India has the second largest ecosystem in the world in terms of the number of latest digital technology startups and non-technology startups founded. The Nation has reached its true potential for the creation of innovative startups. India is also emerging as the third fastest growing hub for startups in the world.
Introduction of recent initiatives like ‘GST,’ ‘StartUp India Stand Up India,’ and ‘Make in India’ has been a significant boost due to which Indian startups are moving in an upper line. India has made tremendous growth in the creation of startups which are expected to increase in size and number in the coming years. India has been interacting and collaborating actively with the ecosystems of other developing countries.
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To understand the Indian startup ecosystem, let us first understand what the startup ecosystem, elements included in the startup ecosystem, organizations, and activities associated with the Indian startup ecosystem.
What is Startup Ecosystem?
The startup ecosystem is defined as a hard road for the individuals with the courage to try, to fail, and succeed in pursuing their dream. It is a system in which a group of individuals (entrepreneurs and status changers), startups interact in their multiple stages and various kinds of organisations in a location to create new startup companies. They are the focal point to improve local economies, and the growth cannot happen overnight.
The organizations involved targets only specific parts of the ecosystem function and startups at their specific development stage. The types of organizations may include universities, funding organizations, support organizations, research organizations, service provider organizations, and large corporations.
Elements Of Startup Ecosystem
The elements included in the startup ecosystem are as follows:
- Ideas, inventions, and researches
- Start-ups at various stages
- Start-up team members
- Angel investors
- Startup mentors
- Startup advisors
- Other entrepreneurial-minded people
- Other organizations with start-up activities
Organizations and activities with start-up activities
- Advisory & mentoring organizations
- Startup incubators
- Startup accelerators
- Coworking spaces
- Service providers (consulting, accounting, legal, etc.)
- Event Organisers
- Start-up competitions
- Investor networks
- Venture capital companies
- Crowdfunding portals
- Other funding providers (loans, grants, etc.)
- Start-up blogs
- Other facilitators
- Other business media
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Benefits of Startup Ecosystem on Indian Urban Economies
India has fostered the startup ecosystem to have an economy driven by startups and innovation. Thriving ecosystems brings liveliness and positive vibes to the culture, generates significant employment opportunities, and increases the overall standard of living in that city.
“I see startups, technology, and innovation as exciting and effective instruments for India’s transformation.” – Shri Narendra Modi, Prime Minister of India.
The point here to be noted is “startup ecosystems requires time and investment.” The Indian government is launching various initiatives to support the growth and long term vision of these ecosystems.
Having a thriving startup ecosystem attracts global companies and large conglomerates, thus benefiting the small or local economy’s. Successful ecosystems are highly profitable to invest in, create more jobs, and generates healthy competition.
How To Build A Startup Ecosystem?
A startup ecosystem is gaining popularity across the world with high success rates. Many leaders have set blueprints for building startup ecosystems, which you can follow to achieve success in your process. The following are the essential steps for building a sustainable startup ecosystem in India:
- Adapt a Collaborative Mentality: Adopt a collaborative mentality as it is must create a sustainable competitive startup, startup organization, or startup ecosystem.
- Map the Local Market: Always map the local startup organizations and try to know about their local startup blogs, events, boot camps, mentorship programs, or co-working spaces as they will help in fostering the collaborative mentality.
- Gather the Network: Host startup events and meet the top startup entrepreneurs. All these activities can help you in creating connections and pushing your ecosystem forward.
- Work with Your Government: This is one of the crucial steps of building a startup ecosystem because, with their support, you can create an authentic startup ecosystem out of thin air.
- Stay Honest: Be honest and always try to develop a system which meets your personality and style.
What wrong is with The Indian Startups Ecosystem?
Is something wrong with The Indian Startup Ecosystem?
Yes, there is everything wrong with the Indian Startup Ecosystem. No innovative or unique startups exist in India as most newbies are adapting the successful product or service or online business ideas and startup policies of America, Europe, China, and Russia, etc.
- Amazon – Flipkart,
- Uber – Ola,
- Yelp – Zomato
- Priceline – MakeMyTrip, Cleartrip
- Fitbit -Goqii
All these startups resemble “remakes plus desi flavor.” But couldn’t copy startup policies of Tesla, Apple, SpaceX…..
Startup ecosystems in India can survive when people adapt to unique startup ideas in the digital era. Unlike Russia and China, copying and pasting the startup ideas don’t work in India because people here preferably looks for unique products or services that match their requirements at an affordable price availability and social, personal, and ethical factors.
Limitations of Startup Ecosystem of India
Despite promising statistics, here are the few drawbacks which Indian startups are facing. These drawbacks are because of lack of guidance.
