ANWESH: International Journal of Management and Information Technology
8 (2) September 2023, 45-56
http://www.publishingindia.com/anwesh
Navigating Multifaceted Challenges: A
Comprehensive Study of Startup Hurdles
Sapna
Research Scholar, Department of Banking and Business Economics, Mohanlal Sukhadia University,
Udaipur, Rajasthan, India. Email: Sapnamoodautia96@gmail.com
Abstract: The Indian startup ecosystem has grown
rapidly, drawing global recognition for its innovation
and economic effects. This article examines Rajasthani
startup’s financial, marketing, human resource,
establishing, and technology problems. This study
examines startup ecosystem difficulties using 32
characteristics under eight headings on a five-point Likert
scale using surveys and case studies. This research sheds
light on startup challenges at different stages. This study
is crucial for informed policy decisions and targeted
startup support, ensuring the sustained growth of the
startup ecosystem. Policymakers, incubators, and support
organizations may help businesses improve financial
literacy, marketing education, and HR management by
tackling the listed obstacles. This study’s conclusions are
crucial to Rajasthan’s entrepreneurial growth, economic
development, and innovation. Policymakers, incubators,
and support groups must emphasize five essential areas to
foster a dynamic startup scene in Rajasthan and maximize
entrepreneurial potential. This study benefits startups and
the state’s economy.
Keywords: Entrepreneurship, Startups, Startup
Challenges.
I. Introduction: Background and Context
In recent years, India has experienced a meteoric rise as a
thriving hub for entrepreneurship and innovation, drawing both
national and international acclaim. This surging entrepreneurial
spirit has been fueled by a convergence of factors, including
a conducive policy environment, increased access to venture
capital, and a reservoir of young, innovative talents [1]. At
the heart of this growth lies the “Startup India” initiative,
a government-led endeavor aimed at fostering a nurturing
environment for startups and offering attractive financial
incentives [2]. The Indian government intended to establish a
Article can be accessed online at http://www.publishingindia.com
strong ecosystem for nurturing innovation and startups in the
country, with the aim of driving sustainable economic growth
and generating large-scale employment opportunities [3].
Simultaneously, a surge in venture capital and angel investments
has provided startups with the financial impetus needed for their
expansion [4]. The country’s wealth of young, innovative minds,
many of whom graduate from prestigious technical institutions,
has significantly contributed to this entrepreneurial boom
[5]. However, the Indian startup landscape, while promising,
is not devoid of challenges. Startups, here as elsewhere,
grapple with multifaceted hurdles that can potentially stifle
their progress and threaten their survival. These challenges
span a broad spectrum, encompassing financial constraints,
marketing intricacies, human resource management, legal and
regulatory complexities, establishment-related intricacies, and
technological barriers [6] [7]. Recognizing the significance of
understanding and addressing these multifarious challenges
in sustaining the momentum of India’s startup revolution,
this research embarks on a comprehensive study. Our focus is
firmly fixed on the unique Indian context. We aim to navigate
the specific challenges encountered by startups operating within
India, generating indispensable insights that can empower not
only startup founders but also investors, policymakers, and all
stakeholders invested in the Indian startup ecosystem.
As we undertake this research journey, we acknowledge the
pivotal role of effectively addressing these challenges. Our
ultimate goal is to cultivate and nurture a thriving entrepreneurial
landscape, one that fosters innovation and propels economic
growth. Through this research, we endeavor to illuminate the
intricacies of these multifaceted obstacles, thereby reinforcing
the continued success and sustainability of startups in India.
II. Literature Review
Startups are dynamic entities operating in a volatile landscape,
marked by innovation, uncertainty, and competition. They
face a multitude of challenges across diverse dimensions that
significantly influence their growth, sustainability, and ultimate
46 ANWESH: International Journal of Management and Information Technology
success. These challenges encompass financial constraints,
marketing complexities, human resource management, legal
and regulatory intricacies, establishment-related intricacies,
and technological barriers [8] [9]. Financial challenges are a
recurring theme in the startup literature. Startups often grapple
with limited access to capital, high burn rates, and the need for
rapid revenue generation [10]. Insufficient funding is a common
obstacle that can hinder a startup’s ability to scale, innovate,
and navigate economic downturns [11]. Marketing hurdles are
paramount in gaining market share and building a customer base.
Startups must establish brand recognition, develop effective
marketing strategies, and differentiate themselves in crowded
markets [12]. (Ries, 2011). Market entry barriers, customer
acquisition costs, and the challenge of creating compelling
value propositions are recurrent themes in this context [13].
Human resource management poses unique challenges in
startup environments. Recruiting, retaining, and managing
talent are critical for startup’s success [14]. One major hurdle
is the recruitment of skilled and motivated employees. Those
startups frequently struggle to attract and retain top talent due
to budget constraints and intense competition from established
companies [15]. Startups often struggle to attract skilled
employees, foster a positive work culture, and align employee
goals with organizational objectives. The turnover rate in startup
ventures is typically higher than in established organizations
[16]. Navigating the complex legal and regulatory landscape
can be a daunting task for startups. Compliance with laws,
intellectual property protection, and contractual agreements
are critical concerns [17]. Legal costs, the risk of litigation,
and the need for continuous monitoring of changing regulations
are often noted challenges [18]. The process of establishing
a startup involves several challenges, including choosing an
appropriate legal structure, securing licenses and permits, and
setting up operations [19]. Startups must also address logistical
issues, manage initial expenses, and develop a scalable business
model [20]. Technological challenges encompass the need to
stay at the forefront of innovation, adopt cutting-edge tools and
technologies, and ensure cybersecurity [21]. Startups often face
resource constraints when investing in technology, maintaining
systems, and protecting sensitive data.
Previous research has examined these challenges individually
and collectively. For instance, studies have investigated the
impact of financial constraints on startup performance, with
findings highlighting the importance of securing funding
sources and managing cash flow. Similarly, marketing
challenges have been explored in the context of customer
acquisition, with research emphasizing the significance of
customer segmentation and effective marketing strategies [22].
Despite the wealth of research on startup challenges, several
gaps exist in the literature. Limited attention has been paid to
Volume 8 Issue 2 September 2023
the interplay between these challenges and how addressing
one may affect others. Additionally, there is a need for more
comprehensive studies that consider the unique challenges
faced by startups at various stages of development and across
different industries. Exploring the impact of external factors,
such as economic conditions and government policies, on these
challenges is another area that warrants further investigation.
III. Methodology
Objective: To analyze and contrast the challenges experienced
by incubated and non-incubated startups across various
dimensions, including financial, marketing, HR, establishment,
and technological hurdles.
Significance: The significance of your study, “Navigating
Multifaceted Challenges: A Comprehensive Study of Startup
Hurdles,” is twofold. First, it offers practical help to startup
founders and investors by highlighting the specific problems
that often trip up young businesses. This means better-informed
decisions and strategies. Second, it’s useful for policymakers
who can use your findings to create supportive policies that
encourage entrepreneurship and innovation. In simpler terms,
this research helps startups succeed, aids investors in making
smart choices, and guides governments in fostering a vibrant
business environment.
Research Design: This research is characterized by its
qualitative and quantitative nature, utilizing both primary and
secondary data to achieve its objectives.
Population: All the startups that have registered with iStart
Rajasthan portal from 2017 to 2022 were considered as the
population for the study.
Data Collection Methods: The study’s primary data was
obtained from startup founders via a questionnaire, which was
administered through an online Google form.
Sampling Techniques and Sample Size: Judgement sampling,
simple random sampling techniques are used and sample size
is 332.
Data Analysis Methods: Descriptive analysis was conducted
using SPSS software.
Profile of Sample
In this section, the full profiles of the respondents are described
in depth. These profiles have two main parts. The first part gives
information about the startup founder’s background, and the
second part gives information about the startup business itself.
 30-35 years 84 31.6 18 27.3 102 30.7

