by trying to solve a problem their
founders had. Perhaps there's a rule here: perhaps you create wealth in proportion
to how well you understand the problem you're solving, and the problems you
understand best are your own. That's just a theory. What's not a theory is the
converse: if you're trying to solve problems you don't understand, you're hosed.
And yet a surprising number of founders seem willing to assume that someone,
they're not sure exactly who, will want what they're building. Do the founders want
it? No, they're not the target market. Who is? Teenagers. People interested in local
events (that one is a perennial tarpit). Or "business" users. What business users? Gas
stations? Moviestudios? Defense contractors? You can of course build something for
users other than yourself. We did. But you should realize you're stepping into
dangerous territory. You're flying on instruments, in effect, so you should (a)
consciously shift gears, instead of assuming you can rely on your intuitions as you
ordinarily would, and (b) look at the instruments. In this case the instruments are the
users. When designing for other people you have to be empirical. You can no longer
guess what will work; you have to find users and measure their responses.So if
you're going to make something for teenagers or "business" users or some other
group that doesn't include you, you have to be able to talk some specific ones into
using what you'remaking. If you can't, you're on the wrong track.

17
9. Raising Too Little Money :

Most successful startups take funding at some point. Like having more than one
founder, it seems a good bet statistically. How much should you take, though?
Startup funding is measured in time. Every startup that isn't profitable (meaning
nearly all of them, initially) has a certain amount of time left before the money runs
out and they have to stop. This is sometimes referred to as runway, as in "How much
runway do you have left?" It's a good metaphor because it reminds you that when the
money runs out you're going to be airborne or dead. Too little money means not
enough to get airborne. What airborne means depends on the situation.Usually you
have to advance to a visibly higher level: if all you have is an idea, a working
prototype; if you have a prototype, launching; if you're launched, significant growth.
It depends on investors, because until you're profitable that's who you have to
convince. So if you take money from investors, you have to take enough to get to the
next step, whatever that is. Fortunately you have some control over both how much
you spend and what the next step is. We advise startups to set both low, initially:
spend practically nothing, and make your initial goal simply to build a solid
prototype. This gives you maximum flexibility.

10. Spending Too Much :

It's hard to distinguish spending too much from raising too little. If you run out of
money, youcould say either was the cause. The only way to decide which to call it is
by comparison with other startups. If you raised five million and ran out of money,
you probably spent too much. Burning through too much money is not as common
as it used to be. Founders seem to have learned that lesson. Plus it keeps getting
cheaper to start a startup. So as of this writing few startups spend too much. None of
the ones we've funded have. (And not just because we make small investments;
many have gone on to raise further rounds.) The classic way to burn through cash is
by hiring a lot of people. This bites you twice: in addition to increasing your costs,
it slows you down—so money that's getting consumed faster has to last longer.
Most hackers understand why that happens; Fred Brooks explained it in The
Mythical Man-Month. We have three general suggestions about hiring: (a) don't do it
if you can avoid it, pay people with equity rather than salary, not just to save money,
but because you want the kind of peoplewho are committed enough to prefer that, and
(c) only hire people who are either going to write code or go out and get users,
because those are the only things you need at first.

11. Poor Investor Management :

18
 As a founder, you have to manage your investors. You shouldn't ignore them,
because they may have useful insights. But neither should you let them run the
company. That's supposed to be your job. If investors had sufficient vision to run the
companies they fund, why didn't they start them? Pissing off investors by ignoring
them is probably less dangerous than caving in to them. In our startup, we erred on
the ignoring side. A lot of our energy got drained away in disputes with investors
instead of going into the product. But this was less costly than giving in, which
would probably have destroyed the company. If the founders know what they're
doing, it's better to have half their attention focused on the product than the full
attention of investors who don't. How hard you have to work on managing
investors usually depends on how much money you've taken. When you raise VC-
scale money, the investors get a great deal of control. If they have a board majority,
they're literally your bosses. In the more common case, where founders and
investors are equally represented and the deciding vote is cast by neutral outside
directors, all the investors have to do is convince the outside directors and they
control the company. If things go well, this shouldn't matter. So long as you
seem to be advancing rapidly, most investors will leave you alone. But things don't
always go smoothly in startups. Investors have made trouble even for the most
successful companies. One of the mostfamous examples is Apple, whose board made
a nearly fatal blunder in firing Steve Jobs. Apparently even Google got a lot of grief
from their investors early on.

12. Fights Between Founders :

Fights between founders are surprisingly common. About 20% of the startups we've
funded have had a founder leave. It happens so often that we've reversed our attitude
to vesting. We still don't require it, but now we advise founders to vest so there will
be an orderly way for people to quit.A founder leaving doesn't necessarily kill a
startup, though. Plenty of successful startups have had that happen Fortunately it's
usually the least committed founder who leaves. If there are three founders and one
who was lukewarm leaves, big deal. If you have two and one leaves, or a guy with
critical technical skills leaves, that's more of a problem. But even that is
survivable. Blogger got down to one person, and they bouncedback. Most of the
disputes I've seen between founders could have been avoided if they'd been more
careful about who they started a company with. Most disputes are not due to the
situation but the people. Which means they're inevitable. And most founders who've
been burned by such disputes probably had misgivings, which they suppressed, when
they started the company. Don't suppress misgivings. It's much easier to fix problems
before the company is started than after. So don't include your housemate in your
startup because he'd feel left out otherwise. Don't start a company with someone you
dislike because they have some skill you need and you worry you won't find anyone

19
 else. The people are the most important ingredient in a startup, sodon't compromise
there.

