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    This document discusses the growth of startup ecosystems in India. It provides definitions of startups and outlines some key points: 1) India is undertaking policies to promote a business friendly environment and startup culture to address issues of employment and competition. 2) Major government initiatives include Prime Minister Modi's "Startup India, Stand Up India" plan and a "Action Plan for Startup India" which provides funding, reduced regulations, and other support for startups. 3) While India aims to promote innovation and industrialization through startups, challenges remain in fully developing startup ecosystems across the country.

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    This document discusses the growth of startup ecosystems in India. It provides definitions of startups and outlines some key points: 1) India is undertaking policies to promote a business friendly environment and startup culture to address issues of employment and competition. 2) Major government initiatives include Prime Minister Modi's "Startup India, Stand Up India" plan and a "Action Plan for Startup India" which provides funding, reduced regulations, and other support for startups. 3) While India aims to promote innovation and industrialization through startups, challenges remain in fully developing startup ecosystems across the country.

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    26 views4 pages

    Growth of Startup Ecosystems in India: International Journal of Applied Research and Studies January 2018

    Uploaded by

    Anand Kumar
    This document discusses the growth of startup ecosystems in India. It provides definitions of startups and outlines some key points: 1) India is undertaking policies to promote a business friendly environment and startup culture to address issues of employment and competition. 2) Major government initiatives include Prime Minister Modi's "Startup India, Stand Up India" plan and a "Action Plan for Startup India" which provides funding, reduced regulations, and other support for startups. 3) While India aims to promote innovation and industrialization through startups, challenges remain in fully developing startup ecosystems across the country.

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    Growth of Startup Ecosystems in India

    Article  in  International Journal of Applied Research and Studies · January 2018

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    International Journal of Applied Research 2016 ; 2(12 ): 152-154

    ISSN Print: 2394-7500


    ISSN Online: 2394-5869
    Impact Factor: 5.2
    Growth of startup ecosystems in India
    IJAR 2016; 2(12): 152-154
    www.allresearchjournal.com
    Received: 23-10-2016 Surbhi Jain
    Accepted: 24-11-2016
    Abstract
    Surbhi Jain
    Ph. d., M.Com, M.D.
    India is a developing south Asian country. It is a most populous and 7th largest country by area. Large
    University, Rohtak, India. population implies a large prospective market in India and puts more pressure for employment in the
    country. In the present decade, India is undertaking an essential shift towards startup welcoming
    policies and a business friendly environment. India is a populated country having increasing demand
    which is putting a competitive environment forcing to create innovative systems. One of these systems
    is a Startup ecosystem. This paper is aimed at about the growth and prospects of Startup systems in
    India.

    Keywords: Startups, Innovation, Technological Business Incubator, India

    1. Introduction
    India is a developing south Asian country. It is a most populous and 7th largest country by
    area. Large population implies a large prospective market in India and puts more pressure for
    employment in the country. In recent years, Indian youth motivates towards self-employment
    instead of rely on parents or government or opportunities. Rather, they start to take initiative
    to look for new challenges. This encourages and promoting self-employment environment
    creates the startup systems in India.

    What is a Startup
    Currently a clear definition of a ‘Startup’ does not exist in the Indian context due to the
    subjectivity and complexity involved. Considering various parameters pertaining to any
    business such as the stage of their lifecycle, the amount and level of funding achieved, the
    amount of revenue generated, the area of operations, etc., some conceptual definitions are
    available in the public domain. The Department of Industrial Policy and Promotion (DIPP) is
    also working around a clear definition for startups and is expected to make it public in due
    course.
     A startup is a young company that is beginning to develop and grow, is in the first stages
    of operation, and is usually financed by an individual or small group of individuals
     A startup is a young company that searches for an unknown business model in order to
    disrupt existing markets or create new ones.
     A startup is a young, dynamic company built on technology and innovation wherein the
    founders attempt to capitalize on developing a product or service for which they believe
    there is a demand.

    Definitions of Startup
    A startup business is defined as an organization:
     Incorporated for three years or less
     At a funding stage of Series B or less
     An entrepreneurial venture/a partnership or a temporary business organization
     A startup is defined as a business that:
     Engages in development, production or distribution of new products, processes or
    services
    Correspondence
    Surbhi Jain
     New and existence for not more than five years
    Ph. d., M.Com, M.D.  Revenue of up to INR 25 cr.
    University, Rohtak, India.  Not formed through splitting or restructuring
    ~ 152 ~
    International Journal of Applied Research

    According to an Infosys Co-founder, a startup is defined as  Revenue of INR 5 cr. or less


    a business: (ASSOCHAM India (2016) Startups India - An Overview)
     Within the first three years of its existence
     Employing 50 people or less 2. Origin of startups ecosystem

