National Startup Day 2024: Entrepreneurs reflect on challenges and opportunities for new ventures in India

Indian startups witnessed remarkable growth despite various challenges including funding issues during the last financial year. The country now stands at the third spot in the startup ecosystem globally. The government's proactive stance in fostering entrepreneurship, notably through initiatives like the Startup India scheme, has played a pivotal role in this success. 

Prime Minister Narendra Modi had earlier declared January 16 as ‘National Startup Day' which recognizes the extraordinary growth and contributions of the startup community to the Indian economy. Celebrating National Startup Day on January 16, key figures in the startup ecosystem shared insights on the challenges and opportunities for entrepreneurs in India. 

'Challenges for startups in India'

Startups in India grapple with several challenges, including the critical issues of talent acquisition and retention as they strive to build and scale their teams, said Mahankali Srinivas Rao, CEO of T-Hub, the government of Telangana incubator. 

“Investor caution, spurred by governance lapses, underscores the imperative for transparent governance and robust risk mitigation strategies. Regulatory complexities add another layer of difficulty, demanding ongoing vigilance and impacting operational efficiency,” Rao told LiveMint. 

However, Sourceinfi founder Paras Thakkar believes that every obstacle encountered is a chance to innovate. “In the vast realm of dropshipping and B2B import, startups face challenges like finding reliable suppliers, limited categories, inventory management, low-profit margin, and delayed fulfillment.”

Prakhar Singh, cofounder of Relax Company also urged entrepreneurs to embrace these challenges by not viewing them as obstacles but as golden opportunities to revolutionize.  

Startups tackle challenges with a commitment to addressing accessibility issues and developing sustainable solutions through technology, driven by creativity and positive change, Ravi Reddy, CSO of Simplify3X told us. 

He said managing startups involves adapting to tight budgets, limited resources, and intense competition, with success relying on continuous innovation, customer engagement, and cautious approaches to AI investments.

LEO1 founder Rohit Gajbhiye said challenges, like navigating regulations and nurturing talent, persist but require a collaborative approach. “Despite hurdles, optimism prevails as India's demographic advantage, coupled with a government focus on digital transformation, sets the stage for entrepreneurial success.”

‘Opportunities for startups in India’ 

Within these challenges, many opportunities lie to revolutionize traditional models, leverage cutting-edge technology, and forge partnerships that redefine efficiency, Thakkar said, adding that D2C startups have the unique opportunity to not only meet the nation's increasing demand for trending products at competitive rates but to also lead in the D2C segment. 

India remains a robust economy, projected to grow at 6.3 percent in 2023–24 despite these challenges. The government's unwavering support through initiatives like Startup India and Atal Innovation Mission provides startups with essential resources, mentorship, and favorable policies. 

Rao stated that the rise of tech startups in Tier-II and III cities reflects the resilience and inclusivity of the startup landscape. 

“The robust momentum in IPOs, with 18 tech companies going public in 2023, and the landmark achievement of surpassing 100,000 registered startups through the Startup India initiative, underline India's position as a global startup hub,” the T-hub CEO added. 

On the other hand, Vibcare Pharma CEO Siddharth Singhal believes that the entrepreneurial spirit is a vital force in driving industry advancements, particularly in fields as crucial as healthcare. 

“It's not just about building a successful business; it's about making a meaningful impact on lives and contributing positively to society. To the young entrepreneurs of today, I say embrace the challenges, stay committed to your vision, and remember that your work has the potential to make a profound difference,” Singhal said. 

He said each new venture brings with it the possibility of innovation and positive change, especially in sectors as impactful as healthcare.