- No Female Entrepreneurs: Though there is a satisfactory growth in startup ecosystems in India, there are very less female founders/co-founders.
- Limited to the IT Sector: Startup ecosystems majorly concentrating on IT industries like e-commerce, aggregators, analytics, health-tech, and online payments. It failed to focus on non-product sectors.
- Lack of Funds: There is no deficit of capital as the startups need very less capital. The insufficient funds are due to government intervention, inadequate collateral, limited cash-flow, and high risk.
Top 5 Trends That Define Startup Ecosystem of India
- Marketing will be more personalized as the businesses are becoming more customer-centric. Influencer marketing will play a significant role this year.
- E-commerce companies will give customers a larger offline experience. Customer can visit retail stores and examine and try products and can order the same product online. This is one of the ways to get closer to customers.
- More business collaboration and integration can be seen this year as partnerships and collaborations are provided with an opportunity to enter business ecosystems.
- This year lending services will get simpler because a lot of paperwork is involved in the traditional approach. You can also expect more cloud-based services backed up by Ai technology.
- Voice search will be at rising. Voice-based assistants equipped with artificial intelligence (AI) will become standard in mobile phones this year.
Top 12 Sectors Raised with Indian Startup Ecosystem
- Digital Marketing
- Consumer Internet
- Agri products
- Print & Packaging
- Transport & Logistic
Statistics Of Startups of India
Recent statistics revealed that India’s GDP growth has increased from 7.2% to 7.9%, with an average growth rate of 7.6%. This growth is due to the recent startup initiatives launched by Mr. Narendra Modi, the Prime Minister of India, to foster entrepreneurship and promote innovation by creating a startup ecosystem.
Now, India is the third largest global startup ecosystem, with more than 4200 startups companies and 110 incubators or accelerators. India achieved this through a robust startup ecosystem in the country and took a fundamental shift towards a friendly business environment.
Indians are Turning to Digital Entrepreneurs
Digitalization helping the many financial institutions, start-ups, state and central government organizations, venture capitalists and forming a Fintech ecosystem in India. Fintech companies in India have rocket speed growth with the new digital trends, including artificial intelligence, online backing, blockchain, and secure payment system, digital wallets, online financial advice. Most of the young Indians are now turning to digital entrepreneurs with their client base from Singapore, the USA, Hong Kong, Europe, and the Middle East.
Every day 300 Startups are Registering in India…Is your Startup Registered or Not?
Digitization from the past decade in India helped the many startups that are at cross-road and struggled for investment, branding, and client base building. The startup ecosystem in India is not built overnight. It took more than a decade. It requires a community of collaborated people, organizations, subject matter experts and creative ideas, investment firms and client base, like-minded employees, common organizational goals.
There are many sources online and offline that are helping the college students, young and all people to learn, turn into the startup entrepreneurs. On an average more than 300 startup companies, are registering every day in India, at NASSCOM organization. This rise in startups companies has increased huge demand for startup consulting companies, and business consultants who can provide startup services such as:
- Startup Registration
- Startup Compliance Combo Plan
- Business Plan & Startup Funding
- Company/LLP Annual Filing
- Winding up your Business
Digital trends are giving wings to all Indians to turn to digital entrepreneurs. Design a creative idea, and get investment for your startup, recruit the team, develop your product or service and promote it effectively to get a return on investment (ROI). Meet your startup dream with ABCD. Call us now on +91 7989719730.
Top Ranked Startup Ecosystem Cities In India
Every place in India may not be suitable for setting startups, and people generally get stuck here. Here are the few top-ranked startup ecosystem cities in India where you can launch your startup:
- Delhi NCR
Believe or Not… these Bollywood Celebrities are Entrepreneurs
Bollywood celebrities such as Shah Rukh Khan, Deepika Padukone, Twinkle Khanna, Malaika Arora, Shilpa Shetty, Karisma Kapoor, Sunny Leone, Lara Dutta, Amitabh Bachchan and Abhishek Bachchan, Salman Khan, Hrithik Roshan, Anil Kapoor, Ajay Devgn, Kunal Kapoor, Ranbir Singh, Anushka Sharma and Priyanka Chopra are along with their movie career, turned out as entrepreneurs with their investment in startup companies.
A startup ecosystem is a backbone of most economies as it can provide enormous job opportunities in major conglomerates and tech companies in your city. Every big company starts as a small startup.
Indian startups have undergone many developments, and the startups using latest technologies such as machine learning and artificial intelligence have been selected in Google’s accelerator program. Economic reforms and their implementation has been quite encouraging. However, the positive sentiments of the investors and government support play a crucial role in helping the startup ecosystem of India in reaching new heights.
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