Start Ups Environment in India
Funding for new entrepreneurs has become more easily available, with angel funds, High Networth Individuals, Venture Capital moneys, etc ready to deploy investments into new companies.
The Indian economy is now firing at a high level, at around 7.50 % annual growth rate. This is the best among large economies, and has surpassed China, albeit at a lower size. With reforms gathering pace, this is expected to get to 8% next year. For a $2 trillion economy, this translates to around $150 to $160 Billion addition to the economy every year. The most exciting new lever of economic growth is the recently emerging phenomenon of Start Ups and Funding. Almost every college student after completing whatever education they have done, is opting to set up a new outfit, a start up, either singly or in a group of 3 or 4. Or joining a start up. There are about 4 million students graduating every year in India. Imagine the start up ecosystem system if a large chunk gets to become an entrepreneur. There will be many who don’t succeed, but many will too. Funding for new entrepreneurs has become more easily available, with angel funds, High Networth Individuals, Venture Capital moneys, etc ready to deploy investments into new companies. The Government of India as well as State governments are also supporting, providing start up capital, ease of doing business, bringing in reforms in rules and regulations, etc etc. Other countries are beginning to sit up and take notice and their country funds are getting into the act.
There was never a better time in Indian history to get into business venture rather than opt for a job. And it is just the beginning. Several ‘Silicon Valleys’ are getting created across the country, its not just one region or city. Each city and smaller towns are producing entrepreneurs and there are already hundreds of angel funds and investors across India exploring deals. It’s a great match of money and (ideas and effort) to start new things, products and services. Banks would never support such intangible assets because their DNA is collateral for loans, not equity investments. So the new start up funding brings a new class of entrepreneurship.
In between entrepreneurship and funding, there is currently a gap which is of service providers, coaching and training support systems for first time entrepreneurs, calling for experience mentors and much more. The investors normally do not provide such inputs. Chambers of commerce and other bodies like CA and Company Secretary groups need to fill in this gap, such that start ups can tap into their help to solve real world problems they encounter along the way. Management colleges also need to change their curriculum to take into account this real need.
This start up fever need not be limited to fresh college pass outs. Even if you are between 30 to 40 years of age, you have a greater opportunity to become an entrepreneur. Having a 10 year experience in some job gives you an insight of the problems in business, and prepares you with advance knowledge to set up a business. Go for it because you are best placed to run your own show.
This is all just the beginning, a long way for India to go but Just Do It.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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