When you look at traditional industries in India, it is clear that many are bygone and monotonous. However, people continue to do business within these industries, because of, the absence of other practical alternatives. But when a startup emerges with modern technology, better investment options and wider market acceptance things start changing.
Startups are called disruptors due to the new business prototype, changes in market trends and demands along with the static and the blending nature of the existing industries.
Often entry of disruptors in the market makes an impact, thou some are louder than others.
Let’s have a look at a few disruptive startups.
Case study 1 – OLX
OLX is a free online platform that connects both buyers and sellers in the growing market to anywhere in the global. It facilitates the buying and selling new or used products, under a range of classifications, tending to personal and professional requirements such as electronics, fashion items, furniture, household goods, cars, bikes, real estate properties, jobs and so on.
This brand new model of Online Exchange disrupts the whole classified and used product industry.
Likewise, many startups have disrupted core industries namely Ola, Uber, TikTok, Knack, Planet, etc.
Startups are great disruptors, as they come up with an innovative business model to an existing business, in some cases, they re-visualize the entire organization modeling structures and strategic initiatives. Though mostly the changes are welcomed in the market, it still brings in a lot of confusion to the statutory or legal structure on which a particular organization/industry is built-on.
These legal non-clarities to applicable laws make the startup vulnerable to a huge extension for legal and statutory risks.
However great the business strategies are, Non – compliance is always deal-breaker with obstacle for the progress of a fast-growing startup.
One of the top disruptors of a Startup is not a new technology or another new startup, but it is non – compliance due to ignorance of applicable laws or changes in the existing laws.
No matter whatever the business is, Compliance is a non-negotiated deliverable which is should be the top priority for most decision-makers.
For example, if you are planning a startup model designed to bring about a
disruption in the construction industry then, it is mandatory to adhere to labour law compliance such as CLRA, minimum wages act and many other related statutory laws.
If you fail to comply, then it will result in penal consequences, imprisonment of directors, financial liabilities and even business closure for the Managing Directors and other partners.
As an emerging enterprise, make sure your startup is not interrupted by the
Some of the common norms startups fail to comply are Labour Law Compliances, Audit Compliances, Statutory compliances and much more.
To ensure 100% compliance, it is advisable to approach an Industry expert in the compliance domain like Aparajitha, who offer complete last-mile assurance through their end to end service solutions for across 44+ industries along with an online e-compliance platform through their Tech enables compliance solutions.
Furthermore, hiring the professional compliance consultant will assure you to stay away from legal consequences, penal litigations leading to financial,
the prosecution, reputation risks, and startup failures.
Contact us now at:
+91 99524 06408