Business Environment of Startups in Bangalore city [Year]

Business Research Project Report

On
“A study on startups failures”

Submitted to:- Submitted by:-

Prof. S. Bisaliah Adarsh Purohit

Reema D

Radha S

Shrinath P

Arun

Sukesh JP

Ganesh Walikar

Prathap

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 Business Environment of Startups in Bangalore city [Year]

Acknowledgements

The success and final outcome of this project required a lot of guidance and
assistance from many people and we are extremely privileged to have got this all along
the completion of our project. All that we have done is only due to such supervision and
assistance and I would not forget to thank them.

We owe our deep gratitude to our project guide Prof. S.BISALIAH, who took keen interest
on our project work and guided us all along, till the completion of our project work by
providing all the necessary information related to it.

I am thankful to and fortunate enough to get constant encouragement, support and

guidance from all Teaching staffs which helped us in successfully completing our project
work. Also, I would like to extend our sincere esteems to Dr. NS Viswanath (Principal and
Director, MPBIM) for their timely support.

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 Business Environment of Startups in Bangalore city [Year]

CONTENTS
1. Executive Summary
2. Research Objectives
3. Major Research Findings
4. Recommendations
5. Chapter 1- Introduction
6. Chapter 2- Literature Survey
7. Chapter 3- Statement of the problem
8. Chapter 4- Research Objectives
9. Chapter 5- Research Methodology
 Type of research
 Research Method
 Research technique
 Data collection sources
 Data gathering Procedure
 Sampling Techniques
 Demographic Profile

10.Chapter 6-Hypothesis

11.Chapter 7-Research limitation

12.Chapter 8-Data analysis & Inference

13.Chapter 9- Major research findings

14.Chapter 10- Conclusion and Recommendations

15.Annexure

16.Reference

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 Business Environment of Startups in Bangalore city [Year]

EXECUTIVE SUMMARY
Our research is to identify the cause for the shutdown or downfall of the startups in
Bangalore, A major reason why companies fail, is that they run into the problem of their
being little or no market for the product that they have built. Here are some common
symptoms:

There is not a compelling enough value proposition, or compelling event, to cause the
buyer to actually commit to purchasing. Good sales reps will tell you that to get an order in
today’s tough conditions, you have to find buyers that have their “hair on fire”, or are “in
extreme pain”. You also hear people talking about whether a product is a Vitamin (nice to
have), or an Aspirin.

Bangalore is known as the mecca for the startups because of the diversified culture in the
city, due to adverse competition in the market the company has no option either to get
acquired by other company or to shut down permanently.

And the other cause is the product doesn’t meet the market needs and lack of
understanding the market, over confidence.

We concluded that

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 Business Environment of Startups in Bangalore city [Year]

RESEARCH OBJECTIVE

 To identify the reasons behind the failure of startups in Bangalore city.

 To estimate the significant relationship between different reasons that led to the
failure of startups.
 To focus on the reasons and measures to eradicate failure of startups.
 To interpret the results based on the questionnaire and test the significance on the
reasons behind the failure by employing suitable statistical tools.
 To find out at what rate the startups are failing to survive.

Major Research Findings:

From our study we Ascertain that 27% are female respondents and 73%
respondents are male and about 78% of the respondents feel that Startups are boon for
them and 22% feels that startups are bane.

We ascertain that 56% of the respondents feel that setting up an enterprise in Bangalore is
the best choice, 4% feels not best choice and 40% feels either ways.

About 24% of respondents feels Automobile is in booming stage whereas 40% of

respondents feels E-commerce is in booming stage, 2% respondents feels Manufacturing
sector booming, 2% respondents feels retail sector booming and 9% of the respondents
feel the service sector is booming.

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 Business Environment of Startups in Bangalore city [Year]

INTRODUCTION

India is booming with young entrepreneurs and start-ups but more than 90 per cent
of start-ups in the country fail, according to a new study by IBM.

According to the study done by the IBM Institute for Business Value (IBV) based on a
survey done in collaboration with Oxford Economics, to understand the rapidly evolving
India start-up ecosystem and its effects on the wider economy, lack of innovation, non-
availability of skilled workforce and insufficient funding, are the main reasons for the high
rate of failure.

"77 per cent of venture capitalists surveyed believe that many Indian start-ups lack
pioneering innovation based on new technologies or unique business models. Indian start-
ups are prone to emulate already successful global ideas," IBM said in a statement.

70 per cent of the venture capitalists believe that talent acquisition is one of the biggest
challenges faced by Indian start-ups, and limited availability of necessary skills impedes
growth.

The results reveal that start-ups can exploit a range of attributes and advantages unique to
India. More than 76 per cent of Indian executives pointed to India’s economic openness as
a major business advantage, while 60 per cent identified India’s skilled workforce and 57
per cent of the executives said India’s large domestic market provides significant
advantages.

The IBM study, 'Entrepreneurial India' is based on interviews with more than 1,300 Indian
executives, including 600 start-up entrepreneurs, 100 venture capitalists, 100 government
leaders, 500 leaders of established companies and 22 educational institution leaders.

