NTCC PROJECT
ON
START UP- ISSUES AND CHALLENGES IN INDIA
SEMESTER- JULY 2018-DECEMBER 2018
3RD SEMESTER
COURSE- BBA-3 CONTINENT
2017-2020
BY -LAKSHAY GOEL
ENROLLMENT NO. -A1810417021
PROJECT INCHARGE
MR. HARENDRA KUMAR
ACKNOWLEDGEMENT
I would like to express my special thanks to my project incharge Mr. Harendra Kumar, who gave me opportunity to do this project on the topic ‘START-UP ISSUES AND CHALLENGES IN INDIA’.
Which also help me doing a lot of research and I came to know about new things which an entrepreneur is facing starting his own venture.
And I would like to thanks my friends and family who helped me in finalising this project on time and shared there knowledge about the topic given to me.
CHAPTER 1
Introduction
A startup is something that is typically newly started and emerged in business. it is an entrepreneurial venture that aims in targeting the market and meet a marketplace, so he could be able to start in the competition for longer period of time.
In this business aims for developing a viable business model around a product, services, process, or any platform to survive the market conditions now a days.
A startup is something that is designed to effectively develop a new product with better quality than others in the market.
Startup is the step where a new venture come in market and there are high rates of failure in it too, but the minority of ventures goes to the success point because they were able to understand the market condition and could stand in competition because of there previous experience.
.LITERATURE REVIEW.
This research is all about the startup in India and how the people of India deals with all the issues and challenges in starting the new venture.
According to the research few years back government started to encourage the entrepreneurs of the country to start new venture and so many enterprises came up with very good market handle and now they are pulling the market of there product line.
In last 3 years (2015-18) the GDP growth has increased upto 7.7%. The result itself says that the high number of industries got setup in last
3 years.
In this project we are going to talk about the startup and the issues and challenges which are faced by new venture entrepreneurs.
Now a days lots of people are coming with new venture ideas in the market. And lots of ideas get finished because of few reasons like financial shortage, less time to get their space in the market, lake of business ideas, and many more.
Successful new business venture and economic development do not just happen they are the result of the combination of right environment, planning, efforts, innovations and the proper market study. Before starting any venture a clear blue print for simulating research, technology, finance to help promote matured enterprises.
There are few factors that are contributing in our startup.
OBJECTIVES OF RESEARCH
The main objectives of this research is to know about the startup handles in India, The ups and down in starting a new venture and there are lots of issues and challenges which we can discuss in upcoming slides.
Now a days even a middle man is planning to invest crores and crores of rupees in Business/ New Venture.
Because these are tun numbers of financial institutions, banks offering less interest rate,
And in country like India, here people have lots of old properties and assets from which they can arrange lots of finance as per there requirement.
This research will give us the knowledge regarding the issues and challenges in starting new venture and so will help us in future to deal with such problems.
Chapter 2
Government Policies
Startup India:
Through the startup india initiative,government of india is promoting the new ventures and entrepreneurial skills by mentoring them and facilitating startups till their life cycle.
In year 2016, the initiative has successfully given a head start to numerous aspiring entrepreneurs.
The government is creating a strong network of academic and industrial bodies in which the new startups can come up and grow.
The main effort is to build an ecosystem in which new innovative program can come up and excel without any barriers.
Startup India learning programme,facilitated patent filing.
All the policies are related to funding support and tax benefits and addressing regulatory issues.
MADE IN INDIA:
It is designed to tranform india into a global design manufacturing hub, in this policy the government want to produce everything In india and wants to finish the import from other countries.
This initiative was launched in September 2014,
It came as a powerful call to india's citizen and business leaders, an initiative to potential partners nad investors
The plan behind make in india was one of the largest undertaken in recent history among several other measures, the initiative has ensured the replacement of obsolete and framework system.
This is the policy in which the indian manufacture is able to sell their products in indian market and the import rate has been decreased.
Before people from china used to export lots of products in india and know because of the policy ‘make in india'.
It develop skills and build best in class manufacturing infrastructure.
Atal innovation mission:
AIM is the government of india's endeavour to promote a culture of innovation and entrepreneurship, and it serves as a platform for promotion of world-class innovation hubs, grand challenges are related to the new innovative product.
In this the new innovative product come out and the new startup come out with the product and grow wisely.
The government of india has undertaken several initiative policies several initiatives and instituted policy measures to foster a culture of innovation and entrepreneurship in the country.
