ABSTRACT

*Anjali Kulabhi**Pratik jawale

2nd yr M. Sc. in Hospitality Admin., NCHM-IH, Noida

Email- [email protected] Mob- 8360912899
2nd yr M. Sc. in Hospitality Admin., NCHM-IH, Noida
Email- [email protected] Mob- 9130600768

Topic: Indian Startups with Global footprints

The main purpose of this research is to explore how Indian startup has matured and
how local and global connectivity is critical to the startups success. It is said that for
good ideas and true innovation, one needs to have human interaction, thought
exchanges and debate. That is precisely what startup India has got to offer. Startup
India is an initiative announced and launched by hon’ble Prime Minister in 2016 with an
aim to promote entrepreneurship, generation of employment & wealth creation. The
motto of this scheme to recognize the real change makers, who dared to step out of
their comfort zones and bringing a positive change towards betterment of mankind. So
past few year seen the emergence of series of new competitive Indian startups. Big
business startups like OYO, Ola, Pay tm have gained much popularity. Only one place
where Indian startups lag is comes to offering novel technological solution .Major Indian
family led business such as TATA Cos, Mahindra and Mahindra, Reliance & Aditya Birla
group have already left their footprints on consumer mark. Be it commerce, tourism, or
IT- based business solution, these new age startups are not only building capital but are
also changing the way business are conducted in India.

Keywords: Startups, global, entrepreneurs, business, footprints

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I . INTRODUCTION
With India gearing up to become a $5 trillion economy by 2025, Indian startups are
placed perfectly to maximize this tremendous opportunity to form their mark and
become global behemoths. The positive expansion of Indian startups like OYO, Zomato,
Ola, Zoho, Freshdesk, et al gives an enormous boost of confidence to budding
entrepreneurs on making the bold move of going global. These startups offer their
services to global companies and organizations across the world who in turn is
embracing the technology and solutions offered. With this year’s conference theme
topic, “Indian startups: Global Footprint”, we aim to explore how the Indian Ecosystem
has matured and built synergies. The ecosystem and the connectivity- both local and
global are critical to the startup's success. The main purpose of this study is to create
awareness through plugging in global relationships so that entrepreneurs and
stakeholders understand the opportunities waiting to be harnessed enabling founders
world over to be exposed to the latest and the best in the world.

Startup is defined as “an entrepreneurial venture or a replacement business within the

sort of a corporation, a partnership or temporary organization designed and search of a
repeatable and scalable business model. Startups are the flavor of the season over a
previous couple of years for the Indian markets. This has resulted in the emergence of a
variety of homegrown unicorns across the country. One of the main contributors
resulting in this development has been the mega funding that has been plowed into
most of those unicorns between the amount of 2007 and 2017.

However, 2015 has clothed to be a year offering a touch of a reality check to at least
one and everyone and redefined the dynamics to an excellent extent. The year also set
the tone for the subsequent stage within the evolution of the startup ecosystem. The
maturity in deciding what ought to ideally are available at this stage would be a step
within the right direction taking the startup space in India towards greater heights, as it
deserves. To create awareness and building an entrepreneurial environment, tons of
emphasis should now tend to make infrastructure for mentoring startups. Various
stakeholders like the govt, corporate, educational institutions et al. are and will join
hands to create a far better ecosystem for children

OBJECTIVES OF THE STUDY

 To understand the life- cycle of Indian startup
 To explore how Indian startup’s have mature and how local and global
connectivity critical to startup success
 To analyze the futuristic approach of company in global market

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NEED OF THE STUDY
The main idea behind starting a startup business is to be own ‘s boss and lead a
independent life by being a job creators and not job seekers. Large population with
largest middle class group , young minds with technology knowledge, high internet and
mobile penetrations are some of the drivers that create opportunities for youth to go for
startup. In current scenario, tourism & hospitality industry accounts for maximum
participation. As one can see people from non-hospitality background entering into
market with such a unique and innovative ideas and creating revolutionary change.
Now it is necessary and our country’s economy calls for such change. Therefore this
study will be beneficial for those who want to create a change by be one’s own boss
and thinking of going global. This study will create awareness among all future
entrepreneurs as well as present entrepreneurs and stakeholders and make them
understand the opportunities waiting for them if they think of going globally.

