Startup buzz generates much hype today – not only in India, but also around the world. Whether it is a colour-coated room of a factory or an all-glass knowledge-driven company office, a discussion about exploring new business opportunities through innovations enthralls us. Making ourselves free of rigid organisational dynamics, living our own lives, supporting our family while working on our passion, making a profitable venture to spend holidays on luxury cruises, or even bringing economic prosperity to our region and to serve a social cause successfully – each one has the ability to nurture the birth of a startup. More so, it does not matter if the individual is a seasoned businessperson, professional, or a young student – all these parent-figures of business are called entrepreneurs.
This is not a new phenomenon of today. It is in our genes. But the initiatives by different governments have placed this model of economic prosperity in the forefront. The governments attempt to engage large part of population in the process of innovation and business. We are now aware how lesser percentage of the German population come forward to establish startups than the Americans. We now see many events and activities by the Great Britain to promote great business. We see how China pushes hard for service startups after its tremendous success in the past port-led development strategy. We see now India has adopted USA-like startup initiative, but of course, with significant hype around it as usual for current ruling dispensation.
Do we really need a mobile App to quicken the process of startup registration? Maybe not. But it’s needed if we want to build up the number of registrations and to make a big hype around it.
Do we really need a startup fund to help entrepreneurs? It may only help some. But government may create requisite policy for encouraging venture funds and private investments into startups.
Do we really need tax concession? The privileged entrepreneurs who may benefit while executing large commercial orders in their first three years of business. Else, normal startups end up in creating products or setting up their plants and machineries during this period – may not have earnings and may not have to pay tax anyway.
What we need is the formulation of a favourable procurement policy towards startups – like the USA government had done in the Silicon Valley during its infancy. Government may play the role of a customer and may encourage startups to compete and flourish. Subsidies cannot be a stable platform for business activity – it is not social sector.