To start with India is home to the 3rd highest number of tech startups in the world and features in the top 5 list in terms of tech and non-tech startups put together. But is India growing to be a startup capital of the world? We decided to analyse various factors influencing India in this journey and also how you as entrepreneurs can take advantage of this.
This is quite potentially the most critical requirement to grow a business. To build great products you need great people. To grow great businesses, you need great people. So the first in the list has to be highly qualified and well trained people. According to World Economic Forum report of 2016 India produced about 2.6 million STEM graduates in 2016; the second highest in the world.
Since most startups take advantage of technology to build and grow their businesses, availability of so many STEM graduates can enable many people to startups. There is an added advantage here, since there are so many of them the cost of employment will be significantly less compared to other nations. Simple supply and demand phenomenon of Economics.
Also there is a shift in the perspective amongst youngsters and college graduates. Our parents’ generation wanted to work for Govt. sectors or wanted to join MNCs, but our generation feels it’s much ‘cooler’ to have their own business or to be a part of the startup movement that’s happening. I personally know quite a few people who have rejected ‘Fat Paying’ jobs from MNCs to join startups.
A survey by global recruitment firm Randstad reveals that 56% considered quitting their jobs to start their own business. The survey found that entrepreneurship was most favoured among Indians, with 83% of the employees surveyed suggesting that they would “love to be an entrepreneur”—much higher than the global average of 53%.1
An entrepreneur is always happy if she can find people to whom she can sell his product. India with 1.3 billion people has a lot of customers if you have a good product to offer.
According to world economic forum report of 2016 Indian middle class have doubled in size from 300 million in 2004 to 600 million in 2012. It is also the country with the highest middle class population. According to EY’s Rapid-growth markets forecast (RGMF) released on 6 March 2014; With the growing middle class buying a wider range of consumer products and services rapid-growth markets (RGMs) will increasingly look to their own markets to drive demand which will be startups and indigenous businesses. Demand for health and education services is likely to expand significantly. Spending on services such as communications, culture and recreation will grow at almost twice the pace of spending on food. Startups are capitalizing on this for the past 4-5 years. For example take a look at growth of Flipkart, Ola, Zomato etc. all these startups are trying to meet the demands of this growing middle class.
“We are nurturing our youngsters to be job creators and not job-seekers. Change in demand and technology is changing the nature of jobs." were the exact words of our Prime Minister when he addressed the nation on the 71st Independence Day. Our Prime Minister and Govt. of India is dedicated to help indigenous businesses and also help ease the process for Foreign entrepreneurs to come and setup their business in India. Our Govt. has started multiple initiatives like ‘Make in India’, ‘Startup India’ and ‘Digital India’ to name a few. The Government has also setup a ₹10,000Cr fund-of-funds to help startups raise money. These schemes act like indicators to show how serious our Government is towards helping businesses.
Please go through this article from inc42 to learn more about Govt. of India’s Startup India Scheme.
Access to capital