SCOPE OF THE STUDY

The scope and opportunities are massive as far as startups are concerned. Huge
support and facilities are being provided to budding entrepreneurs from government and
non-government agencies, women entrepreneurs are getting more warm welcome on
the field, as well as with the tremendous use of technology like Artificial intelligence (AI),
Indian startups are gaining much popularity globally. This study would be definitely
going to help entrepreneur and inspire them to think big think global.

II. LITERATURE REVIEW

Startup India has been promised an initial capital of 10K crore over 4 years from the govt. This
seed capital is capable of attracting tenfold investment by 2022. A credit guarantee for startup
lending is another booster. The startup plan unfolded on January 16, 2016, ahead of domestic
and international entrepreneurs. Internet-based businesses from food to fashion, health to
education, and visit payment platforms- all have taken Centre stage recently. Industry
expectation from the govt is reciprocal. Few industry leaders who are championing Startup
India want high bandwidth, tax breaks on budget smartphones supporting vernacular
languages, simpler KYC norms, and improved access to electricity and credits. they're
interacting with policymakers to comb out regulations that act as a brake to investments. Crisp
documentation may be a pipedream for the young, technology-savvy, smart entrepreneur. The
developed countries have worked hard to form startup operations simple. it's this backdrop
which makes politics challenging and interesting enough for the govt of the day. The Prime
Minister unveiled a 19-point agenda to require forward the startup culture. The action plan
included tax sops, ease-of-doing-business, innovation to assist entrepreneurs to startup and
grow their business (Forbes India, Startup India, January 18, 2016).

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At the international level, the G20 Young Entrepreneurs Alliance (YEA)16 has been arguing that
if young entrepreneurs are allowed easier access to international markets, they will create
significantly more jobs. Therefore, they mooted the thought of the Entrepreneur Visa Program
and recommended the implementation of an up to 2-year visa during which young
entrepreneurs and/or their key managers and their families can conduct their business in
foreign countries. They also acknowledged that the method of getting such a visa should be as
simple as a Working Holiday Visa. To avoid abuses of such visas, the G20 YEA also suggested
that some criteria might be put in situ to pick the relevant candidates.

2.1 International Money entering into India

Foreign investor interest in India is often attributed to varied factors but the most
important one is that the consumer growth backed by the mobile revolution. Also, the
India focus of the latest York-based Tiger Global Management (TGM) has given
confidence to other global private equity and hedge funds to return to India. Making big
bets on Indian innovation has become a worldwide point of interest. The following are a
couple of samples of foreign investors investing in Indian startups:
• TGM is currently the top investor in startups in India during the first four months of
2015 Indian startups have featured in 18 of its 26 funding rounds globally in 2015 so far.
It has begun to make early-stage investments in India now.
• Tiger was among the top investors in India at $422 million in 2014, despite a lean start.
After April, with massive fund infusion into Flipkart, which raised a complete of just
about $2 billion in 2014?
• It was followed by Russian investor Yuri Milner-led DST Global, which invested $352
million.
• Japanese telecom giant Softbank invested $282 million in Indian startups in 2014.

Global Entrepreneurship Monitor characterizes business enterprise as "any attempt at

new business or new venture creation, such as self-employment, a new business
organization, or the expansion of an existing business, by a private, a team of people, or
a longtime business". Business enterprise is additionally characterized as a movement
that "includes the discovery, evaluation and exploitation of -opportunities to introduce
new goods and services and ways of organizing, markets, processes, and staple
through efforts that previously had not existed" (Hattab, GEM Egypt Report, 2013).
India has, for the most part, two classifications of startup firms (1) new companies set
up With the help of incubators supported by Department of Science furthermore,
Technology, Government of India (2) new companies set up with the backing of
business incubation projects of privately owned businesses what's more, foundations.
Startup India is a Government of India flagship program to promote new businesses and
support innovation. This program includes various segments to enable startup dares to
help business with attention to financial development and work age. This project gives
proactive help and motivating forces at various levels (http://www.startupindia.gov.in).

