Growth, Talent, Funding Top Challenges for Indian Startups

Growth, talent management and funding are the top three challenges that small startups in the country face, a survey by industry body IAMAI today said.

According to Internet and Mobile Association of India (IAMAI) and IMRB International survey, raising fund and revenue expenditure mismatch are major challenges that small startups see in the next year.

Over the past two years, investors have pumped in billions of dollars into hundreds of startups, many of which have grown into thriving businesses.

However, many analysts believe that raising funding in later stages of evolution (series B and beyond) could become increasingly difficult.

Also, startups see growing their business, sector and increasing market share as another challenge in the next one year.

The survey found startups saying lack of skilled personnel, high attrition rates and balance between managerial skill against technical skill is another area of concern for new digital businesses.

“While challenges in raising funds remain the primary concern, innovation and lack of skilled personnel are other major pain points for all of them,” it added.

Interestingly, issues like regulatory framework and monetisation of business model is not much of a bother at this stage of their operation.

“This is reflective of the fact the government’s move to boost funding and develop a robust ecosystem through a series of programmes is a step in the right direction as far as supporting the small digital start-ups are concerned,” the survey said.

Prime Minister Narendra Modi will unveil the ‘Start-up India, Stand-up India’ initiative tomorrow that aims to provide entrepreneurs fresh impetus at the grass-root level.

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