Why Startup fails quickly? Why many new business can not exist for long time?

 

Why Startup Fails? Reasons behind failure of Startup.

What is startup?

Start up means a new business started by an entrepreneur. Entrepreneur is an individual who aspire to start a new business as earning source. Startup may be small type or big in size from investment point of view. Everyday a large number of people begin new business but only few can exist for long. Around 70% startups fail and closedown their business within one year only. While some of those can sustain in market for two to three year and then quit due to cutthroat competition in market. The loopholes that pull new business back are given below.

 

No clear target:

First and foremost duty of a business man is to know the ultimate target of his new start-ups. If he does not aware of it then his business will die of confusion. The complete map of his business world should be prepared clearly at the beginning otherwise there is 100% chances of missing target.  

 

Lack of knowledge and experience:

First of all an entrepreneur ruins his business at early due to lack of knowledge and experience about the business he started. Zero experience put your business down when difficulty comes without information.  

 

Lack of Management Skill:

Management skill refers to show direction and keep on going on that direction smoothly. If your business can not run in an average speed, it tells about inefficiency of managerial skill of entrepreneur. If manager can’t take right steps in right time then the business will definitely ruin. Uncaring mindset of a business man will not allow his business to grow up.    

 

Poor business model:

Complicated business model is tough for employees to work and difficult for customers to access your business confidently. If communication from top to button level employees is not transparent then business will face lots of unwanted troubles. Customers avoid dealing with poor model of business for poor service.    

 

Lack of Selling Skill:

Business may be small or big but selling is important in both conditions. Business means selling of goods or services to customers on profit. And profit increases with sales increase. But lack of selling skill will drive away customers and ultimately business will diminish. If you and your staffs don’t know how to allure and take a customer in grip then your product or service will remain with you.

 

Lack of Finance:

What is blood to human body likewise sufficient fund is to business. Without adequate investment the smooth flow of business gets interrupted. It also stops the growth of business. Over investment also breakdowns the financial condition of businessman. Many business fails due to over liability from banks and relatives.    

 

Wrong product or services chosen:

If product or service is not suitable according to customers demand then your business will certainly close in no time. Many business man do this common mistake that they never survey market need before starting business. If product or service can not satisfy present customer that will not able to attract new customers.

 

Overconfidence of Success:

Some new businessman think money can bring success to their business. But they don’t know it is the skill and knowledge of business that can get them success. Even they don’t take suggestion of any business mentor while their business is in difficult condition. Overconfidence becomes negative attitude and in turn the business fails to run.

 

Lack of upgrading:

In this new era everything goes changing time to time. If a business man doesn’t make necessary changes in him and to his business then there may be downfall. If you are not aware of online promoting of your business then you are far behind your competitors.

 

Lack of patience:

Patience is the hymn of success. Business is like a penance. If you want sudden profit then your business will come down because of unfair tricks you play with your customers.

 

Conclusion:

It is easy to start a business but it is that much difficult to sustain in market of competition. So if one takes care of all above mentioned information will help him to exist in market. It will also help him to take right steps in right time.

why startup fails

How Odisha became poorest state of India? Why Odisha is poor state of India? 2025

 

How Odisha became poorest state of India? Why odisha is poorest state of India? 2025

Introduction to poor economy of Odisha

Odisha is the poorest state of India though it is full of natural resources. The resources like fertile soil, sweet water, abundant forest, mine, maritime, hill and mountain, solar energy etc. are the basis of state economy. Many industries such as tourism, infrastructure, and production and service sectors are also the part of it. Still the state remains backward since ancient time though it is a part of independent India for last 78 years.  

 

Indication of poverty and poorness of Odisha

1.      Low per capita income: Per capita income in Odisha is below than national average per capita income. It is far away from per capita income of Maharashtra and Karnataka. It is the main indication of poverty of the state.

2.      Unemployment status: Lack of industries results less numbers of job opportunity. Number of unemployed is very high due to seasonal appointment in farming sector as well. Contractual basis appointment in govt. sector is another example of poverty.

3.      Migrating Labors: Millions of young and aged rush towards developed states as well as abroad for earning because there is no large scale appointment facility in any sector of Odisha. The labors have to work with small wages under pressure is a pathetic sign of poverty of this state.   

4.      State’s liability: The liability of the state on each civilian is very high and hectic.  

5.      Lack of Industry: Lack of industries is one of the major sign of down economy of the state that leads to remain poor. Basically it shows the failure of government regarding business and trade. Hence unemployment situation remains as usual.  

6.      Living status: 70% of total population lives in uncertain life style. Because the income is not stable and sufficient to fulfill even basic need of life. The gap between rich and poor is clearly reflecting in society.

7.      Public health challenge: Peoples are deprived of adequate facility regarding health issues. The state is still facing lack of efficient doctors, modern machineries and well equipped medicals. Patients have to depend on other state hospitals for major and critical health issue too. The insufficient number of medical proportionate to population indicates how poor the state is.

8.      Education sector: The education of this state is traditional type. Which is good to obtain good marks only but not practically applicable. Hence students unable to tackle the challenges of the real life. Though some schools are modernized in the name of smart school but in vain for providing effective education. Also those smart schools could not continue for long.

9.      Poverty rate: A substantial portion of the society lives in village and rural area that are still remaining in below poverty line. Especially tribal people are deprived of adequate basic facilities.

10.  Dependency on primary sector: Maximum people depend on farming which is seasonal. And vulnerable to uncertain climate and natural calamities like cyclone, flood, drought etc. Seasonal unemployment is another headache of poverty. As there is no other major option for earning except agriculture, people have to engage in it forcefully.

11.  Inadequate infrastructure: Inadequate infrastructure like road, light, clean water, sanitation and many more hindrance in development of rural as well as small town areas.

