Causes of startup failures in Pakistan.

Startups are considered key players in the growth and development of trade in an economy. The same is the case with Pakistan where startups play a crucial role in the growth and development of trade in the economy. But the challenging environment of Pakistan is creating hindrances for startups to succeed. Starting a business is difficult and launching a business is even more difficult where startups fail because of no idea and experience of market dynamics. In Pakistan, startups are born every day where few of them get success but most of them fail.


Ineffective collaboration in Teams

Collaborations are not a one-person show or a theatre for the ambitious. They are the mutually beneficial and well-defined relationship of two or more people or a team to achieve common goals. Few Pakistani startups become successful because they establish team goals, discuss why the teams exist, and allow each team member to express commitment. It is up to the leader to encourage collaboration and ensure the team works together.

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Poor management

In Pakistan, poor management is one of the main causes of the startup failures, because it increases stress level, and labor turnover, damage company reputation and reduce employee motivation like pressure by management to show “Facetime” and the lack of accountability in the job. Due to these reasons only, few Pakistani startups become successful because they set good examples of management and adjust their management style if it is not working well. In order to become successful, these firms develop effective relationships with the people they manage and support their staff.

economy graph falling

No market demand

The public of Pakistan is not much flexible to accept all the new products. People here stick to the same products and companies which they have been using for decades. Thus the first rule is to ask yourself, will the public accept this product or agency with a warm welcome? What would be the reaction of the public?  Most people didn’t do many surveys and start a business, which eventually goes bankrupt. The best t know the demands of the public is by conducting a survey. A survey can play a great hand in it.

Lack of skills

The other very important cause of startup failure is a lack of skill. People who start some new business must have experience in it. However one can also start a business without experience but he/she should have some firm knowledge regarding the business. The knowledge can be earned by meeting with people who have already got some experience, They can be your friends, neighbors or any relatives.

Startups don’t learn from their mistakes

Successful startups review their goals, analyze their failures in detail, list down all their mistakes, learn bigger lessons, and make positive effects to achieve the targets. But unfortunately, mostly Pakistani startups face failures because of poor judgment, as good judgment develops only by learning from mistakes.


There are many sleepless nights and sweating days behind the success of any startup. focusing on positive culture corporate, focusing on marketing and singular vision are few strategies that are contemplated during this journey. The trick of surviving in the market is a way to learn from the past and revise because it is an act of courage and the first step towards success.

-Muzzamil Khawaja, Student of MBA at Paf-Kiet

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