I was really proud when I came to know the latest update regarding India which says that it is the third largest startup country in the world immediately after the US and the UK. This report has been released by National Association of Software and Services Companies (NASSCOM). It reminded me that India is always known for ‘Unity in Diversity’ for its diverse cultures. Who expected that a new culture could be, The Startup Culture!
The Startups started just from the point of view of cost-cutting in order to save themselves from getting to unwanted risky destination. However, beyond expectations these have given a perfectly new beginning to the Indian Subcontinent for this century along with its two companions: Digitization and Information Technology.
It strongly exhibits the quality of the youth in India. They have enough risk taking capability with appropriate determination to choose a path and walk on it till they reach their destination or can create one. There are many success stories of the startups after deliberate or planned failures or back outs in jobs. Surprisingly, there are women also who have not been behind in creating jobs and give stability to the economy. Some of them are LimeRoad, Zivame, POPxo, YourStory, CashKaro, etc.
When I searched for the numbers, it is a feather in the cap on our Economy. In 2014, it was 3,100. Presently, it is around 4,200 and if the growth rate continues, and can be 4 times in 2020. What I understand from these numbers is that it would have a direct positive influence on employment rates. These startups going to generate 2.5 lakh jobs which is definitely a boost.
What has made people to startup own business and leave corporate jobs?
Job Satisfaction is important for all of us but for this generation it is important to this extent that they can leave lakhs, incentives, lavish facilities, foreign trips, etc and are ready to work 24/7 in rotational shifts.
Innovation is the other rationale which has made the young minds to adopt the startup culture. So, the changes in our educational system are giving the fruits and the coming generations are thinking from a different perspective which is fortunately creative. These changes in private sector are backed by Atal Innovation Mission (AIM) and Self-Employment Talent Utilization (SETU) for the sake of taking the revolution of innovation to world-class.
Startup Culture defines it all. The basic differences of flat hierarchy, open communication and creative problem solving techniques as compared to corporate culture which has many rules and regulations, mission statement, strong hierarchy, etc. The corporate culture has many restrictions and on the contrary startup culture is totally different with bean bags, sofas for seating arrangements, glass cabins only, easy approach to the top management, etc. This culture gives lots of psychological satisfaction, freedom to express which in turn will reduce the percentage of people in depression in the corporate as every 5th person in India is suffering from depression.
Skill development and incubators centers in rural/urban areas
Prime Minister Mr. Narendra Modi’s initiative of National Skill Development Centre is working very systematically in 24 states of India in multiple districts in both rural and urban areas. There are training centers for skill development with a variety of courses. The top ten incubator centers are definitely in the metropolitan or semi metro cities for obvious challenges of accommodation and the scope of opportunities.
The rural areas are also not away from Government’s focus as these are the ones which require the most attention as 72% of India is in villages. Therefore, the incubation centers are trying their best even when there are challenges related to infrastructure, resources, training, skills, factors of production, etc so that the human resource can be trained.
It is really shocking for me to digest that 90% of the startups are focused in metros and some semi-metros. Bangalore tops the list with 28 percent followed by Delhi-NCR (24%), Mumbai (15%), Hyderabad (8%) and Pune and Chennai both 6%. The rest of the cities with startups are Jaipur, Ahmedabad, Thiruvananthpuram, Kolkata and Kochi.
The percentage of 10 is really less for 4,000 cities in India along with districts in addition. This is a big challenge for the coming decade. However, the good news is that the skill development initiative is a fine step to make people start businesses in rural areas also.
Business opportunity economy
India’s being an investment hub was for the reason that it is served as a great market of consumers. Almost every kind of product if modified a little and customized as per its culture can find a broad niche for itself. But in startups also India has already grabbed $6.4 billion just in the first 3 quarters of 2016, as found out by Firstpost.
Besides, Indian economy is growing in terms of creativity also as I read about a startup to train dogs, a startup for keeping pets when the family members are out, etc. This shows that this generation is all set to create opportunities for itself rather than waiting for one. They know how to self-analyze and come to a decision which often does not bring agreements from the near and dear ones in the beginning but eventually with their growth everybody likes their decision.
PM Modi’s Digital India Initiative
When on 2nd July 2015, the news came that Digital India Mission was going to be launched to make the people in India internet-savvy, I thought if it could be possible ever as most of the population lives in rural India which is around 80 crores. But I am proud to inform that the number of Internet subscribers has increased to 500 million and Haryana was the major contributor and it was awarded for the same.
Smart phone users also contribute in the digitization. In 2015, the number of smart phone users was around 200 million and it has grown till 300 million in 2017. This growth rate is commendable. There are applications with which many business plans work, digital marketing is a successful concept primarily because of smart phones. It is a revolution in the industry of Information Technology also which a close friend to startup culture.
Startup funding from companies
Startup Funding is not necessarily restricted to angel investors but there are well settled companies who are showing faith in the newbies without having any insecurity complex. For example Ratan Tata invested in Kaaryah in 2016, Mark Zukerberg has also been a part of the race by investing in Byju, a Bangalore based app with $50M, which is undoubtedly a big figure.
International giants like Google and Intel have also added their names on the list by not only helping the young entrepreneurs with finances but also with their experience and guidance. They look at them as great business opportunities. The reasons behind such collaboration can also be the no tensions of operations, management, working, etc but the business is going to give positive in return.
This is also good to know that the companies interested in startups are not restricted to a particular industry but it is from different industries as well . For e.g., Walmart, Target, Thomson Reuters, Goldman Sachs, Cisco, etc.
Cisco has done an amazing job by supporting 25 startup companies with various direct and indirect investments and it has invested $240 million which is really a huge amount. Cisco has been active for last 10 years and it has strong framework for startups.
In a nutshell, the great news is that Moody, a renowned credit agency has given a new credit rating to India which is ‘positive’ from ‘stable’. The success story does not stop here, Fitch, which is another known name to avail credit rating to countries has made India’ s rating as BBB. So, we hope we keep adding value to the economy as well as the lives of people.