The start-up juggernaut: government gives the desired push

Saurabh Arora

MUMBAI, INDIA: The start-up wave has swept India spelling good times for the multiple entrepreneurial ventures that are spanning the length and breadth of the country. At a time when the companies are receiving immense response from investors’ community in India and abroad, tremendous support from Prime Minister Narendra Modi-led government will help script a promising future and build a cohesive start-up ecosystem.

Today, on the eve of World Entrepreneur’s Day, I believe that the measures announced by the incumbent government testify the huge potential the start-up space holds. Whether technology, healthcare, hyper local or e-commerce, start-up companies are here for a long haul and on path to redefine and revolutionize the respective sectors.

Seeing the value such companies have lent to the economic growth of the developed nations, the PM’s efforts towards launching initiatives toward Indian start-ups are timely and apt. It has so created a win-win situation for both the government and the companies.

What does government support means for start-ups?

Irrespective of the positive scenario that prevails owing to the backing from venture capitalists and private equity players, a single policy measure is enough to dash the optimism of investors.

History is littered with instances when successful companies had to bundle up operations after being mired in policy and regulatory tussles because of hazy business environment and no show-support from governments, across globe.

No matter how euphoric investors seem, they keep a hawk eye on government’s moves in the absence of its support. They stay prepared to pull their money out in circumstances not favoring them, pinning many aspirational dreams.

This is where government’s clarion call to all the stakeholders – banks, financial institutions and industry partners - to give a push to start-ups makes all the difference.

The support creates a positive impact on the minds of investors, creating an enabling environment. The steps announced by the Modi-led dispensation like the ambitious Digital India, Make in India, or the launch of India Aspiration Fund (IAF) demonstrate its vision for the same. The allocation of funds from the government’s wallet to promote start-ups will add to the confidence of small players and push those who have been sitting on the edge with their entrepreneurial ideas, but abstaining from taking a risk.

For a shining start-up future:

The government must make it easier for start-ups to raise money in the domestic market. The initiatives on bank financing, launch of IAF and listing of start-ups on Indian bourses are welcome; however simpler norms are important. Instead of stringent rules and regulations, friendlier policies need to be in place.

As a technology start-up, we look forward to better technological infrastructure in the country. There is a need for policies that support the related industry for developing the infrastructure, a must for a start-up-supportive setup. For companies providing mobility solutions via Internet much depends on broadband connectivity. Services that allow faster and uninterrupted Internet services are crucial for start-ups and government must work to ensure that.

Prove our worth:

While these are celebratory times for start-ups in India, it is equally a huge responsibility on them to prove their worth. Only getting swayed by the optimism will lead to nothing. For start-ups, it is certainly a time to make the most of it.

The government is doing its bit; start-ups have to seize the opportunity.

Time is ripe!

The article is authored by Saurabh Arora, CEO, Lybrate