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)
References:
4.
http://www.oecdobserver.org/news/fullstory.php/aid/3546/Start-up_nation:_An_innovation_story.html
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