A

PROJECT REPORT
ON
(Financial Challenges Faced By Start-ups)
Summer Internship Report submitted to the University of Mumbai in Partial
Fulfilment the award of degree of
Master of Management Studies
Specialization: Finance
By
Ms. Dubey Neha Vinod
Roll No: 2022010
Batch: 2022-24
For the Summer Internship at,
Predico Global Research
Project Guide: Prof. Meenal Parekh

ROHIDAS PATIL INSTITUTE OF MANAGEMENT STUDIES

Affiliated to the University of Mumbai,

Recognized by DTE, Govt. of Maharashtra,
Approved by AICTE, New Delhi.

February – 2024

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 Shree Shankar Narayan Educational Trust

Rohidas Patil Institute of Management Studies

(Affiliated to University of Mumbai, Approved by AICTE, New Delhi)
Mahavidhyalaya Marg, Navghar Road, Bhayandar East, Thane – 401105.

CERTIFICATE

This is to certify that Mr. / Ms. Dubey Neha Vinod is a bonafide student of our Institute
and the dissertation entitled Financial Challenges Faced By Start-ups submitted by him /
her is in partial fulfilment of the semester IV for the Degree of MASTER OF
MANAGEMENT STUDIES IN FINANCE by the University of Mumbai during the
Academic Year 2022-23.

Place: Bhayandar, Thane Dr. Vanita Malik

Date: Director
Rohidas Patil Institute of Management
Studies

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 Evaluation Report Summer Internship 2020-22

Basic Information
Name of the Student: Neha Vinod Dubey
Academic Year and Roll No: 2022-2024/2022010
Name of the Company: Predico Global
Research
Name and Designation of the Training Supervisor: Mr. Asad Khan – HR
Manager

Score Card
Please rate the following attributes on a scale of 01-05.
(01=Average, 02=Good, 03=Very Good, 04=Excellent and 05=Outstanding)

Sr. No. Attributes Score

1 Attendance
2 Punctuality
3 Attitude
4 Performance
5 Initiative
6 Interpersonal Skills
7 Diligence Level
8 Subject Knowledge
9 Personal Grooming
10 Communication Skills
Total Score(Out of 50)
Special remarks / Appreciation, if any:

Name & Signature of Training Supervisor Official Seal of the Company

Date: Place:

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 Evaluation of Dissertation

1. Name of the Candidate: Neha Vinod Dubey

2. Seat Number:

3. Name / Code of the subject:

4. Title of the Dissertation:

5. Evaluation:

Sr. No. Parameters Maximum Marks

Marks Awarded

1 Introduction 05

2 Literature Review and Problem 05

Definition
3 Process Description 10

4 Project Profile 10

5 Findings & Conclusions 15

6 Learning Experience 05

50
Total

6. Name & Address of the Evaluator:

7. Signature of Evaluator with Date:

8. Signature of the Head of the Institution with seal:

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 Declaration

This is to certify that the Summer Project titled “Financial Challenges Faced by Start-
ups” is original work and being submitted in partial fulfillment for the award of the degree,
Master of Management Studies of the University of Mumbai. This Summer Project report has
not been submitted earlier either to this university or to any other affiliated college of this
university or to any other university / institution for the fulfillment of the requirement of the
MMS Course.

Date: (Signature of Student)

Place: Neha Vinod Dubey

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6
 Acknowledgement

It has been an enriching experience for me to undergo my summer training at (Predico

Global Research), which would not have been possible without the goodwill and support of the
people around. As a student of “Rohidas Patil Institute of Management Studies, Bhayandar
(E)”, I would like to express my sincere thanks to all those who helped me during my summer
internship. I would like to express my gratitude to all those who encouraged me to complete this
project.

I would like to thank my college authorities for providing me the opportunity to work
with such a prestigious organization. I would like to express my gratitude to Mr. Asad Khan, for
having given me the opportunity to do my project work in the organization and lighted my way
of progress with his guidance. My sincere and deepest thanks to Prof. Minal Parekh of “Rohidas
Patil Institute of Management Studies, Bhayandar (E)” for having spared his/her valuable time
with me and for all the guidance given in executing the project as per requirements. I would like
to give my special thanks to my parents, their love, support and blessing enabled me to
complete this project work.

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8
 Executive
Summary

In the dynamic landscape of entrepreneurship, start-ups play a pivotal role in fostering

innovation and economic growth. However, the journey from ideation to a successful start-up
enterprise is riddled with challenges, with financial constraints standing out as a significant
hurdle. This project report delves into the financial challenges faced by start-ups in India,
shedding light on the intricate web of obstacles that entrepreneurs encounter in their pursuit of
bringing new ideas to fruition.

The evolving nature of start-up ecosystems has shifted the focus from mega funding and
announcements to a more conscientious approach centered around innovation, capital
efficiency, and client satisfaction. This shift has profound implications for the funding
scenario, necessitating a comprehensive understanding of the financial landscape for start-ups.

The abstract highlights the multifaceted nature of challenges, emphasizing the struggles in
securing adequate financial resources, land permissions, environmental clearances, foreign
investment proposals, and family support. These challenges, commonplace for start-ups in
India, often determine the trajectory of new ventures, influencing their ability to thrive or
succumb to the pressures of resource scarcity.

Furthermore, the report explores the critical issue of resource allocation, a fundamental
necessity for any start-up. Start-ups often face the dilemma of choosing the right resources
from a plethora of alternatives while keeping expenditures at a minimum. The complexity
intensifies when required resources are entirely novel, necessitating resource development
through extensive training, research and development, and substantial time and funding
investments.

By delving into the problems encountered by start-up enterprises in accessing and allocating

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resources, this project report aims to provide valuable insights for overcoming the challenges
posed by the non-availability of resources.

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 INDEX

Sr. No Particulars Page Nos.

1. Introduction 11 - 14

2. What is Start-up? 15 - 17

3. Importance of Finance in Start-ups 18 - 23

4. Start-ups Challenges And Opportunities In India 24 - 28

5. Literature Review 29 – 33

6. Objectives 34 - 35

7. Project Profile 36 - 36

8. Process Description 37 – 39

9. Data Analysis 40 - 42

10. Findings 43 - 43

11. Conclusion 44 - 44

12. Reference / Bibliography 45 - 45

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 Introduction

Start-ups represent the dynamic forefront of innovation and entrepreneurship,

embodying the spirit of ingenuity and adaptability in the business world. These
fledgling enterprises are characterized by their pursuit of ground breaking ideas,
disruptive technologies, and scalable solutions to address evolving market
needs. Unlike established corporations, start-ups are often characterized by their
agility, risk-taking ethos, and a relentless pursuit of growth. However, this
journey towards success is riddled with financial challenges that can prove to be
formidable obstacles for these emerging ventures.

