Posted in Entrepreneurship & Startups Articles, Total Reads: 1007
Entrepreneurship seems to be the buzz word for today’s generation. There has been a great increase in the number of people taking risk of starting a business activity of their own. India too has been bitten by the entrepreneurship bug. Over the years there has been a rise in young Indians shedding their phobia of failure and stepping up into the risky world of startups. With the IT boom sweeping India, starting up something of your own has not been that difficult any more. Also inspiring stories of other entrepreneurs around the world like Bill Gates, Steve Jobs and Jeff Bezos have been providing the required fodder for the innovative minds of our country. Success stories of startups like Infosys, Flipkart and Snapdeal from the past have been inspirational for the youth to believe in their own ideas and working towards turning them into reality.
Initially starting in big cities like Mumbai and Bangalore, the trend of entrepreneurship is gradually moving towards tier 2 cities although the epicenter for the revolution still located in these cities. Known as the Silicon Valley of India, Bangalore especially boasts of being the only Indian city among the “Top 20 Entrepreneurial Hot Spots around the Globe” in a data released by the financial-software firm Intuit in 2013. It found a place on the 19th spot in the list with Silicon Valley leading the list. E-commerce, in the past few years, has been the flag bearer for entrepreneurship in India with Flipkart, Snapdeal, Zomato, bookmyshow etc becoming giants in the field within a few years of formation.
Talking of statistics, if we look at the data released by NASSCOM it becomes even clearer that the startup ecosystem in India is becoming more and more successful over time. According to the data released, India has become the 4th largest community in terms of the number of technical products or digital startups in the world with over 3100 startups and is hence seen as the fastest growing community. Observing the growth from 2010 to 2014 it can be seen that there has been a steady year on year growth of 14% in the revenues generated by the startups in India. The focus area of most of the startups in India has been on the B2C market with 59% of the newly launched firms going for it. 37% of the startups go for B2B market whereas only 4% go for both B2B and B2C markets.
Looking at the profile of the startup founders in India we find that 53% of the founders fall under the age group of 26 to 35 years, 22% in 36-45 years age bracket, 20% in below 25 years age group and 5% of these entrepreneurs fall in the category of over 45 years of age. It can be observed that 73% of the total startups are started by people under 35 years of age. This shows the risk taking abilities of the youth in the country and also the desire for them to start something of their own.
Talking in terms of funding generated by the startups in India there has been an emphatic 300% rise in the first quarter of 2015 as compared to the funding generated in Q1 in 2014. While 2014 Q1 had seen funding amounting to $450 million, funding for the first quarter of 2015 has been $1.7 billion with around 30 deals where the amount have not been declared. This amount is around 3 times that of the toatal funding received by the UK startup scene that generated a total funding of $682. Between January and February, the Indian startup scenario has witnessed a minimum of startups funded every day. A total of 147 deals have been made in the first quarter period of January to March. The NCR area of India has been the top destination for startup investments in the country with around $859 million generated in the first quarter. Bangalore and Mumbai follow the list with $346 million and $295 million generated over this duration.
A lot of big venture capitalist firms have shown interest in making investments in India. India, in the first quarter of 2015, had witnessed 67% more investment deals than China in terms of absolute volume. Sequoia Capital, the most active venture capital firm of this quarter in the Asia Pacific region has made 13 of its 32 investments in India. Another global venture capital firm, Tiger Global, has made 9 of its 20 investments in India.
Apart from the well growing service sector there have been major initiatives taken by the government regarding improving the entrepreneurial scenario in the manufacturing sector of the country. Launched o n 25th September 2014 by the honorable Prime Minister of India, Mr. Narendra Modi the Make in India initiative was started to encourage Indian companies to manufacture their products in India rather than outsourcing them. This initiative is expected to increase the number of people starting their own firms in the manufacturing sector thereby helping the twin cause of entrepreneurship and improvement in the lagging manufacturing sector in the country. This initiative also hopes of attracting more technological and capital investments in India.
There has been a phenomenal rise seen in the number of startups in India and the major reason for that is the change in mindset and attitude of the people to have something of their own rather that working hard for the goals set by others. The future looks even better with more and more people coming out to present their ideas to investors and more and more investors looking for ideas that are different from others and that might be of interest to the people.
This article has been authored by Vishesh Saran from SIMSR
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