6 Things You Need to Discuss to Boost the Indian Startup Ecosystem Our 5 trillion economy aspiration needs an executable plan, Entrepreneurs are already playing a pivotal role in it
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India was ranked 17th position among 100 countries in Startup Ecosystem Ranking for 2019. We were standing at 37th spot last year. That's not something we should be too proud of Delhi, Mumbai, and Bangalore are 3 of the most vibrant startup cities globally.
What do we Need to do to Create the Next Wave of Disruption?
The disruption has to happen from the roots. Where are our roots? How can we achieve the next wave of changes? We don't have a simple "objective type' answer to this. Before coming back to the manifesto for change, let's make a ground reality check.
We have come a long way off. Startups like OYO, Paytm, Ola, Flipkart have attracted global attention and it's great to boost the Josh. Also, Flipkart's situation taught us that we need to rethink our stand on Differential Voting Rights.
The 5 Trillion Economy
Our 5 trillion economy aspiration needs an executable plan. Entrepreneurs are already playing a pivotal role in it. We need to make the fertile grounds ready
Angel investing is a serious business both in terms of risk and potential. The Union Budget 2019-20 has focused on solving the issue of angel tax to encourage angel investment and that's a great move that would have a lasting impact.
The government has established a ₹10,000 crore Fund of Funds for Startups (FFS) to extend funding support to innovation-driven startups the percentage of funds utilized is not satisfactory.
SIDBI uses a network of registered Alternative Investment Funds (AIFs) to invest in DPIIT recognized startups. There are 19,351 DPIIT registered startups and 49 AIFs according to government's sources. Sidbi has committed ₹3,123.20 crore to these 49 AIFs, but only ₹483.46 crore has been drawn from FFS.
The Route to Disruption
The startup ecosystem is unfolding it another face in India with a renewed interest from investors. The question is where do we go next. Here are a few things we can consider.
Tier 2 Cities
There is a strong need for building an ecosystem that we have been delaying. We must create the grounds for innovation, incentivize the innovation ecosystem in tier 2 cities and democratize the access to schemes, knowledge, people, and infrastructure. Coworking spaces can be a shift changing move. This is the root we must take care of. Innovation has to echo from the tier 2 cities of India.
The Talent Agenda
There is a big gap in useful skills. We can't ignore the workforce. We will need to create smart resources. Skills that can actually solve problems.
The government needs to encourage corporations to use services from startups. The CSR funds can play a huge role if properly channelized to create the innovation ecosystem.
Mentality shift is an easy word to say. It takes years to happen. Startup communities can help to achieve it from the ground level by creating platforms to come together and understand to help each other grow. Entrepreneurs need to have the humility to face failures, the courage to celebrate others' success and the empathy to understand the struggles of peers.