Startups Guide: How to map and nurture local entrepreneurship ecosystems?

It all started with a video that went viral on social media. The life of Kanta Prasad, owner of Baba Ka Dhaba, witnessed some sunshine amidst the gloomy, pandemic-hit days. From no customer to a beeline of foodies, good samaritans, selfie-takers, media personnel, and sponsors. The tiny, light blue coloured food stall in Delhi’s Malviya Nagar went trending on Twitter. Today, the craze to associate with the story is such that celebs, influencers, locals, and multinational companies, almost everyone has come in support of the 80 something business owners. But is the wait worth it for the old couple? Do we need a viral content to open our eyes towards unfortunate startups going through bad business days?

We have often heard that small and local businesses are the lifeline of the economy. They have the potential to drive a country towards prosperity. But the example shared here is a testament to the harsh realities of how they are overlooked and left on their shoulders to struggle and survive. If it is about the survival of the fittest, then probably no young mind would dare to dream of a startup, and perhaps will never try to make it big. And maybe those with maximum resources will continue to enjoy their monopoly. And this is not an ideal scenario, for any economy. Hence it is very crucial to nurture a startup ecosystem.

Small and local businesses may need a hand holding initially as they can be deficient in certain resources and may look up to external environments. But this support is nothing compared to the contributions they make at the grassroots level of our society. Such businesses become role models for other entrepreneurs laying a foundation for local economies in that community. More than the national level, small businesses make up for most of a community’s GDP; thereby gaining even more importance vis-a-vis the overall economic activity of that community.

Although we cannot do away without acknowledging the contribution of local entrepreneurs in developing communities, the relationship works vice-versa. Both communities and businesses share a fair give and take. The more a local business does for a community, the more support it gets from elements around them.

The same works the other way around.

Therefore, to simultaneously uplift the society in its entirety including economic development and fostering a sentiment of constructive competition, it is important to promote a startup culture. Besides, it should focus on helping entrepreneurs succeed. The creation of jobs, acquisition of startups by corporates is just the byproduct of the startup ecosystem that follows. Many distinct personalities of a local business exude a vibe of locality, creating a unique identity for their community. This ultimately becomes a reason for tourists to come and spend money in that region. So while it is likely for governments and major corporations to adopt a top-down approach in encouraging and supporting these communities, a bottom-up approach with startup founders at the centre is desirable.

Successful entrepreneurial communities share a sense of bonding. A passionate mindset then steers it, that shapes their attitudes and behaviour for other stakeholders. This results in positive outcomes for businesses and the country as a whole. Thus, established businesses have a greater role to play in the development of a nation.

There should be no urge to control or suffocate small or local businesses. In fact, fortunate entrepreneurs can mentor and share their wisdom and success stories. These will inspire businessmen who have just started their journey.

The core principles of trust, good faith, openness, collaboration, and a shared vision are imperative to not only begin but sustain a continuous cycle of entrepreneurship. A hospitable business environment only strengthens the roots of the founders, stakeholders, and innovators. Its miracles can be seen in critical times such as now and beyond. After all, there may be many viral stories that have gone unnoticed or a disruptive business idea that succumbed to insufficient funds before it could bloom to its full potential.