In the ever-evolving landscape of entrepreneurship, start-ups emerge as the

torchbearers of innovation, injecting dynamism into the economic ecosystem.
But what exactly are start-ups? Think of them as the daring pioneers of the
business realm, small-scale enterprises brimming with innovation, ambition,
and a thirst for transformation. These are the ventures that embark on a journey
from conceptualization to fruition, fueled by the passion of visionary
individuals determined to bring novel ideas into the societal arena.

Start-ups are more than just business ventures; they are the embodiment of
creativity, resilience, and the relentless pursuit of turning dreams into reality.
Unlike their more established counterparts, start-ups are characterized by their
agility, adaptability, and a willingness to challenge the status quo.

However, the path to start-up success is not a smooth one. Alongside the thrill of
innovation and the promise of disruption, start-ups face a myriad of challenges,
with financial hurdles emerging as a central and formidable obstacle. The initial
stages of a start-up's existence are marked by a delicate dance between resource
acquisition, strategic planning, and fiscal responsibility.

The financial challenges faced by start-ups are multi-faceted, ranging from

securing initial capital to sustaining operational expenses and navigating the
complexities of a highly competitive market. These hurdles demand strategic
financial management, resourceful decision-making, and an ability to weather
uncertainties. In this dynamic landscape, start-ups encounter a host of financial
constraints that shape their trajectory and determine their survival and success.
This discussion delves into the intricacies of these financial challenges,
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exploring how start-ups navigate the turbulent waters of entrepreneurship to
carve out a niche for themselves in the business world.

In India, the trend of start-ups is growing by leaps and bounds. India has the
third-largest start-up ecosystem in the world, recording YoY annual growth of
12-15%. According to the Economic Survey 2021-22, there are over 14,000
start-ups in the country as of 2021-22.

With the country experiencing its second wave of the start-up boom, there is a
lot that entrepreneurs need to learn and imbibe various knacks to be successful
in their ventures. From estimating their financial needs, finding the right finance
source, and effectively utilizing their capital, start-ups in India face multiple
challenges. However, it is possible to overcome these challenges with the right
business strategies.

Here is a quick overview of some of the finance-related challenges for start-ups

in India:

Lack of financial support: In the beginning, start-ups require hefty capital

investment. However, the availability of finance for such businesses, especially
the new ones, is a significant problem. As an entrepreneur, you could raise some
funds from your family, friends, and peers, or turn to venture capitalists, angel
funding firms, crowd funding, etc. Irrespective of the source, you should create
a proper financial plan that precisely explains your capital needs and details
how you plan to deploy your financial resources and earn profits in the future.
The temptation to raise as much money as you can is very strong for start-ups,
particularly as large valuations and capital raises are celebrated as markers of
success. It is however more effective to raise the cash needed to achieve
realistic growth objectives and not be constantly fundraising, which is
distracting and stressful.

Revenue projections: Generally, the initial few years of the start-up business
generate no revenue. Some firms tend to reach their break-even point (no loss,
no profit) in a year, but many others might take several years to reach even the
break-even point. In this period, entrepreneurs have to invest huge capital and
revenue will be generated once the business grows beyond a standard
benchmark. However, to overcome this challenge, businesses have to evaluate if

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their start-up idea can potentially generate future profits. Businesses should also
make a concrete plan that focuses on how the start-up aims to generate revenue
at least after 4-5 years of commencement. Even though founders are not
expected to present detailed projections, in the beginning, they have to show
some basic assumptions regarding their end-use of funds and monthly
projections of revenue in the future.

Unforeseen expenses: Unexpected events, such as the COVID-19 pandemic,

could derail even the strongest of a business plan. Hence, the founders must set
aside a reserve to use in case of a rainy day in the future. The ideal way is to set
up automatic transfers to a dedicated account that will keep accumulating and
growing the money to get the business through tough times.

Poor Cash Flow / Lack of Liquidity – For every business, irrespective of its
size, cash flow is a top priority. To grow the business and allocate resources to
different aspects of the business adequately, liquidity is very important. The rule
to calculate cash flow is simple- all you need is to subtract your total expenses
from total income. If the figure comes out to be positive, this means that your
business is turning a profit and you’re in the right direction. On the other hand,
if the resulting number is negative, this means that your business has gone into
the red and it’s an alarming situation. There are numerous ways to avoid that.
For starters, you should consider changing or tweaking your policies. You could
seek an upfront payment, which would be great, but it’s also too risky and may
drive your clients away. You could consider setting a contract with your new
clients. Here, you should define when they should pay you and clearly underline
the consequences of late payments.

Mispricing: Many-a-times Entrepreneurs misprice their products and services.

They simply total up costs and then add on their margin. This might not always
work, as the resulting price can be very different from the real market value of
the product, putting off potential customers. While deciding the price of your
offering, it is must to consider how competitors are pricing similar products and
keep your prices in the ballpark to attract customers.

Supporting infrastructure: Every business requires some basic infrastructure to

support its functioning. However, bearing the infrastructure cost might be a
significant burden. However, with the growing trend of cloud-based businesses,

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several start-ups have moved on from the idea of having fixed infrastructure
elements. Also, shared workspaces, business development centres, etc., have
made it easier and affordable for new-age start-ups to access basic
infrastructures, such as tables and chairs, conference rooms, cafeteria, dedicated
cabins, telephone lines, and more.

Complex regulatory environment: The business environment for start-ups is

quite complex in India. Even though the government has made several efforts to
ease the regulations and rules in the space, the present business framework is
still quite challenging for businesses. The long paperwork, tedious bureaucratic
processes, lack of information, etc., makes it difficult for start-ups to get their
work done on time. However, businesses need to chalk out a plan that includes
the time involved in surpassing the regulatory environment in India. Further,
ensure all paperwork and licenses are complete and in order. Other
requirements, such as registration, GST number, and more, should be handy and
presented with complete details. Also, businesses should be mindful to not
neglect necessary reporting, such as accounts, tax forms, etc.

These are a few critical financial challenges that Indian start-ups often
encounter on their journey toward growth. But financial roadblocks are a reality
for every company, but through the right financial management, any business
can be financially prudent from the outset and stay competitive in the market.

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 What is Start-up?

A start-up is a youthful and imaginative organization in its beginning phases of

improvement, commonly established by business visionaries who expect to
bring an exceptional item, administration, or answer for the market. These
endeavours are described by their dynamic, speedy nature and an emphasis on
versatility and development. Dissimilar to conventional organizations, new
businesses frequently work in areas where disturbance, imagination, and
flexibility are principal. The excursion of a start-up generally starts with the
distinguishing proof of an issue or an undiscovered open door, trailed by the
improvement of a clever arrangement that separates them from existing
contributions on the lookout.