12.  Expenditure capacity: The expenditure capacity is very low compared to other developed states of India. It is also less than national average expenditure of individual.  

13.  No government vocational training center: Lack of vocational training and education is another negative aspect of this state. It downgrades youth’s skill and ability to achieve highest position in life.  

Factors behind poorness of Odisha

Poverty in Odisha is influenced by a combination of social, economic, environmental and historical factors etc. Some key factors are given below for better understanding.

Economic Factor:

A significant portion of population depends on agriculture. Agriculture in Odisha is highly vulnerable to frequent climate change. The farmers still follow traditional method of farming as well as not acquainted with new methods. More over the present generation won’t like to work in land rather than going to do job in other state for hard money. Lack of industry is another prominent cause of poverty in Odisha. Due to political disturbance many companies tried to set up their company in the state but could not succeed. It is the biggest failure of government to provide jobs.

Social Factor:

Schedule cast and schedule tribe is a major portion of the society but they are deprived of many basic facilities as others get. This is due to superstitious feeling among people. Hence they can’t avail publicly proper education, medical facility, and accessing to market etc. Low literacy rate among SC and ST leads to diminish the economy of society. Malnutrition and limited health care generate inefficient human resource. Sufficient practical and applicable education is not in prevalent which could transform poverty into developing state.     

Environmental Factor:

Natural disaster in Odisha is one of the most critical factor that break downs the back bone of its economy. The state is prone to cyclone, flood and drought frequently. Such natural disaster devastates crops and properties. Affected families face instability in livelihood and earning. Deforestation and environmental degradation in mining area affects productivity of crops, creates imbalance in financial condition.

Government Policy Gap:

Corruption in government of Odisha is very high. There is full of significant natural resources like mining. But these resources are not equally distributed all over the state because of corruption. Corrupted officers never take right steps to develop its economy. Also unfit candidates are appointed in government job by offering bribe. So their inefficiency brings down the financial condition of the state. Ultimately the narrow mindset of government personals downgrades the economy of this state badly.

Cultural Factor:

Single income to meet large families demand is very difficult. Due to illiteracy many SC, ST and tribals have no family planinig at all. Hence they face poverty strike throughout the life. Entrepreneurial activities are also very low which could be the best option of earning. Women are still restricted to do jobs and business in some families is another cause of poorness. Women are not equally treated like boys in all fields.  

Conclusion

Illiteracy is the prominent cause behind the poverty of Odisha. Moreover ineffective government policy and implementing strategies is another strong reason for it. Thirdly people of odisha are mostly fund of spiritualism rather than being entrepreneur. Last but not least the natures devastate obstacles development of the state.      

poor state

Basis of economy of Odisha

Economy of Odisha // Sources of economy of Odisha // 2024

Economy of Odisha // Sources of economy of Odisha

Base of Economy of Odisha

Odisha, the land of Lord Jagannatha is natural resourceful place. It is located in eastern part of India. It is an east-costal state which is on the Bay of Bengal. This land is full of natural resources including rivers, mountains, mine, marine, forest and plain lands etc. Economy of this state is enriched by earnings from these sources. Farming is the backbone of its economy. Apart from natural resource some artificial sources like hotel and tourism, infrastructure industry, government and private sectors also contribute extremely to its financial strength. In modern time IT sector impacts on its financial status very much. Let’s discuss in detail all about these sources.   

Agriculture  

Agriculture industry plays important and major role to strengthen the economy of Odisha. Around 70% of its total population depends on agriculture. The plane lands, availability of water and supportive climate is highly suitable for farming. According to season different crops and vegetables are grown. Kharif and Rabi are the two types of common seasonal crops that farmers do and earn. Apart from it fish farming, poultry farming, animal husbandry like cow, buffalo and goat for milk and flesh; shrimp in marine are the strong sources for its economy.   

Mine

The mine in Odisha extracts coal, minerals, iron ore, bauxite and chromite. The state is well-known for largest producer of Aluminium and Still in India. Tata Still and JSPL are the major companies that operate in Odisha and use the mine raw materials. It is one of the best earning for the state.

Hotel and Tourism

Odisha is famous for cultural heritage like Lord Jagannathan Temple, the Sun Temple, the Lingaraj Temple, the Chilika Lake, Nandankanan; the Zoological and Botanical Park and many regional visiting places are the major part of its economy. Every year many visitors from world-wide visit our state and contribute to its finance indirectly.   

Infrastructure industry

Under this industry all types of power generation, constructions including roads and buildings, Smart cities etc comes. Odisha is capable of producing surplus electricity and sales it to other states for revenue. Hydroelectricity, Thermal power and solar power are the major sources of electricity production in this state which is strong source of earning. A good network of roads connects remote to urban area and industries that helps to increase state economy.    

Manufacturing Industry

Odisha has large scale of iron and still production factories like Tata Still and JSPL and many more. These industries give not only employability but also a strong income for the state. However some other smelters, iron industries and aluminum factories add its finance too. Many small scale industries and handlooms play supportive role towards strengthening economy.

Service sector

Government of Odisha has a number of departments where thousands of employees work as well as generate revenue for state economy. Apart from it IT sector including Wipro, Infosys and many more are emerging companies are also increase state finance condition. Transporting is another strong source of profit for state government. Both govt. and private transporting helps towards improvement of state economy. Odisha has become an educational hub which is a media of state prosperity.

Trade and Commerce

This state exports some of its production at best price to neighbor state. The products like sweet potatoes, turmeric, betel lives, prawn fish, mine products as raw material are exported against high paid.      

Conclusion

Odisha is enriched with natural as well artificial resources still it is backward state of India. The reason behind it is unskilled labour, lack of capital to invest, no support from government for start-up etc.     

Economy of Odisha

About Odisha