Pravin Khandelwal, Managing Director, Pranay Care Pvt Ltd and Director, Leadership & Motivation, Risers Accelerator
Risers Accelerator is a startup accelerator that promotes promising startups from any industry or sector. It facilitates startups with a globally scalable business framework, salable offerings, and the ability to foster social growth, thanks to a well-integrated team of 35 successful entrepreneurs.
Startups are the backbone of any country’s economy, especially one in the early stages of development like India’s. Startups contribute to the economic engine in a variety of ways. Startups contribute to economic growth in a variety of ways, from bringing cutting-edge technology to the forefront to creating job opportunities and increasing GDP. To understand why it is critical to fund startups, we must first understand their role in economic growth.
Obtaining funding, on the other hand, is frequently a difficult task for new startups. And, while it may appear that now is not the time to invest in startups, nothing could be further from the truth. Despite the fact that the market is somewhat unstable as a result of the pandemic, the government has called for self-sufficiency and has encouraged people to go ‘vocal for local’ by supporting homegrown businesses. This means that venture capitalists who decide to invest in local startups will receive full government support.
Companies that have already established themselves as market leaders are more interested in investing in R&D on existing technologies and incrementally innovating. In contrast, startups are always focused on the most recent, cutting-edge technologies that are on the horizon.
The more rigid an organisation is, the larger it is. Startups, on the other hand, are quite adaptable; they can quickly turn an idea into a product and then continue to improve that product in response to customer feedback. Startups offer the freedom to express ideas as well as a platform for innovation. This is possibly why graduates from the most prestigious technical institutes who are hired by the leading tech giants do not make as much of an impact as those who are not hired and launch their own startups. This is why, in order for the economy to benefit from more technological innovation, startups must be equipped with seed funding.
New Markets Opening
Startups are powered by innovation, and the entire concept of launching a startup is to identify a problem that people are facing and provide an efficient solution to it. Following this ideology, startups create new markets or completely transform existing markets by introducing world-changing products. When a product establishes itself as useful, it creates its own market.
Create Opportunities for Employment
According to several independent studies and surveys, startups, not large multinational corporations, are the primary contributors to the country’s net job growth. Startups, because they are growth-oriented, continue to create more and more jobs as they evolve. The larger a startup grows, the more employees it requires to run the business.
Direct Influence on Living Standards
If the startups are successful, they will have a direct impact on the cities where they are located. When you compare what Redmond looked like before Microsoft and what it looks like now, you’ll see the difference. Startups have the potential to change the face of an entire city by creating job opportunities and wealth.
Startups are the engine that drives the economy.
Startups propel the economy and keep it from stagnating. As a result, we must devise methods for creating a nurturing environment for startups.
The support of the federal and state governments is one of the most important requirements for developing a good startup ecosystem. Rather than simply relaxing regulations, we must take a proactive approach to startup development. Individual cities must foster entrepreneurship-inspiring programmes. The startup industry has limitless potential to drive economic growth; all we need to do is build an infrastructure that will allow us to tap into that potential.
Helping startups with funding is one way to make it easier for them to succeed. Funding is an extremely important aspect of achieving a company’s vision. We now have options such as crowdfunding, angel investment, venture capitalists, incubators and accelerators, and so on that we did not have previously; as a result, it should be relatively easier for startups to obtain the funding that they require.
Nonetheless, there are many startups in the country that are experiencing liquidity issues and are having difficulty raising funds. Many investors have become stingy as a result of the Covid-19 pandemic, and foreign investment has also dropped significantly. Given these facts, the Prime Minister’s call for “self-reliance” could serve as a catalyst for the growth of domestic firms – and, by extension, the entire economy.