India has now become a hub for startups in recent years due to high growth rates and other factors. Many entrepreneurs like to invest in information technology, finance, software and other sectors to earn more money. The number is likely to increase in the future due to the availability of manpower and high government policies. A recent study indicates that India is growing at faster levels in the startup ecosystem which contributes more to the economic growth of the country. Startups offer many job opportunities for job seekers who want to start their career with the best salaries.
Reasons why startup ecosystem is booming in India
- developing markets
The market arises in India due to the information technology revolution and technological development. It is one of the fastest growing economies in the world because every niche product has the potential to sell in the markets. Not only that, but the income and purchasing power of the individuals are steadily increasing which made the startups set up their facilities in India. Moreover, the number of young people is rising and many of them are under 25 years old. As a result, they want to start a business or company with high ambitions. Some even work for leading multinational companies to gain work experience and learn other things that lead them to become successful entrepreneurs.
- Increase political will and government support
Various state governments in India encourage new entrepreneurs to launch a company or business easily. They aim to build a strong ecosystem in the Indian markets suitable for startups. Moreover, startups offer different types of jobs to engineering graduates and others which will reduce the unemployment problem. Both the central and state governments are making great efforts to support the growth of startups in India which will boost the economy.
- Technological innovations
Technologies are growing rapidly every day which reduces the cost of building digital products and other things. With the increasing number of internet users in India, people are very aware of everything easily. Moreover, R&D facilities in India allow new entrepreneurs to start their companies in special economic zones to get more concessions. They even show ways to start operations with the latest innovations in a better environment.
- Changing the perception of entrepreneurship
Most of the start-up owners in India are young people who have to put their ideas into action and seize the opportunities in the markets. They also have strong self-motivation, problem-solving skills, patience, and a desire to achieve goals in society. Startup founders will plan everything right and make smart moves for the benefit of the company. Apart from that, they know how to overcome risks and other problems after opening a business in India. The successful stories of new companies like Paytm, Zomato, Ola cabs, Oyo, Big Basket and Vedantu have completely changed the concept of entrepreneurship. Startups are earning more income these days due to proper planning, fund allocation, etc.
What are the challenges facing Indian startups?
Although startups are on the rise, they have to face some challenges initially when they want to plan their operations in India.
- Hiring qualified personnel
Hiring qualified employees can become a difficult task for many startup companies because some job seekers do not prefer them due to low salaries. In addition, they cannot compete with the compensation offered by the big companies in the markets. The majority of employees who work in start-up companies will switch to reputable companies to earn more income. The second reason is that many job seekers do not have enough skills when it comes to work and other things. The third reason is that highly qualified employees will move abroad for jobs.
Funding is one of the major issues faced by startups in India because it will take days and months to process the application. Banks need collateral documents when they want to provide loans to startup owners. Chances of getting instant funds are very low in India which will jeopardize operations.
- complex policies
The policies pursued by the state governments in India are very complex to understand due to the changing political environment. The majority of startups face difficulties in adjusting to bureaucratic processes due to basic criteria. Policies will change quickly and you will receive random notifications that lead to various problems.
- Lack of Marketing Strategies
Lack of marketing strategies is one of the major problems facing Indian startups due to cultural differences. They don’t know how to be geographically targeted while promoting a product or service. This in turn leads to losses and other problems that will affect the growth of the business.
- Unable to compete with big companies
Large companies have already entered the Indian markets to sell their products and services to the customers. As a result, startups are unable to compete with them which leads to survival problems.
The opinions expressed above are those of the author.
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