Be innovative or shut down, says recent IBM study
Innovation is the new mantra for a startup success. Scroll down for more…
As a developing country, India might have created a special place for itself in the startup sphere, however the tenure is not going to last too long, says a recent IBM study. As per the report, the main reason has been identified as the lack of innovative practices within the startup space.
IBM Institute for Business Value And Oxford Economics brought out a recent research report called ‘Entrepreneurial India: How startups redefine India’s economic growth’ Institute for Business Value that reveals almost 90% of the Indian startups start incurring losses within the first five years. Other strong factors like absence of skilled manpower, inadequate funds, improper mentoring have also been cited in the report.
Some of the Venture Capitalists who had conducted surveys mention the lack of unique business ideas and inadequate usage of the latest technology, as valid reasons for the failure of the Indian startups.
Nipun Mehrotra, chief digital officer, IBM India and South Asia, says, “Thinking of that money as their own, as opposed to taking care of it because the capital is vested in a company or to build a certain technology affects the organisation, and how people are treated.” Misrepresentation of the finance reports and achievements, and unethical business conduct too have listed themselves behind the unhappy story of the startups.
These reports and surveys do not undermine the progress that startups have made in the last four years. Drives like the “Make in India”, “Startup India” have facilitated the options of growth, yet the scarcity of innovation in the startup hub remains to be the biggest threat. However, the fact that India has a strong a wide domestic market and has opened up to more investments in this domain, it has helped it earn some extra points.
Do you feel the startup industry faces a setback due to inadequate innovative measures? Please share your views.
Source: Forbes, Business Standard and The Economic Times.