, How StartUp Drive the Economy

How StartUp Drive the Economy

Startups create new markets or completely transform old markets by introducing products that can change the world. Giants of today such as Apple, Facebook, and Google were once small but ambitious startups.

New technologies often create new opportunities that startups take advantage of. Startups then create a massive value over mature businesses, inspiring competition and disrupting the economy to evolve.

When it comes to startups, a general perception is that it needs to be in a developed country where all the resources are available. In reality, startups can begin functioning anywhere, and it’s often the countries with the greatest needs that present the biggest opportunities. Startups are at home in underdeveloped countries, nations in conflict, and those countries new to entrepreneurship. Each of these environments offers untapped problems which startups can take advantage of not just to make a profit, but also to make an impact.

Role of Startups in Economic Prosperity:

Startups may be small companies but they can play a significant role in economic growth.
• Startups are the centers of innovation;
• Startups create jobs which means more employment, and more employment means an improved economy;
• Startups create jobs which means more employment, and more employment means an improved economy;
• Startups have a direct impact on the cities that they make their homes. Look at how Infosys has changed Bangalore, Alibaba impacted Hangzhou, Microsoft changed Redmond and Google transformed Mountain View, California. They improved employment patterns providing job opportunities to both experienced and young professionals. This led to a surge in inflow of graduates and relocation of experienced professionals from different cities;
• The “dynamism gap” between the large cities and the rest of the country narrows down due to startups;
• Startups boost the economy with revolutionary technology and create new industries over time. When these startups go public, they truly become money-making engines for not just the owners but also the employees and shareholders;

Startups also contribute to changing the image of the country.
Start-ups require a multi-pronged approach, including:
1. Increasing access to capital;
2. Improving access to talent;
3. Opening up access to markets; and
4. Cutting red tape and instituting a pro-innovation regulatory and fiscal policy.

The corporate connect is important as well. Already, several enterprises have recognized the immense disruptive potential of start-ups and have come forward to partner with them, invest in them, and provide the required mentoring support.

The Government of India to understands the value of working with disruptive innovators across the value chain. It has been doing its bit to support the growth of start-ups across the value chain by helping them use their innovations to improve public service delivery.

India has a predominantly young population that is teaming with enthusiasm and bursting with new innovative ideas that could potentially create a positive impact globally. With the right support and encouragement, we can certainly expect a new wave of entrepreneurship that could transform India.

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