Why is service industry favorite for startups, why is that you see that the 100% of the startups are based in providing services and why not in to manufacturing. Well the reason is starting a startup in service industry does not require too much of funds to start with.

Being in the service industry if the market or the target segment or users accept the startups grows and it grows faster, but if the service is not accepted then the startup fails, but the financial requirement is not that huge.

For example starting a laundry startup does not need lakhs of rupees it can be started with minimum capacity and as it grows it can expand its capacity and grow.

Then there is also once more aspect where in the gestation period is also less that is time taken for launch of the services does not take time the maximum being just 3 to 6 months for a laundry service it takes before you hit the market and start the service.

In manufacturing segment time taken for product and launch takes time as there is gestation period, in setting up plant, machinery and various other legalities and also there is huge requirement of funds even before you start as there is the requirement of land labour and capital.

When it comes to service you need minimum infrastructure to prove your point and startup, for example a online meat startup does not need to have its own farm where it rears sheep and then need not have its own abattoir before starting its sales of meat.

All it needs is tie-up with butchersa website and get started off, increase traffic to site and increase orders either with word of mouth or basic advertisement and doing basic digital advertising.

But in manufacturing its not like that, you need to get into raw material and also have orders in hand before you get started and lot of other aspects.

Hence major of the startups are in service industry.