Financial Issues & Aspects Related to Sustainability, Survival and Growth of Startup

Author:Akshra Sharma*

Abstract:
Startups are unique and innovative venture with growth and technology at their core. Startups usually carve out niche markets for themselves and are market disrupters for old business establishments. Their importance is such that Government of India has recognized their worth and is promoting startups through programs like Startup India, Standup India, Digital India etc. Encouraging establishment of startups is applaudable but the main concerns like profitability and sustainability of startups should be addressed. Mostly quantitative measurement are considered as yardsticks for measuring the performance of startups and very little research is done on the qualitative aspects. This has created lack of knowledge to provide solutions to startups problems. Thus, in this research paper financial qualitative aspects are covered. A self illustrated diagram of startup life cycle and its detailed explanation is given. Then reasons for financial failure of startups like lack of credit and capital, improper fund estimation and allocation, wrong investors, lack of professionals, cash management issues, etc. are discussed and explained in detail. All these challenges point out a common factor that financial aid, assistance and mentoring for startups is necessary. If we are to see a rapid growth in the success rate of startups then mere profitability and growth aspects are not enough, one has to focus on their sustainability too. It is observed that startups are mushrooming all over the Indian economy signaling a positive contribution to the growth of the nation. In order to induce a more conclusive environment for startups, measures like credit availability, mentorship, tax exemption, relaxed norms etc. should be given by the Government. This would ensure growth and survival of startups which would ultimately benefit the customer, the market, the economy and the country.

Keywords:Keywords: Startups, sustainability, finance, innovation.

DOI:

International Journal of Trade & Commerce (Vol: 8 Issue:1)