Thursday, 17 October 2019

Many Startups Fail, State Minister: That's Business

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Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - The Communication and Informatics Ministry’s directorate general of informatics application, Semuel Abrijani Pangerapan, said that the competition in the digital era is overly competitive and involves many parties, but is normal to witness failures of startup companies. 

    “Maybe the success rate in the global stage only constitutes 2 - 3 percent because the market is already overly saturated. Not all businesses end up succeeding, let alone startup companies. That is business,” said Semuel at the BPPT headquarters on Wednesday.

    According to Semuel, the startups that fail not only are caused by a limited amount of funds but also because of forming a new business model that sees startups join forces. 

    He exampled technology giant Google that initially went through many ups and downs prior to its current situation. “Why has Google ended up established. Well, because of [joint ventures],” he said. 

    He asserts many reasons are to blame in a startup’s downfall, which can be caused by running out of funds, not having a clear market, and the lack of innovation, among many other reasons which all depend on the unique condition facing the startup itself. 

    Previously reported, the Research, Technology, and Higher Education Minister Mohamad Nasir claim to have made way for the emergence of 1,307 startups during his 5-year tenure in office.

    EKO WAHYUDI