Start-ups changing the nature of businesses

Start-ups have been creating waves in recent times. They are the new organizational entities in today’s world. And with the projected growth in the e-commerce market, tech start-ups are expected to get even bigger and create more jobs for the technically qualified.

In the current business environment in India, start-ups play a very big and important role – they are changing the nature of businesses, they work on new concepts and new business models and are responsible for revolutionizing the way business is done. India is now coming into its own, this country has enormous potential for business and growth which has been untapped till recently. With the growth of new business start-ups this potential is being explored and acted upon.

“Start-up India, Stand up India”

The Government of India’s new campaign “Start-up India, Stand up India” was initiated to encourage start-ups and help them get bank financing; it also offered incentives for  entrepreneurship and job creation. This has given rise to interest in India from foreign investors and it is expected that foreign funds will flow into India and give a fillip to economic growth.

However I feel that a lot more could have been done. So far start-ups have not taken off the way they should have all because of insufficient funding. Foreign investors may still be wary of putting their money into Indian businesses because the Indian economic climate is not seen to be business-friendly. But even domestic investors seem to be shying away from investing in local, indigenous businesses.

Encourage local businesses

If we are to grow as an economy it is essential that Indian investors encourage local businesses with funding and other support. The trouble lies with the Indian mindset. Whether it is the individual or an organization or a financial entity like a bank- the preference is to encourage and support what has worked before. So funds are invested in old, traditional businesses – anything new and unconventional is seen as risky and nobody is too happy about investing where there is any doubt of success. Consequently new start-ups are neither encouraged nor supported as much as they should be.

I feel that the Government needs to step in a bit more; it should educate the investors on the benefits of investing funds in Indian start-ups so that not just these new entrepreneurs but the economy as a whole gets onto the path of growth and development.