Weak ecosystem: India lags far behind several nations in terms of ecosystem and culture that nurtures startups. Indian laws and policies are not suited to meet development needs of start-ups, which vary greatly from that of traditional businesses. Also, government, regulatory and compliance authorities have limited understanding of newer business models, resulting in redundant compliance requirements, delays in clearances, etc.
Limited influence: Start-ups are often less influential in representing their interests before relevant authorities, primarily as those are small companies with limited approach in the government and no political connections, linkages or lineages.
High failure: Start-ups have a very high failure rate. Many such companies come up with new business models that have no proven track record.
Start-up India: The government recently launched a 'Start-up India' programme giving incentives and relaxing compliance requirements for startup companies. This has demonstrated that the government is realising the need for supporting start-ups and is giving them time and attention.
Start-up fund: As part of the 'Start-up India' programme, the government has also announced a Rs10000-crore fund for innovation-driven enterprises.
Private investment: Start-ups with viable business ideas are doing well with the help of private funding and their leaders' entrepreneurial spirit, and not with huge incentives from the government.
Ease of business: The government's recent efforts to increase the ease of doing business have helped start-ups as well as other companies.
Need to do