May 06, 2007

Issues with starting up in developing countries

Atif comes out with a beautiful article about the problems of starting up in a developing country. He seems to be back after three years, but looks like he's still in touch ;).

Here are the main points that he mentions :
1. Political stability
2. Government Oversight
3. Financing


Here in India, things are almost similar to the countries that he is discussing about ie Pakistan, Nigeria, Bangladesh. Ofcourse when I compare, Political stablitily is still not that much of an issue. Military comes in once in thirty years, which gives you enough time to plan.

Government is a problem. It takes three weeks to register a company in the US. In India it takes well over a month, no matter what they say. Everything is supposed to be online now, but it still takes a lot of time. And the reasons are aplenty. From websites not handling the load to issues with getting registered at the government office. More so, since the government started taxing pass through income, it seems things might get a little more difficult. However, there are a few government initiatives coming up, like this, I am not sure I know too many people who rely on it.

Financing is also a problem. Starting up right after college is a complete no no because nobody would fund you to startup. Even after three or four years things are not as easy. Everybody looks for a team with a combined work ex of close to twenty-twenty five years, before they even think about giving you the money. Sadly, there is not much which can be done, and I hope things do improve as time progresses.