HOW STARTUP CAN GROW?

 

 

How

 startup can grow?

Benefits and challenges

 

 

 

 

Kumar Sachin

About the Writer

Kumar Sachin is an experienced startup founder, expertise in technology written various published articles and a blogger.

 

Kumar Sachin asserts the moral right to be identified as the author of this article. He tried to put his experience and knowledge to discover new India and made awareness for the youth. The objective of this book is to describe the challenges that startups in India are facing these days. He found India to become as a developed country, the role of startups are most important and should be placed above all in economic regulating activities.

 

Please contact writer for any queries on the email given below.

 

Kumar Sachin

Email:- kumar_sachin1788@yahoo.com

Thanks to all my helpful family members and collogues and friends who made this journey amazing.

 

Contents

 

 

(i)                     Introduction to startup

---- startup world

 

(ii)                   Startup india schemes

---- Governing bodies and policies

 

(iii)                 Challenges

---- the roles in Indian economy

 

(iv)                 Remedies

---- policies that can help

 

 

 

Introduction to startup

Businesses are classified into two major categories according to their nature i.e.

(i)             Traditional business system &

(ii)           Startup

Traditional businesses don’t mean only family businesses; it may be a clone initiative of established business also. They may have structures like franchisee, alliance or even DSA. As we know we can produce goods or services in any kind of business. But both have very different requirements to setup.

Family business is most active category of business where family members know the pros and cons of established business. However a new businessman so called entrepreneur needs proper knowledge and skills for the related work or business.

I am not an economist but I am aware of the conditions in a business as I set up a startup in past. So, I thought to explore the opportunities that Indians can have. Startups are also businesses. But they have different parameters. Accordingly if some innovation is added in an existing business model, then it is called Startup. Of course, you don’t need to be from business background to initiate a startup or any business but most importantly you should have passion to do that.

In spite of this it (startup) cannot be organize so easily as 1,2,3. There are so much requisites that need to operate a business successfully. Many of us might be thinking that merely making a profit initiation is the success in any business. But it is not almost true. To run a business smoothly is the main key however profit and losses may be periodically but a good business tends to minimize the losses.

National and state governments in India have started various policies to initiate a startup by boosting the factor: “ease of doing business”. You can cover it up with govt. subsidies, grants, loans, incubation and other policies.

There are some requirements in establishing a startup as per policies:-

(I)            An innovative (fresh) idea

(II)          A business prototype

(III)       Capital for investment

(IV)       Entity type should be pvt. Ltd. or LLP.

(V)         And of course a project plan.

You can enter the startup world by both means i.e. privately or governmental. It means you can avail the facilities of government policies by following rules & regulations. Or if you have enough capacity like experience, capital and confidence then you can enter privately in the market also. But it is good to have first an incubation support before launching your product in the market. It is because an incubation center validates your idea and business prototype.

Startup India schemes

Startup India is an Indian government entity who has launched its own portal. Any startup who qualifies the policies like startup registration and entity establishment in particular nature is eligible for DPIT policies. They can have fund grant for their business needs.

There is also a section for incubators which are mostly educational organizations who have capacity of mentorship and evaluating business ideas. These incubators provide mentorship, a space for starting phase for startup to grow, seed funds and supporting of other activities including care and policies awareness. On Startup India website, we can see a list of incubators who support startup in different categories. Some private players in incubators are also performing as they are supported with govt. funds to run their incubation centers after following some govt. policies. So, we can say that it is a system of incubation & startup under startup India govt. scheme. And it is running successfully.

The idea of startup scheme has reached not too early in India. It is a late commitment as compared to western countries like US, Israel and other European countries. Even some countries like Israel have culture of startup in every youth. If they fail in startup, they can later choose other sides of career, but startup is first. Startup is not merely a means of providing employment to an individual, but it’s a way like where a seed has the capacity to become a huge tree. It means a startup has the capacity to providing a number of employment generation.