“The Indian start-up community; ranked third globally in terms of number of start-ups, has
been creating new job opportunities and attracting capital investment. We believe that
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 Business Environment of Startups in Bangalore city [Year]
start-ups need to focus on societal problems, including healthcare, sanitation, education,
transportation, alternate energy management and others, which would help deal with the
issues that India and the world face. These require investments in deep technology and
products which are built to scale globally,” said Nipun Mehrotra, Chief Digital Officer, IBM
India/ South Asia.

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 Business Environment of Startups in Bangalore city [Year]

THE PROBLEM STATEMENT

“Why would startups fails in Bangalore city”

Our study is to investigate why the startups fails when competing with fortune100
companies,

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RESEARCH METHODOLOGY

Type of Research:
Descriptive research method has been used for this present study. The data entire
related to Startups. Descriptive research studies are concerned with describing the
characteristics of a particular individual, or of a group.It is useful to obtain information
concerning the status of the phenomena to describe, “What exists” with respect to
variables or conditions in a situation. This research deals with describing the
characteristics of startups, Hence, descriptive research method is most appropriate for the
given study.

Research Method

Survey method has been used to collect the data for doing this research.

Research Technique

Only questionnaires covering various parameters of respondents attitude towards

various factors and cause for failure.

Data Collection Sources

Primary data
1. Questionnaires
Data gathering procedure
Data has been gathered by getting the input from the respondents through online
using Google docs.
Sampling Technique:
Convenience Sampling was used by the researcher to collect the data

Sampling Size:
45 respondents

Statistical Tool: Chi square test

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 Business Environment of Startups in Bangalore city [Year]

HYPOTHESIS

Null Hypothesis Ho:Setting up enterprise in Bangalore is independent of failure

Alternate hypothesis :HA:Setting up enterprise in Bangalore is independent

of failure

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Column
Observed values Labels
Grand
Row Labels Maybe No Yes Total
15 to 20 3 1 2 6
21 to 25 4 2 22 28
26 to 30 5 3 2 10
30> 1 1
Grand Total 12 6 27 45
Expected
value
Row Grand
Labels Maybe No Yes Total
15 to 20 1.6 0.8 3.6 6
21 to 25 7.466667 3.733333 16.8 28
26 to 30 2.666667 1.333333 6 10
30> 0.266667 0.133333 0.6 1
Grand
Total 12 6 27 45

P-value=
0.041965

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 Business Environment of Startups in Bangalore city [Year]

RESEARCH LIMITATION

This survey has various limitations, Like any other survey:

1. Time Constraints.
2. As the study is on behavior aspect, information may be biased.
3. The study is limited at Bangalore city.
4. The study is conducted in a very small area and on a small sample size, the
results of the study cannot be generalized for another area of country.

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 Business Environment of Startups in Bangalore city [Year]

Major Research Findings:

From our study we Ascertain that 27% are female respondents and 73%
respondents are male and about 78% of the respondents feel that Startups are boon for
them and 22% feels that startups are bane.

We ascertain that 56% of the respondents feel that setting up an enterprise in Bangalore is
the best choice, 4% feels not best choice and 40% feels either ways.

About 24% of respondents feels Automobile is in booming stage whereas 40% of

respondents feels E-commerce is in booming stage, 2% respondents feels Manufacturing
sector booming, 2% respondents feels retail sector booming and 9% of the respondents
feel the service sector is booming.

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 Business Environment of Startups in Bangalore city [Year]

CONCLUSIONS AND RECOMMENDATIONS

Startups are introduced to bangalore In every days with different business ideas,
yet the startup fails

From χ2 – Test we found that at failure of startups is dependent in the place Bangalore.

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 Business Environment of Startups in Bangalore city [Year]

Appendix
Questionnaires
5/17/2018 Startups Failure in Bangalore

Startups Failure in Bangalore

We are investigating why startups fails at the earliest

*Required

Name

Your answer

Gender *

Female

Male

Prefer not to say

Your Age group *

15 to 20

21 to 25

26 to 30

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 Business Environment of Startups in Bangalore city [Year]
30>

From the rating of 1-5, how do you rate start ups companies? *

1 2 3 4 5

lowest highest

https://docs.google.com/forms/d/e/1FAIpQLSe3nWQsK9Nuvrk2AE6TKGHSYWlB-3eWIj4Qz8DT57D3bzEG9A/viewform 1/3

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 Business Environment of Startups in Bangalore city [Year]
5/17/2018 Startups Failure in Bangalore

Is start ups boon or bane for Bangalore city?

Boon

Bane

Is bangalore the best place to set up an Enterprise? *

Yes

No

Maybe

Which market do you feel is booming at the moment? *

E-commerce

Automobile

smart phones

retail

service

manufacturing

Others

do you think startups providing enough employment? *

Yes

No

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 Business Environment of Startups in Bangalore city [Year]

Maybe

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 Business Environment of Startups in Bangalore city

What do think is the life span of a company these days? *

1 to 5 years

6 to 10 years

10 to 15 years

15 to 20

20 and more

do you have Any plans to start a business *

Yes

No

Maybe

SUBMIT

Never submit passwords through Google Forms.

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