A STUDY ON FINANCIAL CHALLENGES FACED BY STARTUPS IN THE EDUCATION SECTOR

The rapid expansion of startups in the education sector, particularly driven by technological innovation, has transformed traditional learning systems. However, despite strong growth potential, education startups encounter significant financial challenges that hinder sustainability and scalability. This study examines the financial constraints faced by startups in the education sector, focusing on funding accessibility, cash flow management, cost structures, and revenue uncertainties. The primary objectives are to analyze the relationship between financial constraints and startup performance and to evaluate the impact of funding limitations on growth prospects.

The study adopts a quantitative research approach using secondary data collected from industry reports, startup databases, and financial disclosures over a five-year period (2019–2024). Statistical tools such as correlation and regression analysis are employed to examine relationships between variables. The findings indicate that limited access to external funding, high customer acquisition costs, and delayed revenue realization significantly affect financial stability. Moreover, dependence on venture capital exposes startups to volatility in funding cycles.

The study contributes to the existing literature by providing empirical insights into financial bottlenecks specific to education startups, offering practical implications for investors, policymakers, and entrepreneurs in designing sustainable financial strategies.