Sector wise the distribution of Indian businesses is Table1 Break up of Indian

Sector wise the distribution of indian businesses is

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Sector wise, the distribution of Indian businesses is: Table:1 Break-up of Indian Startup Businesses Information Technology Based Non-Technology Based E-Commerce - 33% Engineering- 17% B2B - 24% Construction-13% Internet - 12% Agri- products- 11% Mobile apps - 10% Textile - 8% SaaS - 8% Printing & packaging – 8% Other – 13% Transport & logistics- 6% Outsourcing & support -5% Others-32% Source: Startups India- An Overview, Grant Thornton, 2015 5 CRITICAL ANALYSIS OF START-UP IN INDIA
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Boosting the Growth of Startups: The Startup India initiative has contributed significantly to the Startup movement across the country and a surge in entrepreneurial activity has been observed since 2016. The below graph of recognition highlights the growth in Startup recognition since the launch of the Startup India. Growth in Startup Recognition The DIPP recognition for Startups brought benefits ranging from tax exemption to easier participation in government procurement and easier norms for running a business for Indian Startups, leading to more individuals being nudged towards their entrepreneurial journey. To ensure the program achieves the Prime Minister’s vision of ensuring a Startup in every district of the country, the Startup India program through its initiatives has ensured the culture of entrepreneurship trickles down to every town and district. The below charts and graphs represent geographical distribution and industry wise analysis for recognized Startups. 6 CRITICAL ANALYSIS OF START-UP IN INDIA
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While top metros control majority share of Startups concentration in the country, the Tier-1 and Tier-2 cities have been catching up. As a result, we see increasing Startup activity in all States Being the 3rd largest Startup ecosystem in the world and one of the largest consumer markets, India has Startups working in industries ranging from Fintech to Food-tech and Robotics to Agri- Tech. The below graph highlights the top 10 industries where recognized Startups operate. QUALITATIVE ISSUES AND CHALLENGES OF STARTUPS An entrepreneur cannot start a business just with passion or an idea. A high level of leadership skills proper understanding of market, excellent communication skills, ability to see things in right perspective along with the ability to take calculated risks are required on the part of the entrepreneur. Lack of awareness, multiple clearances, unorganized market, poor infrastructure in Tier 2 /3 cities, lack of mentoring , stringent exit policies, corruption/red tape, technological risk, regulatory obstacles and lack of reforms keeping pace with the fast-evolving market changes are some of the challenges that faced by the entrepreneurs. Some of the major issues and challenges are discussed below: 1) Financial Resources More than two-thirds of startup firms faced financial challenges in the past year, according to the( 2016 Small Business Credit Survey: Report on Startup Firms .) Availability of finance is critical for the startups and is always a problem to get enough amounts Several finance options are availability from family members, friends, loans, grants, angel funding, venture capitalists, crowdfunding etc. But Availability of Working capital is the life blood of any business and it is
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  • Fall '17
  • Mahvish ali

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