above 35 years 39 14.7 11 16.7 50 15.1

Senior Secondary 26 9.8 31 47.0 57 17.2

Navigating Multifaceted Challenges: A Comprehensive Study of Startup Hurdles 47
Educational Diploma 30 11.3 4 6.1 34 10.2
Table I: Distribution of the Sample by Their Demographic Profile of Entrepreneurs and Startups
Qualification UG 131 49.2 6 9.1 137 41.3
Male Female Total
PG
Characteristics 79 29.7 25 37.9 104 31.3
N % N % N %
Product
Below 25 years
66 24.8
24 9.0
19 4
28.8 6.1
85 28
25.6 8.4
Nature of
Age Service25 - 30 years 162 119
60.9 44.740 3360.6 50.0 202 152 60.8 45.8
Business 30-35 years 84 31.6 18 27.3 102 30.7
Both above 35 years 38 3914.3 14.77 1110.6 16.7 45 50 13.6 15.1
Senior Secondary 26 9.8 31 47.0 57 17.2
less than 1 year 12 4.5 3 4.5 31 9.3
Educational Diploma 30 11.3 4 6.1 34 10.2
Qualification UG
1-3 years 110 131
41.4 49.229 6 43.9 9.1 150 137 45.2 41.3
No. of Year of
PG 79 29.7 25 37.9 104 31.3
Operation 3-5 years
Product 86 6632.3 24.824 1936.4 28.8 93 85 28.0 25.6
Nature of Business Service 162 60.9 40 60.6 202 60.8
5-7 years 58 21.8 10 15.2 68 20.5
Both 38 14.3 7 10.6 45 13.6
less than 1 year
Validation/MVP 64 1224.1 4.522 3 33.3 4.5 86 31 25.9 9.3
1-3 years 110 41.4 29 43.9 150 45.2
No. of Year of Operation
Stages of Startup Scale/Growth
3-5 years 108 8640.6 32.320 2430.3 36.4 128 93 38.6 28.0
5-7 years 58 21.8 10 15.2 68 20.5
Development Ideation 10 3.8 2 3.0 12 3.6
Validation/MVP 64 24.1 22 33.3 86 25.9
Scale/Growth
Early traction/seed 84 108
31.6 40.622 2033.3 30.3 106 128 31.9 38.6
Stages of Startup Development
Ideation 10 3.8 2 3.0 12 3.6
Total 266 Early traction/seed 100 8466 100
31.6 22 332 33.3 100 106 100 31.9
Total 266 100 66 100 332 100 100
Source: Self-construct.
Source: Self-construct.

