Are People Challenges Unique in Startups? Key Factors for Success in New Ventures

Dear All,

Are people challenges different for a startup organization compared to established ones? What are the three important factors that will play a major role in making a startup successful with respect to people?

Regards, Sudhir

You could have given more information about yourself. Why have you raised this query? Are you a student or a professional? Are you going to start a new company?

Startup vs. Established Companies: People Challenges

Startup or otherwise, people challenges are overall the same. Whenever a group of people works together, there is bound to be a difference of opinion or even conflict. In a startup, the issues are sorted out easily and promptly as the MD is accessible. In contrast, in bigger companies, the MD is unapproachable, and he gets filtered information from the people working around him. In bigger companies, I have seen MDs living in their own imaginary world. For startups, the owner's feet are on the ground until they take off.

Organizational Learning and Processes

Secondly, in well-established companies, some systems and processes are stabilized. By committing mistakes over a period of time, some organizational learning is there. This could be missing in startups.

Talent Acquisition Challenges

Next is about getting people. It is a little easier for older companies as some brand pull is there. In contrast, not necessarily will startups be able to attract talent, and they have to settle for mediocre people. This very mediocrity shapes the culture of the company and possibly becomes the reason for their doom.

Thanks,

Dinesh Divekar

Dear Dinesh,

Sorry, my bad... I'm a professional working for a mid-size IT services company headquartered in Bangalore. We are planning to venture into the product space, and therefore, we are establishing a new division within the organization. However, we do not wish to integrate it under the services banner to avoid conflicts of interest with our customers. The intention is to operate this new division as a separate startup unit.

Regards,
Sudhir