4 challenges to overcome to fully realise the potential of India’s young entrepreneurs
The Indian economic landscape has rapidly changed over the past few years where new business ventures have begun asserting their existence. As the jobs in organized sectors are limited and require certain proficiency and skill-sets to reach a benchmark, the preferred means of livelihood for the youth is increasingly becoming entrepreneurship or self-employment. Small-sized and medium-sized businesses are being incorporated in a plethora of sectors with dynamic speed to deliver products and services to the customers better and faster. Indian policymakers also foresee the rise of young entrepreneurs with the rise of the new digital economy in the country.
Much like the adult entrepreneurs or industry veterans, young entrepreneurs of India have a positive vision, unshakable determination, the willingness of risk-taking, and a creative outlook towards business development and management. If they are provided with adequate resources and given room to grow, they are capable of significantly contributing to the overall GDP growth of India.
Starting with a small B2C (business-to-customer) business, many potential young entrepreneurs have enlarged their business scope and emerged as successful B2B businesses in the last decade. However, India still needs to nurture the young entrepreneurs to facilitate the speedy growth of the Indian economy. As of now, the aspiring entrepreneurs face multiple challenges when they step out to begin a new venture:
Formal business knowledge
One trivial idea for solving a trivial problem can become the cornerstone of a successful business in the future. One small idea turned into a great business concept can positively impact millions of people, change their experience, and improve the local economies. All that is needed is a formal business education and knowledge that will help the bright minds rightly implement the idea. Samsung has set up over 200 tech institutes to train young entrepreneurs on how to manage their startup business. The bigger companies can incorporate the same in their CSR strategy as India needs more initiatives like this.
Need to expand the narrow range of sectors
As of now, e-commerce is the main player in the market, which attracts lots of young aspirants. The youth should be appreciated and supported whenever they come up with a distinct business idea, as the new venture could create myriad career opportunities for job seekers. An unbiased talent acquisition hunt should be organized in different parts of the nation to shortlist the deserving candidates who best fit the different roles.
Access to needed capital and resources
Access to capital is one of the pre-requisites for a millennial to start his/her business. Entering the market as a newbie fails to secure them the required loans from banks and other resources. Policymakers should support the youth at this stage where they must learn to build strong relationships with financial resources such as lenders, banks, financial institutions, etc. Also, the complex procedures involved in legal administration and taxes remain a great obstacle in the way of success for youth. Here, it is essential to simplify the process and guide the young entrepreneurs on how to start their business and sustain it.
Online business registration systems and a support office should be set up where young entrepreneurs can resolve their queries and issues.
Adeptness with digital technology and communication
Nearly half of the young aspirants come from poor backgrounds and are not familiar with the latest technological developments in digital communication. As this digital age is remarkably known for being effective in driving revenue and business growth, the youth should keep pace with the Digital India campaign. The government, corporate sector, and other authorities should take up the charge to educate the youth about the role of digital technology in business and marketing. Capitalizing on the ingenuity of young entrepreneurs can help develop productive businesses in India.
The well-established corporate entities should utilize their expertise to help budding entrepreneurs and their startup companies. On the other hand, the government should facilitate the creation of a business-friendly ecosystem where the youth get equal growth opportunities and better funding alternatives to set up their businesses.
Rahul Bahukhandi is the CEO of LaYuva, an online selling platform.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)