Incubated and Non-Incubated Startups

Incubated and Non-Incubated Startups

INCUBATION STATUS
200 181
150
150
100 54.5 45.2
50
0
N %
Total

Yes No

Fig. 1: Incubation Status of the Startups

Above Figure reveals insights from 332 respondents in
Rajasthan’s startup ecosystem regarding their incubation
status. Among them, 54.8% (182 individuals) are incubatees,
benefiting from incubation programs. Meanwhile, 45.2% (150
respondents) are not incubatees, indicating reliance on other
support avenues. The prevalence of incubatees highlights the
significance of these programs in nurturing entrepreneurship
and early-stage startups.
IV. Challenges Faced by the Startups
Although the startup community in the state has witnessed
tremendous growth in the last few years, many startups failed
to survive and succeed. Various study reports on India’s startup
ecosystem reveal that the lack of funding, unavailability of
skilled personnel, and problems relating to scaling up have
48 ANWESH: International Journal of Management and Information Technology Volume 8 Issue 2 September 2023

always been the top challenges for small startups in the country. requires strategic planning, transparent reporting, and expert
Hence, the startups need support and guidance from various financial advice to ensure stability and sustainable growth.
enablers in the ecosystem, such as the government, incubators,
investors, research institutions, educational institutions, large Table II: Distribution of the Sample by the Financial
businesses, etc. In this context, the challenges in the startup Challenges at their Various Development Stage
ecosystem are studied with the help of 32 variables under eight
heads on a five-point scale. Financial Challenges at Total Mean SD
Early Traction 97 235 1.71 .455
Different Stages Yes No
Scale Ideation 265
63 1.81 154 178
.393 1.54 .499
A. Financial Challenges
Validation 104 228 1.69 .465
Total 332
Financial challenges are a significant barrier for startups, Early Traction 97 235 1.71 .455
encompassing crucial
Source: decisions such as capital structure,
Self-construct. Scale 63 265 1.81 .393
funding sources, allocation, working capital management, and Total 332
balancing profits with investments. Navigating these hurdles
Source: Self-construct.

Scale 63 265

Early Traction 97 235

Stagees

Validation 104 228 Yes N

No N
Ideation 154 178

0 50 100 150 200 250 300 350

Challenges

Fig. 2: Distribution of the Sample by the Financial Challenges

Fig. 2: Distribution of the Sample by the Financial Challenges
The Table II and Fig. 2 reveal startup financial hurdles at various 97 startups revealed financial issues and 235 did not. The mean
phases. During ideation, 154 respondents reported financial score of 1.71 suggests financial issues remain during this era.
difficulties, while 178 did not. The mean score of 1.54 suggests Finally, 63 firms had financial issues during scaling, while 265
The Tableobstacle
moderate financial II and Fig. 2 reveal startup
perception in this financial hurdles
early stage. As at various phases.
did not. WhileDuring ideation,
financial issues154 respondents
remain reported
a concern, the mean score
startups reach validation, 104 face financial issues, while 228 of 1.81 implies they are slightly greater. This report highlights
do not. Mean financial
scoredifficulties,
climbs towhile
1.69,178 did not. The
indicating mean score of Rajasthan’s
a somewhat 1.54 suggestsStartup
moderate financial obstacle
ecosystem’s need forperception in
support mechanisms
higher financial challenge perception. Following early traction, to help entrepreneurs overcome financial hurdles.
this early stage. As startups reach validation, 104 face financial issues, while 228 do not. Mean score climbs to 1.69,

indicating aTsomewhat
able III: Distribution of the Sample by the Financial Challenges Faced by Startups
higher financial challenge perception. Following early traction, 97 startups revealed financial

Incubated
issues and 235 did not. The mean score of 1.71 suggests financial issues remain during this era. Finally, Non-Incubated
63 firms had
Financial Challenges
N % N %
financial issues during scaling,Very
while 265 did not. While financial
Difficult 119issues remain a concern,
35.8 the mean35
score of 1.81 10.5
Difficult 37 11.1 80 24.1
implies they are slightly greater. This report highlights Rajasthan’s Startup ecosystem’s need for support
Deciding Capital Structure Neutral 14 4.2 18 5.4
mechanisms to help entrepreneursEasyovercome financial hurdles. 10 3.0 14 4.2
Very Easy 2 0.6 3 0.9
TABLE III: DISTRIBUTION OF THE SAMPLE BY THE FINANCIAL
Very Difficult 26 CHALLENGES FACED 7.8 BY STARTUPS73 22.0
Difficult 122 36.7 30 9.0
Selection of Right Financial Source Neutral 16 4.8 21 6.3
Incubated Non-Incubated
Easy
Financial Challenges 13 3.9 21 6.3
Very Easy 5 N %1.5 N 5 % 1.5
Very Difficult 36 10.8 36 10.8
Difficult Very Difficult 87 119 35.8
26.2 35 63 10.5 19.0
Raising andDeciding Capital
Allocation Structure
of Capital Neutral 37 11.1 28 8.4
Easy Difficult 19 37 11.1
5.7 80 22 24.1 6.6
Very Easy 3 0.9 1 0.3
 Navigating Multifaceted Challenges: A Comprehensive Study of Startup Hurdles 49

