Impact of Start-up
Impact of Start-up
Start-ups are new emerging or young companies that launch new products, services and business models for the market to create profit. Students nowadays are attracted to this trend and are being innovative and aggressive to dive into this startup culture trend but they are unaware of the fact that starting up something new can be complicated and arduous.
The initials in starting up something new involves market research generating innovative ideas, product, services, preparing and following up successful business models.
These newborn companies or startups have already brought a significant impact in all spheres globally. Even if we are talking about India in over the last two decades, the Indian startup ecosystem has grown rapidly and have shown a great impact in all the dimensions, say it, employment creation, GDP growth, improving the lifestyle of people, introducing new and better technology and many more. Even in the present times the women section of the society are also diving more and more into this new startup trend and are promoting the gender equality trend too.
The impact of this growth in startup culture has played a very important role in strengthening the economy of the country which is very evident by seeing the programs launched by the Indian government to promote more and more startups in India. Schemes like Startup India and Make in India are prime examples of such schemes. The larger goal of these schemes are to help new businesses with bank financing, energize the business spirit among young Indians, build frameworks for uplifting startups, and make the country the best destination for tech businesses.
The Role of Startups in the Growth of the Indian Economy:
1) Employment Creation
India has 112 million working-age people between the ages of 20 and 24, compared to China’s 94 million. In the absence of government jobs, this demographic dividend is accelerating the country’s startup culture. As of August 29, 2022, India had emerged as the world’s third-largest startup ecosystem, with over 77,000 DPIIT-recognized startups spread throughout 656 districts. These startups are simultaneously enabling more jobs than large companies or enterprises in the same industry. Therefore curbing the unemployment problems in developing nations like India.
2) New Investments
We all are very well aware of the concept of outsourcing. Even big multinational corporations outsource their tasks to small businesses to focus on their core business more reluctantly. As a result of this trend, not only Indian venture capitalists but also many multinational corporations are closely monitoring the progress of Indian start-ups to invest their money. For example, Accenture gave 1.35 million dollars worth of business to startups within the last year, allowing startups to make a significant impact on both the Indian and global markets.
3) Research and Development
The startup’s R&D team acts as an innovation seeker and keeps the company updated. Start-ups encourage independent researchers at the academic establishment. This motivates students or researchers to put their ideas into practice by collaborating with the start-up, which more importantly helps develop means of economic expansion.
4) Better GDP
Despite elevated inflation pressures owing to rising global food and fuel prices, Indian Gross domestic product (GDP) has grown by 7% in the fiscal year (FY) 2022-23 and is expected to grow by 6.2% in FY 2023-24. As GDP plays an important role in a country’s economic development, it will become possible for India to increase revenue domestically by keeping this trend of promoting and supporting more start-up initiatives.
Name – Ms. Kirti Kamal
Designation – Assistant Professor
Department – Commerce
email-id – firstname.lastname@example.org