Abstract

A startup venture could be defined as a new business that is in the initial stages of operation, beginning to grow and is typically financed by an individual or small group of individuals. It is a young entrepreneurial, scalable business model built on technology and innovation wherein the founders develop a product or service for which they foresee demand through disruption of existing or by creating entirely new markets. Startups are nothing but an idea that manifests into a commercial undertaking.

It is to be noted that every year more than 800 technology startups are being set up in India. , it is estimated that around 11,500 tech-startups are going to be established with employment potential of around 250,000 technical people (NASSCOM, 2015). It is admirable to note that India is amongst the top five countries in the world in terms of startups with 10,000+ led by US with 83,000+ comprising 43% tech-based firms with 9% managed by women entrepreneurs.

A number of venture capitalists and angel investors are aggressive and gung-ho on Indian startups as they see lot of potential with few expected to become unicorns (high valued companies) bringing in good returns.  On the contrary, there are examples of few startups that failed and eventually closed their businesses due to various issues and challenges.

India being a large country with over 130Cr population, boasts of high demographic dividends due to large number of young people. According to the latest UN report India with 356 million 10-24 year-olds have the largest concentration of youth population who are going to be the driving force behind innovation and creation with commensurate demand and consumption of goods and services (Mittal, 2014). India has a unique set of problems due to multicultural and multilingual regions that need innovations to find solutions to health, education, infrastructure, sanitation and for population at the ‘bottom-of-the-pyramid’ space. Each problem provides a unique opportunity for startups to create a business around it. India's tele-density reached 76.55 percent with a subscriber base of 95.76Cr bringing in convenience and reach to consumer segments including Tier-2 and 3 towns (TRAI,2017).This increased mobile penetration has given a fillip to Indian economy with E-commerce garnering increased share. Further, GoI’s digital push is going to improve connectivity and data to higher levels bringing in more software applications to find solutions for day-to-day issues. The reduction in data charges will also help start-ups to tap into new markets and even disrupt traditional businesses.