India has become the mushrooming ground for several new entrepreneurs with ground-breaking ideas along with the determination to see their ideas blossom into successful startups.
The West has been encouraging entrepreneurial ventures steadily. However, in India, inspite of the talent, funding and risk taking ability have been two major factors that have been slowing down the rapid augmentation of new startups.
The scenario has transformed a lot in the recent past. With many venture capital firms and even individuals willing to invest in the startup environment in India, the climate has surely changed. But still, number of angel investors is not enough yet according to the prevalent economic needs of the country.
Any new-fangled business house needs immense support, especially at an early stage. There is lack of experimentation ground for budding entrepreneurs according to industry experts.
Corporate bigwigs and high net-worth individuals can change the scenario in the near future as many of them have showed interest in the startup ecosystem of India.
According to Nasscom, India ranks third in the world with more than 4,200 new initiatives by young entrepreneurs. Financiers in India are apprehensive before investing because of the high risk involved and the lack of a proper policy for such investments. In the US, it is different. There people & firms are always eager to take risk and look out for good options/companies to invest in.
Investors prefer putting in their money in places where they are sure to get some advantage like tax related benefits, etc. Industry experts have been writing to the government regarding this and are hopeful about some action to boost entrepreneurship by next year.
Prime Minister Modi had mentioned in his Independence Day speech about the campaign ‘'Startup India, Stand up India' which will encourage new entrepreneurs & startups with the help of easy bank financing and various other incentives. He also emphasized on the fact that how it will aid in creating jobs.
Furthermore, good mentors are also important for any growing startup to guide them through the mesh of regulations and challenges. New business houses should bring in these people into their fold to guide the team and help them to develop.
For example, Ratan Tata invested in various startups like Bluestone, Paytm, Urban Ladder, Ola and Snapdeal. Same is the case with Premji Trust which is the investment firm headed by Azim Premji. Myntra has been one of their investments and it has been progressively becoming popular with the shopping enthusiasts in the recent times.
Angel investors are very important for any emergent business house. Hopefully, in the near future, we will see numerous new investors taking an ardent interest in Indian startups, thus, helping the overall Indian economy to flourish and various entrepreneurs taking the plunge to give shape to their ideas.