New companies assume an essential part in driving monetary development and

cultivating development. Their significance lies in their capacity to rock the
boat, present momentous advances, and make new business sectors. One of the
key reasons we want new companies is their capability to take care of mind
boggling issues and address arising difficulties in the public arena. These
organizations frequently carry new viewpoints and imaginative answers for
longstanding issues, adding to the general improvement of different ventures.

Besides, new companies are motors of occupation creation, assuming an

essential part in work age and monetary turn of events. As they develop, new

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companies recruit gifted people and add to the improvement of a skilled labor
force. The way of life inside new companies likewise will in general be
dynamic and cooperative, drawing in people who are enthusiastic about having
an effect and driving change.

One more huge part of new businesses is their job in encouraging contest. By
presenting new items or administrations, new businesses force laid out
organizations to adjust and enhance to remain serious. This opposition benefits
customers by furnishing them with a more extensive exhibit of decisions and
frequently prompts upgrades in quality and proficiency across enterprises.

Besides, new businesses are instrumental in moulding the mechanical scene. A

significant number of the earth shattering innovations we use today, from online
entertainment stages to state of the art clinical progressions, began from the
personalities of start-up organizers. These advancements work on our regular
routines as well as add to the general advancement of society.

All in all, new companies are essential parts of a flourishing economy, adding to
development, work creation, and sound rivalry. Their capacity to challenge
standards and drive change makes them fundamental in tending to the
developing requirements of society and encouraging a culture of constant
improvement. As we explore an always impacting world, the job of new
businesses stays vital in forming the future and driving advancement across
different spaces.

1. Monetary Gains: The desire for increased income is a key driver for setting
up start-ups. Unlike traditional jobs with fixed salaries, entrepreneurship offers
the potential for greater financial rewards, allowing individuals to earn
according to their efforts and choices.

2. Job Security: Job security is a fundamental human need, as emphasized in

Maslow's hierarchy theory. Owning a business provides a sense of security, as
individuals working under their own entrepreneurship are driven by personal
zeal and enthusiasm, contributing to a more secure work environment.

3. Job Creation: Entrepreneurship not only benefits the business owner but also
stimulates job opportunities for others. The act of starting a business inherently
involves creating employment opportunities, recognizing the need for
collaboration and shared success.

4. Own Brand Identity: The pride associated with being the owner of a
developing brand is a significant motivator for entrepreneurs. Introducing
oneself as a business owner brings a sense of accomplishment and pride,

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contributing to the development of a unique identity.

5. Quality of Life: In the era of globalization and e-commerce, individuals

aspire to enjoy a high quality of life. Entrepreneurship provides the freedom to
tailor one's lifestyle according to personal preferences, contributing to an
improved quality of life.

6. Being Your Own Boss: The autonomy of not having a traditional boss is a
notable advantage of entrepreneurship. As a business owner, individuals are
answerable only to themselves, offering a sense of independence and control
over decision-making.

7. Converting Vision into Reality: Many individuals possess visions, but few
take the initiative to turn them into reality. Entrepreneurship provides a platform
to transform personal visions into tangible, successful ventures, fostering a
sense of achievement.

8. Pride in Ownership: Introducing oneself as the owner of a start-up or

entrepreneurship instils a sense of pride. The acknowledgment of ownership
contributes to a positive self-image and a feeling of accomplishment.

9. Recognition: Recognition is a basic human need, and entrepreneurship

provides a pathway to fame and acknowledgment. Building and running a
business offers individuals the opportunity to be recognized for their
contributions and achievements.

10. Economic Independence: With increased financial resources, entrepreneurs

gain the ability to make independent decisions about where to allocate their
money. This economic independence provides a sense of control over one's
financial future.

11. Changing the World: Taking the initiative to start a business allows
individuals to actively contribute to change. Entrepreneurs have the potential to
impact the world according to their vision, turning ideas into transformative
actions.

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 Importance of Finance in Start-ups

Finance is the lifeblood of start-ups, playing a pivotal role in every stage of their
development, from inception to scaling operations. The importance of finance
for start-ups cannot be overstated, as it serves as the driving force behind
innovation, growth, and overall sustainability. The dynamic and high-risk nature
of start-ups necessitates a keen understanding of financial management, as the
decisions made in this realm profoundly impact the trajectory and success of
these ventures.

In the early stages of a start-up, finance is crucial for transforming innovative

ideas into viable products or services. Research and development, prototyping,
and market testing all require substantial financial investments. Without
adequate funding, start-ups may struggle to bring their concepts to fruition,
hindering their ability to create value and compete in the market.

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Beyond the initial stages, start-ups need finance to navigate the critical phase of
market entry and customer acquisition. Marketing, sales, and distribution efforts
demand substantial financial resources, and start-ups often find themselves in a
race to establish a foothold in the market. Effective financial management
during this period can be the difference between gaining market share and
fading into obscurity.
Scaling a start-up requires substantial capital infusion. As the venture seeks to
expand its operations, reach new markets, and increase production, the financial
demands escalate. This phase often presents a delicate balance between
managing existing resources efficiently and securing additional funding to
facilitate growth. Access to finance becomes a strategic imperative for start-ups
aiming to capitalize on emerging opportunities and remain competitive.
Cash flow management is a continuous challenge for start-ups. With revenues
often lagging behind expenditures, start-ups may face the risk of insolvency if
not managed judiciously. This highlights the importance of financial planning,
budgeting, and disciplined financial practices to ensure that the start-up can
weather financial uncertainties and maintain operational continuity.
Investor confidence is closely tied to a start-up's financial health. Securing
funding from angel investors, venture capitalists, or other sources requires
demonstrating a clear understanding of financial dynamics and a compelling
growth strategy. The ability to showcase sound financial management enhances
a start-up's credibility and attractiveness to potential investors, opening avenues
for additional capital.
Moreover, finance is instrumental in attracting and retaining top talent. Start-ups
often compete with larger, established firms for skilled professionals, and
offering competitive salaries, benefits, and stock options necessitates a robust
financial foundation. The availability of financial resources allows start-ups to
build a talented team, fostering innovation and driving the company toward
success.
In conclusion, finance is the backbone of start-ups, influencing their ability to
innovate, enter the market, scale operations, and ultimately succeed. The
strategic allocation and management of financial resources are critical for
navigating the challenges inherent in the start-up ecosystem. Recognizing the
multifaceted role of finance and implementing sound financial practices are

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essential for start-ups to thrive, adapt to changing circumstances, and carve out
a lasting impact in their respective industries.

