Title: Role of Startups in The Economic Development of India


Volume 6 Issue 1 Year 2016

Authors:

Maneesha Kaushik

maneesha9099@gmail.com
Department of Management Studies, Swami Keshvanand Institute of Technology, Vivekanand Global University, Jaipur(INDIA)

Pages: 85-89


Abstract:

Global development is entering a phase where entrepreneurship will increasingly play a more vital role. Entrepreneurship may spur economic development if appropriately supported by the state and may also make nations happier, but only upto an extent. As nations become happier, their need for entrepreneurship seems to decline. Startup business owners are well knownfor their capacity to provide employment opportunities and shape marketplace innovations. An entrepreneur is in an exclusive position to improve the economic condition and advance the society by creating new jobs. Other than delivering value to their customers, startups do have a direct influence on the cities they make their homes. The influence of Infosys in Bangalore is a classic example of this. When these startups evolve, they impact the growth of their cities as well. Employment opportunities for youth rise and new employment patterns come into picture. Entrepreneurial Activity has a significant contribution towards national growth; several proposals are also suggested regarding the way governments can promote entrepreneurship including the scope of economic activities managed by the government,
encouraging annual working hours and reduction in the complexity and cost related to the registration of a new business. With great heights achieved in the industrial production as evidenced by the increase in the rate of growth during the current plan period, expectations of better capacity utilization and
favorable investment climate reflected in the response of the capital market to the various issues. The prospects of the industrial sector in the current plan are also quite encouraging. Small businesses provide enormous opportunities to the entrepreneurs. It holds the key to success in the prevailing socio-
economic environment. The study reveals that India, in spite of being amongst the fastest growing country still has the world ranking as 140th regarding the nominal GDP per capita. However, the study is optimistic about India's growth which as a result would provide a strong foundation for the startup ecosystem to flourish.(Handbook of statistics on Indian Economy June 2014) Measures should be taken in supporting startups with tax clarity, incubation, affordability and licensing. Providing startup capital, resources to develop awareness, inspiration and increasing meeting space for the newest innovators & business leaders of tomorrow can also catalyze the entrepreneurial ecosystem. The major caveat is that for entrepreneurs to play a significant role, the
role of the state stands extremely crucial. Strong states play a role of regulators and gatekeepers. In the absence of appropriate 'rules of the game' laid down for the startups, entrepreneurship may result in undesirable social outcomes, including corruption, crime, speculation and financial crisis.

 

Startups, Capacity Utilization, Incubation, Licensing,
Innovators, Gatekeepers

Keywords:
Startups, Capacity Utilization, Incubation, Licensing, Innovators, Gatekeepers