A healthy Startup ecosystem leads to economic development and progress within the geographical boundaries of any country, and there is a global drive to trigger the growth and development of nations through innovations and creativity. The startup ecosystem in India has been oozing positivity in our Nation by providing good returns and benefits in multiple forms.
The startup ecosystem In India contributes immensely to economic prosperity in enhancing the growth of the Nation. Startups have contributed tremendously. In recent time, Indian startups are gradually progressing and evolving into global entities formulating business products, and solutions for the International market. The role of startups is limited to job creation and capital formation, but they help reduce the concentration of economic power. They contribute towards the better standard of living and the growth of a good society. Global data shows that startups have created more jobs in our Nation than any large companies or enterprises.
Support for startups in India have made them emerged as a top priority globally and is no threat to the established system. With that in mind, policymakers have widely accepted that startup India’s ecosystems play a critical role as key drivers of economic growth in developed and developing countries. These startups also contribute to economic dynamism by enhancing and intensifying competition into markets, which cause consumers to benefit from lower prices and product variety and promote upstream and downstream value-chain activities.
Startup Ecosystem in India is the most effective ecosystem that enables the country to progress in less time. People form startup Ecosystem, startups at various stages, and multiple organizations, whether virtual or physical, interacting as a system to create startup companies from scratch. These organizations further include universities, support organizations, research organizations, service provider organizations (financial, legal services, etc.), and big corporations.
Different organizations aim at specific parts of the ecosystem function and startups at their specific development stage. Apart from people and the organization, resources like skills, time, and money are also essential for the startup ecosystem.
India’s startup ecosystem has been the backbone of the Indian economy that has extensive support and contributions to boost India’s economic condition.
Few crucial roles of the Startup Ecosystem are as follows:
2020 was out of the ordinary year for the startup ecosystem in India. Several startups and young businesses struggled and lost their touch in terms of growth and advancement. On the one hand, the 70- day lockdown turned out to be a booming period for several businesses and startups. On the other hand, many companies and startups collapsed and failed to revive themselves even in the long run, and the outcome was shut down. As per one of the reports, around 15% of the 40,000 startups in India shut down their shops because of the COVID-19 pandemic.
The year 2020 has given birth to several startups, and most of the emerging startups geared up and took their businesses to new height amid COVID-19 pandemic and lockdown. It’s not wrong to say that several startups have reinvented themselves, and few of the digitally enabled startups shown incredible growth in the previous year. Throughout the lockdown, budding entrepreneurs worked on new strategies and gave shape to their businesses with high potential.
After a year of uncertainty, a significant chunk of startups is eyeing towards gaining momentum and stability to revive their businesses and recover the losses. Numerous Indian entrepreneurs worked on such robust strategies that they revitalized their startup businesses as soon as the impact of COVID-19 came to a halt. Such entrepreneurs have witnessed that their businesses are all set to shine and walk on the path of accomplishments in the year 2021 and the upcoming years.
The dynamic evolution of Indian startups took place over the previous two decades. Many startups came into existence in the 2000s, but because of the limited investors and limited support organizations like accelerators and incubators were proactively available to perform their tasks, the ecosystem got trapped into the shackles of immaturity.
Looking at the revival and reconstruction stories of several startup businesses, it’s easy to forecast that the startup ecosystem in India is going to be much healthier in comparison to its conditions in the past. Revenues, user growths along with escalating profitability would boost the confidence of young and budding entrepreneurs investing their heart and soul in startup businesses. The suffering that Indian startup ecosystem has gone through in the April, May, and June collectively has been reduced and has been recovered as well. Quick adoption of digital must get the credit for upliftment of Indian economy post COVID-19 pandemic and lockdown.
In 2021, startup owners and budding entrepreneurs are ready to keep their feet in a new era for the startup ecosystem in India that would get defined by scale, revenue, corporations that have been into a much better position in terms of underlying unit economics and most importantly, IPOs. Angel investors will be marching ahead to lend their endless and honest support to next generation of entrepreneurs.
