Bursting some myths around entrepreneurship
India’s business horizon gloats of a few startups, some around 200, in last one year. With the change in technology and the growing market, one thing that continues striving in entrepreneurs is their risk-taking ability. But in spite of this, 90% of startups fall flat, and there are factors other than just ideas being obsolete. There are a lot of myths buzzing around entrepreneurship and the Indian startup ecosystem. These myths misguide aspiring entrepreneurs and they end up doing the wrong things. So let’s see and burst a few common myths about the startup ecosystem.
- `Venture capitalists are the best for funding
On an approximate, VC funds only about 3,000 startups in a year and just one-quarter of those fundings are for startups or seed companies. This myth misguides a lot of entrepreneurs to planning their business model on seed fundings. There are other ways of fundings, like bootstrapping or crowdfunding that can help you get the same amount of funds, as the VC.
- A startup requires a lot of funds
NO! Startups do not require a lot of funds. Most businesses run on this myth and fail within some years of operation. A business can be started with something as less as INR 50, 000. Fundings can be done from other ways also, not just by starting big.
- An attractive industry is the first preference
As much as it would look true, it is not. In fact, entrepreneurs look for just the opposite. They look for industries where they would get low competition and since chances of innovation are less in a low industry, the chances of success for innovative startups are good.
- Entrepreneurs depend on luck in their industry
Sure entrepreneurship is risky, but it isn’t gambling. An entrepreneur, researches, reads, understand the market from all aspects and then takes a decision. The industry is not depended on luck, it is like walking on a thin line between potential and risks. The risk is always calculated and every outcome is a result of careful and analysed steps.
Read More: 4 challenges faced by every entrepreneur