The emerging trend of start-up in India is assumed to be ended soon because of some problems that the country needs to solve or else the start-up bubble is supposed to be burst soon. The entrepreneurs are more inclined towards the idea of getting more and more profit and they are paying due attention to other problems that are rising and so the funding seems to be low but in fact it is not quite true.
Some of the main reasons are as follows:
1) Inexperienced entrepreneurs
Most of the entrepreneurs that are developing their start-ups are very young. They do not have the required experience to develop a start-up having a good future growth and in addition to it these entrepreneurs do not get the experienced advisors for their start-ups as their experience can be a good support for the young ones.
2) Stage of bootstrap
Today is the era of technology and most of the data is being handled by the computer but the Indians are not observed to reach the stage of bootstrapping and it is one of the reason why the bubbly may burst.
3) Lack of planning
As mentioned earlier that the entrepreneurs are quite inexperienced and so they lack the idea of planning for the company. Firstly, all they plan is to be the best of their country but they do not have the right planning for this purpose. They soon have to perform cost cutting by reducing their operations due to low funding or lack of other resources. The key is to get the right planning according to the resources they have.
4) Money spent
The money that is usually spent for the service of the customers is not very profitable and due to this fact they have to face problems at initial levels when this is realized that their decision was not right.
It is usually considered that the start-ups are in danger due to the lack of VC firms but this is not the case here. There are a lot VC firms who are ready to invest their money in the right start-ups having a good plan and services but they do not really seem to find any and so these are the reasons that it is said nowadays that the bubble of Indian start-ups is likely to burst but if the right measures and precautions are taken then the trend of start-ups may survive and have a bright future in India.