Financial Challenges faced by Start-ups

Start-ups, the engines of innovation and disruption, often find themselves

navigating a complex landscape of financial challenges as they embark on their
entrepreneurial journey. These fledgling ventures, characterized by their nascent
stage of operation, rapid growth aspirations, and reliance on cutting-edge
technology and innovation, face a myriad of financial hurdles that are intrinsic
to their nature.

A defining feature of start-ups is their constant need for capital infusion. In their
early stages, start-ups prioritize research, development, and the marketability of
their ideas, leading to substantial expenditures that often outpace their initial
revenues. This discrepancy underscores the critical importance of funding, as
start-ups require continuous financial support to sustain operations, develop
their products or services, and scale their businesses.

Generating revenue is a perpetual struggle for start-ups. Despite ground

breaking ideas and innovative solutions, these ventures frequently operate in

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industries with extended gestation periods, where the time between the
inception of the idea and monetization is prolonged. During this period, start-
ups incur significant expenses, creating a financial gap that necessitates external
funding to bridge.

While various sources of finance are available to start-ups, securing it is far

from a straightforward process. Traditional financial institutions such as banks
or credit unions may be hesitant to extend loans to start-ups due to their inherent
risk and lack of established collateral. Although government-sponsored loans
and grants from non-profit organizations are potential avenues, the accessibility
and ease of obtaining these funds remain significant challenges.

Venture Capital (VC) and Private Equity (PE) have emerged as prominent
funding sources for start-ups, particularly in their initial stages. However, the
start-up ecosystem faces a persistent challenge in scaling funding beyond the
seed and early stages. The number of investors capable of injecting substantial
capital into start-ups remains limited, making it difficult for ventures to secure
the necessary financial backing for growth and expansion.

A notable financial challenge specific to technology-oriented start-ups is the

funding gap. These companies, often in the early phases of research and
development or just entering the market, face difficulties in obtaining capital
due to negligible collaterals and revenues. This funding gap stifles their growth
potential, preventing them from fully realizing their innovative visions.

In conclusion, the financial challenges confronting start-ups are multifaceted

and require strategic and resourceful financial management. The perpetual need
for funding, coupled with the inherent risks associated with innovative
endeavours, underscores the importance of addressing these challenges for the
sustainable growth and success of start-ups in today's dynamic business
environment. Overcoming these financial hurdles demands a collaborative effort
from entrepreneurs, investors, and policymakers to create an ecosystem that
fosters innovation and entrepreneurial success.

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Financing Challenges:
1. Credit Constraints in SMEs:
- SMEs in India often face weak credit concepts and low credit performance.
- More than half of SMEs exhibit poor financial management, impacting their
creditworthiness.

2. Banking Challenges:
- Banks struggle to assess the real financial situation of corporate entities,
affecting loan approvals.
- Tax evasion by some SMEs leads to credit fund losses, further damaging
their credit levels.

3. Risk Resistance and Slow Development:

- SMEs, compared to larger enterprises, demonstrate weaker risk resistance.
- Financing difficulties hinder SMEs' ability to expand production, invest in
research and development, and enhance product quality and competitiveness.

4. Asymmetric Information and Money Supply Tension:

- Financing challenges arise due to SME variability, large business risks,
money supply tension, and asymmetric information, creating a vicious circle.

5. Guarantee Difficulties:
- Limited guarantee agencies employ a membership system, requiring SMEs
to pay deposits.
- Tedious guarantee procedures and high fees increase financial burdens,
hindering SMEs' access to guarantees.

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6. Complex Mortgage Procedures:
- Property mortgage processes involve multifaceted procedures, including
evaluation, registration, insurance, and notary requirements.
- Small and medium-sized enterprises face time-consuming challenges in
managing numerous departments and providing extensive documentation.

7. Limited Profits Impacting Bank Lending:

- Banks may be reluctant to lend to SMEs due to limited profits associated
with small loan amounts but high frequencies.
- Management costs are relatively high for banks, making it difficult to track,
supervise, and maintain mortgage security for SME loans.

8. Slow Development of Capital Market and Financial Institutions:

- China's SMEs often rely on internal accumulation as the primary source of
funds.
- Limited development in the capital market and private financial institutions
forces some SMEs to resort to the private lending market for financing.

Addressing these challenges requires a comprehensive approach to enhance

creditworthiness, streamline banking processes, and foster a conducive
environment for SME financing.

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 Start-ups Challenges And Opportunities In India

Action Plan of Start-up India is managed by Start-up India Team, which reports
to the Department for Industrial Policy and Promotion (DPIIT). The 19-Point
Action Plan is:

1. Compliance Regime based on Self-Certification: To reduce the regulatory

burden on Start-ups thereby allowing them to focus on core business and keep
compliance cost low.

2. Start-up India Hub: To create a single point of contact for the entire Start-up
ecosystem and enable knowledge exchange, access to funding.

3. Rolling-out of Mobile App and Portal: To serve as the single platform for
Start-ups for interacting with Government, Regulatory Institutions for all
business needs and information exchange among various stakeholders.

4. Legal Support and Fast-tracking Patent Examination at Lower Costs: To

promote awareness and adoption of IPRs by Start-ups and facilitate them in
protecting and commercializing the IPRs by providing access to high quality
Intellectual Property services and resources, including fast-track examination of

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patent applications and rebate in fees.

5. Relaxed Norms of Public Procurement for Start-ups: To provide an equal

platform to Start-ups (in the manufacturing sector) vis-à-vis the experienced
entrepreneurs/ companies in public procurement.

6. Faster Exit for Start-ups: To make it easier for Start-ups to wind up

operations.

7. Providing Funding Support through a Fund of Funds with a Corpus of INR

10,000 crore: To provide funding support for development and growth of
innovation driven enterprises.

8. Credit Guarantee Fund for Start-ups: To catalyze entrepreneurship by

providing credit to innovators across all sections of society.

9. Tax Exemption on Capital Gains: To promote investments into Start-ups by

mobilizing the capital gains arising from sale of capital assets.

10. Tax Exemption to Start-ups for 3 years: To promote the growth of Start-ups
and address working capital requirements.

11. Tax Exemption on Investments above Fair Market Value: To encourage

seed-capital investment in Start-ups.

12. Organizing Start-up Fests for Showcasing Innovation and Providing a

Collaboration Platform: To galvanize the Start-up ecosystem and to provide
national and international visibility to the Start-up ecosystem in India.

13. Launch of Atal Innovation Mission (AIM) with Self-Employment and

Talent Utilization (SETU) Program: To serve as a platform for promotion of
world-class Innovation Hubs, Grand Challenges, Start-up businesses and other
self-employment activities, particularly in technology driven areas.

14. Harnessing Private Sector Expertise for Incubator Setup: To ensure

professional management of Government sponsored / funded incubators,
Government will create a policy and framework for setting-up of incubators
across the country in public private partnership

15. Building Innovation Centers at National Institutes: To propel successful

innovation through augmentation of incubation and R&D efforts.

