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technical oriented entrepreneurs and giving them a suitable guidance and practices to mould
the creativity mind of the young talented people. It may reproduce the skills and abilities of
the technopreneurs to generate vigour added new technical products and services; and also
they can eradicate the existing products with some technically advanced thinking.
Start-up India, the ruling party of the nation announced this scheme in the beginning
of the year 2016. This scheme grasps lot of freedoms to the entrepreneurial pitch. It includes
tax benefits, easy patent rights, relaxation of norms, financial assistance to the fresher,
incubating centres for the creative thinkers etc., The Indian government is setting a right path
and plans to construct an online gateway and mobile apps to share the messages and
information to the society includes investors, business peoples, title sponsors, incubators,
mentors and the governing body too. It is highly flexible to access the information freely by
the users and seekers.
Tech start-ups are leading the addition of start-up ecosystem and it is ready to boost
venue generated by information technology and business process management sector by
almost twelve to fourteen per cent for the current financial year. India witnessed the largest
mixture of capital from overseas through venture capital funds in the year 2014 by the native
start-ups (Mithilesh Kumar Sinha, 2016). India records the emerging start-up ecosystem in
the world. Evaluating the last few years, India has turned up from being the fourth largest
ecosystem in the world to the third largest. If this phase continuous, next two years by this
time India might be at the second top most in the start-ups. India experiencing the fastest
growing start-up base and stands third in science and technology after United States and
United Kingdom respectively. In particular, Bangalore ranked fifteenth among global start-up
ecosystem.
Start-up
Nation
2015 2020P
US 48,000 83,000+
UK 5,000 7,900+
India 4,400 10,000+
Israel 4,100 4,750+
China 3,500 10,000+
Canada 3,100 6,200+
Australia 1,320 2,800+
Germany 1,175 2.525+
France 1,050 2,300+
Brazil 775 1,650+
Russia 650 1,375+
Netherland 575 1,250+
Source: Momentous Rise of the Indian Start-up Ecosystem, NASSCOM
Start-Up
In general, start-up is a young concern which could be an entrepreneurial attempt.
Solid or provisional organisation designed to create some better turnover with nominal
earnings or profit. It may be a dynamic company built on technology and innovation wherein
the founders attempt to capitalize on developing a product or service for which they believe
there is a demand (Debaprosanna Nandy, 2016).
In governments point of view, the meaning of start-up may differ and it formulated
that, Start-up is an entity (Private Limited Company or Registered Partnership Firm or
Limited Liability Partnership) shall be considered as Start-up. The organisation should
come under 5 years from the date of its registration. The total turnover (turnover as under the
Companies Act, 2013) of the organisation should never cross 25 crore of Indian rupees in all
five financial years. The organisation might be working towards innovation, expansion,
distribution and fascination of new products and services composed by science and
technology. The organisation should not be a combination or renovation of a business already
in the society. A proprietorship or a public limited company is not eligible as start-up
(Ministry of Commerce and Industry, 2016). Only private limited company is allowed to be
accepted as a 'start-up'.
Multiple indicators point to the fact that this eco system is not only undergoing rapid
evolution, but is also becoming increasingly attractive. Various central and state government
start-up initiatives are further supporting this progressive phase of start-ups in India. This
maturing start-up ecosystem is contributing to the Indian economy in multiple ways. In
addition to enhancing the lifestyle of citizens, start-ups are creating innovative technology
solutions that address key problems that India as a country face around power, healthcare,
employment, and education (Pari Natarajan, 2015).
Demography of Start-up founders
Depends on Age Education
Below 25 years 16% Engineering Graduate 35%
26-30 years 26% MBA Graduate 26%
31-35 years 31% Other Graduate 15%
36-40 years 15% Other Post Graduate 10%
41-45 years 6% Engineering Post Graduate 4%
Above 45 years 6% Others 10%
Source: Momentous Rise of the Indian Start-up Ecosystem, NASSCOM
10,000 Start-up Programme
NASSCOM initiates to produce more than ten thousand start-ups by the year 2020
and in the list, most of them are purely from technology oriented start-ups. India has the real
potential and unpredictable sphere to become a start-up nation. Since 2010, The Indian
technology start-up background has seen a tremendous growth towards creation of innovative
start-ups. India retains its special place to the new breed of young start-ups. It clearly shows
that India having the electric opportunities to become the third largest base of technology
start-ups in the universe. In this obligation, NASSCOM receives more supporters includes
Google for entrepreneurs, Microsoft for ventures, Kotak Mahindra Bank, IBM and Amazon
Web Services.