13. A Half-Hearted Effort :

The failed startups you hear most about are the spectactular flameouts. Those are
actually the elite of failures. The most common type is not the one that makes
spectacular mistakes, but the one that doesn't do much of anything—the one we never
even hear about, because it was some project a couple guys started on the side while
working on their day jobs, but which never gotanywhere and was graduall abandoned.
Statistically, if you want to avoid failure, it would seem like the most important
thing is to quit your day job. Most founders of failed startups don't quit their day
jobs, and most founders of successful ones do. If startup failure were a disease, the
CDC would be issuing bulletins warning people to avoid day jobs. Does that mean
you should quit your day job? Not necessarily. I'm guessing here, but I'd guess that
many of these would-be founders may not have the kind of determination it takes to
start a company, and that in the back of their minds, they know it. The reason they
don't invest more time in their startup is that they know it's a bad investment. The
biggest mistake you can make is not to try hard enough. To the extent there's a secret
to success, it's not to be in denial about that.

14. Not Wanting to Get Your Hands Dirty :

Nearly all programmers would rather spend their time writing code and have
someone else handle the messy business of extracting money from it. And not just
the lazy ones. Larry and Sergey apparently felt this way too at first. After developing
their new search algorithm, the first thing they tried was to get some other company
to buy it. Start a company? Yech. Most hackers would rather just have ideas. But
as Larry and Sergey found, there's not much of a market for ideas. No one trusts an
idea till you embody it in a product and use that to grow a user base. Then they'll pay
big time. Maybe this will change, but I doubt it will change much. There's nothing
like users for convincing acquirers. It's not just that the risk is decreased. The
acquirers are human, and they have a hard time paying a bunch of young guys
millions of dollars just for being clever. When the idea is embodied in a company
with a lot of users, they can tell themselves they're buying the users rather than the
cleverness, and this is easier for them to swallow. [9] If you're going to attract users,
you'll probably have to get up from your computer and go find some. It's unpleasant
work, but if you can make yourself do it you have a much greater chance of
succeeding. In the first batch of startups we funded, in the summer of 2005, most of
the founders spent all their time building their applications.

20
 Overview of flipkart
Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal , both alumni of
the Indian institute of technology in delhi . They worked for amazon.com and left to
create their new company incorporated in October 2007 as Flipkart online services
pvt ltd. The first product they sold was the book , “leaving Microsoft to change the
world” to a customer in Hyderabad.

Flipkart now employees more than 33000 people. Flipkart allows payment methods
such as cash on delivery , debit and credit cards , net banking , e-gift vouchers and
card swipe during delivery.

But in end 2018, both owners quit and now it is solely owned by WALMART.

CHALLANGES FACED BY FLIPKART

The eCommerce industry in India is growing at a remarkable pace due to high
penetration of internet and sophisticated electronic devices. However, the
recent growth rate of eCommerce in India is far lagging behind than other
developed countries. There are many big problems and challenged on the way of an
online merchant. Factors like safety and securityof online money transaction being the
biggest problem along with others, have curb the smooth expansion of the online
industry in the country.

Although, major portion of e-business sectors have affected by the below mentioned
challenges but still there are few online giants like Makemytrip.com, flipkart.com,
Snapdeal.com who have overcome the challenges and represents the perfect growth
trends of eCommerce in India.
• Poor Knowledge and Awareness: When it comes to ratio of internet
consumers, scenario is not so admirable one. Majority of Indian rural
population are unaware of internet and it uses. Surprisingly, most of internet
savvies or urban population are also suffering from poor knowledge on online
business and its functionalities. Very few are aware of the online corruption and
fraud and thus darkness still exists. A reliable survey reveals that 50% of Indian
online users are unaware of the solution of online security.
• Online Transaction: Most of Indian customers do not possess plastic money,
credit card, debit card and net banking system, which is one of the prime reasons
to curtail the growth of ecommerce. Nevertheless, in recent years, some of the
nationalized banks have started to issue debit cards to all its account holders.
This is undoubtedly a positive sign for Indian online entrepreneurs.

• Cash On Delivery:Cash on Delivery (COD) has evolved out of less penetration

21
 of credit card in India. Most of Indian E-commerce companies are offering
COD as one of mode of payment for the buyers. 30%-50% of buyers are also
taking advantage of this mode of payment while making purchase of any
product and service over internet. COD has been introduced to counter the
payment security issues of online transaction, but this mode has been proving to
be loss and expensive to the companies. It is seen that majority of the customers
denied to make the payment at the time of delivery of the product. Hence,
companies tend to lose the sale along with product transit fees. In order to curb
the problem of COD, online companies should take some judicial steps;
otherwise basic logic behind theecommerce business will be at risk.

