{"id":18303,"date":"2020-07-22T17:00:00","date_gmt":"2020-07-22T11:30:00","guid":{"rendered":"https:\/\/www.techjockey.com\/blog\/?p=18303"},"modified":"2025-02-19T13:10:39","modified_gmt":"2025-02-19T07:40:39","slug":"business-scale-up","status":"publish","type":"post","link":"https:\/\/www.techjockey.com\/blog\/business-scale-up","title":{"rendered":"What’s Holding Back Start-ups in India from Business Scale Up?"},"content":{"rendered":"\n

After a gruelling cultural shift and\nseveral government schemes such as skill India and Digital India, the country\nhas earned the tag of being the entrepreneurship hub and has attracted handsome\ninvestments from across the globe. Afterall, who can forget Walmart’s humongous\ninvestment into Flipkart? <\/p>\n\n\n\n

But as this peak success plateaus,\nconcerning issues are coming to the forefront highlighting that all is not well\nwith India\u2019s entrepreneurial wonderland. These can be because of the funds\nrunning dry, too much dependence on manual processes while procrastinating\nabout technology adoption. <\/p>\n\n\n\n

We attempt to paint a clearer picture and\ntrace the actual reasons holding back Indian startups from performing up to\ntheir potential.  <\/p>\n\n\n\n

Is the lack of funds holding back Indian startups?<\/strong><\/p>\n\n\n\n

IPO refers to initial public offering. It is the method through which private entities can make their shares available for public offering and raise money from private investors.<\/p>\n\n\n\n

Indian startups have always been\nreluctant to go down this road as it involves a lot of paperwork and the market\nsentiment in India has not been that inspiring, especially during the time of\ncovid19 pandemic. <\/p>\n\n\n\n

However, in 2019, India\u2019s first startup\nIPO began its operations to make budding entrepreneurs to be confident while\ntaking the IPO route and prevent VCs from micromanaging their business. This is\nundoubtedly a good sign for small businesses and bootstrapped companies trying\nto make it big with alternative sources of funding. <\/p>\n\n\n\n

<\/span>Other Reasons Preventing Indian Startups from Scaling Fast<\/span><\/h2>\n\n\n\n

Indian startup ecosystem has been seeing\nslow growth rate in 2020, as compared to 2019. As per a report, funding for\nIndian startups saw an overall decline of more than 30% in the first half of\n2020. <\/p>\n\n\n\n

The more visible reasons for these are the coronavirus pandemic and blocking of Chinese funds by the government<\/a>. We try to dig a few inches deep and provide you with some other contributing reasons which have put a halt to small business scale up<\/a> in the country:<\/p>\n\n\n\n