“The only thing worse than starting something and failing is not starting something.” ~ Seth Godin
Heard about startups ? Give it a read 🙂
With the recent developments in the fields of technology, E-commerce, Space, Agriculture, Robotics, Social Media, our lives have become much easier than we had ever imagined it to be. This was made possible by the visionary leaders who with their intelligence and abilities made the impossible possible. The changes were so rapid that we don’t really remember the time before them. And, hereby startups played quite a major role in revolutionizing our lives. Startup is nothing but a new venture (Company/ Partnership/ Anything else) which is established to bring ease in life of other people by making use of the latent technologies and employing their innovative ideas and hence taking the industry further. Silicon Valley is known to be the icon of Startup culture for aspiring entrepreneurs, more than 50% startups have been founded here (like Google, Facebook, Apple and the countless others). The culture of startups is getting over India as well, In the past recent years the record shows that around 800+ startups gets established in India annually employing over 250K people. It is the 3rd largest base for the startup community. Let’s have a look at the Top 20 global startup ecosystem ranking 2015:
Bangalore grabbed the 15th place out of 20. Bangalore is like the hub of startups, it’s the place where the story began; where people started getting engaged in startups and today we see a budding entrepreneur in each student everywhere in India.
Startups, nowadays, act as a driver in economic growth. Generation of more employment opportunities is the one immediate result of increasing startups. People working in a startup generally turn out to be efficient in all the fields, compared to the individuals working for big companies for a single department. The influx of ideas that come up with each budding startup results in a dynamic market, plus the new entrepreneurs are aware about their social responsibilities as well, so society as a whole is also benefitted. And lastly, they are by large responsible for the growth of a country, more startups mean more employment and more self- production, it solves the problems of both unemployment and trade deficit and hence providing aid in economic growth. Our honorable Prime Minister, Mr. Narendra Modi, called up the young entrepreneurs by rolling out the campaign “Startup India, Standup India”. Following the PM’s call from the ramparts of Red Fort, NASSCOM, TiE and IIM Ahmedabad hosted the first India-US Startup Konnect in Silicon Valley on 27th September, 2015. More than 30 startups were selected working in varied fields to present their products to Narendra Modi. This event was performed to give a boost to the startup community. When one person intends to do a startup, he looks at various aspects- infrastructure, feasibility, funding, future plans, human resource and the like. We say that half of the young population of our country is going abroad to start their business. India is losing out on its talented youth. But why? What still lacks in India? Let’s find out: 1. Administrative Roadblocks- The biggest issue with India is the problem of red-tapism. There are so many unnecessary rules and regulations, it takes plenty of time even to pay your electricity bill and here we are talking about starting a new firm. If we start off with the procedures of starting a business then there are around 12 procedures for the same, India ranks 158 here out of 189 countries once surveyed. If an entrepreneur wants to build a warehouse then he has to go through 35 procedures, and if say there comes up any commercial dispute then according to the survey it takes around 1420 days and 46 procedures to solve the same, and if somebody needs to export/import something, he has to wait for like 15-20 days to get the documentation done. No wonder why people don’t prefer investing in India. 2. Infrastructural Support- Next in the line is the infrastructure, resources like capital, manpower, technology are necessary inputs in the growth process. However, the efficiency of these inputs depends on the environment. They help to increase returns on investment by reducing production cost and improving efficiency. Focus should be on development of roads, regular supply of electricity and water, proper transportation system and the like. In the days of internet and technology, developing only physical infrastructure is not enough, we need to build up our electronic infrastructure as well. 3. Educational Support- In a country like India, from the very start we are told to be Doctors, Engineers or CA. According to our education system, these are the only prestigious professions. Nobody asks us to be entrepreneurs. Infact, the way our syllabus has always been designed it focuses more on the theoretical parts, we are always taught about how to score more. Nobody really cares here about the actual knowledge a person possesses. We have never been give workshops about skill development or any kind of entrepreneurship training. To boost the startup culture, we need to start from the grass root level and provide students with more of practical knowledge. 4. Legal Aspects- Policy-makers and implementers are expected to form such policies or procedures that will make the task easy for the startup entrepreneurs. Today, there are like 33 kinds of tax payments one entrepreneur needs to make. Simplifying the tax procedure is the need of the hour. Government was discussing upon the Goods and Services tax, which aims at integrating all types of taxes into one, I would like to add the importance of GST which has been put on a halt by the government for some time. As we know if one needs to startup his own business, he has to go through all the VAT registrations from the States’ Sales Tax department, and since each state has its different procedures it becomes really difficult for a business to operate in multiple states. After the introduction of GST, the tax procedure would be centralized and businesses would no longer need to obtain multiple VAT registration thereby improving the ease of doing business. Introduction of GST would bring more such reforms. Land acquisition bill which is still in consideration, can also unleash a series of projects aimed at reshaping crumbling infrastructure in cities, setting up industrial corridors, building smart cities, expressways and super-fast bullet trains – all of which are land-intensive projects. India ranks at 142 in ease of doing business which includes all the factors like the registration process, paying taxes, getting electricity connection, etc. There is still a long way to go in making India conducive for business ecosystem. Before inviting people to start their own business, India must work on various factors, them being: Market, Capital, People, Culture, Infrastructure and Regulations. In addition to this, we need to make people aware that failing in their startups is okay, because many people are still reluctant because they are in constant fear of failure. Yet despite such concerns, the big growth in the number of new Indian start-ups continues, as does the level of investment they are able to secure. A change in shift and mindset is clearly in progress which could be witnessed by being a part of the existing ecosystem, though in nascent stage. But then, Rome wasn’t built in a day and every transformation requires time of its own. In case of India, the transformation may last longer. But efforts like Digitalizing the whole India, starting up campaigns like “Startup India, Standup India”, Reduction in corporate taxes cannot be ignored as well. Indian youth is contributing its share to take the country’s economy to new heights. The young entrepreneurs promise a bright future for the country, so let us keep our fingers crossed.
(Originally published at Okonomos )