Jakarta, CNBC Indonesia – The failure of a startup business is being talked about by many people recently. It turns out that there are many factors that cause the startup company to not be successful.
One of them was revealed by the Spokesperson for the Ministry of Communication and Information, Dedy Permadi, that it came from managerial factors. This consists in the lack of experience and a clear vision of the founders of the company.
Citing the Failory report, Dedy added that another factor is the company’s lack of focus on running its business.
In addition, according to a report from CB Insight, the two main reasons startups fail is due to running out of funds [ran out of cash] and there is no market need [no market need],” said Dedy when contacted by CNBC Indonesia via short message.
CB Insight reveals 20 reasons for startup failure. The biggest factor is that there is no market demand with 42%.
Next there is also running out of money and the composition of the team that is not right. CB Insight also stated that failure can occur due to loss of passion until expansion fails.
The following is a list of these failure factors, quoted from the CB Insight report:
No market need 42%
Out of money 29%
Incorrect team composition 23%
Lost the competition 19%
Price or charge 18%
Unfriendly products 17%
Products without a business model 17%
Bad marketing 14%
Ignoring customers 14%
Product launched at the wrong time 13%
Loss of focus 13%
Disharmony between teams or with investors 13%
Pivot ends badly 10%
Loss of passion 9%
Expansion failed 9%
No funding or interest from investors 8%
Legal issues 8%
Not using network 8%
Burnout 8%
Can’t pivot 7%
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