• Online Security : In case of start up and small business, Business owners are
ignoring the importance of authentic software due to budget constraints. They
are even failing to take the initial steps to secure and protect their online
business through installation of authentic protection services like antivirus and
firewall protection, which indeed a crucial step for successful online business
players.In India, maximum number of business entrepreneurs used unauthorized
software in their server, which usually does not come with upgraded online
security. Such pirated software leaves room for virus, malwares and Trojan
attacks and it is highly risky task to make online transactions in the systems,
which may disclose or leak sensitive details of credit cards and online banking
of the users. These kinds of droopiness should be banned in Indian ecommerce
sectors. Affiliation to SSL certificate should be imposed as a mandatory action
for every owner.

• Logistics and Shipment Services: In India, logistics and courier services

required lots of improvement. While, perfect and strong logistics service is one
of the key reasons behind thesuccess of any online company, India is lagging far
behind in this sector as most of the town and small villages are still not covered
under serviceable area of many of the courier and logistic companies.
Ecommerce is hampered in a big way owing to the limited services offered by
the courier service companies.

• Tax Structure: Tax rate system of Indian market is another factor for lesser
growth rate of eCommerce in India in comparison to other developed countries
like USA and UK. In those countries, tax rate is uniform for all sectors whereas
tax structure of India varies from sector to sector. This factor creates accounting
problems for the Indian online business companies.

• Fear factor: Fear of making online payment is a universal psychological factor

of Indian customers. With the spread of knowledge on online transactions and
its reliability, some percentages of customers have overlooked this fear and they
are fearlessly engaging themselves in online shopping. But still, majority of
customers are not aware of online transactions and its security. They often
reluctant to disclose their credit card and bank details and preferred to stay away
from online world of shopping.

22
• ‘Touch and Feel’ factors: Indian customers are more comfortable in buying
products physically. They tend to choose the product by touching the product
directly. Thereby, Indian buyers are more inclined to do ticketing and booking
online in Travel sectors, books and electronics. Companies dealing with
products like apparel, handicrafts, jewelry have to face challenges to sell their
products as the buyers want to see and touch before they buy these stuffs.

Relief to startup problem by govt initiative

On 16th of jan2016 , PRIME MINISTER MR.NARENDRA MODI announced a

bunch of schemes to promote startup ecosystem in india. The event was called
“STARTUP INDIA,STANDUP INDIA” . It has immense importance because for
starters ,it was the first of its kind dialogue between India’s startup community
and the government Startupindia is a flagship initiative of the government of
india, intended to build a strong ecosystem for nurturing innovative and start-ups
in the country This will drive sustainable economic growth and generate large
scale employment opportunities. The government through this initiavties aims to
empower start-ups to grow through innovation and design.

Benefits provided under the Start-up scheme implemented and led by

the Indian PM M,NARENDRA ODI

• Compliance regime based on self – certification

• Start up Indian hub

• Rollout on mobile application and portal

• Legal support and fast tracking patent examination at lower cost

• Relaxed norms of public procurement for start ups

• Faster exits for start-ups

• Providing funding support through a “fund of funds” with a corpus of INR 100
crore

• Credit guarantee fund for start-ups

• Tax ememption on capital gains

23
• Allowing start-ups to quit if they fail to get into the market

• Tax emeption to start-ups for 3 years

• Tax exemption on investment above fair market value

• Organising startup fests for showcasing innovations and providing a

collaborationplatform.

24
 CHAPTER – 2

Case study-1

Startup India is a flagship initiative launched by the Government of India in January

2016 to build a strong ecosystem for nurturing innovation and entrepreneurship in the
country. The primary objective of this initiative is to drive sustainable economic
growth and generate large-scale employment opportunities. Here's a case study on
Startup India:

1. Background:
oIndia has a large population of youth, with a median age of around 28
years, providing a significant demographic dividend.
o However, the country faced challenges in translating this advantage
into entrepreneurial opportunities due to various factors, including a
lack of a supportive ecosystem, access to funding, and regulatory
hurdles.
2. Key Components of Startup India:
o Simplification of the startup registration process through a mobile app
and online portal.
o Providing tax exemptions and rebates for startups.
o Establishing a fund of funds for startups to ensure availability of
capital.
o Setting up incubators and research parks to foster innovation.
o Relaxing norms for public procurement for startups.
o Facilitating faster patent filing and protection of intellectual property
rights.
3. Impact:
o As of January 2023, over 84,000 startups have been recognized by the
Department for Promotion of Industry and Internal Trade (DPIIT),
spanning various sectors, including e-commerce, fintech, healthcare,
and education.
o These startups have created over 9 lakh (900,000) employment
opportunities.
o The initiative has fostered a culture of entrepreneurship, with an
increasing number of youth exploring entrepreneurial ventures.
o Several successful startups have emerged, such as Paytm, Zomato,
OYO Rooms, and Byju's, attracting significant investments and
creating job opportunities.
4. Challenges:
o Despite the progress, access to funding remains a significant hurdle for
many startups, particularly those in smaller cities and towns.

25
 oRegulatory complexities and compliance requirements continue to pose
challenges for startups, hindering their growth.
o Lack of adequate infrastructure and mentorship support in some
regions limits the growth of the startup ecosystem.
5. Future Outlook:
o The government has announced plans to further strengthen the Startup
India initiative, focusing on promoting entrepreneurship in smaller
towns and rural areas.
o Efforts are underway to simplify regulatory processes and provide
additional tax incentives to startups.
o Initiatives to foster collaboration between startups, academia, and
industry are being explored to accelerate innovation and
commercialization.

