Start-up ecosystem: Things to encourage the current scenario

India has ranked from 37th position in the year 2018 to 17th position in 2019 amongst the top 100 countries in the start-up ecosystem. A start-up ecosystem is an environment developed by the people, the different stages, and types of culture in different places where these people from around the world come forward to work with an aim to achieve the organizations’ goals.

These people collaborate in a system to create and scale-up more and more start-up companies in India. Mumbai, Bangalore, and Delhi are the top three cities amongst the most advanced start-up cities worldwide.

As per the statement given by the co-founder of Infosys, Kris Gopalakrishnan, the country needs to work towards changing the mindset and the support from the Government of India can help the start-ups in building the ecosystem.

According to him, it is indispensable for the start-up business to be profitable from the very first day. Also, the impeccable start-ups are the ones that do not require any external funds; they grow and flourish with the strategies and their internal funds. There are many best books to read for the entrepreneurs or start-up enthusiasts available in the market written by such experts.

Factors that affect Start-up ecosystem

The factors that affect the start-up ecosystem are market disruptions, financial climate, and significant transitions. The start-ups are ever-changing entities that progress from the very first stage and go through the different stages of disturbance and then head towards the recovery process.

Diverse culture

Diversification in an organization has a big role when the employees are from different backgrounds, culture; they speak different languages and have a different set of minds. This tool can be used as a game-changer in any organization if used properly and strategically. Every start-up ecosystem, small, medium or large; they share a common goal to enhance their growth.

Though this seems a progressive story of a profitable business in India; however we are depriving of the core benefits of the start-up ecosystem, even though India has got the best talent pool and we have come so far with this small progress.

So, what are the changes that we need to deploy to create a thrilling wave of disruption? Disruption means the changes, and these changes need to be done from the roots of the system.

The changes are so wide that describing them needs a proper reality check into what is actually happening in the business world of start-ups! Trending start-up businesses in India like Paytm, OYO, Flipkart, and Ola have enticed the attention of people globally. They have grown themselves impeccably that they have taken over the world.

The big economy

We have a big 5 trillion economy that needs a plan which can be implemented and executed in a dynamic way keeping in mind the dynamic factors. The start-up enthusiasts are already playing a very crucial role in it.

If we talk about Angel investments; this is an indispensable business idea both potentially and in terms of risk as well. In the Union budget of the year 2019-20, the angel tax was addressed and the focus was given on solving the intricacies of angel tax. It was done to boost and inspire the angel investors to invest in start-ups in India.

The government of India has established the funds for start-ups worth ₹ 10000 crores. The purpose of this fund is to financially support the start-up’s innovation drive.

According to the stats, approx. 24 states in India have already introduced the policies of Start-up businesses, while other states are also establishing their ecosystem to encourage their place in the Department for Promotion of Industry and Internal Trade (DPIIT). This is because the investors analyse these things minutely while investing in any start-ups.

Small Industries development bank of India (SIDBI) uses the network of registered AIFs i.e. Alternative Investment Funds for investment in start-ups that are recognized by DPIIT. It is the need of the hour that the government should boost the corporates to use the services offered by the start-ups.


To conclude, the scheme “Stand up India start-up India”, is a revolutionary change made by the government of India. Now, the Indian economy will not be dependent on foreign direct investments anymore. The perimeter of success for the start-up ecosystem is going to be calculated by the number of start-up businesses incorporated in the coming months.

Start-up businesses will have good funds to start with. Exemption from the heavy imposition of taxes for almost three years and practical advice from the start-up ecosystem through expert hubs will minimize the failure risk. There will be great opportunities to connect with the companies, the experts, mentors and representatives from the sector through which business ideas in India for beginners could be shared. The future prospect of start-ups in India looks promising.

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Sudhanshu Malik

I am a content writer with 4 years of experience

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