Why 90% of Entrepreneurs Fail- A Bold Truth From India’s Best Business Coach Mr. Suresh Mansharamani
Every month, thousands of startups emerge in India’s dynamic entrepreneurial landscape. Funding announcements make headlines every day, pitches are polished late into the night, and dreams are scribbled on café napkins. Behind this glamorous story, however, lies a harsh reality that is frequently overlooked: nearly 90% of Indian startups fail within their first five years.
This is a wake-up call, not just a statistic.
Mr. Suresh Mansharamani, one of India’s most reputable business coaches, is the one ringing that bell loud and clear. His story of going from having a ₹300 bank account to creating multi-crore businesses speaks for itself. He asserts that a lack of funding, technology, or even talent is not the main cause of startup failure. It’s a lack of critical thinking and clarity.
In India, the majority of business owners learn how to hustle. Put in sixteen hours a day at work. Attend events for startups. Start quickly and fail more quickly. However, Mr. Mansharamani refers to this as the “illusion of hustle”—a trap that elevates movement above direction.
A 2024 Nasscom study found that “poor business model” and “lack of product-market fit” were the main causes of failure for more than 70% of failed startups. The root cause of these misalignments, however, is that entrepreneurs frequently omit the thinking phase of the process.
“Founders tend to focus on “what” to build rather than “why,” “for whom,” and “what happens next.” Most journeys end there, says Mr. Suresh Mansharamani.
We are rewarded in school for learning answers by heart rather than challenging them. That habit becomes deadly in the business world. There is no shortage of engineers, coders, or MBAs in India. However, Mr. Mansharamani asserts that we are experiencing a crisis of thinkers.
He thinks that decision-making clarity is frequently the deciding factor between a failing startup and a scalable company.
Do you truly comprehend the issue that your customer is facing?
Can you make your idea work without money?
Does your team share your vision?
Are your objectives time-bound and quantifiable?
The majority of business owners don’t consider these until it’s too late.
A certified coach in the goal-setting methodology known as OKR (Objectives and Key Results), which was made popular is Mr. Suresh Mansharamani. He has assisted hundreds of startups in embracing OKRs as a way of thinking as well as a methodology.
“OKRs make you exercise critical thought. You cannot conceal yourself by being busy. You need to specify whether success is weekly, monthly, or quarterly. And magic occurs when you do that,” Mr. Mansharamani says.
By bringing teams together around a single, clear vision, Mansharamani’s coached startups have reported revenue growth of up to three times in as little as six to twelve months.
Another unspoken deterrent to Indian business? Emotion and ego.
“Founders often fall in love with their idea,” Mr. Mansharamani explains. However, “business is about what the market needs, not about what you love. I’ve witnessed successful products fail because the creator was unwilling to change course.”
He poses a harsh question to founders in his workshops: Who will miss your startup if it closes today?
You might not have established a legitimate business yet if you are unable to respond to that question.
Success isn’t a secret recipe, Mr. Mansharamani says. It’s a discipline. It involves repeatedly posing difficult questions. Monitoring results is more important than merely exerting effort. Above all, it’s about maintaining a relentless focus on providing genuine value.
He concludes by advising all would-be business owners to “avoid chasing money.” Seek clarification. Clarity comes before money.
It’s not the fastest or smartest who wins in a nation where millions of people aspire to create the next unicorn, according to Mr. Suresh Mansharamani’s audacious truth. It’s those with superior thinking, more astute planning, and clear execution.
And that might be the change in perspective that India’s startup scene needs.