The Startup India initiative has played a crucial role in creating an enabling
environment for entrepreneurship and fostering innovation in the country. However,
continuous efforts are required to address remaining challenges and ensure the
sustainable growth of the startup ecosystem.

Objectives

Based on the information provided in the case study, the primary objectives of the
Startup India initiative appear to be:

1. Building a strong ecosystem for nurturing innovation and entrepreneurship in

India.
2. Driving sustainable economic growth in the country.
3. Generating large-scale employment opportunities, especially by leveraging
India's demographic dividend of a large youth population.

The case study highlights that India faced challenges in translating its demographic
advantage into entrepreneurial opportunities due to factors like lack of a supportive
ecosystem, access to funding, and regulatory hurdles. Therefore, the Startup India
initiative aimed to address these challenges and create an enabling environment for
startups and entrepreneurship to thrive.

By introducing measures such as simplifying registration processes, providing tax

incentives, establishing a fund of funds, setting up incubators and research parks,
relaxing procurement norms, and facilitating patent filing, the initiative aimed to
remove barriers and support startups at various stages of their growth.

Ultimately, the broader objectives were to foster a culture of entrepreneurship,

promote innovation, and leverage the entrepreneurial potential of the country's youth

26
to drive economic growth and job creation. The initiative recognized that a vibrant
startup ecosystem could contribute significantly to achieving these objectives.

SCOPE OF STUDY :-

the scope of the study is to provide a comprehensive analysis of the Startup India
initiative, encompassing its background, key components, impact, challenges, and
future outlook. The study aims to evaluate the government's efforts to create an
enabling environment for entrepreneurship and innovation in the country and identify
areas for further improvement and growth of the startup ecosystem.

GOVERNMENT SCHEMES FOR START-UP COMPANIES

1. Start-Up India Seed Fund

On 16 January 2021, Prime Minister Narendra Modi announced the launch of the
'Start up India Seed Fund' — worth INR 1,000 crores — to help start-ups and
support ideas from aspiring entrepreneurs. PM Modi said that the government is
taking important measures to ensure that start ups in India do not face any capital
shortage.

2. Start-up India Initiative

The Prime Minister of India launched the Start-up India Initiative in the year 2016.
The idea is to increase wealth and employability by giving wings to entrepreneurial
spirits. The government gives tax benefits to start-ups under this scheme and 798
applicants have made use of this scheme to date. The Department of Industrial Policy
and Promotion is maintaining this initiative and is treating it as a long term project.
Moreover, the overall age limit for start ups has been increased from two years to
seven years. And for biotechnology firms, the age limit is ten years from the date of
incorporation. It is one of the best government-sponsored start up schemes for
entrepreneurs as it is provides several concessions.

3. Aspire

The government has made continuous efforts to improve the social and economic
aspects of life in rural areas of India. Since 56% of the Indian population lives in the
rural areas, the government is promoting entrepreneurship and innovation in the rural
sector. The ASPIRE scheme aims at increasing employment, reducing poverty, and
encouraging innovation in rural India. However, the main idea is to promote the agro-
business industry. The Ministry of Medium and Small Enterprises has tried to boost
economic development at the grassroots level. The total budget of the scheme was
INR 62.5 crores for the period of 2014-2016.
4. Mudra Bank

27
Micro Units Development Refinance Agency (MUDRA) banks have been created to
enhance credit facility and boost the growth of small business in rural areas. The
government has introduced this scheme to support small businesses in India. In 2015,
the government allocated INR 10,000 crores to promote start-up culture in the
country. The MUDRA banks provide start-up loans of up to INR 10 lakhs to small
enterprises, business which are non-corporate, and non-farm small/micro enterprises.
MUDRA comes under Pradhan Mantri Mudra Yojana (PMMY) which was launched
on 8 April 2015. The loans have been categorized as Tarun, Kishore, and Shishu. The
assets are created through the bank’s finance and there is no collateral
security.Benefits provided under the Start-up scheme implemented and led
by the Indian PM,NARENDRA MODI

• Compliance regime based on self – certification

• Start up Indian hub

• Rollout on mobile application and portal

• Legal support and fast tracking patent examination at lower cost

• Relaxed norms of public procurement for start ups

• Faster exits for start-ups

• Providing funding support through a “fund of funds” with a corpus of INR

100 crore

• Credit guarantee fund for start-ups

• Tax ememption on capital gains

• Allowing start-ups to quit if they fail to get into the market

• Tax emeption to start-ups for 3 years

• Tax exemption on investment above fair market value

• Organising startup fests for showcasing innovations and providing a

collaborationplatform.

REVIEW OF LITERATURE

28
Start-Up Mistakes To Avoid (Times Of India)
Chandralekha Mukerji & Amit Kumar | Mar 3, 2014
Starting your own business venture is a tempting thought. You can be your own boss
instead of being hectored around. Yet, being your own boss is no easy task. To begin
with, one of the biggest challenges that new entrepreneurs face is to convert the idea
into a profitable business model. Have you done sufficient research? Should you
approach a venture capitalist or a bank to fund your business? How much time
should you give to your business to start churning profits? Is it a time to start a
business or wait till you gain the required experience?

