9 out of 10 startups will fail. (Source). And 90 percent of Indian startups will fail within the first 5 years. (Source)
There are countless such numbers that ***** the hype (and farce) of start-up ecosystem that we live in. As brutal as it may sound,the majority of today’s startups are completely useless and they are there just for the sake of their existence.
So, what do you really expect from such useless, non-sensical startups? Of course, either to settle for marginal return and suffocate for life. Or fail very soon! And there are good reasons why it’s happening like that.
The biggest idea that fuelled the advent of start-up erawas innovation. We needed innovation in different fields to improve life and lifestyle.
However, we have come to a point where innovation is the last thing happening and what startups are doing is copy-pasting each other’s ideas even without any refinement. We’re seeing the exact same product and services of top companies being pushed in the market by startups with no sense of any direction. We have now many types of services that we don’t even need. There’s no need for their existence whatsoever.
In the hype of start-up ecosystem, originality has died, courtesy of mediocre entrepreneurs who are chasing titles and money. Yes, today’s startups are motivated not by people’s problems but by money. They introduce poor products or services to not help people but to make money.
You can literally look around you to easily find such countless startups that does nothing but exist and crave to make money.
So, in short, to answer your question, the majority of today’s startups fail because:
· They don’t aim to solve problems
· They are unoriginal
· They are not consumer-centric but instead money-oriented
· They don’t hire staff with correct skill set or sometimes they are not motivated.
Let’s just hope the community takes this situation as their wakeup call to usher itself into a new Start-up era where companies work to solve problems and not primarily make money.