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Various social media marketing has been done and platforms like tweeter are being
used for new announcements any to be made. Startup India yatra conducted in 220
districts across 23 states impacting 78,346 entrepreneurs.4 –week course for startups
and aspiring entrepreneur According to recent NASSCOM report new India’s startup
ecosystem is growing rapidly of 12-15%. As per the report, 1300+ startups have been
added till now. This is a great sign to move forward with an idea of entering into
entrepreneurship.
2.2 India vis-à-vis Select Countries in Different Indicators
In a globalized world, startups tend to invest in countries with good a startup ecosystem,
which includes the ability to secure innovation, incubators and accelerators, access to
funds, access to the market, ICT readiness, infrastructure, institutions, etc. This section
looks at India's position vis-a-vis select developed and developing countries in various
indicators for innovation, ICT and entrepreneurship. While foreign startups will check out
these indicators alongside the benefits (for example, an outsized market) that India
offers, Indian startups may
2.2.1 The Ease of Doing Business Index
The World Bank's ‘Ease of Doing Business’ index measures 190 economies on how
easy it is to conduct business.28 In 2017, New Zealand, Singapore, and Denmark were
ranked 1st, 2nd, and 3rd respectively, while China was ranked 5th and the US was
ranked 6th. While India’s rank in the index improved from 130 in 2016 to 100 in 2017, it
fell in sub-indicators such as ‘Starting a Business’ (from 155 in 2016 to 156 in 2017),
‘Registering Property’ (from 138 in 2016 to 154 in 2017) and ‘Getting Electricity’ (from
26 in 2016 to 29 in 2017),29 indicating that businesses (including foreign firms) may
face issues at the inception stage. However, it is important to note that, in 2017, India
was ranked 4th in the ‘Protecting Minority Investors’ sub-indicator.
2.2.2 The Global Innovation Index
The WIPO’s Global Innovation Index (GII) for 2017 compared innovation performance of
127 countries and economies around the world with its sub-indicators broadly exploring
their participation in various aspects of innovation, including political environment,
education, infrastructure, and business sophistication. India’s overall ranking improved
from 66 in 2013 to 60 in 2017 (see Table 2), but it was still lower than countries such as
Israel (ranked 17), China (ranked 22) and Chile (ranked 46). However, Figure 1 shows
that India has ranked better than Chile in ‘Knowledge and Technology Outputs’, and
‘Market Sophistication’ sub-indicators.

Table 1: India's Overall Global Innovation Index Rankings (2013-2017)

Year Rank on the Global Innovation Index

2017 60
2016 66
2015 81
2014 76
2013 66

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Source: https://www.globalinnovationindex.org/analysis-indicator

Source: https://www.globalinnovationindex.org/analysis-indicator

Indian Startup Ecosystem Enablers are:

Startups in India have given rise to more startups. Enablers, accelerators, and
incubators are firms providing startups with growth advice and decision-making tools.
From advising on government policies to act as market catalysts, they grow the maturity
of young ventures. Enablers like NASSCOM and iSpirt compile key stakeholders of the
ecosystem including startup incubators, accelerators, angel investors, venture
capitalists, support groups, mentors, and technology corporations. Their main aim is just
to supply funding and support for startups. Here are some examples with a quick history
of the work that they need to be been doing:
NASSCOM 10,000 Startups: NASSCOM has come up with an ambitious initiative
called “10,000 Startups”, getting to proportion the startup ecosystem in India by 10x.
The program is supported by Microsoft, Google, Intel, VeriSign, and Kotak.10,000
Startups aims to enable incubation, funding, and support for 10,000 startups in India
over the subsequent ten years. The program has been ready to successfully impact
150+ technology startups, aiding within the raising of funds, acceptance into
acceleration programs, found customers, and onboarded members through the
initiative.