Incubated Non-Incubated
Financial Challenges
N % N %
Very Difficult 46 13.9 62 18.7
Difficult 84 25.3 30 9.0
Working Capital Management Neutral 20 6.0 21 6.3
Easy 28 8.4 32 9.6
Very Easy 4 1.2 5 1.5
Very Difficult 58 17.5 39 11.7
Difficult 69 20.8 51 15.4
Profit/Investment Management Neutral 21 6.3 24 7.2
Easy 32 9.6 30 9.0
Very Easy 2 0.6 6 1.8
Mean 10.81
SD 4.277
Source: Self-construct.

The dataset on Financial Challenges faced by startups, both
incubated and non-incubated, reveals insights in Rajasthan.
Capital Structure decisions pose a major challenge, with 35.8%
of incubated and 10.5% of non-incubated startups finding it
very difficult. Selection of Financial Sources is challenging for
7.8% of incubated and 22% of non-incubated startups. Both
groups share concerns about Raising and Allocating Capital
(10.8% find it very difficult). Working Capital Management is a
challenge for 13.9% of incubated and 18.7% of non-incubated
startups. Profit/Investment Management is tough for 17.5%
of incubated and 11.7% of non-incubated startups. These
findings underscore the need for financial literacy and support
for startups, irrespective of incubation status, as financial
challenges impact growth and sustainability.
Strategies for Overcoming Financial Hurdles
●● Bootstrapping: Start with limited resources and focus
on generating revenue from your product or service as
early as possible. This involve self-funding or relying on
revenue generated by the business to cover expenses.
●● Financial Planning: Create a detailed financial plan that
includes revenue projections, expense estimates, and cash
flow forecasts. Regularly review and update this plan to
stay on track.
●● Diverse Funding Sources: Explore various funding
options, including angel investors, venture capital,
crowdfunding, grants, loans, and bootstrapping.
Diversifying funding sources provide stability.
●● Emergency Fund: Build an emergency fund to handle
unexpected expenses or downturns in revenue. Having a
financial cushion help weather financial crises.
●● Continuous Monitoring: Regularly track and analyze
financial metrics such as burn rate, cash runway, and
profitability. Make adjustments to business strategy as
needed.
●● Government Grants and Incentives: Explore government
programs, grants, and incentives available for startups.
These provide valuable financial support.
●● Investor Relationships: Nurture positive relationships
with investors. Keep them informed about progress and
challenges, which lead to additional funding rounds.
Case Study: OYO Rooms
OYO Rooms, one of India’s most prominent hospitality
startups, faced significant financial challenges during its
rapid expansion phase.
Challenges: As OYO expanded both within India and
globally, it invested heavily in acquiring properties,
marketing, and technology. However, sustaining such rapid
growth required substantial capital, and the company faced
issues related to cash flow and profitability.
Actions Taken: OYO Rooms implemented cost-cutting
measures, laid off employees, and restructured its business
model to focus on profitability. It also secured funding from
various investors to address its financial challenges.
Outcome: OYO Rooms managed to stabilize its finances
and return to a growth trajectory. The case study illustrates
the financial pressures faced by startups during periods of
aggressive expansion and the strategies they employ to
overcome them.
Source: oyorooms.com/officialoyoblog/2021
B. Marketing Challenges
Startup companies face many marketing challenges, including
determining product costs and prices amid domestic
competition. Strategic thinking is needed to run successful
advertising and promotional campaigns with restricted funds.
The creation of a market strategy that aligns with a startup’s
50 ANWESH: International Journal of Management and Information Technology Volume 8 Issue 2 September 2023

goals requires careful consideration. Startups must build interactions and excellent service to build trust and loyalty in a
and maintain strong client relationships through customized competitive business climate.

Table IV: Distribution of the sample by the marketing challenges faced by startups

Marketing challenges Incubated Non-Incubated

N % N %
Very Difficult 104 31.3 70 21.1
Difficult 46 13.9 49 14.8
Deciding Cost and Price of Product Neutral 11 3.3 8 2.4
Easy 16 4.8 20 6.0
Very Easy 5 1.5 3 0.9
Very Difficult 26 7.8 25 7.5
Difficult 118 35.5 88 26.5
Advertisement/Promotional Methods Neutral 18 5.4 13 3.9
Easy 17 5.1 22 6.6
Very Easy 3 0.9 2 0.6
Very Difficult 41 12.3 45 13.6
Difficult 87 26.2 55 16.6
Competition from local market Neutral 27 8.1 24 7.2
Easy 23 6.9 24 7.2
Very Easy 4 1.2 2 0.6
Very Difficult 47 14.2 43 13.0
Difficult 77 23.2 60 18.1
Development of market strategy Neutral 20 6.0 17 5.1
Easy 33 9.9 26 7.8
Very Easy 5 1.5 4 1.2
Very Difficult 64 19.3 51 15.4
Difficult 53 16.0 42 12.7
Customer Relationship Management Neutral 28 8.4 22 6.6
Easy 32 9.6 30 9.0
Very Easy 5 1.5 5 1.5
Mean 10.82
SD 4.425

