History has been witness to centuries of civilizations trying their hands at innovation and entrepreneurship. One’s profession in the days of yore was determined by one’s caste and was also severely affected by factors like political instability due to the lack of a centralized system of governance, epidemics and health issues due to rudimentary forms of medicine and lack thereof, colonization i.e the systematic exploitation of resources to fill the coffers of our colonizers etc. While India, today is the world’s largest democracy and is sought for its health tourism, the challenges to the entrepreneurial spirit include fierce market competition which reinforces the Darwinian concept of the survival of the fittest and also fluctuating market conditions which implies an interconnectedness between all economic factors as we evolve into a more globalized economy.
Due to the LPG model employed in 1991 by the then PM Narsimharao and Finance Minister Manmohan Singh, the doors of opportunity swung open for Indian Entrepreneurs to kick it up a notch. The LPG model provided a much needed boost to the Indian Entrepreneurial landscape. According to data received from The Ministry of Company Affairs, entrepreneurship with reference to emerging sectors like IT, Finance, Construction, Supply Chain etc, the number of companies incorporated rose sharply from 11000 in 1993-94 to 22000 in 1994-95 to 27000 in 1995-96.
Since 2010, India has become synonymous with the name ‘Start-up Nation’ due to the surge in the volume of companies formed using the boom in technology and the ingenious ways in which attempts are made to meet a consumer’s demand. The PM of India, Mr. Narendra Modi said, “I see start-ups, technology and innovation as exciting and effective instruments for India’s transformation and for creating jobs for the youth”. Companies like Flipkart, Zomato etc woke up the nation into believing in its indigenous enterprises. As a result of this, start-ups today that show real promise and ingenuity are readily backed by funding by individuals and institutions alike. According to a NASSCOM report in India based start-ups is estimated to be $5 billion. Start-ups are creating ample opportunities for the county as well. It is generating employment, increasing FDI by means of foreign investors funding these start-ups. Also, due to an increased spending by start-ups, traditional businesses are receiving a much needed influx of cash. The phrase Customer is King has never been truer than in the case of start-ups. Due to a rise in the sheer variety of start-ups offering goods and services at competitive prices and top notch service, the end consumer is spoiled for choice.
The future of start-ups is dependent upon the ones who have the perseverance to remain. Start-ups have a 90% fail rate which is a bleak statistic while the rest of the start up economy remains optimistic hoping they will be the ones who will make it. Experts have predicted that due to technology getting more and more pervasive, it is a given that the future belongs to technology. An interesting finding is that, apart from technology, firms that provide mental health services are likely to be in demand because as estimate suggests that by 2028, Depression will be the highest cause of disease burden in the middle income countries. Hence, India as a land of entrepreneurs is all set to capitalize on the next big thing.
-Binaisha D’Souza, PGDM-International Business (2016-18)