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Table: 2 India comparisons with other countries

Source: World Bank website- https://www.worldbank.org

Stages of Startup Lifecycle

There are three steps within the startup lifecycle out of which the first phase is pre-startup
introduce which discovery and validation are two important steps then startup introduce which
efficiency and scale are two steps then third steps is Growth during which maintenance and
sale or renewal be the important step for the event of life-cycle of a startup

Pre- Growth
Startup
startup Maintenan
- Efficiency ce
- Discovery
- Scale -Sale
- Validation

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Start-ups Ecosystem:

Startup ecosystem mentions a startup business in a corporation engages in the development,

production or distribution of the latest product, processes or services. they're new and
existence for less than five years and revenue of up to INR 25cr, employing 50 people or less. So
these startup grow and develop with the support of massive companies and universities, and
obtain funds from funding organization like an angel investor, risk capital, public markets

Source: Startup India Overview (Govt. Article 2016)

Reasons for Indian startups critical to success

Followings are a number of the restrictions or challenges within the path of

entrepreneurs which will need to face and people are critical to startups success, those
are:

• Indian startups are often allegedly coping with foreign startups

• Competitive pricing from big players often results in entrepreneurs within the massive
financial hit during the initial stage of business
• There is a need for more directional efforts to assist increase supportive government
policies (ease of doing business, tax incentives, availability of risk capital)
• Talking about the tourism industry, the cost of selling is far costlier than the other
domain
• Issues in the connectivity of local business to the touch global boundaries
• Hiring qualified employees are hard job as joining a startup as an employee isn't a
beautiful career option

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2.3 SELECTION OF INDIAN STARTUPS THAT WENT GLOBAL
In this section, some successful stories of entrepreneurs from various sub- sectors of
tourism and hospitality industry has been listed and narrated which will inspire all those
who aspire to be future entrepreneur and will motivate the entrepreneurs as well as
stakeholders and make them understand the opportunities waiting for them .It has been
assumed that having thrived at home for nearly a decade, India’s startup scene went
global in 2018.

COMPANY INTERNATIONAL EXPANSION

• After entering Australia in January, the Bengaluru-based
Ola firm launched within the UK in August. And in
November, 7-year-old firm, now worth$7 billion, also
found out in New Zealand
• Ola getting to launch IPO in next 2 years
• The hotel chain was already present in Nepal and
OYO Malaysia, but this 2018, it ventured east China. The
mainland became its biggest success story
• In terms of several rooms, China is OYO’s biggest
market with 180,000 to 330,000 rooms globally.
• By September 2018, the Ritesh Agarwal-led startup had
become a $5 billion
• It has announced its decision to invest $300 million in
increasing the company’s footprint in its newest home
market the U.S

 The food-tech firm is reportedly has entered the Dubai

Swiggy and Jakarta market
• India’s most-used food directory launched under the name
Zomato of ‘foodiebay’ in 2008 but soon it became biggest restaurant
directory in Delhi NCR region and renamed after 2 years
“Zomato”
• As funding started learning, by 2012, overseas operations of
Zomato started including UAE, Srilanka, Qatar
• In 2013, it expanded towards Brazil, Turkey. While its
expansion was at full force, it started acquiring foreign-based
companies like Portuguese company Gastronauci and Italian
service Cibando

Source: https://qz.com/india/1490980/ola-oyo-byjus-swiggy-made-2018-indian-
startups-global-year/

3. RESEARCH METHODOLOGY
The study adopted here is exploratory and qualitative design in analyzing the
opportunities and challenges faced by Indian startups in tourism & hospitality

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industry. The primary data has been collected by online questionnaire and
analyzing of case studies. Secondary data has been collected through
journals, magazines, books as well as internet.