Source: Self-construct.
Incubated and non-incubated companies confront marketing
challenges, as shown in above Table IV. Deciding Product Cost
and Price is tough for 31.3% of incubated firms and 21.1% of
non-incubated startups. This shows that pricing tactics challenge
many entrepreneurs. 35.5% of incubated firms and 26.5% of
non-incubated startups find advertising/promotional methods
tough. Startups, especially incubators, need strong marketing
tactics. Firms in all categories worry about local competition,
as 12.3% of incubated and 13.6% of non-incubated firms finds
it very difficult. 14.2% of incubated firms and 13% of non-
incubated startups struggle with market strategy development.
This shows that startups may struggle to create effective market
strategies. 19.3% of incubated and 15.4% of non-incubated
firms finds CRM difficulties difficult. Maintaining excellent
customer ties for both groups is crucial. This shows that
marketing problems are important for entrepreneurs, but some
find them more difficult than others. Startups must comprehend
marketing principles and tactics, according to these studies.
Startups need assistance and resources to overcome these
marketing hurdles to succeed entrepreneurial scene.
Effective Marketing Strategies for Startups
●● Customer-Centric Approach: Understand target audience
thoroughly and tailor marketing efforts to address specific
needs and preferences.
●● Clear Value Proposition: Define a compelling value
proposition that communicates why product or service is
unique and valuable to customers.
 Navigating Multifaceted Challenges: A Comprehensive Study of Startup Hurdles 51

●● Content Marketing: Create high-quality, informative
content to establish authority in industry and attract
organic traffic.
●● Social Media Marketing: Engage with audience on
relevant social media platforms, building a following and
driving engagement.
●● Adaptability and Experimentation: Stay agile and be
open to trying new strategies. Marketing is not one-size-
fits-all, so be willing to pivot and adjust startup approach
based on what works best for startup.
●● Feedback and Iteration: Listen to customer feedback and
use it to refine marketing strategies. Continuously iterate
and improve to better meet customer needs.
Case Study: Swiggy
Swiggy, a leading food delivery platform in India, encountered
marketing challenges in a highly competitive market.
Challenges: Swiggy faced stiff competition from other food
delivery platforms like Zomato and Uber Eats. Marketing in
the food delivery space required significant spending, and
customer acquisition costs were high.
Actions Taken: Swiggy adopted an aggressive marketing
strategy, investing in advertising, promotions, and
partnerships with restaurants to gain a competitive edge.
They also introduced loyalty programs to retain customers.
Outcome: Swiggy managed to establish itself as a market
leader through its marketing efforts. However, the case study
illustrates the marketing challenges of customer acquisition
and brand building in a crowded and competitive market.
Source: iimb.ac.in/node/6835
C. Human Resources Challenges
Startups have HR issues throughout their lifecycle. Early on,
it might be difficult to attract and retain talented employees on
a budget. Scaling up makes it hard to retain a business culture.
Managing a small team’s workload and changing staffing
demands are challenges. As they grow, entrepreneurs must
adjust HR rules to match their goals and staff.

Table V: Distribution of the sample by the Human Resource Challenges faced by startups

Incubated Non-Incubated
Human Resource Challenges
N % N %
Very difficult 62 18.7 41 12.3
difficult 58 17.5 64 19.3
Hiring Skilled Employees Neutral 17 5.1 15 4.5
Easy 38 11.4 27 8.1
Very Easy 7 2.1 3 0.9
Very difficult 11 3.3 26 7.8
difficult 103 31.0 74 22.3
Retaining Employees Neutral 26 7.8 19 5.7
Easy 34 10.2 29 8.7
Very Easy 8 2.4 2 0.6
Very difficult 26 7.8 20 6.0
difficult 73 22.0 65 19.6
Team Management Neutral 38 11.4 31 9.3
Easy 39 11.7 31 9.3
Very Easy 6 1.8 3 0.9
Very difficult 40 12.0 27 8.1
difficult 65 19.6 54 16.3
Regulatory Challenges Neutral 33 9.9 37 11.1
Easy 37 11.1 30 9.0
Very Easy 7 2.1 2 0.6
Very difficult 54 16.3 40 12.0
difficult 64 19.3 52 15.7
Collective Bargaining (Labor Unions) Neutral 27 8.1 26 7.8
Easy 32 9.6 28 8.4
Very Easy 5 1.5 4 1.2
Mean 12.15
SD 4.305
Source: Self-construct.
52 ANWESH: International Journal of Management and Information Technology Volume 8 Issue 2 September 2023

