According to a recent study done by the Kauffman Foundation, 33.2 percent of the cofounders of tech firms founded by immigrants in the US are Indians (since 2006). Despite such strong figures, when it comes to building a startup in India, most Indians are reluctant. The reason is that the road to building a startup in India is filled with hurdles and challenges. Let’s take a look at the five main impediments on the Indian startup route.


The common Indian mindset says that getting a job with a big brand improves career growth more than a startup. Also, job security plays a vital role in decision making. Working at larger organizations is more secure and socially valuable than working with startups. It is not uncommon to see people working in startups being pressured from home to take up better jobs with larger organizations.

Moreover, employee benefits are also minimal in startups when compared to big corporations. Hence, getting the right talent becomes challenging.


To move your startup idea in the right direction, you need a good mentor. When it comes to mentorship and guidance to propel wannabe entrepreneurs – something TechStars in the US provides – India has far fewer options. However, in the last few years, we have seen them springing up.


A recent study done by the India-based research firm Venture Intelligence says 64 startups have together received nearly $242 million of venture capital funding. But industry experts claim this number is negligible, and there is a need to increase it tenfold to sustain early-stage risk capital.

Taking into consideration the high interest rates and lengthy processes involved in getting funded, debt as a source of funding is also not a viable option.

Again, unlike the scenario in the US, personal funding becomes difficult as people are not financially stable here and have family responsibilities to take on – which demands the immediate revenue that can come from a job.


It is hard to break into the Indian market with a consumer product. People are substantially price-sensitive, and competition is fierce. Therefore, selling premium products becomes a hard task.

Moreover, when a startup aims to do a B2B sale, the decision making process to buy the product is very slow and may take several months. For example, for selling software to banks and government, or larger organizations, you may send the quote, keep following up for months, and then end up with a “no thanks.” This primarily happens because of poor decision making processes in companies and a “playing it safe” attitude. Hence, the risk factor remains.


According to the latest tax policy, startup firms are mandated to pay income tax on the premium they have charged over their fair market, while selling shares to unregistered investors, including private equity and venture funds. Though this aims to stop money laundering, analysts say it will affect the investment scenario for startups. Moreover, to register your startup takes a minimum of two to six months.

Although the road to launch and get started with a startup company is difficult, things are progressing interestingly. Passionate and ambitious people are finding their inroads to their entrepreneurial inner calling and working their way around hurdles to create success for themselves

Recently Published

In the fast-paced world of cryptocurrency, vast sums of money can be made or lost in the blink of an eye. In early November 2022, the second-largest cryptocurrency exchange, FTX, was valued at more than US$30 billion. By Nov. 14, FTX was in bankruptcy proceedings along with more than 100 companies connected to it. D. Brian Blank and Brandy Hadley are […]
Key Takeaways: The phenomenon of some fireflies’ flash synchrony has puzzled scientists for over a century. The phenomenon piqued the curiosity of many, including mathematicians Daniel Abrams and Steven Strogatz, who named it “chimera” In Greek mythology, the Chimera was a hybrid monster made of parts of incongruous animals – so a fitting name for […]

Top Picks

Key Takeaways: Albert Einstein’s theory of general relativity has been remarkably successful in describing the gravity of stars and planets. However, gaps in our understanding start to appear when we try to apply it to extremely small distances, where the laws of quantum mechanics operate. A new study, published in Nature Astronomy, has now tested […]
Key Takeaways: Digital money is a form of currency that uses computer networks to make payments. It is not the digital nature of cryptocurrencies that differentiate them from digital money, but how they ensure the ownership of digital property that mark them as transformational. The Counter Currency Laboratory, a new initiative based in the Department […]
Key Takeaways: For many people, Buddhism appears to be uniquely compatible with modern lifestyles and world views. Buddhist mindfulness has influenced many schools of contemporary psychology. Buddhist philosophy embraces constant change and the inherent impermanence of all things. The 19th century Burmese monk Ledi Sayadawtravelled the nation teaching meditation and founding study groups. The forms […]


I highly recommend reading the McKinsey Global Institute’s new report, “Reskilling China: Transforming The World’s Largest Workforce Into Lifelong Learners”, which focuses on the country’s biggest employment challenge, re-training its workforce and the adoption of practices such as lifelong learning to address the growing digital transformation of its productive fabric. How to transform the country […]

Join our Newsletter

Get our monthly recap with the latest news, articles and resources.

Latest Titles


Welcome to Empirics

We are glad you have decided to join our mission of gathering the collective knowledge of Asia!
Join Empirics