Two-thirds of adults worldwide are currently thinking entrepreneurship as a good career choice.Meenakshi Krishnan
Government, business players, investors, policy makers and consumers co-evolve to shape the future of a nation’s economy. Demand, supply and the surrounding environment are inter-related. Together they act as a driving force of a nation’s economic evolution. But in all these cacophony, what is the status of Start-ups?
Reportedly, two-thirds of adults worldwide are currently thinking entrepreneurship as a good career choice. Worldwide, there are about 300 million initiators trying to start about 100 million businesses per year. Smoky conditions generated by Politics, government policies can act as big challenges for start-ups. The financial and regulatory requirements for branding, building etc for any business is dependent on the inflation, interest rates, laws, security, labour cost, government policies etc. Politics can generate uncertainty if they don’t foresee them. Algorithms can help them predict and act.
• Government – Political stability, laws, trade policies, security and safety
• Businesses – Leadership
• Investors – Funding ecosystem
• Economics – Socio- economic growth, inflation, interest rates
• Technology – Algorithms, innovations, networking possibilities, social media benefits
• Environment – Weather, climate, geographical influence
• Consumers - Buying patterns
Recent report indicates that almost 80 percent of the start-ups survived more than one year which is a far improved status compared to the grim reality of the previous years’ study as 50 percent failure within the first year. Start-ups today are the great benefactors as they stand high in chance to win and excel within short span of time through the right investment policies, funding ecosystem, culture and evolving digitalization. Start-ups today are prepared to accept fresh ideas and processes.
Start-ups in India are speed scaling with the fresh politics, policies, right people and right attitude and the willingness to adopt fresh processes.
India’s start-ups ecosystem is growing rapidly and seeing a dynamic shift due to opportunities pouring in terms of partnerships, learning, investment, hiring the right minds and above all the openness towards technology and networking. There is a transformation in the minds of entrepreneurs too. Exit options are getting better for investors. India sure is witnessing an allure for market leadership which creates an urge to expand geographically. Technology is again the top sector. The Government recently announced host of positive measures to boost up digital entrepreneurship in India.
Some of the top start-ups in India which managed to become a brand within short period include; Flipkart, Snapdeal, Ola, Paytm, Quikr, Zomato. The list goes on. “We see more early-stage entrepreneurs in the 18-44 groups than any other age range in India. About 34% of early-stage entrepreneurs are women,” stated Global Entrepreneurship Monitor report.
• Funds of Funds: This is a big boost to start-ups. Rs. 10,000 crore and up to 2,500 crore of initial corpus
• 1-day to incorporate company via Mobile App
• Exemption of start-ups from labor inspections for the first 3 years
• 90 days exits for defunct Start-ups - A major step towards simplifying to do business in India.
• Capital gain taxation
• Tax exemption for 3 years
• Credit guarantee funds for loans
• 80% rebate on the cost of filing patent
Startup India is again an initiative announced recently by the Government of India to develop a strong eco-system which encourages new ideas and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities. The objective of such a plan is to reduce the regulatory burden on the start-ups; to create a one point contact for the entire start-up ecosystem; rolling out mobile app and portal; to create an awareness of the Intellectual Property Rights; easy wind up process; single platform; to provide funding support; to provide credit to innovators and to promote investments. Promises are also to provide national and international visibility.
This new initiative is expected to bring in more players into the market. This along with the internet of things can contribute to create a positive storm in terms of strategies, policies and other narratives of start-ups. Forecasts indicate that by 2020, there will be around 20.8 billion connected devices worldwide.
An old rule of running an organization does not appeal to the new technologies. It is the era of analysis, data and information. People have started dealing the real world with artificial intelligence. Algorithms are playing key roles everywhere in our life and it cannot be overstated. Today, key algorithms are used to shape our world, our start-up ecosystem. Studies reveal that political members are relying on algorithms and automation to sway public opinion. Financial institutions are relying on Algorithms to understand market fluctuations. Bots take decisions on order. Ecology is getting digitalized due to this. You buy a product, algorithms generate similar products which can be of interest to you; you swipe your card, a different set of algorithm spring to action. Algorithms bring sense to unstructured data, commonly given out by search engines. Several Governments are getting successful at implementing changes using related algorithms. It helps in understanding the influencers, navigate the arenas, direct policies and arrive at a comprehensive approach towards the nation’s economy.
As far as India, is concerned, we are seeing a larger trajectory of the socioeconomic shift. The adoption of new technologies, expanding growth of software industry, market reach, government policies, regulations, funding, geographical influence etc are the factors contributing towards the transforming growth of startups. “Indian start-ups today are well positioned to address the entire Asian market opportunity and also expand beyond the US and European region,” mentioned a report. India ranks third in the number of startups today. With right legal, physical and commercial infrastructure, education, training, market dynamics, accessibility to information, encouragement from cultural and social norms, there are enough scope for Startups today in efficiency driven economies, innovation driven economies and opportunity driven economies. Status is high and media attention is high. Go for it young achievers.
So, if you wish to start your own business, OpenXcell can help you in refining your ideas, familiarize you with the current market trend and help you to meet all your App development requirements. Go for it young achievers.