Daily Times

Creating and maintaining a startup is a demanding endeavor, even in the usual sequence of events. To build a startup is not pleasant in a Third nation states like Pakistan, where there is a lack of capital, few opportunities, and very few entrepreneurs with expertise in developing a profitable product-based B2C (Business to Consumer) IT enterprise. On the other hand, focusing on a startup is not for everyone. Not everyone has an entrepreneurial attitude, nor do the majority of the populations have the required skills to be an entrepreneur. However, those who explore entrepreneurship and start a business confront some of the most difficult obstacles in the sector. In Pakistan, 9 out of 10 new companies fail.

In comparison to Pakistan, startup India offers a wide range of services, including financial assistance, income tax assistance, licensing assistance, tender assistance, and marketing assistance. These advantages aid in the most critical phase of a startup’s development: implementing a concept and marketability. The Indian government also recognises and rewards these startups through National Startup Honours. These award recognises startups that are active, inventive, and have the potential to influence the market significantly. Pakistan is also not the advanced and developing country that India is. In Pakistan, over 90% of startups fail each year, whereas 80% fail within five years in India. Pakistanis confront several challenges leading to a shortage of product-market fit and other difficulties such as a lack of finance or limited revenue generation, operational and regulatory issues, and a lack of development potential and adaptability. The following are some reasons for failure.

Not Thinking Big: One of the main reasons is that most entrepreneurs lack the “Billion Dollar Concept.” Most entrepreneurs lack a comprehensive vision. In simple terms, they don’t dream large enough. This involves not considering expanding international, expanding into new markets, not addressing a “major issue,” or marketing to a bigger niche. Startups must concentrate on challenges that have the potential to expand internationally and, more crucially, become billion-dollar businesses.

The Funding Curse: However, firms that do receive investment fail in the future not because their concept was flawed or their staff was ineffective, but because of the fundraising mindset of VCs and ‘investment firms’ in Pakistan. Regional investors’ approach of “take $50, 00 and give me 52 per cent of your firm,” although providing a boost in the beginning, might cause issues afterwards. For example, this causes businesses to struggle to receive funds in subsequent rounds because they lack corporate rights. As a result, investors destroyed the company. This grants you “management rights to zero rate of success.”

Copying Others: Duplicating startups is something that Pakistani entrepreneurs have done since the beginning. Entrepreneurs frequently spend hours searching Google for a company concept that they can reproduce. This is usually what destroys a startup. If something has achieved success, it does not assure that you will share in that achievement. Most entrepreneurs in Pakistan try to copy startups and business strategies from countries such as India. Their thinking process believes that the economies and work culture are comparable to India, but this is untrue.

India is in a different category than ours in creativity, economics, culture, and entrepreneurship. Quite the reverse. We should aim to study, comprehend, and “correct” that notion so that it fits within our country. UBER and Careem are two examples of this. When the American company Uber saw tremendous popularity in Pakistan, our entrepreneurs began developing multiple ride-hailing applications identical to Uber and Careem. They utterly failed for understandable reasons. Because the Uber team had a vision, they attempted to address an issue rather than simply throwing another concept around. You can’t control the Startup’s future, but you can have a clear vision.

They are not focused: A startup should not try to be a jack of all crafts. It lacks the financial and personnel resources and concentrates on a wide range of market categories. Rather, it is intended to be narrowly focused on a certain specialty. Businesses that grow too quickly and lose concentration tend to fail because they deliver nothing to nothing, no USP to no distinct consumer niche. So, instead of focusing on everything, the first and most important principle is to concentrate on your area and get strength there. Only until you gain momentum in your specialty will you be willing to stretch to other market groups.

Poor Business Location: Indeed, a firm in a bad location cannot effectively contact its clients. If you are in the incorrect place, it will be difficult for your clients to discover you, and no buyers mean no money. Furthermore, the look of your structure, the population of the district in which it is situated, and its closeness to business competitors all significantly influence your small company enterprise.

‍Bad Management: All of the challenges described above are dependent on the small company owner’s decision-making ability and business administration capabilities. Aside from the issues stated previously, poor management in a small firm can lead to excessive use of finances, inappropriate expenditure on resources, and failure to concentrate on your specialisation, among other things. As a result, forecasting every difficulty a small firm may face might be difficult. However, the issues outlined above can significantly influence your small business and should be ignored if you want it to succeed. lack of Experience: Take careful observations! If you are not adept in your selected sector of business and lack expertise, your firm may suffer. As a small businessman, you must wear several hats at once; from finance to advertising and sales, you must do many things on your own that cannot be done correctly if you lack the skills in your business sector.