Singapore – HubspotThe customer platform for companies on a scale, announced the conclusions of a study conduit by Medium Preview This explores the trends and innovations that shape the landscape of startups in Southeast Asia and India.
Despite the current global economic winds and Private funding in the region is moving to its lowest levels in six yearsThe start-up ecosystem in Southeast Asia and India remains resilient, demonstrating important signs of maturity. HubSpot’s new report reveals that in average, around half (53%) of the regional startups have been easier to develop their businesses in the past year compared to previous years. In particular, startups recognize the need to balance growth and profitability, most regional startups suitable than a clear path to profitability (98%) has become more important in the past year compared to previous years.
This resilience is characterized by an interesting dichotomy: while the geographic expansion presents challenges, 23% of startups had more difficulty in seizing new markets, the acquisition and retention of customers have become more manageable. Although 18% has mentioned that the acquisition of customers has become more difficult, more than half (55%) of startups declare the improvement of the acquisition and retention of customers. Increased competition (31%), stricter customer requests (31%) and access to capital (29%) were cited as the main challenges of customer acquisition from those who mentioned the acquisition of customers have become more difficult.
Laurence Butler, world principal director at HubSpot for startups, Commented: “These signs of increasing resilience bear witness to the spirit and entrepreneurial adaptability of the region. Although digital transformation has been an objective among SMEs in the region in recent years, the digital nature focused on modern startups has authorized them to adapt quickly to most startups on the market. Mark a change towards concentration on the main markets and the creation of solid customer relations, which are crucial for long -term sustainability. »»
Technology growth potential
The results of the survey also revealed that startups in the region have built a solid technological foundation and exploit their technological battery to collect, structure and analyze customers to stimulate business growth.
Almost all startups (99%) say they use at least one CRM tool, and eight out of 10 startups (81%) are satisfied with their technological battery. CRM platforms consolidate customer data from several sources, creating a single source of truth which allows brands to follow and precisely measure the impact or efficiency of their customer engagement efforts.
Consequently, 71% of the startups interviewed perceive that they have an adequate amount of data to identify the new growth opportunities for businesses. The collective use of data and technology helps not only to stimulate innovation and to establish better relations with customers, but can also have contributed to the improved resilience and adaptability of startups in the context of a winter of persistent global funding.
The report also revealed a disparity between the countries questioned. More than a third of startups (38%) in the Philippines have declared insufficient data on their commercial prospects and in the customer journey. Only 58% of startups in the Philippines indicated satisfaction with their technological battery, the lowest among all the countries questioned. This could have contributed to the inability of local startups to collect the right data for better decision -making and growth prospects. Almost half (48%) expressed that the growth of their businesses is more difficult than before, almost double the regional average of 25%.
In the midst of continuous economic uncertainties, the results collectively suggest that the most successful startups will adopt relevant technologies to collect and take advantage of customer data, increasing their growth or expansion perspectives.
AI is increasing, but talent is still broken down
The emergence of artificial intelligence (AI) fundamentally transforms the landscape of startups into Southeast Asia and India. AI is increasingly considered as a central element in future companies, the automation of repetitive tasks and the creation of new roles that require advanced skills. However, this technological progression comes with its own set of challenges, in particular in the field of talent acquisition.
Startups have trouble filling key positions, marketing (46%), customer success (40%) and sales and commercial development roles (38%) being the most difficult to hire among the control positions. For non-go-commercial positions, AI and automatic learning engineers are at the top of the list of roles that are most difficult to hire (35%), closely followed by data analysis experts (33%), product management (33%) and specific industry specialists (33%). Software engineers also remain in high demand (32%).
The cost and experience are identified as the main gaps in the region’s current talent basin. The other challenges include a lack of general skills among candidates and an inadequacy of expectations concerning remote and hybrid work arrangements.
The landscape of talents varies from country to country:
- In Singapore, the lack of diversity in the talent basin (41%) and the shortage of specialized technical skills (37%) are significant challenges, in parallel with the cost (37%).
- In India, limited experience in start -up environments (49%), disalcuration of expectations concerning remote / hybrid work (49%), a general shortage of talent (48%), the lack of general skills (47%) and high renewal rates (41%) are widespread problems, the cost being a major factor (50%).
- Indonesia reflects many trends in India, although challenges related to general skills, remote / hybrid work expectations and rolling rates are less pronounced.
With the shortage of talents showing no signs of softening, startups must rethink their talent strategies to overcome these obstacles. Solutions could include investment in the implementation of employees and reskulling by typing talent initiatives led by the government such as Singapore Skills programTaking advantage of remote work to access a wider talent pool and promote a culture that values diversity and continuous learning.
Future perspectives: the role of AI in growth growth
The majority of startups in the region (98%) agree that AI is important in their future strategy, especially among people in India and Indonesia. 73% of respondents in India and 63% in Indonesia have strongly agreed with this declaration, the highest feelings recorded among all the countries questioned.
Take advantage of AI offers several key opportunities for startups:
- Accelerate marketing time: 32% of startups see AI as a way to market products faster.
- Improve product delivery: 30% believe that AI can help deliver products more quickly.
- In competition with larger competitors: 30% see AI as a tool to level the rules of the game against the biggest competitors and the holders.
“Today, AI is considered the greatest most important economic opportunity since the start of the Internet, and data are AI currency,” said Laurence. “Residence in some of the fastest digital savings in the world, native digital startups in the region are well placed to exploit their established technological infrastructure and their quality data which constitute the basis of effective AI solutions. By taking advantage of AI, startups can quickly identify gaps in their commercial models, better anticipate customer needs and improve their overall ability to provide highly personalized customer experiences. ”
These results were based on the responses of 600 founders of startups and decision -makers of Singapore, Indonesia, the Philippines and India to understand their greatest challenges and growth possibilities carried out from February to March 2024.
Learn more about the Startup Pulse report on the official website here. For more information like this and useful advice for the founders, we invite you to join HubSpot for startups.
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