Effective startup supporting organizations that have proved their mettle in the past would focus on creating a community and developing it and bringing genuine people on board. A few years back, there was an enormous gap in the ecosystem due to the lack of space available for people to work. Nevertheless, the increasing number of incubating organizations and ever-growing and increasing co-working spaces have diminished the issues pertaining to lack of space. It is anticipated from the startup community that it will be more agile, innovative as well as resilient but still running behind the growth, even with a more disciplined and optimistic approach, more vital teamwork along with the collaboration.
The trends that are likely to be the talk of the town in 2021 are mentioned below-
A self-sustainable startup or corporation resembles survival stage business. The base of independent companies and startups are generally sound. It is known for holding a solid customer base and generates better revenue as well. Business self-sustainability is a business advancement strategy that would help business owners in fulfilling the most significant desire of their lives, i.e. to attain financial freedom. Thus, many businesses and corporations are craving to make their businesses self-sustainable.
Self-sustaining businesses won’t face significant obstacles in handling challenges, and raising money for growth would be an easy-breezy task for them. Creating and running your business on belief is exceptionally vital to building a sustainable business. In order to drive the incremental value, you must not strive to become a significant player; instead, you need to look at how things work.
Augmented Reality is all about establishing remote connectivity between the brand and customers. Several brands are already engaging themselves in this direction and are busy discovering numerous ways to serve the customers with entirely immersive shopping experience from the place of their choice. Brands should look for relevant, innovative policies and strategies concerning the execution to make their mark in 2021. The Augmented Reality implementation won’t be a big deal with upgraded capabilities of modern applications.
Encashing on nostalgia would be the new normal in 2021. Brands will be following the nostalgia marketing strategy to develop an emotional relationship between the brand and customers. By reminding the customers about their old golden days, they can win their trust. Customers would feel motivated to spend their hard-earned money on that brand’s products and services, which has positioned itself straightaway into their heart.
Work from home would be the continued trend in 2021 as COVID-19 pandemic still breathing and creating problems all over the world. Going by the TimesJobs survey report, we conclude that around 42% of HR managers believe that their companies will be rendering the facility of work from home to survive amid the hardship that Coronavirus may put in front of us in 2021.
85% of firms affirmed that they are laying the groundwork for re-hiring talent laid off during the disorder and imbalance caused by COVID-19 pandemic. 31% of respondents brought an entirely different viewpoint from the folks. They asserted that they would be hiring candidates on the basis of contract next year v/s permanent roles. Moreover, around 85% of HR professionals are planning to put a halt on appraisal activities in 2021 as they will be eyeing for the optimum utilization of resources and minimizing costs.
Companies are all set to go ahead with the DTC Selling Model (Direct to Consumer Selling Model). The significant reason behind companies’ interest in this selling model is to manage costs in an efficient manner. In the past course of time, companies and corporations in India relied up to a great extent on retail and wholesale distribution for packaged goods. However, there has been a profound paradigm turnaround in this sector; credit goes to online shopping evolution.
Aatmnirbhar Bharat scheme has turned out to be a blessing in disguise for a significant chunk of business organizations and folks affected by the pandemic up to a great extent. The fundamental reason behind bringing up the strategy was to pursue those competitive, efficient, flexible, and long-lasting policies.
Atmanirbhar Bharat scheme is likely to maintain the momentum in 2021, and with the assistance of Aatmnirbhar Sena, things would shape up in a better way for Indians.
India is known to have the third-largest startup ecosystem in the world. India had about 50,000 startups in India in 2018; around 8,900 – 9,300 of these are technology-led startups, 1300 new tech startups were born in 2019 alone, implying there are 2-3 tech startups born every day. In 2020, India joined the league of top 50 innovative economies. In addition to this, India is a dwelling abode to 21 unicorns valued at $ 73.2 billion. The startup ecosystem in India is flourishing at a rapid pace, all thanks to growth and advancement of Indian IT companies, capital availability, as well as enhanced expendable income of middle class Indians.
India is supporting and encouraging startups to rise for the development of our Nation. The young entrepreneur startup ecosystem implements many innovative products and services. The Indian government has, therefore, announced schemes for promoting startups. Startup India Scheme helps many budding entrepreneurs make their dreams come true and create more jobs from startups. So if you have a startup related plan, you should be aware of the latest schemes, which will boost the entrepreneurial journey.