WHY MOST OF THE STARTUPS IN INDIA FAIL

India is having the world's 3rd largest startup ecosystem. Despite being one of the fastest growing economies of the world, 90% of the startups become unsuccessful within the first five years of existence. They have received a lot of attention in recent years because of objectives like "Make in India". India is becoming a capitalist country to strengthen the economy. What can be the reasons for the consistent decline of growth most of Indian startups? Let's analyze in this article.

What successful organizations have done

Every entrepreneur wishes to see his/her startup become a big thing. There are some basic elements that are present in big organizations that make them globally successful. Startups cannot set their benchmark like them initially but there are some basics that are necessary to be followed. These are a quality product/service, clear strategy, teamwork, leadership, problem-solving attitude, right people, balance, management, and persistence.

Name any business, however large, small, old, new, successful, or failed, these above-listed qualities are a must for every organization to follow. Keeping in my these things and having their meaning properly known, one must have an idea why his/her startup is not working fine.

Reasons for failure

Now we understood the basic requirements, let's understand why Indian startups are failing. Since 2016, even extended governmental schemes failed to improve Indian companies' business models. The main problem with Indian startups is a lack of creativity. Most of the companies are just replicas of Global foreign-based firms. Over 1000 companies were shut down between 2017 to 2021 just because of duplication and lack of business development.

Infrastructural issues, expansion, and bulk hiring creates a burden on firms to raise funds. In response to this, many startups fail to either plan investments or take help from investors. They either fire their valuable employees or compromise with the infrastructure which eventually hinders the growth of the startup.

The biggest problem with the Indian startup is its lack of management. Many small companies have horrible work ethics. In some companies, you might find people either missing for important posts or working for posts they are not qualified/experienced enough. You might see a team working without any plan, leader, or target. This is the case with small startups as well as MSMEs (Micro Small and Medium Enterprises). They always lack quality and services and hence lose customers.

The poor hiring decisions also affect the company a lot. Though India has the most number of job seekers still it lacks the competency and talent. Companies have to invest a lot in training the new employees. Many startups, either take bad hiring decisions or ignore the importance of proper training. In addition, newcomers in the market prefer MNCs because of the exposure and job security, while in most startups, work ethics affects employees efforts and hence dedicated employees find themselves vulnerable.

How can Startups overcome failure?

Though there is a lot to learn in startups than in MNCs. But things have changed a lot in the last six years. The digital revolution and the COVID-19 pandemic have created a new normal. The IT startups have done a great job. India has generated a lot of revenue from IT firms. But IT sector alone cannot boost the confidence of Indian startups. The solution for the problem is as follows:

• Give priority to management. Thorough knowledge of the field is a must.
• Market research should be done more frequently to get products or services a fit for the market.
• An employee is not a machine, don't let them think they are not secure. Retain the best team members.
• Never ignore customer feedback. Keep improving with acceptance.
• Take sensible risks; engage with a good business development consultant.

In simple words, one needs to be flexible enough in the market. Building a telephone company in 2022 is not a great idea but the same idea in 1980 could sound great. Today, the company works with the ethics built by customers and the employees and not by the business heads.

Conclusion

The government taxation system has also affected the businesses in India a lot. Foreign companies come to India for cheap labor, but the Indian companies have different strategies altogether. It is sometimes hard to keep balance among everything but not impossible. With more startups, our country can overcome the burden of unemployment. It requires constant change and efforts to convert this dream into reality. The capitalist mindset should be persistent in everyone to collectively contribute to the growth of the country's economy.

UNIFORM CIVIL CODE: SHOULD IT BE IMPLEMENTED?

The implementation of the Uniform Civil Code (UCC) is not only one of the promises done by the BJP in their manifesto but also one of the most disputed issues since Indian independence. The Bifurcation of Kashmir (Removing Article 370 and 35A), and resolving the Ayodhya Babri Masjid dispute were very bold moves from the Indian government. Now, the UCC is most probably the target for them. Let's understand what UCC is and why it is important.

