{"id":250368,"date":"2023-07-01T20:46:54","date_gmt":"2023-07-01T15:16:54","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=250368"},"modified":"2023-08-31T14:41:10","modified_gmt":"2023-08-31T09:11:10","slug":"reality-check-for-startups","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/reality-check-for-startups\/","title":{"rendered":"Reality check for startups"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article \u201cReality check for startups<\/strong>\u201d published in \u201cBusiness Standard<\/strong>\u201d on 1st July 2023<\/strong>.<\/p>\n

Syllabus<\/strong>: GS 3 \u2013 Indian Economy<\/p>\n

News<\/strong>: Byju’s is facing numerous challenges and has become a negative symbol for the country’s once-thriving startup sector. India\u2019s start-up sector consists of over 80,000 registered entities. Out of them, at least 70 per cent will eventually fail, while some 100 have achieved unicorn status.<\/p>\n

What has been the contribution of the Startups to the macro-economy?<\/span><\/span>\u00a0<\/span><\/strong><\/h2>\n

Some of the ventures have become substantial businesses and employ large numbers<\/strong>, including gig workers.<\/p>\n

The bigger start-ups have had a transformative impact <\/strong>on the Indian marketplace by creating a more favorable operating environment for small businesses <\/strong>and changing consumer habits.<\/strong><\/p>\n

Additionally, some startups exhibit promising technological advancements<\/strong>, indicating potential for further growth and innovation in the sector.<\/p>\n

What are the challenges faced by startups in India?<\/strong><\/h2>\n

D<\/span>uring the early stages of rapid growth private investors push company management to <\/span>prioritize growth over profitability<\/span><\/b>. They often overlook the fact that f<\/strong><\/span>ailures<\/strong> are a part of the startup sector.<\/span><\/b>\u00a0<\/span><\/p>\n

Greed <\/span><\/b>also plays a role in the failure of startups. For example, some promoters have been accused of fraud and companies exhibiting <\/span>poor governance <\/span><\/b>practices.\u00a0<\/span>\u00a0<\/span><\/p>\n

The sector is witnessing a significant <\/span>slowdown in investment<\/span><\/b>. It has attracted over $150 billion in investment over the past decade. However, new funding in the early months of 2023 has declined by around 80% compared to 2022.<\/span>\u00a0<\/span><\/p>\n

With diminishing investor funding, companies are now <\/span>shifting their focus towards sustainability<\/span><\/b> and profitability<\/span><\/b>, leading to cutbacks, slower growth, and staff reductions.<\/span>\u00a0<\/span><\/p>\n

Only a few well-known startups like Nykaa have managed to achieve profitability so far. But the focus has shifted from externally funded growth to sustainability.<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cReality check for startups\u201d published in \u201cBusiness Standard\u201d on 1st July 2023. Syllabus: GS 3 \u2013 Indian Economy News: Byju’s is facing numerous challenges and has become a negative symbol for the country’s once-thriving startup sector. India\u2019s start-up sector consists of over 80,000 registered entities. Out of… Continue reading Reality check for startups<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216,8184],"class_list":["post-250368","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/250368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=250368"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/250368\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=250368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=250368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=250368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}