Sharing of 10,000 Start-up
Tech Start-up (43%) Non-Tech Start-up (57%)
Engineering 969
E-Commerce 1419
Construction 741
Government will set up incubators across the country in public private partnership,
centres of innovation and entrepreneurship (including start-up centres) at national institutes to
provide facilities to start-ups and new Research Parks in IITs. Government will also provide
the requisite training to potential entrepreneurs in various technologies as well as seed
funding to potentially successful and high growth start-ups. Special emphasis has been given
to promote the biotechnology sector in India. A special setup of bio-clusters, bio-incubators,
technology transfer offices and bio-connect offices in research institutes and universities
across India (Rupesh Mishra, 2016).
Top Holders
The solid interest of the government to implement the start-up programme in India. In
the meantime ministry of commerce and industry takes necessary actions for the perfection of
the series. These enormous benefits will be experienced by most of us. In particular, the
metro cities named Bangalore, Delhi and Mumbai are the most beneficiaries of the start-up.
Bangalore alone seized twenty six per cent of the total advantages of the programme. By this
practice, Bangalore witnessed more number of start-ups and investors and also in amount of
funding. So, the government plans to assign lot of incubation centres and technology parks
there. Delhi holds another twenty three per cent of the start-ups from the rest. Delhi mainly
focuses on e-commerce and aggregators. Mumbai stands third in the list with seventeen per
cent of the start-ups and highly deserves its success. Hyper local is the main spotlight of
Mumbai in this battle. More than sixty six per cent of the entire start-ups were shared by
these three skippers of the nation.
5 4.8
4.5
4
4
2 1.5
1 0.8 0.8
0.5 0.5 0.4
funding from the government. This start-up ecosystem facilitates making ease of investors,
incubators and accelerators spaces.
Start-up* Investment#
Paytm 680 Mn
Ola Cabs 625 Mn
Snapdeal 500 Mn
Ecom Express 133 Mn
Oyo Rooms 100 Mn
Freecharge 80 Mn
Antuit 56 Mn
Big Basket 50 Mn
Homelane 50 Mn
* Top Start-ups in the year 2015
# Millions in US $
Source: Start-up India - An Overview
Opportunities and Challenges
Start-ups having more opportunities to develop their business as well as facing
disaster challenges to sustain them in the competition. Talent, equity, government assistance,
friendly environment, new technologies, existing market, global openings are the great
opportunities for the tech start-ups and recruitment, scaling, access of funds, financial aids,
tight competition, political interference, alive markets are the charming challenges to the high
tech start-ups in the present situation.
World Bank proves that India is ranked 130th out of 189 economies on the ease of
doing business, 133rd on the ease of trading across borders and157th on the ease of paying
taxes. India is ranked 155th in case of starting a business. On an average, Indian businesses
need to make 33 tax payments annually with around 243 hours spent to prepare and pay taxes
in a year. In contrast, China requires just nine tax payments annually, while the US doesnt
trouble its taxpayers more than 11 times annually for tax payments. (Start-up India - An
Overview) Among South Asian economies, India makes the biggest improvement in business
regulations and increasing its distance to the extreme boundary.
The Indian culture has broken in people to look down upon failure. Entrepreneurship
is often about failing and learning from those failures and starting all over again. People need
to start accepting failures and allow second chances. Most originators of failed start-ups feel
that, lack of guidance and mentorship is a major reason for their failure. An important factor
lies behind failures and less growth of some organisations is the lack of quality adviser,
especially in terms of industrial knowledge and support. The subject of awareness should be
more evaluated on the environmental issues with their clients.
E Commerce Aggregators Hyper local Consumer deal Payments
Make
Sell products and Offer message Sell products to Offer a range of
payments
services through about goods/ remote/ smaller services
through
internet and services from areas with short targeted directly
software and
online several sources delivery time to consumers
hardware