Entrepreneurship has become an important factor to push the economic development and create new employment opportunities in the country. The countries where entrepreneurs can operate flexibly, develop their ideas, and reap the rewards are going to be greater economies in the coming time. A flourishing economy with new businesses means more jobs and more investment. The new trend of start-ups in India is creating a huge impact on jobs and economic growth and thus driving the next big business growth that will set an example to the world.
India boasts of a young demographic with a median age of 27 years and 65% of the population is below the age of 35. The playing field is wide open for ideas to be cultivated and find talent in a multitude of the youth population. Over the years, India has become the breeding ground for new startups and innovations. According to a report by NASSCOM, the Indian start-up ecosystem has witnessed tremendous growth and created 80000 jobs in the country. By the end of 2015, the number of startups had crossed 4200 with a 40 percent growth.
The maturing Indian start-up ecosystem is now contributing to the Indian economy in many ways and has become the third nation with the fastest growing base of startups across the world. In last 5 years, small businesses and start-ups remain significant sources of new jobs in India. Additionally, the changes in lifestyle, disposable income, culture, and preferences are some of the factors that are fulfilling the evolving needs of the economy as the country moves towards to become a developed economy.
One of the factors that contributed the most in start-up growth is the change in mindset of potential talent to moving away from traditional job profiles. With a zest to learn on every single step and create something on their own is what that driving the talent to go for start-up job or create their own business. Also, the attribution of the bulk of net job creation to start-ups arises largely from relatively large job losses at big companies. As Indian economy is creating new benchmarks each year, the reverse brain drain has begun given the increase in opportunities and a global focus on India a global business superpower. Apart from positively impacting the business scenario of the country, start-ups are now creating innovative technology solutions to address the key social problems that country is facing and creating significant growth opportunities for every stakeholder.
To continue this growth, the need of the hour is to build solid business ideas with a strong management team, which knows how to attract and train talent. The government should provide essential vocational training for blue-collared workers to be gainfully employed without educational degrees. Additionally, the organizations such as NSDC (National Skill Development Corporation) can play a very active role in brushing up the talent. Another important aspect is to strengthen the quality of educational institutes and research to give rise to leaders who envision and create businesses.
In another step, the opening up of commerce by government initiatives and giving startups a level playing field as other companies to perform can be a booster to pump up the start-up culture in India. Furthermore, the incentives targeted to help such startups sustain in their formative years can be a great mechanism.
However, the creation of jobs is not enough unless such jobs can also be sustained. Therefore, continual training and a growth trajectory is essential for employees to maintain the sustainability. Hiring is a pain point even for larger companies today. Thus, finding the right talent needs to be facilitated by building the administrative backbone of consultants, online recruitment startups etc. Further, the rise of startups also employs indirectly via engaging more consultants for taxation, accounting, business structuring, marketing, PR etc. And the last but not the least, the funding either externally or via internal accruals is critical so it becomes essential to develop a sound ecosystem for funding bodies such as VCs, Seed funds, HNIs, Angel networks and fundraising platforms to exist.
The entrepreneurs can strengthen the economy by introducing innovative technologies, products, and services. With the increased competition from start-ups, the established firms face challenges to become more competitive, which is raises the productivity of companies and economies. The start-up culture is significantly flourishing and is helping to expand infrastructure and develop or recruit a highly skilled and educated workforce. Today, majority of top start-ups in India are the brainchild of alumni from top institutes in the country. This trend is motivating the current generation to go beyond the traditional jobs and build a career of their choice. In result, the start-up ecosystem is flourishing faster than ever in India and the country is looking forward to write a great success story of business and economy growth.