8 Reasons Why You Should Startup
2015 has been a happening year for Indian startup ecosystem, where India secured a respectful 3rd rank worldwide. The ranking is based on the fact that Indian startup ecosystem is flourishing with increasing number of startups, investors, incubators and accelerators.
“Impulse to start my own venture never let me sleep properly” says Satish, 24-year-old working in an IT firm in Noida. Is it only Satish who is feeling the pain of missing out on something? NO! It is every -you and I tale. I think the common tete-a- tete amongst the youngsters, be it in an enclosed office chamber or smoking zone of corporates, or even a cozy room of newly wed couple is about new business and startup ideas. Almost everybody has an idea he can bet his life on.
Let us explore why have these startups suddenly become the most interesting topic for everyone? Why we all want to have our own startup? Why entrepreneurship worm has suddenly started getting on our nerves? You are a startup enthusiast if you do not leave a single news relating to startups go unread, each funding news sets your heart on fire and you claim a number of successful startup’s ideas are originally yours. When I started my blog Exploring Startups, then during various interactions with my friends I came to know that at least 7 of my friends claimed Grofers to be their idea. “Yar!, Grofers was my idea, I was about to start, but my family didn’t support much”, Said one of my friends.
Let us now explore what are the factors that knowingly or unknowingly have impressed us to an extent that we are ready to take the plunge in the ocean of entrepreneurship, putting all our little savings, our comfort, career security, financial security at stake.
Here is a list of 8 reasons you should startup:
1. Shouting Numbers
Though I did not want to stress your brain muscles at the very start of the article, they are too irresistible.
- 4,200 Startups in India, expected to grow to 11,500 by 2020
- $ 5 billion funding by VCs, PE and Angel investors, which is a 125% increase over last year (2014)
- 100% increase in the number of VC and PE firms over last year
- 110 Incubators/ Accelerators in India, increased by 40% over 2014
Now that you know that these numbers stare you back, initiating an adrenaline rush to start your own venture so that you do not miss the startup revolution train, there is a lot more to share. Some facts and points that will definitely make you pop up from your seat till you find your own startup idea.
2. The Role Models
If you are a startup enthusiast, then it is not possible that you don’t know the role models of this sector. Yes, I am talking about Bansals and Bahl of Flipkart and Snapdeal. The way they have achieved success in such a short span of time is incredible. Let us check out how they are ranked on a Forbes list of wealthy people:
Flipkart’s Sachin Bansal and Binny Bansal have a net worth of around Rs. 9,010 crores, each, and are ranked.
Ola’s Bhavish Agarwal and Ankit Bhati have personal wealth of Rs. 2,385 crores, each, making the duo secure 238th rank. They are also the youngest ones on the list.
Kunal Bahl of Snapdeal with a wealth of Rs. 2,314 crores, is placed at 243rd rank.
Paytm’s Vijay Shekhar Sharma and Naveen Tiwari of Inmobi are also part of the coveted list.
I know money is not equivalent to success. Had it been so, we would have been discussing only the top ranks. The reason we are discussing ranks 238 and 243 and are fascinated with these people is because they were people like you and me, but with their hard work and determination, they have been able to compete with richest personalities who have generations old business background. They have proved it is doable, and are the torchbearers of this revolution.
3. Omnipresent Startups Let Us Not Forget It:
We have startups from cradle to grave. From the day, a child is born (Babyoye, Hoopos, FirstCry) in your house, to their education (helloClass, Vedantu, EdTech,CultureAlley ). As one grows we look out for a compatible companion, so here are the set of startups helping you find your life partner- (Tinder, wedmegood, merrily).
As you grow old, you need Healthcare (Practo, HealthKart, AngelsHealth). Startups have also not left the less travelled road where they provide you online access to funeral services for those who cannot attend the last rites of their near and dear ones (Indianfuneral, Moksh-shil).
They all are trying to solve our daily life issues and real life problems with the help of technology and helping us live easier and happier. That in itself is so inspiring that we all feel attracted to solve those pain points that we had ever faced in our lives. Unknowingly we are attracted towards starting up.