In a country like India Government bodies are accepted more superior than all other bodies’ even it may be judicial or economic. Or it can be said that we are engaged in doing politics in a lot more times than other gaining livelihood or activities which can make life better. So, a conclusion is that for a better life, the need of startup and goal of economy which is related to each other should be reevaluated. Consider the case of China where startup policies are regulated /deployed earlier than India. Their other various major decisions in context of economic policies were taken to evolve their economy and made China now a powerful country. So, Why India behind is a big question and a matter of research. Our youths are unemployed, we are overpopulated and continuously our borders are not safe by encroachment or refugees and to overcome this situation for a long time, administration failed a number of times. So, we need tough policies to prohibit these problems. And major decisions/ policies are needed to boost the economy of India. It is not only the tasks of startups to overcome all the challenges which are environment based. Consider a case of tourism industry here in India. We have the image like tourists in India are not safe at most of the places, so how this industry can rise? Even when Indians are not safe in their own country or we can say that where two major religions quarrel on small matters, then how can we expect tight laws for equalities and better environment for growth!

Challenges

Now we are most populated country in the world. What are we doing to manage this disaster situation in future? Is India a dumping country where world can dump their products! Seriously, No. But it is true. So, Managing Indian economy is the most vital task these days. And to do this, good governance is needed. By the way, our most of the govt. bodies in states are standing up due to the votes not in the name of development but on the name of other favorable conditions like castism, religion etc. But situation demands a better governmental approach which can make a 360 degree change in image and economy of India. And it needs a research. For example why we are facing the brain drain problems here in India whereas our country is natural competent. Where are we lacking, these are the things of research. At least we can understand how country like us i.e. China has risen up. Why are we not taking the services of our scientists and economists in making up the policies? Why our societies are not safe from crimes? Why these (crime) cases are not decreasing in India? It should be minimize so that there should be scope of growth in economy and culture both. It is also a remarkable point that without our cultural valuation we are nothing. Today’s we are copying only from western culture and valuation. We don’t need curtain to hide, but we need machine that can produce curtain so that we can use it cover us also in needs.

Consider another case of Bihar which is still most poor state in the country. We are so much calculative and master in politics. To remain in this status we omit our requirements of our livelihood sometimes. We are a huge workforce but where is the work to apply that force! And this led to a dispute in our sense among each other. This again a situation which leads most of the leaders to regulate a mass number of people here. There is no scope of vision in government where votes are conditional according to partial benefits of some specific group of people. These benefits not last for long term or not useful for the whole society. Again it leads to increase in crime cases and we blame administration. Actually we need education that why we are backward in different segments of life like career, economy and administration in society etc.

Actually there are various methods which can be utilized to overcome the situation like this. Some production units are sick or if not running profitably? Then what can we do? Government can propose a PPP (public-private partnership) mode of participation to regenerate the sick bodies/units in the state and it can be implemented throughout the country. However the economists can better suggest.

 

Remedies

There is very big importance of small scale industries in the country. But how their numbers can be increased, is a big question. The answer is by industrial revolution and by reforming the industrial policies. For example government should declare some special economic zones in their respective states. Supply chain method should be more simple and easy to adapt. For this 2 more requisites are:-connectivity of roads & administration of govt., that should be better. We should have to understand which kind of business has more privileged to grow according to area. For example in the case of Bihar, here agri led businesses like farming, diary and food processing sectors have wide scope. We need investment in these areas. It may be from private or public sectors. But we need seriously more numbers of units specially in manufacturing. Of course other kinds of units have also scope as we are vast populated state. Then only per capita income of the state can be increased. We have very good growth rate but still we are poorer most in the country. In the way of making better economy we need a setup of small scale to large scale industries throughout the country and of course in Bihar too. To run these units, big capacity power sector units are also required. So, we have a great scope in industrial revolution, but for this we need good governance and policies.

Do we know the relation between the thought process and business? It is like the tradition in a family business where every member of the family is aware about what and how to do business. So, we can guess how we think and what our career goal is! There is nothing best among career goals, but more important is that it should satisfy your objectives and needs.  So, what kind of education we need for doing business is also important, a managerial experience in commerce or economics is more vital than a degree in technical education, which most of the time a means of gaining a high salary job only. So, Education with Research can change the job prospects in the career objectives.

          The conclusion is that the startup framework will change the mindset of youngsters from jobseekers to job providers. In the vast populated country like India we need this mindset otherwise unemployment is already a big giant for youth. When a number of jobs will evolve out in a stable economy of the country, everyone can full fill his/her dreams and it will be because monitorial flow will be massive. Suppose if we move forward in the area of sustainable development, then only the image of India can be better, it is because it needs better governance with policies.

 

 

 

 

 

                      "The key behind the success of a country is nationalism”