Why Startups Fail? This is the most fundamental question for every entrepreneur these days. As the startup culture is growing both locally and internationally; there is much more attention required on the topic.
In Pakistan, our youth need a lot of focus an a reality check of what is actual entrepreneurship. There are several challenges that are faced by young entrepreneurs especially in Pakistan.
Reasons Why Startups Fail:
Generally summarizing the success progress in percentage, 90% startups are now no where because they had:
- No plan of scalability
- Lack of market understanding
- No financial plans and feasibility
- Lack of exposure
- Wrong mentors
- Wrong team/co-founders
- No clear goals and vision
The founders are just jumping on the startup bandwagon and if you see Facebook, everyone is now a CEO or MD or a Million $ Founder. Which, is not bad in a sense that we have this entrepreneurship mindset & culture in our youth.
More the new startups also fail, more they learn and more chances of success of a $ billion unicorn. But, all this needs to be combined with a system. In west, the mindset, the early education & whole process and eco-system supports this. Here in Pakistan unfortunately, we run after a mirage too. A lot of thought process is needed and like said earlier, youth is like a missile, if guided properly it will have huge impact and if not mentored and counselled, it will still have an impact but that will be catastrophic with a lot of collateral damage.
Read Also: 5 Effective Tips to Pitch a Startup Idea
There is no doubt in the significant role of “incubation culture” for the training of startups. But again I would definitely say that something big is missing. The ratio of startup success is way to less.
I hope that Pakistan may get successful startups very soon in coming years.