Human Resource Challenges in Incubated and Non-Incubated
Startups, the Table V above, explores workforce-related issues.
It shows that 18.7% of incubated startups and 12.3% of non-
incubated enterprises encounter difficulties in hiring qualified
workers. This shows both groups have trouble finding skilled
labour. 22.3% of non-incubated startups and 31% of incubated
enterprises have employee retention issues. Startups, especially
incubated ones, struggle to retain workers, which might
endanger their stability. 22% of incubated startups and 19.6%
of non-incubated startups struggle with team management.
Startups need strong team management, as these percentages
illustrate. 12% of incubated and 8.1% of non-incubated
entrepreneurs struggle with regulations. Regulations vary for
each category. Collective bargaining (labour unions) is difficult
for 16.3% of incubated enterprises and 15.7% of non-incubated
startups. This shows that human resource concerns, of different
severity, are prominent in startup’s journeys. These findings
underline human resource management and the need for
startups to anticipate and address these difficulties. Startups can
prosper in Rajasthan’s startup environment with incubators and
relevant organizational help for human resource issues.
Best Practices for Recruiting, Retaining, and Managing Talent
in Startups
Table VI: Distribution of the sample by the Establishment Related Challenges faced by Startups
●● Clear Roles and Expectations: Define roles and
responsibilities clearly to prevent confusion.
●● Cultural Alignment: Ensure candidates align with
startup’s values and culture.
●● Skill Development: Offer growth opportunities and
training programs.
●● Feedback and Recognition: Provide regular feedback and
acknowledge contributions.
●● Competitive Compensation: Offer competitive salaries
and benefits to attract and retain talent.
D. Establishment-Related Challenges
Startups face many establishment issues. To turn ideas
into prototypes, ingenuity and resources are needed. Legal
registration and incorporation need compliance with complex
regulations. Research and development must be ongoing to
improve product viability and market fit. Product development
issues include maximizing functionality, design, and scalability.
Managing these issues requires careful planning, flexibility, and
resource allocation.

Incubated Non-Incubated
Establishment Related Challenges
N % N %
Very difficult 62 18.7 48 14.5
difficult 76 22.9 69 20.8
Registration and Legal Incorporation Neutral 25 7.5 14 4.2
Easy 18 5.4 19 5.7
Very Easy 1 0.3 0 0.0
Very difficult 4 1.2 17 5.1
difficult 119 35.8 98 29.5
Prototype Development Neutral 32 9.6 23 6.9
Easy 25 7.5 12 3.6
Very Easy 2 0.6 0 0.0
Very difficult 34 10.2 38 11.4
difficult 78 23.5 63 19.0
Research and Development Neutral 46 13.9 40 12.0
Easy 21 6.3 8 2.4
Very Easy 3 0.9 1 0.3
Very difficult 35 10.5 40 12.0
difficult 76 22.9 56 16.9
Product Development Neutral 35 10.5 30 9.0
Easy 35 10.5 23 6.9
Very Easy 1 0.3 1 0.3
Very difficult 59 17.8 54 16.3
difficult 56 16.9 62 18.7
Infrastructure (Land, Layout and Building) Neutral 34 10.2 19 5.7
Easy 30 9.0 13 3.9
Very Easy 3 0.9 2 0.6
Mean 11.08
SD 3.660
Source: Self-construct.
 Navigating Multifaceted Challenges: A Comprehensive Study of Startup Hurdles 53

Above Table VI, addressing Establishment-Related Challenges,
reveals insights for both incubated and non-incubated startups.
For Registration and Legal Incorporation, 18.7% of incubated
and 14.5% of non-incubated startups finds it very difficult,
suggesting slightly more difficulty for incubated startups. In
Prototype Development, 1.2% of incubated and 5.1% of non-
incubated startups perceives it as very difficult, indicating
more challenges for non-incubated startups. Research and
Development challenges affect 10.2% of incubated and 11.4%
of non-incubated startups evenly. Product Development is
slightly more challenging for non-incubated startups (12% vs.
10.5% for incubated startups). Infrastructure (Land, Layout,
and Building) challenges are evenly distributed. Creating a
supportive ecosystem that addresses these challenges is vital
for startup growth, regardless of incubation status, and calls
for targeted assistance in areas like prototype development and
infrastructure.
Strategies for Startups to Tackle Establishment-Related
Challenges
●● Streamline Legal Compliance: Startups should invest
in legal counsel or services to navigate the complexities
of registration and legal incorporation efficiently. This
proactive approach saves time and resources in the long
run.
●● Prototype Development Partnerships: Collaborating with
organizations or professionals experienced in prototype
Table VII: Distribution of the sample by the Technological Challenges faced by startups
development help startups overcome this challenge. These
reduce costs and improve the quality of the prototype.
●● Balanced R&D Investment: Startups should allocate
resources evenly between research and development
efforts, ensuring a balanced approach that optimizes
innovation and product improvement.
●● Product Development Focus: Non-incubated startups
facing product development challenges should consider
partnering with experts in their field or seeking mentorship
from experienced entrepreneurs to enhance their product
development strategies.
●● Infrastructure Solutions: Both incubated and non-
incubated startups should explore opportunities for shared
infrastructure resources or co-working spaces to address
establishment-related challenges. These provide cost-
effective solutions and create a supportive environment
for growth.
E. Technological Challenges
Startups encounter evolving tech challenges, including initial
budget constraints for tech infrastructure, scalability issues
with managing user loads and data, ongoing challenges in
staying up-to-date with tech trends while maintaining stability,
and concerns about cybersecurity threats. Addressing these
challenges requires adaptability, strategic planning, and agile
technology adoption.