4. The Enabling Factors: – Investors/ incubators
This is one of the biggest factors why we are getting so much interested to startup. There are wealthy angels sent by God to fund your startup, which has not seen a trace of success yet. A number of Venture capitalists with deep pockets are ready to exchange it for a share in your company. The investors’ FOMO (Fear Of Missing Out) factor plays again in the favor of young startups.
There are 110 incubators and accelerators, which guide young startups to build their Minimal Viable Product and also provide seed stage funding to some of them. There is an increase of 40% year on year growth in the number of accelerators/incubators.
5. Supportive Government
Not just that the central government is almost ready with its ‘Startup Act’ which envisages to reduce some 22 rules down to a two-page policy framework, to foster startup culture in India. More than 6 states governments are coming up with lucrative incentives to attract startups which includes- Karnataka, AndhraPradesh, Rajasthan, UttarPradesh, Telengana, West Bengal and Tamil Nadu.
For the very first time our PM Mr. Narendra Modi called for the launch of “Startup India- Standup India” Campaign on the occasion of 69th Independence Day. On the platter is a mix of incentives, tax exemptions, a guideline on the valuation of startups, incubation centers, easier approvals, changes in Bankruptcy Law for easier exits, changes in IPR laws to ensure the protection of ideas so that innovation is rewarded and rejuvenating ties with academia ad research.
6. History Repeats:
There was a time in 1990’s when after adopting Liberalization, Privatization and Globalization (LPG), states governments were fighting with each other to get the bidding of manufacturing plants of big companies like Hyundai or the Volkswagen. “That spirit is fully back in the current government and administration.” Said Gopal Srinivasan, Chairman of TVS Capital Funds, reports ET.
History is repeating itself and similar level of enthusiasm & competition among various states could be seen for luring startups. This could led the path of easy incorporation and friendly environment for startups.
7. Changing Families’ Attitude:
Families are now more supportive towards entrepreneurship and thus risk-taking appetite of individuals has increased as compared to earlier years, where entrepreneurship was not accepted as a career option in the family itself leave apart society.
Kialash Nadh shared in an article published in Economic Times on how he developed “Boast Machine” in 2002 when he was just 15 years. His blog engine achieved great success and his venture became popular world wide hosting several hundred thousands of self hosted blogs, including some institutional users such as Michigan State University. Coincidently, Kailash had to complete his secondary school when his venture was as its peak. He says that it was too early for his family to comprehend internet entrepreneurship at that stage and they preferred him joining a college rather pursuing his venture that ultimately met its fate with WordPress coming up as a competitor in 2003 end.
WordPress has grown to be the largest self-hosted blogging tool used by millions of sites, had Kailash’s family supported him, we could have made a dent in the international internet sector with Indian origin “Boast Machine”.
However, the scenario is changing fast. Nadh is hopeful with the changing attitude of families with respect to risk taking and entrepreneurship. Families are reading so many success stories everyday and are now encouraging their kids to adopt the path of entrepreneurship.
8. Failure is not a failure here
“Failure of your company is not a failure in life. Failure in your relationship is.”- Evan Williams, founder, Twitter and Blogger
One can learn more from failure than years of successful journey. Failed entrepreneurs are very sought after people. No! I am not kidding. “We constantly hear that investors- especially American ones who have failed.” Said George Berkowski, a serial entrepreneur. The not so successful entrepreneurs know where the things can go wrong, and there are high chances that they can do well in next venture. Moreover, corporates have also started understanding the potential of a failed entrepreneur.
Thus, even if one fails in the first venture, there are three exit options-
- He can learn from his failures and startup again
- Many startups hire only failed entrepreneurs for some specific roles- as they want to use their prior experience.
- He may also join corporate who are now more open to accept failed entrepreneurs.
Startups are changing the way we live, the way we spend. It would be a crime to call it a change, it is a Revolution! Right from an individual, to entrepreneurs to investors and even to governments, every damn body is chasing this small mouse called startup. Chase it when it is a mouse and enjoy when it becomes elephant!