New Delhi : Startup India Mission, the flagship venture of PM Narendra Modi, aims at increasing self-employment in the country and boosting domestic business. Alongside, to achieve long-term growth of start-ups, the initiative also intends to organize and streamline the existing business structure of the country by introducing Startup India Action Plan and Policy. This includes a revised and simplified tax structure, RBI incentives, commitment to create a business-friendly ecosystem and ensure Intellectual Property Rights (IPR) by bringing amendments in present patent policies etc.

So when the atmosphere seems just right for a new business to start and fly, why most startups in the country are failing? According to a survey by social media community platform Local Circles, around 80 per cent of startups said that they haven’t benefited in any way from Startup India Mission.

As for the reasons cited in the study for such poor performances of the startups, lack of skilled workforce and funding, inadequate formal mentoring and poor business ethics came out to be the primary ones.

Interestingly, this insight comes at a time when ‘status report’ of Startup India reveals that out of 4,536 companies, recognized as ‘startups’ by the Department of Industrial Policy & Promotion (DIPP), only 74 could get approval for the tax benefits. However, at the same time, the report also suggests that with Rs. 605.7 crore promised to 17 Alternate Investment Funds and about 75 startups already funded, Government is a commitment towards its goal to strengthen startup India mission.

Apparently, despite Government’s support, somehow startups are failing to avail the benefits of current policies and incentives. Possibly this is because of widening gap between government policies and their understandings by the entrepreneurs.

So what exactly startups are neglecting?

According to industry experts, most startups in India are completely giving a miss to customer privacy and data security, leading to business failure. Says Abha Kashyap, Managing Partner,  Kashyap and Kashyap Law firm, “Establishing a business goes beyond making good proposals, availing tax benefits and understanding market dynamics. What entrepreneurs need to understand that we are living in the times of accessibility of services and information. While this framework is now crucial for the startups to conceptualize a business model, what they don’t realize that this, inevitably, also puts their own privacy at risk.”

In fact, the recent event about Facebook and Cambridge Analytica is a fine example to highlight the value of customer privacy and data security in a business set-up, no matter big or small.

“Key to a startup’s success is the establishment of a brand and maintaining its value, unfortunately, most startups in India often fail to see this broader picture. They don’t realize that once their businesses grow, they tend to get exposed to various legal challenges. This is why, to keep their company and employees compliant with laws, entrepreneurs should consult an experienced lawyer beforehand and not when they actually land in some legal trouble. This can save the startups a lot of time and money later in the process.” adds Ms Kashyap of Kashyap and Kashyap Law Firm.

However, entrepreneurs should know the importance of expert legal advice to maximize their chances of success by getting expert legal advice right at the beginning.

“Kashyap and Kashyap works as a part of the startup team, providing strategic advice and proactively managing their daily legal requirements. This gives startups the opportunity to partner with lawyers who are totally committed to their business and success,” says Ms Kashyap.

Experts point out that with changing business structures, such collaborations are extremely crucial for startups where they have a legal mentor that can control startups in their everyday choices and save them from tumbling off.