Incubated Non-Incubated
Technological Challenges
N % N %
Very Difficult 88 26.5 68 20.5
Difficult 48 14.5 56 16.9
Acquisition and Installing New Technology Neutral 15 4.5 13 3.9
Easy 26 7.8 10 3.0
Very Easy 5 1.5 3 0.9
Difficult 25 7.5 32 9.6
Difficult 110 33.1 82 24.7
Updating/Upgrading Technology Neutral 18 5.4 22 6.6
Easy 25 7.5 13 3.9
Very Easy 4 1.2 1 0.3
Very Difficult 46 13.9 59 17.8
Difficult 65 19.6 35 10.5
Data Management Neutral 43 13.0 36 10.8
Easy 24 7.2 16 4.8
Very Easy 4 1.2 4 1.2
Very Difficult 44 13.3 47 14.2
Difficult 76 22.9 55 16.6
Data Security Neutral 32 9.6 29 8.7
Easy 25 7.5 14 4.2
Very Easy 5 1.5 5 1.5
54 ANWESH: International Journal of Management and Information Technology Volume 8 Issue 2 September 2023

Incubated Non-Incubated
Technological Challenges
N % N %
Very Difficult 65 19.6 46 13.9
Difficult 56 16.9 46 13.9
Digital Transformation Neutral 28 8.4 24 7.2
Easy 26 7.8 28 8.4
Very Easy 7 2.1 6 1.8
Mean 10.86
SD 4.277
Source: Self-construct.