3.1 Data collection method:

A structured questionnaire was circulated through mail to respondents.

Survey questionnaires consists of eight close- ended questions on multiple
choice basis Questionnaires has been circulated to educated males and
females who aspires to open up their startups

3.2 Sampling method & Sample size

Sampling Method adopted here is random sampling. As 50 respondents were
selected as educated male and females for survey. Data from respondents has
been collected for primary sources through online e-survey. The e-questionnaire
was circulated to each respondents and analysis is done for the same.

4. ANALYSIS & INTERPRETATION

Questionnaires were circulated through mail, where the summary of survey is analyzed below:
Demographic factors

i) Gender Ratio

INFERENCES: Percentage of male respondents are maximum than female. As per

figure , 68% are male and 32% are female.

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ii) Age Ratio

INFERENCES: As per figure, it can be seen maximum respondents are youth and
below 25 or 25-35 years of age.

2. Are you aware of “Startup India” initiative by government of India?

INFERENCES: From given figure, we can see maximum percentage of

respondents are aware of “startup India” Initiative. 90% of respondents said “yes”
while only 8% said “no” and 2% are not sure about the scheme.

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3. Have you ever thought of starting your own business?

qefufhehekv

INFERENCES: As per figure, 70% of respondents wants to starts their own

business, while only 8% said “no” and 22% respondents are not sure

4. What industry would you like to cater in order to start your own business?

INFERENCE: As per figure, 52% selected tourism & hospitality and 32% chose E-
Commerce, 10% selected software business as their industry, while education,
jewellery business, are other choices

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5. According to you, which of the following drivers are responsible for
influencing entrepreneurship ?

INFERENCES: 42% respondents chose expertise as the most influencing drivers

which is responsible for entrepreneurship, 32% believes innovations are the
important drivers, while 24% respondents chose emotional and social appeal

6. Do you believe Indian startups able to flourish Global market?

INFERENCES: From the above pie chart 52% respondents are agree Indian
startups able to flourish global market, similarly 36% respondents are strongly
agreeing for the same

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7. What would be the reason for any business to expand?

INFERENCES: The Chart shows that 46% respondents selected that business expand
to find new market, 24% respondents selected for both to ensure business efficiency
and to maximize competitive risk ,while 6 % respondents selected to achieve
diseconomies of scale

CONCLUSIONS:

The current scenario of tourism & hospitality industry is on expansion mode. Vast changes from
introduction of Artificial intelligence to digitization, everything has been welcomed. In order to
be advanced, one has to come up with something unique idea or thought to enter
entrepreneurship world. In this study we have been talked about life cycle of startup that means
from where idea generates till it expands on the grounds of global market. A lot of great
entrepreneurs ‘s success stories has been referred to understand their journey of expansion to
international boundaries. Especially, in this industry one needs to have a preservance to remain
in the business. By going through the previous startup case studies, one might get an inspiration
as well as motivation to work harder without fail. All those success stories are meant to inspire
future entrepreneurs as well also to give them a fair idea of expected opportunities and
challenges in the path of becoming an entrepreneur. Irrespective of the factors such as gender,
money, social class etc, not taking into an account one should not stop dreaming. This should be
an ultimate purpose. Let’s not forget that government has also done so much in its part. From an
inception of “Startup India” Initiative, a lot much has changed. The goal of making India a
place of job creators and not seekers will only be possible with the support of government.
Technical/ financial assistance from govt. and non-govt. agencies, support of partners, learning
and development programme from NSIC, MSMEs etc will definitely boost the morale of an
entrepreneur. If we compare this to last few decades, not much knowledge , or will could have

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been seen among the youths of that time as one can notice in today’s era. This is all because of
the environment we live in. Therefore, this study concluded that challenges and risk should not
deter the ambition of an individual rather he/she should fight against all odds, and always look
for an opportunity. Anybody can do business with little business mind but very few dare to
risk by choosing to be an entrepreneur and brings revolutionary change in the society.

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