4 Reasons to Support the Startup Ecosystem in India

Talking specifically about India the rate of unemployable youths is very high. Due to the Covid-19 pandemic, a major percentage of the population lost their jobs as well. The government’s initiative helps Indians to encourage start up’s which will increase the rate of employment by providing jobs to people. It results in many people starting their own ventures and also the government has come up with a lot of plans to help people daring into this field. To give an example, So, once you start you will have to create a team thereby hiring lots of people, you will start taking services from different vendors and thereby employing them. Starting a business will not only ensure employability for many but also provides opportunities to many tertiary agencies or people which include logistic partners, security agencies, and any other services that the firm does not directly operate. It’s like a win-win situation for the government by helping a single firm, government ensures that many people are benefited.

1.?Start-ups are job creators :

Employment is the most important reason why the government is encouraging start-ups. Self-employment reduces a lot of unemployment rates and the government is facing much trouble in getting it down. Almost 35% of the country’s population consists of youth. This makes it more necessary to deal with the growing issue of unemployment. Millions of young, educated, and qualified people are desperately looking for jobs in various streams. The problem is becoming more complex with the boom in population growth. Moreover, having more manufacturing industries in the country will increase the GDP, and revenue streams keep flowing in the country rather than to foreign countries. The government focuses more on the manufacturing sectors, pharma, and IT rather than other sectors because of these reasons. Hence, new businesses can play a vital role in generating employment for the country’s youth. Every new business has tremendous potential. If businesses start cropping up in every nook and corner of the country, they will provide jobs to millions of talented and qualified people who need them.

2. Start-ups are our society's innovation labs :

In recent years, the social impact of start-ups' innovative ideas has gained traction all over the world. India is no exception. Numerous innovations for the advancement of society and the environment are on the rise in the country. A large number of start-ups are seen leveraging technology to build sustainable solutions to bring about an impact. Indeed, there is a new surge of social tech entrepreneurs in the country working to solve India’s long-standing social issues. Focusing on the Covid-19 crisis was an opportunity for start-ups to come up with innovative solutions to shatter this pandemic. During the coronavirus (COVID-19) crisis, start-ups have continued to play a critical role in economies. Some innovative young firms have reacted fast and flexibly to the pandemic, and have been critical in helping many countries shift towards fully-digital work, education, and health services, and have provided innovations in medical goods and services. A?few examples?include: adapting commercial products such as snorkeling masks to be used for oxygen provision in hospitals; launching a range of digital health services, including COVID-19 trackers, remote patient monitoring, and remote consultations tools; introducing “no-contact” food delivery; and providing artificial intelligence solutions for researchers and scientists, remote working tools, or online learning and entertainment, in some cases provided free of charge. These social impact start-ups have started to gain global attention and attract significant corporate investments from India and from across the globe. In addition, the government initiatives toward this sector have been impressive. Fund of Funds for Start-ups with a corpus of INR 100 billion is mobilized to extend funding support to innovation-driven start-ups.

3. Start-ups are academies of entrepreneurship :

Since India is?projected?to have the youngest workforce in the world by 2021, start-ups are working hard to tackle the country’s vast talent pool. If India’s youth has to be provided with gainful employment, start-ups have a role to play in hiring, training, and upskilling the workforce to prevent a skills crisis in the future. A Start-up acts as a school for entrepreneurs to develop good business management skills like technical skills, creativity, advanced digital marketing, financial skills, etc. It supports and provides resources for emerging business enterprises that have come to the spotlight with the success of its?newly-launched learning and development module for start-ups. The objective of start-ups is to make India a nation of job creators instead of a nation of job seekers. Start-ups serve as a platter of courses, resources, programs, networks, schemes, and all those necessary guidance and incentives required to unleash their entrepreneurial dreams. It also teaches them how to tackle a perplexing situation. Basically, it helps entrepreneurs adapt all leadership qualities making them future-ready to manage a business.

4. Start-ups are the agents of social mobility :

A Start-up is a chance for the underprivileged to give their ideas an opportunity to foster and give a boost to their small businesses. As most small businesses lack behind due to insufficient funds and not having proper education about how to manage a business. When climbing the ladder, we do not all start at the same place. This is particularly true when it comes to starting a company, given the number of challenges a start-up throws at you. those that are determined to launch their own venture add great value and chances of success by nurturing their talents through training. More entrepreneurial training and more social mobility, will prevent unemployment, and poverty and develop more intellectual brains.

The negative impact of the Covid-19 crisis on the major sectors of the Indian economy, the tech start-up ecosystem of the country is not immune to the havoc. One of the surveys concluded that 37% of the Indian start-up CEOs interviewed only had 6 to 12 months of cash reserves left in their bank. Although some sectors such as media and entertainment, Edtech, Hyperlocal essential services, and fintech have witnessed unprecedented growth in demand the overall impact on the ecosystem has been quite devastating. Also, the widespread uncertainty in the market clubbed with the curbing of Chinese capital inflow in the economy has resulted in an overall slowdown in the venture capital deal flow in the Indian start-up ecosystem. This is why it is vital for Government to support Indian start-ups by providing financial help and R&D facilities. Start-ups tend to be innovative and this creativity adds dynamism and progress to the national economy. It will make the country more competitive and improve economic and societal growth.