Contemporary Prospects of Startup Eco-System in India: An Analytical Study

Abstract

‘Startup’ is usually an entrepreneurial venture, formed as a small business, is in the first stage of its operation, financed initially by their founders, which is designed to develop, grow fast and scale up to higher with its business model which focuses on an innovative product, service, process, platform or solutions to address various business and economic problems pertaining to the target market, in which the founders strongly believe in. The success and failure of any business in general and startups in particular largely depend on coping with challenges that emerged like the commercialization of novel technique or technology prepositions into viable revenue-generating products or services. Besides this financing, the startups were also troublesome to the investors due to a lack of adequate return for a longer period of time with the aggregated risk involved in it. Further, positioning of the product or service is also another threat to the entrepreneur since it does not give any guarantee to have sustainable demand from the consumers. Identification of potential human resources who can serve the needs of a startup is also a challenge to these startups. Hence the researcher made an attempt in this paper to study the numerous challenges confronted by startups in India and their role in the startup ecosystem. The research on startups was primarily done to understand the factors that led the startup entrepreneurs in India to start their businesses. Further, the study is restricted to the dimension of startups entrepreneurs, their problems, awareness of startup policies, challenges encountered and the opportunities available to them. The paper is limited to understanding the perspective of startups in their journey with reference to the startup ecosystem only.