Experts say that the first year of a venture is the most crucial. It can make or break the
business. You make one mistake and it will run over the business. We look at some
of the common mistakes that fresh entrepreneurs make in their first year of starting a
business. Find out how you can avoid doing so.

Not doing adequate research

There is no dearth of ideas and types of ventures that you can pursue. However, the
tough part is testing the hypothesis—converting your idea into a viable business
model, which is not possible unless you have done sufficient market research.
Whether you decide to do it formally or informally, you will need data on the size of
the potential customer base, competition and external business environment, to be
able to clearly define your revenue channels.

Scaling up too early

After the business has been launched, the entrepreneur starts looking for growth.
Even if you are able to generate a lot of consumer interest , you ultimately have to
scale up the business to make it grow. When you test a prototype or launch a product
in a small market, the results are based on a limited experience. However, this
changes dramatically when you actually begin operations or reach out to a wider
market. In hindsight, Doshi realises that their decision to go pan-India was premature
and a reason that led to its failure

Not keeping tabs on expenses

Keeping the overhead costs low is essential for a start-up . Whether it is on furnishing
the office or buying machinery, you have to be as frugal as you can be. If you are
smart like Pritam Hans,you can find a cheaper option that is actually better.

Underestimating manpower needs

The golden rule of entrepreneurship is not to waste time on something that can be
29
done by someone in a faster, better and, perhaps, cheaper manner. To run the
business, you need a team that can take care of various peripheral aspects and leave
you with the core functions

Not maintaining a financial buffer

Many people hesitate to start a venture because they are the sole breadwinners for
their families and the loss of a regular monthly income can pose problems. A
working spouse can ease the pressure. Ask Bhaskar Chattopadhyay, who started Art
Square in November 2012 with a seedcapital of 3 lakh.

Startup India has been promised an initial capital of 10K crore over a period of four
years from the government. This seed capital is capable of attracting tenfold
investment by 2022. Credit guarantee for startup lending is another booster. Startup
plan unfolded on January 16, 2016 in front of domestic and international
entrepreneurs. Internet-based businesses from food to fashion, health to education,
and travel to payment platforms- all have taken Centre stage recently. Industry
expectation from the Government is reciprocal. Few industry leaders who are
championing Startup India want high bandwidth, tax breaks on budget smartphones
supporting vernacular languages, simpler KYC norms, and improved access to
electricity and credits. They are interacting with policy makers to weed out
regulations which act as a brake to investments. Crisp documentation is a pipedream
for the young, technology savvy, smart entrepreneur. The developed countries have
worked hard to make startup operations simple. It is this backdrop which makes
policy making challenging and interesting enough for the government of the day.
The Prime Minister unveiled a 19-point agenda to take forward the startup culture.
The action plan included tax sops, ease-of-doing business, innovation to help
entrepreneurs to startup and grow their business(Forbes India, Startup India, January
18, 2016)

Charumathi (1997): examined emerging challenges and prospects of women

entrepreneurs in India keeping in view the increasing infrastructure, education level
and awareness regarding upcoming opportunities among women. Author
investigated into entrepreneurship qualities to find strength, weakness and threats by
studying 50 women entrepreneurs of Tamil Nadu. It was concluded that women were
still not able to handle risks in a calculated manner and enterprise held second
priority, first was home. Women considered business as an opportunity to get
themselves recognized as equal in society. Challenges faced by women
entrepreneurs were behavioural barriers, gender role ideology, delimiting the outside
movement, access to credit and technology, and outside support from Government
and other agencies. Future need for upgrading, socio-economic conditions, raising
educational level, unbiased social attitudes, framing industrial development
programmes and implementation of less restrictive practices for systematic
development of women entrepreneurship was suggested. Author concluded that

30
Gujarat is one of the best states regarding entrepreneurial practices and development

Ganesan, Kaur and Maheshwari (2002) studied the problems faced by

women entrepreneurs and highlighted the future prospects and challenges relating them.
The author further studied the role that training and development programmes can play
in promotion of women entrepreneurs. Middle aged women were found to be more
motivated in comparison to young women. More problems 15 were faced at external front and
male dominated areas. Stereotyped image of gender roles was the main cause of obstacles.
Trained women entrepreneurs could handle problem easily in comparison to un-trained
women entrepreneurs thus emphasizing the benefits of training and development programmes.
Marketing, financing and networking issuescontinued to remain as problems. Need for focused
training, up gradation of managements, marketing and networking skills through use of proper
developmental model was suggested.

Cardon and Tolchinsky (International Handbook of

Entrepreneurship and HR) commented on various staffing methods and their

impact on the start- 102 ups. They offer the view that the mix of direct hire, PEO and

contingent labour, based hires must be diversified in the firms depending on the

required flexibility, speed, HR commitment, mental model, and control over the

dynamics of that firm.

Challenges in biotech startup

Aravind Durai ,Bin Li ,Sunil Metkar ,Monica Pelayo ,Natasha

iotechnology refers to the large and growing array of scientific tools that use
living cells and their molecules to make biological products for many different
industries. Human and animal health care, agriculture, forestry, environment,
and specialty chemicals areamong the industries that have benefited most from
biotechnology. The economic promise of biotechnologextraordinary. At present
a $60 billion sector worldwide, it is estimated to become a market of at least
$120 billion annually within 10 years. Although this is a high-growth sector,
moving a promising research discovery to market is a complex, costly and
challenging undertaking.

