<p>For a long time when the Indian economy was modeled on the Soviet model, capitalism was a bad word in India. Things, however, changed in the last decade of the 20th century when liberalisation unleashed a latent force of untapped entrepreneurial potential in the country. <br /><br /></p>.<p>With the license raj easing and doing business becoming easier, India set about on a new direction, and there was no looking back. Not only did new business emerge, they created jobs, attracted foreign investment, spawned a new middle class and modeled a new generation of confident Indians for whom entrepreneurship was a popular choice.<br /><br />Today, entrepreneurship has gained a lot of respect, with people from diverse backgrounds breaking into the big picture. According to Nasscom, India is the third largest base for startups in the world at present, with over 5,000 startups and over 1,000 setting up annually. By 2020, India is expected to be home for 11,500 startups employing over 2,50,000 people. Driven by a young and diverse entrepreneurial ecosystem that is all inclusive of talent, remarkably innovative ventures are making a mark in India to make it world’s youngest startup nation with 72% founders less than 35 years.<br /><br />Role of new age technology<br /><br />In recent times, modern versions of entrepreneurship have emerged, aided by the transformative power of technology. A bulk of India’s startups have been in the domain of new age technology, be it ecommerce, IT-enabled healthcare services, or on-call services in a variety of areas. Rapid progress in the field of science and technology has significantly expanded the scope of innovation in production, helping entrepreneurs explore new grounds and launch new ideas.<br /><br />We have spent years acting as the back offices for many international brand and companies. However, with growth in confidence of Indian youth towards taking the risk of establishing their own companies, powered by the IT revolution of the age, Indians are today standing on their entrepreneurial feet. Take that some of India’s most successful startups that went on to become huge businesses have been in the IT domain, be it Flipkart, Just dial, Bookmyshow, Makemytrip or even shadi.com.<br /><br />Financial crisis as a reality check<br /><br />The global financial crisis of the last decade, which saw many old institutions and markets crumble also saw the rise of new ideas and newer ways of doing things. With reduced access to capital, innovation became the key. The realisation that too much investment in real estate or equity markets is not a good idea enabled newer ideas to emerge in many countries including India.<br /><br />With the Indian middle class becoming a voracious consumer of digital products, India has become the fourth largest base of technology startups in the world. The growth of startups could be mainly accounted by factors like, large domestic market, increased M&A activity and access to capital through investor funding. Indian startups are also growing following their unique solutions and business model. With young entrepreneurs dominating the market, most of the startups have gained foothold following a strong consumer-centric approach with B2C business model. <br /><br />Inflow of investors<br /><br />With vibrancy in the entrepreneurial ecosystem, startups today have access to multiple sources of funding from venture capitalists (VC), private equities (PE), angel investors, banks and financial institutions as well as incubators. Today, segments such as travel, matrimonial services, jobs, games, mobile payments, among others, are getting substantial capital infusion.<br /><br />Relaxed norms and introduction of new reforms by the Indian government have further encouraged investors to park their money in India. Filling the big lacuna in the entrepreneurial ecosystem in India, which earlier discouraged many budding startups, investors have now gained confidence on Indian caliber and are ready to take the risk. While IT-related ventures continue to rule, startups in cleantech and renewable energy, retail, healthcare and education have seen increased interest.<br /><br />Gone are the days when Indian businesses flourished under the shadow of international brands and names. With more mature ecosystem and ample opportunities, Indians today are not only launching their own brands but also marketing them in the international market under own brand names. With owning patents of many products, Indian entrepreneurship set sail to conquer not just the domestic but international market as well.<br /><br /><em>(The author is JMD, Bonita India, a home utility products brand)</em></p>
<p>For a long time when the Indian economy was modeled on the Soviet model, capitalism was a bad word in India. Things, however, changed in the last decade of the 20th century when liberalisation unleashed a latent force of untapped entrepreneurial potential in the country. <br /><br /></p>.<p>With the license raj easing and doing business becoming easier, India set about on a new direction, and there was no looking back. Not only did new business emerge, they created jobs, attracted foreign investment, spawned a new middle class and modeled a new generation of confident Indians for whom entrepreneurship was a popular choice.<br /><br />Today, entrepreneurship has gained a lot of respect, with people from diverse backgrounds breaking into the big picture. According to Nasscom, India is the third largest base for startups in the world at present, with over 5,000 startups and over 1,000 setting up annually. By 2020, India is expected to be home for 11,500 startups employing over 2,50,000 people. Driven by a young and diverse entrepreneurial ecosystem that is all inclusive of talent, remarkably innovative ventures are making a mark in India to make it world’s youngest startup nation with 72% founders less than 35 years.<br /><br />Role of new age technology<br /><br />In recent times, modern versions of entrepreneurship have emerged, aided by the transformative power of technology. A bulk of India’s startups have been in the domain of new age technology, be it ecommerce, IT-enabled healthcare services, or on-call services in a variety of areas. Rapid progress in the field of science and technology has significantly expanded the scope of innovation in production, helping entrepreneurs explore new grounds and launch new ideas.<br /><br />We have spent years acting as the back offices for many international brand and companies. However, with growth in confidence of Indian youth towards taking the risk of establishing their own companies, powered by the IT revolution of the age, Indians are today standing on their entrepreneurial feet. Take that some of India’s most successful startups that went on to become huge businesses have been in the IT domain, be it Flipkart, Just dial, Bookmyshow, Makemytrip or even shadi.com.<br /><br />Financial crisis as a reality check<br /><br />The global financial crisis of the last decade, which saw many old institutions and markets crumble also saw the rise of new ideas and newer ways of doing things. With reduced access to capital, innovation became the key. The realisation that too much investment in real estate or equity markets is not a good idea enabled newer ideas to emerge in many countries including India.<br /><br />With the Indian middle class becoming a voracious consumer of digital products, India has become the fourth largest base of technology startups in the world. The growth of startups could be mainly accounted by factors like, large domestic market, increased M&A activity and access to capital through investor funding. Indian startups are also growing following their unique solutions and business model. With young entrepreneurs dominating the market, most of the startups have gained foothold following a strong consumer-centric approach with B2C business model. <br /><br />Inflow of investors<br /><br />With vibrancy in the entrepreneurial ecosystem, startups today have access to multiple sources of funding from venture capitalists (VC), private equities (PE), angel investors, banks and financial institutions as well as incubators. Today, segments such as travel, matrimonial services, jobs, games, mobile payments, among others, are getting substantial capital infusion.<br /><br />Relaxed norms and introduction of new reforms by the Indian government have further encouraged investors to park their money in India. Filling the big lacuna in the entrepreneurial ecosystem in India, which earlier discouraged many budding startups, investors have now gained confidence on Indian caliber and are ready to take the risk. While IT-related ventures continue to rule, startups in cleantech and renewable energy, retail, healthcare and education have seen increased interest.<br /><br />Gone are the days when Indian businesses flourished under the shadow of international brands and names. With more mature ecosystem and ample opportunities, Indians today are not only launching their own brands but also marketing them in the international market under own brand names. With owning patents of many products, Indian entrepreneurship set sail to conquer not just the domestic but international market as well.<br /><br /><em>(The author is JMD, Bonita India, a home utility products brand)</em></p>
