IT Minister KT Rama Rao on Saturday said that the “start-up” State Telangana was making rapid strides in various sectors. Addressing the Madras Management Association’s (MMA) annual meeting held in Chennai on Saturday on “Learning to Grow”, KTR explained various initiatives taken up by the TRS government in the State in the past three years, and how the start-up State was realized.
On quite a few occasions we have seen KTR comparing Telangana to a start company. But he is forgetting the fact that 75 percent of venture-backed startups fail. This statistic is based on a Harvard Business School study by Shikhar Ghosh.
This study also asked company leadership the reason for business failure, giving a list of four main reasons for failure with sub-categories below those. They also gave a list of 12 leading management mistakes. It is worth checking out the details. This research-based analysis confirmed some of the observations. Seven key reasons startups fail:
- Lack of focus
- Lack of motivation, commitment and passion
- Too much pride, resulting in an unwillingness to see or listen
- Taking advice from the wrong people
- Lacking good mentorship
- Lack of general and domain-specific business knowledge: finance, operations, and marketing
- Raising too much money too soon
Definitely above points are applicable to KTR and his govt.