7 Top factors for startups success in India
Startup India is not a slogan, but it’s an initiative to reach the targeted goal within a defined time frame, to empower entrepreneurship and to join the global competition India must need to push up startups venture on a large scale.
Today, the United State of America and China driving the startups market, and Indian talent contributing to the world by leading many tech companies. The global companies, like Google, PepsiCo, Oracle, IBM, Microsoft, etc have many Indian talents in the key positions. Approximate 40% of the total Silicon Valley expertise belongs to Indian origin.
Today India is on the leading position with the fourth largest startups hub in the world. Indian tech latent now approaching the India-centric problems in the innovations. There is a big gap in the public demand and technology supply side in India. Availability of Huge opportunity and the Government of India’s focused on to create new jobs and opportunities in India to fulfill the public expectations.
Top 7 factors India is looking strong for StartUps
1. Unorganized sectors need technology support
Most of the Indian market segments are unorganized. No accurate data are available about non-organised sectors, the labor force, and the scale of works going on in these sectors.
Startups companies like OlaCab fill up the gap of unorganized taxi and rental car segments. OYO Rooms also functioning on the same formula, without having a single room OYO leading the low-cost hotel market today in India. Just by organizing SMEs of the sector. These are the best examples of how technology manages the unorganized business activities in India.
The growing middle-class population created new opportunities by expanding their spending. The sectors like healthcare, housing, shopping, retail trading, insurance, transportation, food, etc, are not correctly managed and huge technology investments needed in these sectors. These sectors are presently beneficiary of large demand growth.
All unorganized activities need to organize by the use of innovative technology, its a great opportunity for startups to go ahead to get the advantage. The startups which identify the unorganized retail sector and provide solution on time will be benefited.
2. Availability of talent, skilled workforce
As earlier said, 40% of talents of Silicon Valley belong to Indian origins. The tech-savvy education system and awareness to get a higher education were increased in the last decade. The availability of a skilled workforce is increasing at a larger scale in India. This is a big benefit to the startup’s activity in India.
Ones upon a time when Indians take clerical education to get government jobs. Today youth hungry for the higher technical education and availability of technical infrastructures, like computers, the Internet, technical institutions, incubator centers, etc, are spread with large scales.
3. Improvement in technology support
The availability of tech infrastructure for startups was improved. The Government also providing a support system to encourage StartUps activities and most of the state governments also opened Startups portals to ease the activities. Big technology hubs opening in cities like Bengaluru, Pune, Noida, Ahmadabad, etc. All basic infrastructures are available in these cities.
Universities and research institutions are further improving support services and developing research labs to support StartUps activities. IIT’s and IIM are now creating entrepreneurs and providing supports by establishing incubation centers and research facilities.
Availability of the high-speed internet in the entire country is a big advantage for startups. Smartphone user in the country grows with robust speed, and now these users are a tech-savvy customer of the startups. The high volume growth in the internet and smartphone users provide basic customer support to the startups.
4. The large tech-savvy consumer market
As per an estimate, the number of smartphone users in India is hit 337 million by the end of 2018 and would reach 490.9 million by 2022, the Statista Research report.
These users will use technology if provided to ease their lives and meet their requirements. The majority of the Indian public now using the internet for social media interaction but this may be diverted to actual use. This is the target group for StartUps to address their day-to-day problems and provide an easy to use solutions to fulfill their needs. The entrepreneur who has unique technology and a novel way of thinking will get the benefit of these conditions.
5. Governments initiative Startup India
The government of India started a portal for Startup activity in the country StartUp India. Startup India is an initiative in which the government provides easy registration, Financial support, Simplification in tax filing, support services, Improved Bankruptcy Code, Self-certification compliance. many states established their own portals to support and timely initiate action plans.
For the first three years government provide supports like:
- Freedom from mystifying inspections.
- Freedom from Capital Gain Tax.
- Freedom from tax.
“The Startup India scheme launched by PM Narendra Modi in January 2016, and to date, 18,861 startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT)”.Department’s secretary Ramesh Abhishek said
Atal Innovation Mission (AIM) is a Government of India’s flagship initiative to promote a culture of innovation and entrepreneurship in the country.
244 startups have secured capital of Rs 1,561 crores, while SIDBI has committed Rs 2570 crores to 45 venture capital funds from the Rs 10,000 crore Fund of Funds. This has catalyzed funding of over Rs 25000 crore,According to Dept Secretary Ramesh Abhishek
6. Developing Free social culture
India is a free, liberal and democratic country. Anyone can do the business with appropriate registration without any state-sponsored conspiracy. Like in China and Saudi, no hidden agenda or activities going on in India.
The government also tries to simplify rules and regulations to improve the business activities in the country, and all these initiatives will provide a better environment for the StartUps ecosystem.
7. Acceleration in Venture Capital Funding
Indian startups raise a record of $3.9 billion so far in the first half of 2019. The investments in 2019 are also relatively high to the full-year investments of $4.2 billion and $4.3 billion in 2016 and 2017.
In recent deals, the $16 billion acquisition of India’s online retailer Flipkart by US retail giant Walmart last year, lured more investors to India.
Indian Angel and venture capitalists are investing in Indian Startups with Global investors like Sequida, Softbank, Google, Alibaba Group, Tiger Global Management, Microsoft, etc.
Tiger Global had made smaller investments in the range of $4 million to $30 million in several B2B startups.Tweet
All of the combine factors are promoting the Indian StartUps ecosystem to grow by unusual acceleration. These are promising situations for the startups ecosystem and all are on the right track and need to collaborate with the best ideas and innovative technologies. India is a growing country that has many unsolved problems, which still need to address. These bigger problems provide a bigger opportunity for the entrepreneur.