In this paper we have identified and addressed challenges that are unique to
a biotechnology startup. The approach used to compile the information
included a combination of interviews with Chicago-based bio-
entrepreneurs and research using industry journals, business databases and
newspaper articles.
The challenges of starting a biotechnology company in the US include
31
raising capital, building strategic partnerships, recruiting, motivating and
retaining top scientific talent and compliance with regulatory bodies.
Running a biotechnology company entails challenges in manufacturing,
sales and marketing, reimbursement and several other managerial
challenges. The goal of this paper is to serve as a high-level guide to an
entrepreneur planning to venture into the biotechnology sector .

Data Collection

Primary Data :-

A questionnaire was developed to measure the various problems faced by start up

companies South Mumbai. The questionnaire consisted of questions concerning the
level of influence onindividual and demographic information of respondents. Some of
these questions were multiple choice question and some questions were in nominal
scale where the respondents had to answer (Yes or No).Lastly, the questionnaire also
consisted questions to solicit demographic information of the respondents such as
gender, age and occupation. Questionnaire was hand carried and personally
explained to respondents. The respondents were asked to fill questionnaire
completely.

Secondary Data :-
Detailed review of literature from secondary sources would provide the base for
identifying the domain, selection, designing and inclusion of various measuring
variables in the questionnaire for the study. We have also used various tools of
secondary data, which include below operations-
• Books

• Internet

• Articles

• Magazines/Progress Reports

• Newspapers

Sampling method:

Random sample method

A random sample method is one chosen by a method involving an unpredictable

32
component. Random sampling can also refer to taking a number of independent
observations from the same probability distribution, without involving any real
population. The sample usually is not a representative of the population from which
it was drawn –this random variation in the resultsis known as sampling error

Sample size :
In order to carry out a research or study it is extremely difficult to generate primary

data from a considerate amount of start-up companies. In the limitations, the sample

size was thought proper to cover a very small percentage of start-up companies in

various lines of business. Hence sample sizes of 5 companies will be taken.

Research type:

Survey research done by asking questions prepared by researchers and has been

asked to 20people

Research instrument:

Questionnaire (Closed and Open ended questions) 100 random people.

Testing of Hypothesis:
Entire testing was done using diagrammatic representation of data collected.

Research limitation :-
The outcome of this research shows comprehensively integrated framework for us to

understand the vibrant relationships among demographic factors and consumer

decision- making. However, with further efforts these factors can be examined in a

better manner with additional samples before generalization can be made.

• The research was conducted in a very limited or specific area namely,

south Mumbai area of Mumbai city, Maharashtra, India, which is

moreover an upper class crowd hence it has led to reflecting a similar

33
 trend in the responses. The results of the same, if conducted in other part

of the country or the city of India may vary. It is because country like

India is geographically, economically, socially, and culturally very

different.

• The sample size is very small (N=5) in order to analyze or observe

consumer decision making there are various minute factors that bring about

a difference. In order to capture the trends of the consumer a much bigger

sample space was required. The small size isalso error prone.

• Various apprehensions that are based upon information gathered from the

internet canbe incorrect.

• Time acted as a major constraint since it was a block from capturing

the college ofMumbai city.

• Respondent may be biased and some respondents were reluctant to give the

information& were not eager to give more time to answer the questions

properly.

34
 CHAPTER-3
Data, Presentation and Analysis

Start-ups
In the present decade, India is planning a vital shift in the direction of startup
welcoming policies and a business-friendly or entrepreneur’s environment. India
is one of the fastest growing countries in terms of entrepreneurship.
Entrepreneurship is an essential input for economic development, creating new
markets or opportunities. Currently, India is promoting entrepreneurship
enthusiastically but it’s a huge challenge for government as well as large
population of India to create employment via startups. This paper intention at
offering an analytical overview of the boom and potentialities of startup systems
in India i.e. the progress made by India so far. Therefore, this research can
contribute to a better understanding of the Investment and financing strategy of
entrepreneurial ventures.

Data Analysation
The already existing work related to the start-up analysis includes the study on
the contribution of start-ups in the economic development of India, in which the
authors have tried to elucidate upon the successful start-ups in India and the
government initiatives supporting the growth of start-ups and how these start-ups
lead to a steady growth of Indian economy, this paper reveals that with over $5
billion worth of investment India paved its paths to the third position in the world
ranking in terms of start-ups, Active investors have grown from 220 in 2014 to
490 in 2015 as mentioned by Sinu,M. (2017). Sara and Peter, (1998), have
analysed the gender biases over funding for startups, in which preferences of the
investors towards male or female-owned start-ups is compared and scrutinized on
the basis of a survey conducted on the 600(300 owned by men and 300 owned by
women) start-ups. The results show quantifiable gender differences in certain
areas of business financing, although intra–sectorial similarities demonstrate that
gender is only one of a number of variables that affect the financing process.
Feldman, (2013) conducted a study on the topic of patent demands against
venture-backed start-ups. In which he presents the details of responses of more
than 200 venture capitalists and their portfolio companies.A claim has been made
here that measuring of attributions before the potential entrepreneurs had started
their businesses; one can make a stronger assertion for a causal relationship
between initial attributions and each individual’s subsequent success or failure in
business start-ups by Gatewood et. al, (1995). Brush, (1992) presented a study
comparing the past trends, new perspectives and future directions regarding the
role of women in entrepreneurship and business world was presented in this
paper, the author had tried to review the empirical research studies on women
business owners and their ventures and has classified the studies in the
framework. Problem Statement and Motivation With the advancement in
35
 Technology and opportunities.

