Startups have picked pace quite recently and have become a real center of attraction in the current economic situation. India has the 2nd largest start up ecosystem in the world and is expecting to witness 10-12% YOY growth.
The Indian situation, despite having a fertile ground to flourish, are being held on by complex laws, difficult tax structure, and the educated yet inexperienced/unskilled workforce.
The tax laws are complex and tend to draw out the total establishment procedure. For example, a startup cannot raise and invoice without an active GST number. In addition, a lack of innovation in developing a strong foundation for a startup is seriously affecting the Indian economy. Too many “me-too” companies, copying from the western ideas, have come about, is still stopping hundreds of young blood right at the source.
The situation is changing as we are moving ahead in time.The Indian ecosystem of startups were given a boost after the union budget of 2019-20. From the lull in the growth after 2016-17, the ecosystem has seen new growth of participants and the apparent release of the legal bottlenecks to ensure a smooth pick up of the pace.
The government is identifying the problems and making the necessary changes to facilitate a smooth environment of new start-up generation. Recently, in its budget of 2019-20, the government has proposed the relaxation of the so-called “Angel tax” laws. A collaborative effort of investors, entrepreneurs, and government officials can identify and remedy some of the roadblocks, paving the way for the building of a valuable and functional brand.
As a matter of fact, technology is a real driver giving birth to many startups. Most of the startups are either based on technology platform for one form or the other.
While the startup ecosystem is growing, the average age of a startup founders is under 28 years and have a brilliant mind. These brilliant minds may not have enough experience at their back but definitely have a zeal to work and deliver better services to their customers. For any organization to grow sustainably, it needs a combination of expertise and experience.
Basis assessment of the current market scenario, there is an imminent need to have experienced mentors to the startups, handholding them in the complex market scenarios. We at Growise have the experts to provide such mentoring to the startups from a business operation as well as finance perspective.