Why is it easier for start-ups to find financiers but not resources

Why is it easier for start-ups to find financiers but not resources

Why is it Easier for Start-ups to Find Financiers but not Resources?

In the last decade, India has seen a huge increase in the number of start-ups. Now, this is could be owed to the Government’s shift in encouraging home talent or it could be the need to experiment and create new ideas for the younger generation.

What once was considered an unconventional source of employment has today given rise to a whole new India where the youth has understood and utilized its potential completely and without regret. This got us thinking – despite all the growth, and the promise to move up your career faster than your peers; why do start-ups have such a low retention rate?


Let’s admit it, start-ups don’t win at college placements anymore. In the early stages of the start-up craze, one would see a barrage of young, bright minds taking home fat packages with an unknown designation in a start-up with an unpronounceable name. Today, this is as far from reality as one can imagine. Students are smarter, brighter, and quite honestly not dazzled by the start-up craze anymore. ‘All that shines is not gold’ – India’s youth has understood how.

The first question you perhaps will now be faced with is – do you have an investor. And should you not have a great name to back you up, chances are you’ll lose your potential Vice President in minutes.

Everyone who is beginning their professional journey seeks stability and an organization that can stand its own ground irrespective of the work it does. If you are in the business of changing the world and making drastic improvements in finding solutions to perennial problems – you may still have some luck with those who are willing to experiment.

Affordability This might come as a surprise to some but as opposed to popular opinion – start-ups in fact don’t have funds for building an expert team. Unless your organization is people-driven, there are chances you have the intelligence of creating technology that can easily do the work of two. Start-ups are constantly on the lookout for freshers for primarily two reasons: one, they can be easily molded and come with unmatched enthusiasm; two, there can be convinced to settle down for an amount much lower than an experienced professional.

If you are seeking employees from prestigious management institutes, chances are that you have already faced disappointment. It’s almost impossible to match the huge packages the big 4 and other multinationals are willing to shell out. To be fair, five years ago, the best talent was taken by start-ups with the promise of going big, very fast.

Too good to be true Unfortunately, the graph of the start-up culture in India has been disappointing. It’s true that more than two people can solve a problem in two unique ways – however, the beginning of 2002 saw innumerable players trying to solve the problem in the same way. The beginning of start-ups also gave one hope that they too can take on the world.

This inability to see beyond the illusion saw the fall of many promising start-ups and left a large number of youth jobless. Today, job seekers have become cautious and prefer joining an established organization rather than a start-up in its initial stages.

Read More: How to set up Business in India?


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