Startups are budding companies that start to develop new products or services, introduce new techniques or improve old strategies in the market. Startups are not seeking workers who follow orders from the top. Instead, they look for imaginative co-owners / partners among their staff who share the founders’ appetite for risk and outcomes.
Working of Startups
The difference between traditional companies and startups is the manner in which they create products and their strategies. Traditional companies imitate the products or take franchises. Whereas, startups introduce new ideas to the market.
Goals of Startups
Speed and growth are prominent features of startups. They aim to set new ideas quickly and accelerate them. They also improve their products as per the feedback they receive from the process known as iteration. The startup starts with the basic products i.e., minimal viable product (MVP) and tests & revises till it gets fully developed. Final goal of the startup is going to the public.
Introducing a breakthrough product or service that has the potential to solve issues in society helps the startups grow.
In a developing country like India, entrepreneurs have plenty of financial, human, social capital and adequate support to improve the availability of financial and other resources. The Government of India provides social capital to entrepreneurs developing an action plan for “Startup India”. The project began in January 2016 and is still on-going.
Startups directly impact the overall development of the nation. In India, the Central Government & several State Governments have launched various schemes to support startups.
A few schemes by the government are as follows:
- SAMRIDH Scheme
- Startup India Seen Fund
- Startup India Initiative
- Startup Leadership program
- Pradhan Mantri Mudra Yojana (PMMY)
- India Water Pitch-Pilot-Scale Startup Challenge
- ATAL Innovation Mission
- Loan for Rooftop Solar PV Power Projects
- New Generation Innovation and Entrepreneurship Development Centre (NewGen IEDC)
Factors driven by startups
Factors responsible for the nation’s development are directly enhanced by the startups. A few of them are listed below:
- Employment generation
Startups think most creatively compared to their traditional business counterparts. They search for human talent rather than just a degree holder. Hence, the employment generation is getting higher in startups.
- Wealth generation
Startups are built to create an impact over a long period. As the statement goes, “the older it gets, the better it will be”. Same counts for startups. Standing in the long run with a tech-driven approach attracts financial wealth. Not just for entrepreneurs, it impacts employees & indirect entities as well.
- Upscale the standard of living
The startup provides a responsibility that further rewards a better standard of living. No founder or CEO of a startup enjoys low living standards. The hunger to make it better keeps them in the league of standards. Hence, startups drive better living standards as well.
- Increase GDP
It helps the economic development of the country. GDP (Gross Domestic Product) plays an important part in a country’s economic development. It is possible to earn more money domestically by supporting and promoting more homegrown entrepreneurs, and consumer capital will flow within the country.
- Research & Development
Startups are based on innovation. They bring new technologies to support research & development within the company or educational institution. Because they frequently deal with high technology and knowledge-based services, startups can significantly support developing countries’ research and development (R&D). In a startup, the R&D team acts as an innovation seeker and keeps the company growing.
It is useful in a practical setting or for research at a university or other educational institution. As a result, working at a startup can inspire students or researchers to put their ideas into action.
- Talent development
Resilient leadership can bring colleges and businesses together to create the types of talent pools that help startups get started.
To sustain itself, a startup must provide quality to its customers. We all strive for growth. It’s a never-ending process & settling for a small piece of earnings is not the fortune of revolutionary entrepreneurs.