Only government support can promote direct procurement from startups approved on the ‘Startup India’ website, a recent report disclosed by the industry body FICCI suggested.
In India, startups success rate is not up to the mark. Why does it happen? It is difficult to know the actual reason of startups failure but, many think that the Indian startup ecosystem is not effective to solve this problem like the other countries across the world. “Indian startups seek government support to lessen the number of failures,” the Federation of Indian Chambers of Commerce and Industry (FICCI) said in its new report.
Startups Face Challenges Since Idea Incubation
There are a number of challenges for Indian startups. “They face many challenges at every stage in terms of incubation, merging, fund raising and hiring etc and they need adequate support to overpower all these challenges and minimize failures. The government should provide incentives to investors in startups and direct funding on the basis of monitoring and evaluation as India has the potential to become a major hub for startups,” FICCI (http://ficci.in/ ) said in the report. “There is a need to address such bottlenecks to minimize failures and ensure that the startups graduate to becoming scale-ups,” FICCI added.
The report on the vibrancy of the startup ecosystem in the UK and its lessons for India’s developing startup scene observed, in global hubs like London failure for such venture is accepted, entrepreneurs in countries such as India could be seen as braver as they are taking comparatively greater risks in the face of adverse situations.
The UK could formally work with experts and business organizations to conduct a state-by-state assessment of where the UK could work with Indian state and central governments, as well as existing private incubators and accelerators, said the report.
Corporate Can Join Together
Corporates can act as hotbeds for co-creation with startups, provide market opportunities through procurement and encourage a wider culture of entrepreneurship. The government can promote direct procurement from startups approved on the Startup India website, the report suggested.
Moreover, the government should take technology scale-up focused trade delegations to innovation hubs around the world and seek successful outcomes from such delegations to include MoUs between Indian and foreign incubators and accelerators. Startups that are innovation and technology driven have increasingly become the backbone of a new India and could be key drivers for several of the government’s programmes such as Make in India, Digital India, Startup India as well as employment generation.
On the hand, startup has become a new trend but very few of them are working to solve the real problem. In addition, the Indian government programmes like “Startup India” also failed to support startups and the result is just opposite to the expectation. So, India needs to work seriously on this issue.