DESCRIPTION)

There is a prescribed eligibility criteria, eligible institution for obtaining the funds, eligible credit facilities etc. MSME’s were facing a lot of issues related to the funding and non-availability of the funds in a timely manner and also high rate of interest was charged by the financial institutions. To resolve this problem our government of India in consonance with the Ministry and other regulators and institutions has launched this scheme of the Credit Guarantee Fund Scheme. This is protection specifically for the MSME’s as they are the backbone of the Indian economy. Whatever loan facility is provided the trust charges the fees for the same amounting to 1% per annum of the credit sanctioned.

  Reasonable budget: Most of the startup doesn’t have enough resources of capital so they rely on outside funding. Finance handiness is always a serious problematic for the startups. This is required at the initial level of business progress and scaling requires a timely infusion of capital. There must be a proper cash management for the success of the startup as it is a biggest problem faced by entrepreneur.

   Engagement with right person: To engage with right person with business skills who can help to meet the customer expectations is one of the biggest problems for a business. Normally startup founder start the business with the team of trusted members having complementary skill sets. Generally each member is dedicated in a particular area of operations. Gathering a good team is the primary and foremost requirement for the startup, if fails it can lead to break the startup.

   Revenue generation: Mostly startup fails due to poor revenue generation during the business nurtures. As the operation increases, expenses also develop with reduced revenues constraining startups to more focus on the funding aspect, thus, reducing the focus on the basics of business. Hence, revenue generation is very critical for startup as it came from efficient management. The test is not to generate enough capital but also to enlarge and sustain the growth.

   Awareness creation among customers: The existence of startup in competitive environment is usually more difficult than for an established firm due to distinctiveness and uniqueness in product. Startup is required to build everything from scratch so it’s more challenging phase at initial level.

   Infrastructure: There are a number of support mechanisms that play a significant role in the lifecycle of startups which include incubators, science and technology parks, business development centres etc. Absence of infrastructure mechanism increases the chances of establishment failure.

  Customer outlooks:The entrepreneur should have thorough domain knowledge to counter competition with appropriate strategies. Nowadays new technologies are emerging, due to which it’s become necessary for startup to upgrade the product over and above an earlier innovation. The biggest challenge is to make reinvention in existing one and come up as per the customer expectations.

  Guidelines : Starting a business requires a number of permissions from government agencies. Though mostly requirement towards guidelines are streamline but still there is challenge faced by entrepreneur. Regulations pertaining to labour laws, intellectual property rights, dispute resolution etc. are also problematic for startup to comply with all.

   Lack of a upright branding approach Absence of an effective branding strategy is another issue that prevents startups from flourishing at a faster pace.