Chapter 3
ISSUES AND CHALLENGES
FACED IN START-UP
ISSUES:-
CASH FLOW LOW DUE TO HIGH ORDER NUMBERS.
Those business that are producing product might have problems with cash flow if their payment system is not structured properly. Most companies doing business with a startup will pay half up front when asked as cash flow on a huge order can be a huge problem.
Such cash Flow includes the employees salaries and wages payment and some of the small production expanse which needed to be payed at a time i.e breakage in machinery and parts and fixtures.
Cash flow issues can cripple a business quite quickly as most manufacturers and other contractors will not be willing to get paid later.
2.EMPLOYEE TURNOVER
The startup world can be stressful with long days and tight deadlines. This can end up becoming a problem as employee turnover is an issue with any business, it means the employees leaving the enterprise
And if the employees will leave then the business might fall down in its field work and its internal performance.
All the employees going should be trained before they productive at all which means a few thousand dollars being spent up.
If employee is leaving the business after learning all the productive skills of your business then it is going to be a negative point because then he’ll be using those skills for other business/ competitors business.
3. UNDERSTANDING THE RIGHT MARKET AT RIGHT TIME.
The entrepreneur need to understand the market condition at the current and future basis, so that he can be able to win the market in order to get the right information regarding market conditions.
If the business is not able to understand the market situation then it might fall down due to less profit margin or due to loss in customer satisfaction in price.
This does not guarantee in any way that the employee will be as productive as the person they have played. Perks of working a job can reduce this turnover with things like daily lunch being provided for staff.
So, the business should ensure that the employee working in business should be there for longer period of time and should have full participation in it.
4. STAFF RESISTING CHANGE.
A growing company will be constantly changing in its procedures as well as other processes.
There are going to br staff that are extremely opposed to change as their role might be reduced or their job description could gave changed. It is important to thwart complaining in the office about these changes.
One person bringing negativity into business field can have devastating impacts on the morale of the staff as a whole.
Give a warning to offenders and the next strike means they will be written up. Negative opinions about your job or the company should be kept private.
The business should be aware of such staff in case if they are spreading the poison into business then he should be fired out of the business.
So that the business will not fell into negative environment internally.
CHALLENGES:-
FINANICIAL CHALLENGES.
Finance is the blood of every business, and without no business can survive for longer period of time.
Finance is an integral part of the startup process. Any startup would face financial issues and problems for problems for several reasons and in different stages.
For instance, while bootstrapping the founder negotiates with family members and friends to convince them to invest in his idea. He invests in the business, and since the ideas is in its early stages, founder should look for angel investors and convince him with reasonable valuation plans.
The founder should prepare the plan regarding his investment and should give full satisfaction to the investors.
hence, it can help in improving the financial arrangement of any business.
2. HUMAN RESOURCE
Startup normally start with one foundered some cofounders. As time goes by, founder needs more experts to develop the prototype etc. then business need to negotiate with the people , make team and finally hire employees.
The business should be aware of type of manpower required into their business, it will help in better management and good results.
This process is so critical to succeed and if the founder lacks enough knowledge of the field, the startup might fail due to human resource management issues.
There are lots of business in which they are not able to identify the skills of the people and also they end-up getting wrong and negative result and also their startup gets failed.
Arrangement of human resource is second important thing in the business and it is very tuff to get the right person for the right job because if a person is working in the organisation for 5 years and we want him to join our business then he will not join our business until we will not offer him the higher salary and this can effect other employee of the organisation too.
3. SUPPORT MECHANISMS.
There are a number of support mechanisms that play a significant role in the lifecycle of startups. These support mechanisms include, angel investors,, hatcheries, technology parks, accelerators, small business development centers, venture capitals, etc.
Lack of access to such support mechanisms can increase the risk of failures and the business should be aware of such mechanisms taking place into their business and also there should be a regular study regarding everything- investors invested money, employee behaviour internal and external environment.
Support mechanism will help in better performance to the business and this type of mechanism helps in better regulation in the business.
4. ENVIRONMENTAL STUDY- INTERNAL AND EXTERNAL
It is important to study the environment of the business which will help us in better performance in the business.
There are 2 types of environment – Internal and External
1. Internal Environment-
It is all about the study of internal/ inside the organisation, what is going on in the organisation
It tell us about the situation inside the business
It includes-
Employee behaviour, machinery in proper condition, factory environment etc.
We can easily trace it and take actions.
2. External Environment-
It is about the study of environment externally and it happens all outside the business and it outside the control of the business.
It includes-(PESTEL)
Political,Economical,Social,Technological,Ecological,Legal..