Your father probably had a government job or worked in a public sector undertaking. During his time, say in the 1980s, India’s population was around 69 crore, the use of information technology was minimal and there was a job for almost every educated person who did not want to join the family business.
Cut to 2023. India is now the world’s most populous country with 142 crore people out of which around two-thirds are in the working age group of 15 to 64 years. Technology has rendered most manual jobs redundant and with ever-decreasing requirements of the workforce in government and public sector institutions, it’s time for young India to look at entrepreneurship.
Over the last nine years, the Narendra Modi government has taken multiple steps to promote entrepreneurship, making it easier for youngsters to set up new enterprises. The journey began with the Startup India initiative announced by the prime minister on August 15, 2015. Through funding support, simplification of permissions and processes, reduction in various compliance fees, and other initiatives, the scheme gave an instant leg-up to India’s then-fledgling startup ecosystem.
Entrepreneurship received another boost with the Stand-Up India scheme rolled out by the government on April 5, 2016. It provides financial support to foster entrepreneurship among the Scheduled Caste (SC), Scheduled Tribe (ST) and women entrepreneurs in the country. The scheme provides loans between Rs 10 lakh and Rs 1 crore for setting up greenfield enterprises in the manufacturing, trading or services sector.
The results of these and other government initiatives are clearly visible now. India is today the global hub of the startup ecosystem, ranking third after the US and China. We now have over 90,000 startups and 107 unicorn companies worth 30 billion dollars, which has been the result of the government’s efforts and the contribution of India’s youth.
This, then, is the way to go forward instead of banking on the government or the corporate sector for jobs and employment where the number of applicants is most often more than the number of jobs on offer. Why? Simply because it is much easier to sell your products and services in the global market, thanks to the internet and globalisation. Funding is pouring into the country and India has a thriving ecosystem of venture capitalists and private equity investors.
Technology and e-commerce have made it easier for budding entrepreneurs and artisans from small towns and villages to take their niche products and ideas to customers all over the country and even globally. This was unthinkable in the era of brick-and-mortar retail when the entire trade and retail ecosystem was controlled by a handful of large corporations and their distributors and wholesalers. The execution of the idea is also easy and very cost-effective, thanks to India’s global leadership in information technology and services.
For customers, it has never been easier and cheaper to buy products and services on the internet due to one of the world’s lowest data rates and a smartphone in almost every household now.
So, if you can become the owner, promoter and CEO of your enterprise and sell globally from the comfort of your home, why would you want to sweat for others and live in fear of salary cuts and even losing your job?
Not surprisingly, there has been an explosion in the creation of new startups and fundraising in recent years. According to Fintrackr, 1,327 startups raised $25.2 billion, spread over 1,556 deals in 2022. This includes $21 billion from 330 growth-stage startups and $4.2 billion from 1012 early-stage startups.
Another big factor in favour of entrepreneurship right now is Startup20. India’s theme for G20 Presidency is “One Earth, One Family, One Future”, signalling the need for unity of purpose as well as action. PM Modi has announced the setting up of Startup20, an engagement and dialogue forum with stakeholders of the global startup ecosystem, extending the broader G20 theme to startups as well. This grouping will create a global narrative for supporting startups by bringing together investors, innovators, and ecosystem enablers, with startups on a common platform.
To drive innovation by supporting young entrepreneurs, the University of Delhi has also set up Udhmodya Foundation, a Section-8 Company. It helps entrepreneurs to collaborate for growing their startups and provides seed money, co-working spaces, and networking besides expert mentorship.
With the emphasis and incentives for ‘Make in India’, now is the right time to make locally and sell globally. In fact, this also aligns well with Mahatma Gandhi’s concept of Gram Swaraj – the idea of a self-reliant village. He regarded villages as the basic unit of the nation and if our villages can become home to startups, it would be the realisation of Mahatma’s vision.
At a time when migration from villages and small towns is creating immense pressure on urban infrastructure, especially in cities like Mumbai and Bengaluru, it is time for youth to set up their own enterprises in their hometowns or villages. Already, 49 percent of the recognised startups in India are based out of Tier 2 and Tier 3 cities including Indore, Jaipur, Surat and Ahmedabad.
India’s smaller cities and towns are also home to traditional crafts and culinary heritage that is the rage among consumers globally due to a shift towards a sustainable lifestyle. It’s the perfect time for India’s youth to grab the opportunities all around.
The author is Joint CEO of Udhmodya Foundation, Startup Ecosystem of University of Delhi. Views expressed are personal.
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