16. Setting up of 7 New Research Parks modelled on the Research Park Setup at

26
IIT Madras.

17. Promoting Start-ups in the Biotechnology Sector.

18. Launching of Innovation Focused Programs for Students.

19. Annual Incubator Grand Challenge.

Challenges or Problems Faced by Start-ups:

1. Founders' Persistence:
- Start-up founders must persist until goals are achieved, especially when
market acceptance is slow.
- Focus on long-term results despite initial hurdles in marketing mix
components.

2. Mentorship:
- Entrepreneurs need mentoring as they may lack experience in running a
commercial organization.
- Lack of proper guidance and mentorship is identified as a significant issue in
the Indian start-up ecosystem.

3. Rules & Regulations:

- New businesses face challenges in obtaining various permissions and
approvals from government agencies.
- India's rank in the Ease of Doing Business index has improved, but
compliance remains a hurdle for start-ups.

4. Growth Hurdles:
- Some start-up ecosystem agencies can become hurdles in the early stages.
- Cooperation among multiple agencies is crucial for smoother start-up
processes.

5. Infrastructure Support:
- Lack of supportive infrastructure, such as incubators and testing labs, can
hinder start-up growth.
- Access to supportive mechanisms like business development centers is
essential for start-up success.

6. Financial Resources:
- Lack of funds is a major hurdle for start-ups with commercially viable ideas.
- Various funding options, including family support, loans, and venture

27
capital, are available for start-ups.

7. Generation of Revenue:
- Start-ups may fail if they can't generate revenue at an appropriate pace.
- Efficient financial management and constant business growth are crucial for
success.

8. Setting up Team:
- Assembling a skilled team is essential for start-up success.
- Finding and retaining suitable manpower can be challenging for start-ups.

9. Awareness Creation:
- Start-ups must focus on generating sufficient market awareness for their
innovative solutions.
- Failure to create awareness can lead to the failure of even unique product
offerings.

10. Customer Expectations:

- Start-ups face high customer expectations regarding products, service
support, and communication.
- Meeting and exceeding these expectations are essential for establishing
credibility.

11. Lack of Proper Branding:

- Proper branding strategy is critical for start-ups to create and improve their
image.
- Many start-ups neglect sustainable branding strategies while focusing on
operational aspects.

12. Replicating Other Start-ups:

- Copying strategies of successful start-ups without customization can be
detrimental.
- Implementation should be thoughtful and suitable for the start-up's own
requirements.

Reasons for Failure:

- Surveyed venture capitalists believe that Indian start-ups lack new

technologies or unique business models.
- Reasons for start-up failure include no market for the product, running out of
cash, lack of the right team, pricing issues, poor product, poor marketing, and
lack of investor interest.

28
Opportunities for Start-ups:

1. India's Population:
- More than 65% of India's population is below 35, offering ample
opportunities for start-ups.
- The working-age population dominance is expected to last till 2055.

2. Huge Investments in Start-ups:

- FII's and Indian investors are making substantial investments in Indian start-
ups.
- Prominent investors include Sequoia India, Accel, Mumbai Angels Network,
Tiger Global Management, DST Global, and Softbank.

3. Mindset of Working Class:

- The working class is willing to take risks and explore new career options,
benefiting start-ups.
- Start-ups attract talent with opportunities for career growth, challenging
assignments, and competitive compensation.

4. Government Initiatives:
- Initiatives like Start-Up India, MUDRA Yojana, SETU Fund, E-Biz Portal,
and reduced royalty tax support start-ups.
- These initiatives aim to cut government regulations, provide financial
support, and simplify business operations.

5. Investments by Business Houses & Successful Entrepreneurs:

- Successful entrepreneurs like Ratan Tata, Nandan Nilekani, and Azim
Premji are investing in start-ups.
- Big business houses are also contributing to the growth of start-ups.

In conclusion, despite challenges, the vast Indian market, government

initiatives, and investor support present significant opportunities for start-ups in
various sectors.

29
 Literature review

Key Challenges in Early-Stage Software Start-ups (2015) Carmine

Giardino, Sohaib Shahid Bajwa, Xiao Feng Wang & Pekka Abrahamson:

The paper "Key Challenges in Early-Stage Software Start-ups" explores the

unique hurdles faced by nascent software start-ups during their initial phases.
Characterized by a dynamic and unpredictable environment, these start-ups
encounter challenges such as a lack of resources, intense time-pressure, and a
high failure rate within the first five years. The literature review highlights a
significant gap in research, emphasizing the need for more focused studies on
challenges specific to early-stage software start-ups.

30
To address this gap, the study employs a mixed-method research approach,
incorporating a large-scale survey and an in-depth multiple-case study. The
classification framework proposed by the paper, based on four dimensions
(team, product, market, and financial), serves to categorize challenges and
understand their impact on different stages of development and learning. This
research contributes valuable insights to the field, providing a foundation for
further exploration into the challenges faced by early-stage software start-ups
and potential avenues for future research.

The financing of business start-ups

Gavin Cassar (2004):

"The Financing of Business Start-ups," delves into the critical question of how
new businesses secure their financial capital, a fundamental aspect of
entrepreneurial research. The study investigates the determinants of capital
structure and types of financing used by start-ups, considering factors such as
start-up size, asset structure, organization type, growth orientation, and owners'
characteristics. By utilizing a nationwide survey and addressing survivorship
bias concerns, the research provides insights into the complex interplay between
these factors and the financing decisions made by start-ups. The theoretical
frameworks applied include issues such as information asymmetries, agency
theory, and transaction costs.

The study identifies a positive relationship between firm size and various forms
of financing, including debt, long-term debt, and outside and bank financing.
This aligns with theoretical expectations related to economies of scale, market
access, and risk exposure. Furthermore, the research sheds light on the impact
of asset structure on start-up financing, demonstrating that firms with a relative
lack of tangible assets tend to rely more on informal financing sources, such as
loans from individuals unrelated to the business. The findings contribute to our
understanding of the financing decisions made by new ventures and provide a
basis for further exploration in the field of entrepreneurial finance.

The Start-up Environment and Funding Activity in India (2020):

The paper titled "The Start-up Environment and Funding Activity in India"
explores the dynamic landscape of India's start-up ecosystem, which ranks as

31
the third-largest globally. The authors highlight the rapid expansion of the
ecosystem, emphasizing the crucial role played by private investments,
including seed funding, angel investments, venture capital, and private equity.
They also discuss the supportive contributions from incubators/accelerators,
government initiatives like Start-up India, and efforts to bolster the knowledge-
based digital economy. The study underscores the challenges faced by Indian
start-ups, including market fragmentation, unclear policy frameworks,
infrastructure gaps, limited access to government incentives, and complexities
in business operations. The suggested measures for improvement include
promoting government initiatives, facilitating credit access to priority sectors,
expanding outreach to Tier 2 and Tier 3 cities, and simplifying investment and
taxation rules for both domestic and foreign investors.

