Startup Growth in India: The Potential
The Startups have a great potential in India, as a report by Nasscom-Zinnov states. It observes that India is the third largest startup contributor in the world- second only to the United States and United Kingdom. There could be a growth 2.2 times by 2020, which amounts to 10,500 new ones.
What are the ground results?
The Indian Startup ecosystem has a lot of rag-to-riches stories. Let’s look at one of these inspiring tales when it comes to software businesses:
Sridhar Vembu, the CEO of Zoho Corp. had a humble beginning in a middle class family, where his father worked as a stenographer in the High Court. His parents never went to college, but he understood the importance of education at this young age and did well at school. Then he enrolled in a Bachelor’s degree program specializing in Electrical Engineering at IIT, Madras. Later he obtained a PhD from Princeton.
Soon, he set up a business catering to the network equipment vendors. And then, he metamorphosed his company into an online applications provider.
His company never entertains capital from shareholders and successfully competes with Microsoft, Google and Salesforce.com. It is valued at $1 billion. There is an awe inspiring aura behind it as it competes with such computing and network giants.
How is the Government encouraging these Startups?
The government under the aegis of Prime Minister Narendra Modi has been greatly assisting the business of Startups through a lot of policies and frameworks. Here are listed a few of them:
- Self-certification compliance regime Instead of the certification being cumbersome for Startups and making them run pillar to post to get this work done, this regulatory burden has become cost-effective. The companies have to be self-certified with 9 environment and labour laws. Nothing more.
- Setting up of Startup India Hub This stakeholder in the thriving ecosystem of Startups will be collaborating with Central and State Governments, Indian and foreign VCs, angel networks, banks, incubators, legal partners, consultants, universities and R&D institutions. It will assist the Startups in financing, feasibility testing, market skills and will also mentor them with technical resources. It is tied up with educational institutions and R&D centres- be it government ones or private organizations. Startups will be effectively and thoroughly nourished and nurtured by this assistance of the Startup India Hub. This is a great sign by the government to herald a change in these budding businesses’ ecosystem.
- Seamless and easy registration of a firm With the setting up of a mobile portal and an app, the registration of a firm will be made simple by just filling out an easy form downloaded from the app. The registration application can be tracked for progress and the final digital version of it downloaded from the app.
- Fast patent examination This is done by Controller General of Patents Designs and Trademarks (CGPDTM) with lower costs than before and the government bears the facilitation costs.
Conclusion The Startup ambience being enriched by skilled talent pool and eased government regulations, the way these companies can go is only skyward. A conducive atmosphere like this one can bolster a business thoroughly with such added impetus.