eCommerce Blog

eCommerce Blog – Opportunities in US and India (by Darpan Munjal)

Entrepreneurship in difficult times

Posted by Darpan Munjal On November - 24 - 2008
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It is about 6 weeks before Christmas. One can feel the holiday spirit in the air. However, something is missing. Even though one can see people shopping in the malls, there is a general gloominess in the air due to the worsening economy. The coming months look certain to bring more turmoil. Even if events do not turn out to be quite as bad as those of recent weeks, it is still highly likely that we will – in the words of US treasury secretary, Paulson – live in “extraordinary times” for quite some time.

Obviously this is not good news for online retailers. Although the US online retail has been hit much harder, there is clear evidence that eCommerce in India is slowing down as well. The question has now shifted from “will the internet economy be affected?” to “how bad will the internet economy be affected?

There is no question this downturn will be deadly for a considerable number of internet startups. However, some of the victims will not be killed by the recession itself; many would have inevitably failed because they didn’t have a sound, fundamental business case to begin with. A recession that makes it harder to generate revenue and to raise additional capital will simply speed up the dying process.

However, I am an optimist. I think there are plenty of reasons to believe that Read the rest of this entry »

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