Analysis Of Financing Sources For Start-Up Companies (2014) Marina

Klačmer Čalopa, Jelena Horvat, Maja Lalić:

This paper is a literature review of the financing sources for start-up companies,
with a focus on the Croatian context. The authors present the development
stages, types, and potential financing sources of start-ups, as well as the results
of an empirical survey of 23 Croatian start-ups. The paper aims to contribute to
the understanding of the financing strategies and challenges of entrepreneurial
ventures in Croatia.

The paper reviews the existing literature on start-ups, their definitions,

characteristics, and classifications. It also discusses the traditional and new
methods of financing start-ups, such as bootstrapping, bank loans, business
angels, venture capital, crowdfunding, and seed accelerators. The paper
compares the advantages and disadvantages of each financing source, as well as
the factors that influence the choice of financing method. The paper also
provides an overview of the Croatian start-up scene, its institutional support,
and its main actors. The paper identifies the gaps and limitations of the previous
research and suggests directions for future studies.

1. Introduction and Background: Start-up companies play a crucial role in

fostering innovation, economic growth, and job creation. However, their
success heavily relies on securing adequate financing during their early stages.
This paper aims to shed light on the financing strategies and challenges faced by
32
start-ups in Croatia1. To achieve this, the authors review existing literature on
start-ups, their definitions, and classifications. They also explore various
financing sources, both traditional and contemporary, available to start-ups. By
focusing on the Croatian context, the paper provides valuable insights into the
specific dynamics of entrepreneurial ventures in this region.

2. Financing Sources and Empirical Survey: The paper meticulously examines

different financing options for start-ups. These include bootstrapping, bank
loans, business angels, venture capital, crowdfunding, and seed accelerators.
Each source has its advantages and limitations, and the authors compare them
comprehensively. Additionally, the paper presents findings from an empirical
survey conducted with 23 Croatian start-ups. Through this survey, the authors
gain firsthand insights into the financing preferences and challenges faced by
these companies. By bridging theory and practice, the paper contributes to our
understanding of start-up financing in Croatia and identifies areas for further
research.

The Entrepreneurial Finance And The Issue Of Funding Startup

Companies(2018) Dr. Achibane Mustapha, Jamal Tlaty:

The paper provides a comprehensive overview of the financial landscape for

start-up ventures. It emphasizes the critical role of entrepreneurial finance in
shaping the success and growth of these companies. By examining funding
mechanisms, valuation methods, and decision-making processes, the paper sets
the stage for deeper exploration.

Key Mechanisms and Challenges: The authors delve into fundamental

theories that underpin entrepreneurial finance. The agency theory sheds light
on the principal-agent relationship, highlighting issues like information
asymmetry and moral hazard. In contrast, the stewardship theory emphasizes
trust and alignment of interests between entrepreneurs and investors.
Additionally, the emergent organization theory explores the dynamic nature
of start-ups, emphasizing adaptability and resource allocation. Despite progress,
gaps remain, such as the need for more empirical studies and a deeper
understanding of financing choices. Overall, entrepreneurial finance remains a
complex and evolving field that warrants further investigation.

33
34
Objectives

To study to identify, analyse, and categorize these challenges to offer a nuanced

understanding of the financial landscape for emerging businesses. The
overarching goal is to contribute to the existing body of knowledge,
empowering entrepreneurs, policymakers, and investors with actionable
information to navigate and address the specific financial hurdles that start-ups
encounter in their early stages. This research paper aims to comprehensively
investigate the financial challenges encountered by start-ups, providing valuable
insights into the complexities they face in managing financial resources.

Specific Objectives:

1. To Examine the impact of limited access to capital on start-up viability.

2. To Analyse the role of financial planning and budgeting in mitigating

financial risks for start-ups.

35
3. To Investigate the challenges associated with attracting and retaining
investors.

4. To Explore the dynamics of securing loans and credit for start-ups.

5. To Assess the influence of economic uncertainties on the financial stability of

start-ups.

6. To Examine the role of financial literacy among start-up founders in effective

financial management.

7. To Investigate the challenges posed by cash flow management in the start-up

context.

8. To Analyse the implications of taxation policies on start-up financial health.

9. To Explore the role of angel investors and venture capitalists in addressing

start-up financial challenges.

10. To Assess the impact of market competition on the financial sustainability

of start-ups.

11. To Examine the challenges in establishing a balance between growth and

financial stability.

12. To Investigate the role of government initiatives and support programs in

alleviating financial constraints for start-ups.

13. To Analyse the impact of external economic factors, such as inflation and
interest rates, on start-up finances.

14. To Explore the challenges associated with scaling up and its financial
implications.

15. To Assess the effectiveness of financial technology (fintech) solutions in

addressing start-up financial challenges.

36
Profile Project
Tasks Managed Throughout the tenure

Jan 2022 to Jan 2024

The duties performed during my tenure mostly include

1. Utilizing social media, databases, and other resources to find and draw in
candidates.

2. Interviewing and selecting applicants for available roles.

3. Examine the applications and resumes of potential candidates.

4. Serve as a liaison and cultivate connections with significant applicants

throughout the hiring procedure.

5. Encourage the organization to be known as the "best place to work."

6. Handling the team

7. Motivate them to maintain their performance

8. Provide training to new joinee

9. Coordination with the client for smooth closure

10. Create and carry out a comprehensive hiring plan.

11. Create and maintain job criteria and descriptions.

12. Analyse tasks and jobs to record goals and requirements for the work.

13. Create hiring materials and promote positions to relevant employment

boards, media, institutions, etc.

37
14. Deliver comprehensive, well-documented recruiting reports to the team
members. Serve as a point of contact and cultivate relationships with influential
candidates while selection

Process description

Primary information

Information obtained directly from the source via primary research is known as
primary data. Here, data is obtained straight from the source through the use of
a questionnaire. A total of twenty-six distinct responses are obtained from a
variety of working persons via the distribution of a questionnaire. Furthermore,
a portion of the data is being collected while the interns are employed by the
company. Here, the idea is supported by both the questionnaire method and
firsthand observation.

The raw data, sometimes referred to as original data, is gathered directly from
the sources by the researchers. The primary data is gathered in accordance with
the research's stated objectives. In addition to being used for academic research,
corporations and brands also gather primary data to gauge public opinion and
improve their brands. Brands do market research even prior to the release of a
new product in order to identify potential consumers, marketplaces, and
geographic areas for product promotion. To assess and make necessary policy

38
corrections, the companies continue to gather primary data and carry out
surveys and market research.

