Why staff is sacked in startups in India: All you wanted to know in 10 brief points
Prime Minister Narendra Modi will launch the programme on January 16 to benefit technology-centric startups in sectors like healthcare, education and others.(Reuters)
1. In startups, as many as 3,270 employees lost their jobs in the past six months alone, as per a survey conducted by GrowthEnabler, an online mentoring and advisory platform for startups.
2. The survey says, on an average, companies let go 18% of their staff.
3. In 15% of companies, the staff retrenchment levels were above 30%.
Prime Minister Narendra Modi to highlight initiatives at Startup India Conclave
‘Start-up India Stand Up India’, a new initiative that Prime Minister Narendra Modi spoke about during his Independence Day speech in 2015, will be the government’s New Year gift to “young people” who want to set up new businesses or innovative projects. The government will formally launch the initiative on January 16 in an event that will see the participation of all major higher educational institutions through online connectivity.
5. If one looks at the funding pattern for start-ups, in the first 10 months of 2015 alone, 25 grocery delivery companies in India cumulatively raised over $160 million.
6. “The intense competition among funded start-ups hurts growth of all participants as they take business away from each other. Employees, hired on basis of growth projections, become redundant when start-ups fail to meet growth numbers,” says Rajeev Banduni, CEO of London-headquartered GrowthEnabler.
5. Ratan Tata: The government does need to step in and support (the startups). The question is how they will support and how justifiably they may take decision on whom they support and whom they turn down," he said in response to a query.(Reuters)
8. Reasons cited by companies include potential acquisition - acquiring companies mandating startups to reduce workforce before asset sale (5% of companies), need to streamline ops (10% of companies), automation (15%)
10. Start-up India: PM Narendra Modi said a start-up India 'hub' will be created as a single point of contact for the entire start-up ecosystem to enable knowledge exchange and access to funding
10. As some reports suggest, start-up employees often live under a constant fear of being a ‘victim’ of this ‘market correction’ exercise, leading to undue performance pressure and higher stress levels.
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