Data Representation through Graphs, Charts

1. It shows the percentage share of cities in total Indian start-ups, after which totaland
average investment generated by start-ups in every city was calculated and
presented.

Analysation - For every 100 start-ups that open in a given period, 31% of
companies preferred Bangalore as the hub for their operations. Followed by
Mumbai, which is preferred by 22% of companies. New Delhi was third with
18% likeability. These statistics are shown in Fig. 1

2. The number of start-ups which commenced and thrived with investment in a

given period was calculated city-wise as shown in Fig. 1.

36
 Analysation - It shows a city-wide record of start-ups. In our analysis, Bangalore
was the most preferred city for opening start-ups. Of the total 2478 start-ups that
commenced, 739 opted to start in the city of Bangalore.
3. It shows the percentage share of cities in total Indian start-ups, after which total
and average investment generated by start-ups in every city was calculated and
presented.

Analysation - Next, we calculated the funding distribution over 9 cities with the
maximum number of start-ups. Again, Bangalore topped with total funding of
9,58,76,58,957 dollars of investment in a given period. Average funds received
by the cities were also calculated by dividing the total funding of a city by the
number of start-ups it has. The result of this analysis is shown in Fig. 3, where we
can see Bangalore again remained at the top followed by Gurgaon and New Delhi
respectively
4. It is based on the percentage share of total investment. Thus, representing the
percentage share of the various cities in the total investments (USD).

37
 Analysation - Industries were divided into various categories and analysis was
done on the basis of the number of start-ups that started and the total investment
received by that field.

5. Number of government recognized startups from 2016 to 2024

As of April 2024, over 127 thousand startups had been officially recognized by the
Department for Promotion of Industry and Internal Trade (DPIIT). India’s startup
economy has been growing since 2016 with businesses mushrooming rapidly across
the country. To support and sustain its growth, the Indian government launched the
Startup India initiative. As of February 2023, a total of 92,683 startups had been
officially recognized by DPIIT.

6. Which year has the highest amount of investment?

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 According to the analysis of the data by year, we see a drop in the cost of financing
startups from 2018 to 2019.But this we see an exponential growth in funding, which
goes from around USD 5 billion in 2019 to USD 197 billion in 2021

7. Wich Region received the most investment

The majority of funding in the Indian startup ecosystem is concentrated in two key
locations — Mumbai (82.5%) and Bangalore (8.6%). Together, they accounted for
about 91% of the total funding received by Indian startups during the analyzed period,
indicating significant centralization of funding in these cities.

8. Which Sectors are Favoured by Investors

39
 Continuing our analysis of much in-depth data this time to exploit the sectors that have
received more funding, we obtain this:

We note that funding to the Fintech and Retail sectors made up about 80% of
total funding to startups over the period, implying centralization of funding
around these sectors as well.

9. Which Region received the most investment

The data analysis highlights a concentration of funding in specific sectors (Fintech and

Retail) and locations (Mumbai and Bangalore) for startups in the Indian ecosystem.
Startups positioned at the intersection of these sectors and locations received above-
average funding in the deals they participated in.

40
Conclusion

• Top sectors in indian startup ecosystem are Fintech, Retail, Edtech, Tech and E-
commerce.

• Bangalore has the most startups. It seems to be the emerging city with the top
sectors being Innovation Management, Food Delivery and Mechanical &
Industrial Engineering

• Mumbai is the big city with the big money investments, with leading sectors
being Fintech, Retail and Multinational conglomerates

• In different regions, different sectors are more heavily invested in. In this case, we
reject our null hypothesis and accept that investment raised is spread widely
across multiple sectors

• The team should start a business in Mumbai in the Fintech or Retail. There
seems to be high demand for finance solutions and shopping experiences. Retail
was popular during the pandemic as more people were probably shopping from
home.

• Alternatively, the team could start a business in Bangalore, since it seems the
preferred region for startups. Innovation Management or*Food Delivery* is the
preferred sector to go into.

41
 CHAPTER-4
Conclusion of the Study of STARTUP INDIA

The document provides a comprehensive overview of startups, focusing on

the Startup India initiative launched by the government to foster
entrepreneurship and innovation. It discusses the challenges faced by startups,
the factors contributing to their success, and the importance of managing
investors and co-founders effectively. The sections highlight various aspects of
startup culture, funding options, and factors influencing startup success,
emphasizing the need for strategic planning, careful decision-making, and
learning from mistakes. Additionally, insights into the biotechnology startup
sector and the Indian startup ecosystem outline the challenges and
opportunities within these industries, underscoring the significance of
government support and strategic approaches for startup growth and
sustainability.

Pages 1—8: STARTUP INDIA INITIATIVE.

