Budding Entrepreneurs Pin Hopes On Startup India Event
While too much action grips the startup world, going forward, entrepreneurs would also require certain clarities from the government, which will help them understand the ease of doing business
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At a time when the landscape of the startup ecosystem has undergone a significant makeover, budding entrepreneurs are gearing up to get some clarity in Prime Minister Narendra Modi's much awaited Startup India initiative.
Entrepreneurs had earlier flagged off certain issues pertaining to delays in incorporation of companies, paucity of initial funding, complicated Foreign Exchange Management Act (FEMA) documentation where certain clarities are required in terms of policy.
This is extremely crucial at a time when the number of startups operating in the country is mushrooming and are generating jobs in hordes for the youth. As per data available with National Association of Software & Services Companies (Nasscom), startups have created over 80,000 jobs so far and going forward, the number is expected to up significantly. By 2020, as many as 250,000 jobs could come from startups alone, the report further states.
While the job numbers spell a rosy picture, what is also noteworthy is that the enthusiasm in the startup ecosystem has of late led to an increase in its overall funding and HR costs. A lot of businesses without any differentiation or a sustainable business model cropped up and got backing from investors. There is a question on their sustainability model.
Experts tracking the sector said, with the huge amount of capital chasing companies without verifying their business model, several companies could to expand their user base. The focus for a growing business should be more on unit economics than anything else. So, once the funding dries up, there are chances are these companies will be left high and dry unless they change their business model.
Last year, was the most significant year for the startup ecosystem in India as it was for the first time innovation became a buzzword with people beginning to recognise innovation as a trend and a business model and backing it up, says Shashank ND, founder and CEO at health and fitness app Practo.
While too much action grips the startup world, going forward, entrepreneurs would also require certain clarities from the government, which will help them understand the ease of doing business.
The startup initiative, to be held on Saturday (January 16) will be attended by SoftBank President Nikesh Arora, Snapdeal Chief Executive Officer Kunal Bahl, WeWork’s founder Adam Nuemann and Uber’s founder Travis Kalanick, among others.
Besides, several representatives from the venture capital (VC) fraternity and angel investors will also be present. The Department of Industrial Policy & Promotion (DIPP), under the Ministry of Commerce, has held several rounds of talks with members of the startup ecosystem to draw up the action plan to cater to diverse queries of entrepreneurs.