What is Uniform Civil Code?

Uniform Civil Code, One Nation One Law, is a directive policy that aims to bring a common civil code for all citizens. The criminal procedure code is uniform in our country, i.e., it acts uniformly for each and every citizen of India. UCC is required to bring uniformity in law while dealing with civil cases such as adoption, marriages, divorces, inheritance, etc.

Article 44 of the Indian Constitution gives the direction to the state for Uniform Civil Code. Due to opposition from conservative Hindus and Muslim sects this law was not implemented post-independence. As it is in Directive Principles of the Constitution and not in Fundamental Rights (Article 14-32), it was not implemented and comes under dispute for potential violation of basic rights.

Why does India need UCC?

Given the diversity of religions and the practices within our society, there are personal laws that govern the civil rights of the citizens. But India, being a secular country, has a lot of religions and all have their personal laws such as Hindu personal law, Sharia (for Muslims), Christian personal law, etc. The mix of different codes results in different treatment of an individual based on his/her religion.

It looks very usual to us as we are seeing this for years but this mix of codes led to discrimination in the name of religion, caste, sex, race, etc. Some of the examples of such discrimination are as follows:

• Polygamy (Multiple marriages)
• Child Marriage
• Compensation after divorce and parenting of the child.
• Percentage of property succession, etc.

There are a number of cases seen where personal laws stand as a hurdle. In 2019, the Muslim Women Protection Act was passed by which the practice of Triple Talaq (Instant divorce) was declared illegal. Egypt, a country with a 90% of Muslim population, banned Triple Talaq in 1929. It took 90 years for India to realize the intensity of discrimination being ignored in the name of personal law. This is why Uniform Civil Code is today's necessity.

Myths and Realities about UCC

In the recent past, whenever the parliament has given the green signal to any bill, large-scale opposition and protests have been seen. Some bills were not implemented correctly while some were good but people had myths. Let us address some common myths people have about UCC:

• UCC means the imposition of the Hindu code

UCC simply means the equal set of rights for everyone irrespective of their religion. The uniformity of personal laws can be achieved with the help of UCC.

• Freedom of Religion is in danger.

The Right to freedom of religion is granted in the fundamental rights of the Indian Constitution. The implementation of UCC will not affect the basic rights of citizens.

• UCC will lessen the harmony in the society

With the personal laws in action, the violation of rights of many individuals has been seen which is important to be addressed to strengthen communal harmony and people's belief in the government.

What if UCC is implemented?

Here are some crucial facts that we need to understand for the betterment of our country:

1. Every citizen has to follow the same rules regardless of his/her religion without limiting them to follow the religion. This sounds fair enough for India to be called a "secular" country. All the laws related to marriage, divorce, inheritance, etc. should be equal for all Indians to ensure that all Indians are treated the same.
2. Uniform Civil Code will help in the betterment of women's condition in the patriarchal Indian society. Conventional indoctrination of laws causes prejudice against women with polygamy, child marriage, etc. Today's society demands women to be treated equally to men.
3. UK, China, Russia, Canada, USA, Germany, etc. have implemented Uniform Civil Code. UCC is a sign that countries have moved away from caste and religious-based politics. It is important for India to cross all the hurdles that have stopped India to become progressive.
4. It would eventually reduce the vote bank politics that create communal polarisation and riots during elections. This would ultimately help in uniting people, fewer conflicts, and less burden on the judiciary system.

Conclusion

Currently, Goa is the only state with Uniform Civil Code because it was under the Portuguese Colony. Shah Bano's case of the 1980s was one of the major issues that led the Supreme Court to think about the implementation of UCC. Uttarakhand and Uttar Pradesh are probably the next states to impose UCC. According to Article 245, Parliament has the right to make a law throughout the territory.

In addition, we, as citizens, should also have to understand our duties. We have to think rationally for either being a supporter or a critic. We cannot ask for UCC if we are practicing caste and gender discrimination, misuse of freedom of speech, indulging in riots, etc. We need to understand our responsibilities too to make this country more united but diverse.