Above Table VII reveals key tech challenges for startups in Table VIII: Descriptive Statistics
Rajasthan. Acquisition and Installing New Technology is
significant for both incubated and non-incubated startups, Various challenges N Mean Std. Deviation
with 26.5% and 20.5% respectively finding it very difficult.
Financial Challenges 332 10.81 4.277
Updating/Upgrading Technology is particularly challenging
for incubated startups (33.1%). Data Management is an issue Marketing Challenges 332 10.82 4.425
for 13.9% of incubated and 17.8% of non-incubated startups. Human Resources Challenges 332 12.15 4.305
Data security poses difficulties for 22.9% of incubated and Technological Challenges 332 10.86 4.277
16.6% of non-incubated startups. Digital Transformation Establishment Related 332 11.08 3.660
is challenging for 19.6% of incubated and 13.9% of non- Challenges
incubated startups. Addressing these challenges is crucial for Legal and Regulatory 332 10.53 3.603
fostering entrepreneurship in Rajasthan’s startup ecosystem Challenges
through supportive measures and infrastructure improvements.
Valid N (List-Wise) 332
Strategies for Adopting and Integrating Technology Effectively Source: SPSS.
●● Strategic Technology Roadmap: Plan the acquisition
and integration of new technology. Prioritize technology Table IX: Ranks
investments by business goals and growth stage. To meet
business needs and new technologies, change IT plan Mean Sum of
often. Are You Incubatee? N
Rank Ranks
●● Data Management: Collect, store, and analyze data YES 150 167.85 25177.50
efficiently. Use data analytics to inform business Challenges NO 182 165.39 30100.50
decisions. Maintain data quality and security to satisfy Total 332
customers and data privacy laws. Source: SPSS.
●● Cybersecurity: To safeguard sensitive data, prioritize
cybersecurity. Protect startup’s data using encryption, Table X: Test Statistics ‘a’
firewalls, security audits, and personnel security training.
Keep up with cybersecurity dangers and vulnerabilities Tests Challenges
and take precautions. Mann-Whitney U 13447.500
●● Digital Transformation Strategy: Create a comprehensive Wilcoxon W 30100.500
digital transformation strategy that supports long-
Z -.233
term business goals. Find ways technology may boost
productivity, customer satisfaction, and competitiveness. Asymp. Sig. (2-tailed) .816
Digital technologies and processes improve operations, a. Grouping Variable: Are you Incubatee?
customer engagement, and innovation. Source: SPSS.
●● Test of Hypothesis
Based on the provided data and tests, the mean ranks for
Null Hypothesis: H0: There is no significant difference in the challenges faced by incubated and non-incubated startups
challenges faced by incubated and non-incubated startups. are quite close, with incubated startups having a mean rank
of 167.85, and non-incubated startups having a mean rank of
Alternative Hypothesis: H1: There is a significant difference in
165.39.
the challenges faced by incubated and non-incubated startups.
 Navigating Multifaceted Challenges: A Comprehensive Study of Startup Hurdles 55
The Mann-Whitney U test statistic is -0.233, and the associated
p-value is 0.816.
Since the p-value (0.816) is substantially greater than the
typical significance level of 0.05 used in hypothesis testing,
there is not enough evidence to reject the null hypothesis (H0).
In simpler terms, the statistical analysis suggests that there is
not a significant difference in the challenges faced by incubated
and non-incubated startups. Therefore, based on this analysis,
it appears that being incubated or non-incubated does not
significantly impact the challenges encountered by startups.
These challenges seem to be similar for both groups.
V. Findings
●● Startups in Rajasthan consistently face financial
challenges throughout their developmental stages,
including ideation, validation, early traction, and scaling.
This highlights the necessity for effective support
mechanisms to facilitate their growth and sustainability
in the region’s entrepreneurial ecosystem.
●● Startups in Rajasthan, both incubated and non-incubated,
grapple with financial challenges. Capital structure
decisions are notably difficult for 35.8% of incubated
startups, while 10.5% of non-incubated startups face this
issue. These findings underscore the need for enhanced
financial literacy and support for startups in the region.
●● Marketing challenges are significant for startups in
Rajasthan, particularly pricing complexity (31.3%
incubated, 21.1% non-incubated), and effective marketing
strategies (35.5% incubated, 26.5% non-incubated).
Local competition is a concern (12.3% incubated, 13.6%
non-incubated), and crafting market strategies can be
complex (14.2% incubated, 13% non-incubated). Startups
require marketing support and education for success in
Rajasthan’s entrepreneurial landscape.
●● Startups in Rajasthan, both incubated and non-incubated,
face common challenges in hiring skilled employees
(15.5%) and regulatory complexities (10%). Retaining
employees (26.7%) is more challenging for incubated
startups, while effective team management (20.8%)
remains vital for both. Dealing with labor unions is
challenging for both groups (16%). Effective human
resource management and support from incubators and
relevant organizations are crucial for startup success in
Rajasthan.
●● Startups in Rajasthan, both incubated and non-incubated,
face common challenges in acquiring and installing new
technology (23.5%). Incubated startups find technology
updating/upgrading (33.1%) more challenging. Data
management (15.85%) and data security (19.75%)
are also significant concerns. Digital transformation
(16.75%) is a shared challenge. These findings highlight
the importance of addressing technological challenges
for startup success in Rajasthan.
●● Registration and legal incorporation are harder for
incubated startups (18.7%) than non-incubated ones
(14.5%). Non-incubated businesses (5.1%) face more
prototype development issues than incubated ones
(1.2%). Both groups have balanced R&D challenges.
Non-incubated startups (12%) struggle with product
development. Infrastructure issues are balanced. These
findings emphasis the necessity of tackling common
establishment-related difficulties for all Rajasthani
businesses, incubated or not.
VI. Discussion
The research findings reveal significant challenges faced by
startups in Rajasthan across various aspects of their operations.
Notably, startups consistently grapple with financial hurdles
from their initial ideation stage to scaling up, indicating the
need for effective support mechanisms to bolster their growth
and sustainability in the region’s entrepreneurial ecosystem.
Moreover, the study highlights the critical importance of
financial literacy and support, as evidenced by the considerable
percentage of startups struggling with capital structure decisions,
particularly among incubated startups. This underscores
the necessity of equipping startups with the knowledge and
resources required to make sound financial choices.
In terms of marketing, startups in Rajasthan face substantial
challenges, such as pricing complexity, crafting effective
marketing strategies, and contending with local competition.
These findings emphasize the need for marketing support and
educational initiatives to help startups navigate the competitive
landscape successfully. Workforce-related challenges are also
significant, including hiring skilled employees, dealing with
regulatory complexities, retaining talent, and managing teams
efficiently. Effective human resource management and support
from incubators and relevant organizations are crucial for the
success of startups, particularly in Rajasthan’s entrepreneurial
environment. Technological challenges are common among
startups, encompassing aspects like technology acquisition,
updates, data management, security, and digital transformation.
Addressing these issues is vital for startups to remain
competitive and innovative in their respective industries. Lastly,
establishment-related difficulties, including legal incorporation,
research and development, and infrastructure, pose challenges
to both incubated and non-incubated startups. This underscores
the need for comprehensive support mechanisms to assist all
Rajasthani startups in overcoming these common hurdles.
VII. Conclusion
This research has delved into the multifaceted challenges
encountered by startups in Rajasthan, offering valuable
insights into the hurdles that entrepreneurs face across various
stages of development. These challenges span financial,
56 ANWESH: International Journal of Management and Information Technology
marketing, human resource, technological, and establishment- [9]
related domains, painting a comprehensive picture of the
startup landscape in the region. As we draw the curtains on
this research, it is evident that startups in Rajasthan possess [10]
tremendous potential for growth and innovation. However,
unlocking this potential requires collaborative efforts from
various stakeholders, including government bodies, incubators,
educational institutions, and experienced entrepreneurs.
[11]
In closing, the entrepreneurial spirit in Rajasthan is vibrant and
promising, and with the right support and resources, startups
can flourish. The insights gleaned from this research should
serve as a catalyst for positive change, guiding policymakers,
support organizations, and entrepreneurs alike toward creating [12]
a more conducive and supportive environment for startups to
thrive and contribute to the region’s economic and innovative
landscape. The journey of entrepreneurship is marked by [13]
challenges, but it is also a journey brimming with opportunities
and the potential to transform ideas into impactful realities. [14]
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