Why most startups fails ?

 An IBM Institute study finds that 90% of Indian startups fail within the first five years of inception. Wasn’t it premature on the part of Startup India to pat itself? According to the programme, over 27,000 startups were registered till 2020, with over 150,000 jobs created. For a country with over 12 million graduates entering the job market annually, does this sound like a grand success? What are the goals of Startup India for 2022, when it completes six years? That could tell whether India is an “innovation nation".

Of the numerous reasons why Indian startups fail early, almost all are related to innovation and leadership: weak business models, poor planning, faulty customer insights, or lack of original ideas, focus, agility and tech capability, apart from leadership gaps. Nearly 80% of venture capitalists feel Indian startups lack unique business models, as the majority simply copy successful models from elsewhere without unique local insights.