    Source: ASSOCHAM India (2016) Startups India - An Overview

    3. Start of Startups Initiative in India 6. Action Plan for Startup India


    Honorable Prime Minister Dr. Narendra Modi announced on Prime Minister Narendra Modi announces Action Plan for
    15th August, 2015 "Start-up India, Stand up India" to encouraging Startups on 16 Jan 2016.
    promote Bank Financing for startups and offer incentives to  Funding support through Fund-of Funds with corpus of
    boost entrepreneurship and job creation. Addressing the Rs. 10000 core.
    Nation on the 69th Independence Day, he said, "We are  Entrepreneurs should register a company in one day,
    looking at systems for enabling start-ups. We want to enable against 15-20 days as row.
    start-ups to make India No. 1 in this field…. Start-up India;  No tax on Profit, inspection for 3 years
    Stand up India." The Government’s Union Budget  Capital Gain Tax exemption.
    allocation of INR 1,000 Cr. towards the Self Employment  Credit Guarantee Scheme.
    and Talent Utilization (SETU) scheme is a major boost  Easy & Faster Exit Policy.
    towards promoting start-ups in the Country.
     No Capital Gain if money is invested in another start
    up.
    4. Call for startup ecosystems in India
     Self-certification based compliance for Labour &
    In the present decade, India is undertaking an essential shift
    Environment laws.
    towards startup welcoming policies and a business friendly
     Set up of startup India hub for clearance
    environment. India is a populated country having increasing
    demand which is putting a competitive environment forcing  Mobile apps, portal for registration.
    to create innovative systems. These startup ecosystems  Holding with Govt. acting as a friend and colleague.
    works on a continuum from basic research to the transfer  New intellectual property rights protection. 80%
    into developed companies or entrepreneurs. reduction in patent free and fast tracking
    To corroborate this process, the most of the works are using  Patent examination.
    the record number of patents as a proxy, given the difficulty  Encourage startups in Government purchase.
    of measuring new products, services and process for the  Special Scheme for women entrepreneurs.
    market.  Support bio-technology startups
     Programme to encourage innovation among students in
    5. Research Methodology 5 lakhs Schools.
    Present research paper is mainly based on the secondary  Building innovation centers at National Institutes.
    data. These data are collected from various websites,  Setting up Research Park.
    journals, and newspaper articles. The study is explanatory
    and conceptual in nature.
    ~ 153 ~
    International Journal of Applied Research

    7. Problems and conclusions


    India declared 2010-20 as the Decade of Innovation.
    Innovation is the key for startup ecosystems and results for
    more industrialization. That increases the per capita income
    of a country. But the great problems in Indian markets are
    that they are unorganized and fragmented. There is a lack of
    unambiguous and transparent policy motives, lack of
    communications sources, lack of knowledge and exposure.
    Startup systems require a combination of friendly
    operational, regulatory and taxation issues that affects the
    working of business environment very much. For building
    an entrepreneurial environment, the government, big
    corporate, educational institutions should come forward to
    provide a culture for startups in India. Mentor programmes,
    innovative essay competitions, workshops, seminars should
    be organized by the government and universities. From an
    overall viewing, India had a very high scope for growth of
    startup ecosystems. India offers the largest pie of venture
    prospect that the world is eyeing.

    References
    1. Damodaran A. Valuing Young, Start-up and Growth
    Companies: Estimation Issues and Valuation
    Challenges. SSRN Electronic Journal. 2009, 06. DOI:
    10.2139/ssrn.141868
    2. Mansano F, Pereira M. Business incubators as support
    mechanisms for the economic development: Case of
    Maringá's Technology Incubator. International Journal
    of Innovation–IJI. 2016; 4(1):23-32.
    doi:http://dx.doi.org/10.5585/iji.v4i1.51
    3. Niti Aayog. Report of the Expert Committee on
    Innovation and Entrepreneurship, 2015.
    4. http://startupindia.gov.in
    5. http://www.investopedia.com/ask/answers/12/what-is-
    a-startup.asp
    6. http://dipp.nic.in/English/Investor/startupindia/Definitio
    n_Startup_GazetteNotification.pdf
    7. https://en.wikipedia.org/wiki/Startup_company
    8. https://yourstory.com/2016/02/government-definition-
    startup/
    9. http://dictionary.cambridge.org/dictionary/english/start-
    up
    10. http://www.profitbooks.net/startup-india/
    11. http://www.investopedia.com/terms/s/startup.asp
    12. https://www.indiafilings.com/learn/challenges-faced-
    startups-india/
    13. http://economictimes.indiatimes.com/small-
    biz/startups/indian-startups-challenges-and-
    opportunities/articleshow/45272839.cms
    14. https://yourstory.com/2016/06/10-real-problems-india-
    startups-can-aim-solve/

    ~ 154 ~

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