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Indian Start-ups: Past and Future

Published in General Thursday, 23 November 2017 12:28




A Start-up is a young company which could  be an entrepreneurial venture or a new business, a partnership or temporary business organisation designed to search for a repeatable and scalable business model. An Infosys co-founder has defined a start-up as a business which is within the first three years of existence, employing 50 people or vless and generating revenue of INR 5crore or less. These are broadly 3 stages of the start-up lifecycle: pre-start-up, start-up and growth.

 In a pre-start-up, a potential scalable product is identified and it hits the market leading for the first clients. In start-up stage, the entrepreneur starts to define his//her business model and always  will try to increase to customer base. Moreover, it also pushes the growth of business to grow in sustainable manner. In growth stage, problem derived from global dimension  that business has achieved is maintained and faced as well as decision to sell start-up to a giant and acquire huge resource is also taken. A start-up ecosystem consists of support organisations, big companies, universities, funding organisations, service providers and research organisations.

A start-up financing lifecycle mainly consist of three stages. In first early stages, start-up rely on angel investors and seed funding.In second stage, venture capital comes from large institutional funds. In the later stage, private equity funds together with public market provider large amount of liquidity. For effective operational management for start-up, these aspects should be taken care of: Process and system development, managing business performance as well as strategy and organisation.

IBM released an entrepreneurial study on 18th may 2017 conducted by IBM Institute of Business value (IBV) in collaboration with Oxford Economics, To understand the rapid evading Indian Startup ecosystem and it effect on economy in that survey they found that 90% of the Indian startups fail in their 5 years.

Top Road Block for Statups

Lack of Creative Innovations-Creative innovative ideas are the stepping stone of all successful organisation but in Indian startups have technologically lack of innovative ideas. Many Indian startups Lack pioneer innovation based on new technologies or unique business model. Indian startup are vulnerable to imitate the already existing global ideas.

Most of the startups are self or family funded with limited workforce which makes it difficult to maintain records. Both financial and operational funding because of has there is no credit history of the firm. Startups are not about mitigate the revenue hence it’s struggling in the competition.

Lack of skilled workers – India having the high youth population still India face the lack of skilled workers. 80% of Indian Engineering graduates are deemed unemployable and 48% of employers in India face difficult in filling vacancies.

Proposed solutions

For being entrepreneur just out college or inexperienced people they don’t have any knowledge regarding business and market scenarios. This only overcome through the proper training and organised system. A person want to be an entrepreneur he or she should get pre training and exposure during in education. The government should ensure the pre training and infrastructure availability to entrepreneurs.

We want to generate employable skilled people. We need to capitalise this resource. We want to install entrepreneurial skill development institutions.

Government should the financial security to small scale startups. Most of the innovative small scale projects are fear to install due to the financial hurdle. If government ensure the financial security it will help to bloom small scale domestic startups.Strength lies in unity- among the startups entrepreneur need a unity having complimentary products can tie-up so there can be better execution of business. It will help to cut down the transport cost, better Utilisation of their machineries etc.

If the startup comes with innovative products, the government should ensure the intellectual property rights of the products of the company and never allow other party to counterfeit.The larger problems plaguing the businesses, such as the unorganised and fragmented Indian market, lack of clear and transparent policy initiatives, lack of infrastructure, lack of knowledge and exposure, complications in doing business, etc. are at least now being identified as issues that need to be addressed. The framework and course of regulations need to be updated and adopted as per the times. The right policy matter announcements by lawmakers can be a push. In times like these, pro-reforms announcements are required to provide the much needed impetus to the general business environment in the country in the startup space. To create awareness and building an entrepreneurial environment, a lot of emphasis should now be given to creating infrastructure for mentoring startups. Various stakeholders such as the government, corporate, educational institutions and others are and should join hands to build a better ecosystem for young people.

The start-up is a trend that is going to last. A lot need to be done but it will grow with time and help the economy to grow. Investment, social restrictions and others can be problem for the growth trajectory but the numerous success stories, reforms in economy and increasing need of people will lead the show and help the innovators to come up with new idea by supporting them in their experiments with ideas. The failure rate of startups in India is 90% in recent years which is an issue of concern but in recent years, economy of India has also been affected by demonetisation as well as GST. We need a special care and help the startups to grow big. In long term its grown startups will change the face of India


Abhinand A.M, Sachin Kumar an Pramod singh (20 November 2017)  


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