Saturday, September 24, 2016

Startups In Nation Building

                                    Startups In Nation Building
          Startup word is in limelight nowadays.  It is on the tips of talented, risk taking, underemployed and unsatisfied Indian youth. Why did it gain sudden attention of public? Why had it not been taken seriously before? What are factors which forced Government of India (GoI) to launch a program on it? These questions need answers to understand and evaluate if startups are to see the light of the day.
           First, we need to understand what it is all about. It is not defined exactly or accurately. It varies according to its use and situation. Some simple definitions to understand its basics are:
          Online business dictionary defines it as an early stage in the life cycle of an enterprise where the entrepreneurs move from the idea stage to securing financing, laying down the basic structures of the business and initiating operations or trading.
          The GoI has its own definition for startup to facilitate and promote it.  As per GoI, startup means an entity, incorporated or registered in India not prior to five years, with an annual turnover not exceeding INR 25 crore in any preceding financial year, working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
          Conditions imposed on startup are: one, that such entity is not formed by splitting up, or reconstruction, of a business already in existence; two, an entity shall cease to be a startup if its turnover for the previous financial years has exceeded INR 25 crore or it has completed 5 years from the date of incorporation/registration; three, a startup shall be eligible for tax benefits only after it has obtained certification from the Inter- Ministerial Board, setup for such purpose.
          An entrepreneurial explosion is seen in India in startups in the technological space. This leaped from 501 to 4500 in the last five year. Nasscom estimates funding for startups jumped to $4.9 billion in 2015, compared to cumulative funding for the four preceding years being $ 3.2 billion. 72% of founders are below age of 35 years. This achievement has marked India as the youngest startup nation in the world.
          India ranks third after America and UK in establishing startups. It is the situation when ease of doing business in India is a difficult task even for giant houses like Tata, Reliance etc. This proves that Indian youth have mustered courage to venture into the risk of startup, giving tough competition to developed countries.
          Talented, adventurous, and energetic Indian youth proved their might by establishing some successful startups in highly odd conditions. Zamato, Flipkart, InMobi, Paytm are a few examples to establish this point.
          New government came to power on the promise of bringing " Achche Din" for all and sundry. Tech savvy unsatisfied youth are noise creator- in online media. Not getting proper opportunity, according to their calibre made them disappointed.  In order to check this growing glooming situation and matching demanding situation for startup, forced GoI to come up with a meticulous program to accelerate, facilitate and promote startups.
          PM Modi announced the startup India campaign in his Independence Day speech last year to accelerate the pace of creating jobs. He launched startup India program in a high profile event on January 16, 2016 at Vigyan Bhawan in New Delhi. It was attended by hundreds of investors, entrepreneurs, which included founders of Uber, Travis Kalanick, SoftBank CEO Masayoshi Son and   many others.
          Top policy makers from various ministries including nine secretaries graced the occasion.  Eleven babus charmed young businessmen and pledged action.  In general, babus are blamed for go-slow and corruption. But highly positive attitude of civil servants,  present made this event a historic one.
          Program is well designed and intended. It has three heads with well defined sub clauses: one, simplification and handholding; two, funding support and intensive; three, industry-academecia partnership and incubation. India will get first rank leaving behind America and UK sooner than later if stipulated action plans are implemented - as designed and intended. 
          Startup will provide cheap, affordable and accessible solutions for our public problems to the masses. The youth will become employment creators rather than job seekers.  It will create employment for youth  of their liking. It will enhance entrepreneurship skills and competition among young adventurers. One prediction says that in coming ten years one lakh new startups will come into life and they will generate about 35 lakhs employments. 
          This startup program will build a strong eco-system for nurturing innovation. Consequently, it will drive sustainable economic growth and generate large scale employment opportunities for youth of their choice. It will help in improving the ranking of India in ease of doing business.
          It is a long awaited program. GoI implemented it to harness and shapeup the atomic like energy of our youth in nation building. Moreover, it is a step to channelize , direct, and transform  youth energy in the process of nation making.  This will galvanise youthfulness of India worldwide.
          This program will assist our youth via different modes in many ways. As a result, their confidence would increase in our democratic system- particularly in our administrative setup. Facts, figures of event, detailed, pinpointed, target- oriented action points indicate towards success. And finally, this program would succeed and become a reality sooner as it is a highly demanded social product by our adventurous youth.
          India in now in the process of creating conducive atmosphere for upcoming of startups. Energetic, innovative, and risk taking youth, now have an opportunity and Lab in the form of startup ecosystem to convert their dream and fire in belly into a relaity. It is a win-win situation for all  stakeholders.
           Most of the startups are venturing to provide solution for social problems. This way Startups are supplementing the efforts of  government at different levels. Certainly, it will enhance the governance of India. If departments promote the startup, it will be a great help to department in achieving their aims efficiently.

Heera Lal ( Research Scholar, views are personal and based on different references)
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