Secondary information

Information that has been used in the past and is obtainable from the
surroundings is referred to as secondary data. In this instance, the secondary
data was acquired from a range of academic journals, commercial websites,
newspapers, etc.

Secondary study is quick and simple. It seeks to get a more comprehensive

comprehension of the subject. The process of conducting primary research is
costly and time-consuming in terms of gathering and analyzing data. Since the
data for secondary research is already available, it can be done quickly.

Idea Generation and Research

Identify a business idea or problem you want to solve. Conduct market research
to assess the viability of the idea. Analyse competitors and potential target
audience. Business Planning develop a comprehensive business plan outlining
your goals, target market, value proposition, revenue model, marketing strategy,
and financial projections. Consider the legal structure of your business (sole
proprietorship, LLC, corporation, etc.). Create a budget and financial plan.
Legal Considerations register your business name. Obtain any necessary
licenses or permits. Set up a legal structure and register your business with the
appropriate government authorities.

Funding and Financing

Determine your start-up costs. Explore funding options such as personal

savings, loans, investors, or crowd funding. Create a financial plan that outlines
how you will sustain and grow the business. Building a Team in Identify key
team members or partners. Define roles and responsibilities. Recruit skilled
individuals to fill necessary positions. Product/Service Development develop a
prototype or minimum viable product (MVP). Test and iterate on your product
or service based on feedback.

Brand Development
39
Create a brand identity, including a logo, tagline, and visual elements. Develop
a marketing strategy to build awareness. Setting Up Operations establish
physical or virtual office space. Set up necessary infrastructure, technology, and
systems. Marketing and Sales launch marketing campaigns to generate interest.
Develop a sales strategy to acquire customers. Utilize social media, online
marketing, and other channels to promote your business.

Customer Acquisition and Retention

Implement strategies to attract and retain customers. Provide excellent customer

service. Gather and analyse customer feedback for continuous improvement.
Scaling to evaluate opportunities for growth and scalability. Expand your
product or service offerings. Explore new markets or customer segments.

Monitoring and Adaptation

Regularly review and analyse key performance indicators (KPIs). Adapt your
strategies based on market trends and feedback. Stay agile and be willing to
pivot if necessary. Compliance and Regulations to stay informed about industry
regulations and compliance requirements. Ensure that your business operations
sad here to legal standards. Continuous learning and stay informed about
industry trends and innovations. Seek opportunities for professional
development and networking.

40
Data Analysis

PESTLE Analysis:

PESTLE analysis is a business measurement tool to assess the overall

microenvironment of business. PESTLE is acronym for Political,
Economic, Social, Technological, Legal and Environmental. It is a part of the
external analysis while conducting market research, and it gives an overview of
multiple macro-environmental factors before taking business decision.

Political Factors: Political factors are the medium by which

Government intervenes the functioning of an enterprise. Government
regulations are evaluated in terms of its capacity to influence the business
environment and markets. The principal issues in this segment are
political stability, tax guidelines, trade regulations, safety regulations, labour
laws, and business laws. Start-ups India Action Plan Impact: The action plans
suggest law enforcement agencies to keep off the functioning of start-ups in
the first three years of its operations. But after three years, companies need to
follow the regulations.

Economic Factors: These factors include economic growth, interest

rates, exchange rates, and inflation rate. These factors extraordinarily affect
how businesses operate and make decisions. Start-ups India Action Plan Impact:
There will be an improvement in the ease of doing business especially for start-
ups which will boost entrepreneurship. There is a corpus fund for start-ups at
lesser interest rate which will improve the ease of setting up news businesses.

Social Factors: These factors have a great impact on the buying patterns which
is an important determinant for businesses. High trends in social factors affect
the demand for a products and operational mode of enterprises. Start-ups India
Action Plan Impact: Start-ups action plan will change the buying pattern and
behaviour of consumers as this action plan is more focused on products and
services which will be driven through new technologies and innovations.

41
Technological Factors: These factors include technological aspects like
R&D activity, automation, technology incentives and the rate of technological
change. These can determine barriers to entry, minimum efficient production
level and influence the outsourcing decisions. Start-ups India Action Plan
Impact: Though there is not enough space for R&D in the start-ups action plan.
This action plan would be a key contributor to technological aspects like the
rate of technological changes i.e. technology beyond portal and mobile apps;
etc.

Legal Factors: This factor includes consumer law, antitrust law, employment
law, and health and safety law. These factors can affect how company operates,
cost structure, and market demand for its products. Start-ups India Action
Plan Impact: Exemption of start-ups from Labo inspections for the first 3
years from labour department etc. will boost the business environment.

Environmental Factors: These include ecological and environmental

aspect such as weather, climate change, environmental law etc. Which
may affect industries such as tourism, farming, and insurance. 67 Start-ups
India Action Plan Impact: There is no special mention about in the
announcements. However, the fund allotted through credit guarantee scheme
will cover risk if any occurs.

Challenges faced by Women Entrepreneur

Conflicts between Work and

Domestic Commitment’s:
Women's family obligations
also bar them from
becoming successful

42
entrepreneurs in both
developed and
developing nations.
"Having primary
responsibility for
children, home and older
dependent family members,
few women can devote all
their time and energies to
their
business" (Starcher, 1996).
Married women
entrepreneurs have to make
fine balance

43
between the business and
their home.
Problems access to
finance: Women
entrepreneurs are lacking
access to finance
because women generally
do not have property in their
names to use them as a
collateral security for
obtaining funds from
external source. The bank
also considers the

44
women as less credit worthy
and discourages the women
entrepreneurs. The family
Conflicts between Work and
Domestic Commitment’s:
Women's family obligations
also bar them from
becoming successful
entrepreneurs in both
developed and
developing nations.
"Having primary
responsibility for
children, home and older

45
dependent family members,
few women can devote all
their time and energies to
their
business" (Starcher, 1996).
Married women
entrepreneurs have to make
fine balance
between the business and
their home.
Problems access to
finance: Women
entrepreneurs are lacking
access to finance

46
because women generally
do not have property in their
names to use them as a
collateral security for
obtaining funds from
external source. The bank
also considers the
women as less credit worthy
and discourages the women
entrepreneurs. The family
Conflicts between Work and Domestic Commitment’s: Women's family
obligations also bar them from becoming successful entrepreneurs in
both developed and developing nations. "Having primary responsibility
for children, home and older dependent family members, few women can
devote all their time and energies to their business" (Starcher, 1996). Married
women entrepreneurs must make fine balance between the business and their
home. Problems access to finance: Women entrepreneurs are lacking access
to finance because women generally do not have property in their names to use
them as collateral security for obtaining funds from external source. The bank
also considers the women as less credit worthy and discourages the women
entrepreneurs.