The section discusses the "Startup India" initiative launched by the BJP government
on 16th January 2016 to support and motivate the youth of India with innovative ideas
to venture into entrepreneurship. The scheme aimed to facilitate financial support to
startups in key sectors like Textile, Media, Health, Tourism, etc. It acknowledges the
challenges faced by startups, including infrastructure, talent acquisition, and
regulatory obstacles. The study focuses on the objectives of startups, leadership
requirements, challenges faced in formation, and opinions of people about startups.
The document describes the evolution of startup companies, factors contributing to
successful startups, and the concept of a startup as a temporary organization searching
for a repeatable and scalable business model. It highlights the growth potential, risks,
and scalability associated with startups. The narrative also mentions the emergence of
successful startup hubs in various regions globally and the Indian startup ecosystem's
performance. The section concludes with a mention of investments, government
regulations, and the positive impact of startups on the economy and job creation.

Pages 9—14: STARTUP FUNDING OPTIONS, CHALLENGES, SUCCESS.

Startups have various funding options including venture capital firms, angel investors,
and factoring. Conducting research and obtaining intellectual property protection are
crucial steps for startups. Failure rates for startups are high, but successful ones can
bring significant returns. Silicon Valley has been a hub for startup activity. Co-
founders play a key role in startups, and having clear agreements from the start is
important. A great startup culture is characterized by factors such as no office politics,
a strong mission-driven approach, focus on equity, good communication, and strong

42
leadership. Challenges for startups include not creating something users want, reliance
on a single founder, and location.

Pages 15—18: STARTUP SUCCESS FACTORS.

The section discusses various factors affecting startups, such as deriving ideas from
specific unsolved problems rather than imitating existing companies, the risk of hiring
bad programmers, the importance of choosing the right platform, avoiding slowness in
launching, the potential risks of launching too early or too fast, the significance of
understanding the specific user, the importance of raising enough money, and the
risks of spending too much. It emphasizes the need for careful considerations in these
aspects to increase the chances of startup success.

Pages 19—24: MANAGE INVESTORS EFFECTIVELY.

This section of the document discusses the importance of managing investors as a

founder, advising not to ignore them completely but also not to let them take over
control of the company. It emphasizes that investors should not be allowed to run the
company as that is the founder's responsibility. The text also mentions that when
starting a company, disputes with investors can drain energy away from the product,
but it is preferable to deal with these disputes rather than giving in to the investors
completely which could potentially destroy the company. It further highlights that the
effort required to manage investors depends on the amount of money raised, with
venture capitalists holding more control if they have a board majority. The section
also touches on the common occurrence of disputes between founders, advising that
such conflicts could be avoided by being careful about choosing co-founders.
Additionally, the section briefly mentions reasons for failure in startups, stressing the
importance of not compromising on the quality of co-founders.

Pages 25—30: STARTUP INDIA INITIATIVE: PROMOTION, CHALLENGES,

FUTURE

The section discusses the Startup India initiative, launched by the Government of
India in 2016, to promote innovation and entrepreneurship. It highlights the
background, key components, impact, challenges, and future outlook of the initiative.
The case study illustrates how India aimed to leverage its youthful demographic
advantage to create entrepreneurial opportunities by addressing obstacles like lack of
a supportive ecosystem, funding, and regulatory hurdles. The initiative has simplified
the registration process, provided tax exemptions, established a fund of funds, and
supported innovation through various means. It has recognized over 84,000 startups,
creating job opportunities and fostering a culture of entrepreneurship. Challenges
include access to funding, regulatory complexities, and inadequate infrastructure in
some regions. To enhance the initiative, the government plans to strengthen
entrepreneurship in smaller towns, simplify regulations, and promote collaboration

43
between startups, academia, and industry to drive innovation. Additionally, details of
other government schemes supporting startup companies are provided, concluding
with a review of literature focusing on startup mistakes to avoid and various studies
related to entrepreneurship and women entrepreneurs.

Pages 31—40: BIOTECH STARTUP CHALLENGES, INDIA.

The section of the document discusses the challenges and opportunities in the
biotechnology startup sector. It highlights the complexities involved in moving
research discoveries to the market and identifies unique challenges faced by
biotechnology startups. Some challenges mentioned include raising capital, building
partnerships, recruiting top talent, and compliance with regulations. The document
aims to serve as a guide for entrepreneurs planning to venture into the biotechnology
sector. It quotes industry professionals emphasizing the urgency in addressing
managerial challenges and the importance of a good management team in executing
strategies. Despite the challenges, the biotech industry is described as exciting and
promising, offering the potential for breakthrough innovations that can improve lives.
Subsequently, the document transitions to analyzing the startup ecosystem in India,
focusing on the growth and potential of startups in the country. It provides data on the
number of recognized startups, funding trends, regional investments, and investor
preferences in different sectors such as Fintech and Retail. The conclusion highlights
the need for startups to address challenges strategically, utilize available resources,
and learn from past mistakes to succeed in the competitive market. The Indian
government's efforts to support startups, particularly through initiatives like Startup
India, are noted as conducive to the startup environment in the country.

44
 Bibliography

Website links
• www.google.com
• www.wikipedia.com
• www.scirbd.comwww.gov.initivaitve.in
• https://courses.minnalearn.com
• https://economictimes.indiatimes.com
• https://www.india-briefing.com
• https://www.ibef.org
• https://www.investopedia.com
• https://www.jordensky.com

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