EDGY START-UPS IN INDIA

India has the world’s third largest start-up ecosystem having grown from 450 business in 2014 to over 84012 start-up by 2022. India also ranks third in number of start-up unicorns (107) with a total valuation of $340.79 bn. Yet 90% of start-up fail within the first five years of operation. Though start-ups are opening new opportunities for employment and work, promoting diversification across various sectors, and giving a fillip to the "Make in India" initiative. However, there are several challenges that need to be addressed, including financing, talent acquisition, government interference, poor infrastructure, and risk mitigation measures.

One of the significant advantages of start-ups is their potential to generate employment. As a result, they create new job opportunities and contribute to economic growth. Additionally, start-ups tend to foster a culture of entrepreneurship, attracting individuals who are willing to take risks and contribute to the growth of the economy.

Diversification is another positive aspect of the start-up ecosystem. Start-ups are emerging in various sectors such as technology, healthcare, renewable energy, e-commerce, and food sector. This diversification helps to reduce reliance on specific industries and encourages the development of a well-rounded and resilient economy.

However, start-ups face challenges when it comes to financing their operations and growth. Access to capital is often limited, especially for early-stage start-ups that may not have a proven track record or collateral. Encouraging investment in start-ups through venture capital, angel investors, incubators and government initiatives can help address this challenge.

Finding the right talent is another hurdle for start-ups. It often require skilled professionals who are willing to work in dynamic and high-risk environments. Building a robust talent pipeline, fostering entrepreneurship education, and creating an ecosystem that supports skill development can aid in addressing this issue.

There is need for a dedicated institution to take care of unique needs of start-ups, as NABARD is for agriculture, SIDBI for small -scale industries similar government institution is required for start-ups whose needs are different from MSME & SME. It has to be a focussed institution catering to different requirements of start-ups. Nurturing young entrepreneurs, providing mentorship and handholding in initial months foster the culture of “Make in India”. For banks start-ups are untouchables, having no past record and experience, for venture capitalist these are raw institutions and they demand high equity for investment. Angel investors too like to maintain ‘social distancing’ with start-ups and the government schemes are too bureaucratic. Poor infrastructure, including inadequate physical and digital infrastructure, can hamper the operations of start-ups. Enhancing infrastructure development, such as improving connectivity, access to affordable internet, and reliable power supply, can create a more conducive environment for start-ups to thrive.

Mitigating risks associated with start-ups is crucial. Encouraging the development of angel investor networks, crowdfunding, incubators, and accelerators can help start-ups access mentoring, guidance, and resources to navigate risks effectively.

In conclusion, while start-ups offer significant opportunities for employment, diversification, and economic growth, addressing challenges related to financing, talent acquisition, government interference, poor infrastructure, and risk mitigation measures is essential. Collaborative efforts involving the government, industry stakeholders, and educational institutions can help create an enabling ecosystem for start-ups to flourish and contribute to the overall growth of the economy.