47
Lack of family support: This is common issue for every woman in India.
Sometimes the family may make the women feel guilty of neglecting household
duties in her pursuit of business obligations. Cultural traditions may hold back
a woman from venturing into her own business.

Limited mobility: Unlike men, women modality for travelling from place to
place in India is limited due to the various reasons. Women on their own find it
difficult to accommodate in smaller towns even the dual responsibility that the
women must cope with making business success as well as looking after the
home, restrict in their mobility.

Male Dominated Society: Important barrier to the empowerment of women

through enterprise is the main chauvinist predominant social factor
and believes are not conducive to the blossoming of women entrepreneur.
This consideration act as a stumbling block in their strife for equal status with
men in the economic activity.

Indian women give more emphasis to family ties and relationships: Married
women must make a fine balance between business and family. The business
success also depends on the support the family members extended to women in
the business process and management.

Role Conflict: Entrepreneurship needs a high level of commitment, devotion,

and dedication. Women taking on mantle of entrepreneurship suffer from stress
and strain caused by role overload and role conflicts.

Lack of proper Education: The greatest barrier of the entrepreneurial

career among women is the lack of education. In India 60% of women are
illiterate and illiteracy is the major problem of socio-economic backwardness.
Lack of information and experience creates further problems in setting up of
business.

48
 Findings

Many businesses start with a dream, but it takes more than just a dream for them
to grow into successful businesses—including the tenacity to overcome the
many challenges facing start-ups today. Start-ups take time, effort, and energy.
Funding is a major concern for start-ups and small businesses. When the
economy tanked, it made it harder to convince investors and banks alike to part
with the cash that’s essential for growth in the early days of a business. Credit
today is tight, and it’s not clear precisely when it will become more readily
available. Plus, there’s a growing trend of smaller initial investments in early-
stage start-ups. Intensifying the challenge of raising funds, major leaps in
technology have led investors to raise the bar in terms of how much legwork
entrepreneurs are expected to do before even pitching their companies.

Start-ups typically have limited financial resources, making it challenging to

invest in essential areas such as marketing, technology, and personnel.
Competing with established businesses and other start-ups in the market can be
tough. It requires a unique value proposition and effective differentiation
strategies. Attracting and retaining skilled and motivated employees can be
difficult, especially when competing against larger companies with more
established reputations and resources. Managing cash flow is critical for start-
ups. Delays in payments, unexpected expenses, or overestimating revenue can
lead to financial instability. Determining and predicting market demand for a
new product or service is challenging. Start-ups may struggle to find the right
product-market fit.

Navigating complex regulations and compliance requirements can be time-

consuming and costly, especially in industries with strict legal frameworks.
Rapid technological changes can pose challenges, especially for tech start-ups.

49
Staying updated and integrating new technologies can be both costly and time-
consuming. Successfully scaling a business while maintaining quality and
efficiency can be a significant challenge. Operational processes need to be
adaptable and scalable. Building brand awareness and reaching the target
audience can be difficult for start-ups with limited marketing budgets. Effective
marketing strategies are essential for gaining traction. Acquiring the first
customers and retaining them can be challenging. Understanding customer
needs and providing excellent customer service is crucial for long-term success.
Developing a product that meets customer needs and continuously iterating
based on feedback requires time, resources, and adaptability.

Conclusion

Start-ups are the future growth engines of our country and government should
do all it can to foster the growth of entrepreneurship culture in India. Already
Facebook, Google and Yahoo have acquired start-ups based in India and the
likes of Flip kart, Inmobi, Sigma show us that world class companies can have
origins in India also. It just needs a little push in right direction. Government
initiatives like the $1.68bn funds for the ‘Make in India’ and the new company
law are a step-in right direction.

Start-ups have also shaken the very foundations of our economic systems,
through the now commonplace “sharing economy.” Pioneers like housing-
sharing Airbnb and ridesharing Uber, Lyft or Didi Kuaidi have led the way to a
significant amount of new sharing start-ups enabling us to share bikes, electric
scooters and even parking spots. This has a big impact on consumption and
therefore not only the economy, but also the ecology of the planet. Of course,
there are more and more start-ups whose endgame itself is to have an impact.
Finnish Meru Health won the mental health category at UCSF Digital Health
Awards. Other start-ups are looking into climate change, education, health, and
food – to name a few key areas – with the aim of combining impact and
successful business.

Entrepreneurship is about solving problems and building new things.

Entrepreneurship is important especially nowadays when we must learn how to
operate in an increasingly changing world. It includes both a mind-set point of
view, where problems are seen as opportunities and failures as learning
experiences, and skills that help you learn to solve problems and build

50
something new. Practicing entrepreneurial attitudes and abilities are useful even
if you are not yet looking to start your own business. They help you to see the
challenges of work and life in a more diverse way, and also to solve problems
that would be difficult or even impossible to solve using traditional means.

Start-ups are one of the most promising ways to solve the critical problems
humanity is facing because they can react much faster to problems that arise and
can innovate solutions more freely than traditional corporations. The start-up
ecosystem, in turn, enables the prototyping and market testing of a massive
number of new potential innovations, accelerating the progress through which
pressing global issues can be solved.

Bibliography/Reference

1. https://courses.minnalearn.com/
2. https://www.studocu.com/
3. The Start-up Environment and Funding Activity in India
https://www.worldscientific.com/doi/epdf/10.1142/9789811235825_0007

4. Key Challenges in Early-Stage Software Start-ups

Carmine Giardino, Sohaib Shahid Bajwa, Xiaofeng Wang & Pekka
Abrahamsson.
https://link.springer.com/chapter/10.1007/978-3-319-18612-2_5

5. Indian Start-ups -Challenges And Opportunities

https://www.researchgate.net/publication/
356633113_INDIAN_STARTUPS_-
CHALLENGES_AND_OPPORTUNITIES
6. Startupindia.Gov.In Action Plan
https://www.startupindia.gov.in/content/sih/en/about_us/action-plan.html
7. Pasumarti, S. S., & Patnaik, A. (2020). Challenges in Obtaining Finance
for SME Start-ups. High Technology Letters, 26(9), 972-979.
https://www.researchgate.net/profile/Anubhab-Patnaik/publication/
344368349_Challenges_in_Obtaining_Finance_for_SME_Startups/

51
 links/5f6cf6c1a6fdcc00863a5a0f/Challenges-in-Obtaining-Finance-for-
SME-Startups.pdf
8. The Entrepreneurial Finance and the Issue of Funding Startup
Companies.
The Entrepreneurial Finance and the Issue of Funding Startup Companies
| European Scientific Journal, ESJ (eujournal.org)

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