Startups are the backbone of any economy. Startups are just another new firm. But it plays a very vital role in economic development. It helps in innovation. The growth of any country depends on startups as well because it has a direct impact on the developing economy. Startups are full of risks but also important and versatile. Startups are very flexible to establish.
It could start even on the terrace and could develop the whole city around. Startups are established temporarily also. Startups need relatively less funding to get started. Governments have launched many schemes to help these start-ups in many countries. Due to startups people actually stop migrating from cities to cities for work.
Startups represent the health and wealth of the economy in the long term. It boosts the economy without a doubt. It creates numerous employment which helps in growth for the future. Startups seem to have more employment generation than large and stable companies.
Benefits of Economy
- Startups create employment which is one of the best things for any country.
- Startups help shorten the gaps between developed and moderate cities.
- Startups contribute to the GDP of any country.
- It helps in upgrading the value of any country.
- It contributes highly to wealth creation.
- It involves entrepreneurs who make an impact that remains remarkable.
- It helps in creating developed goods & services.
- Startups contribute to social changes in an economy.
- It helps in regional success also.
How startups are helping youths
- It helps the graduates to think ahead of our technology & services to make it better.
- It allows deserving and needy candidates to contribute to the growth of the economy.
- Government schemes encourage entrepreneurs to build startups.
- Startups help in improving access to talent.
- It allows great ideas to launch in the market & helps to grow the economy.
- It also allows the best use of innovative brains.
- Helps the graduates to grow their experiences as well.
- It empowers individuals to build and develop the future.
Startups of India
According to a recent survey, Startups in India have increased from 733 in 2016-17 to over 61400 as of Jan 2022. In which at least 14000 startups will be recognized during the fiscal year 2022, the survey said. DPIIT (Department for Promotion of Industry and Internal Trade) said, 57000 people got employment by startups as of Feb 2022 only. There are 82 unicorns in India as of Feb 2022. The service sector contributes over 50% to India’s GDP.
Unicorns are firms whose market value has crossed at least 1 billion dollars. And most of the unicorns are from the service sector.
The Indian economy has a numerous lack of employment in the country but due to startups, we are overcoming this. And a huge number of employment is being generated by startups. Till Feb 2022, there were 6. 5 lakhs jobs created by startups since 2016, said the DPIIT secretary Anurag Jain The most contribution to GDP is done by the service sector in India.
Recent studies on employment also clear that India needs over 100 million jobs a year, the population also. But India is a place where most people have great ideas & willingness to establish startups. And the tremendous contribution of startups is making a big difference in the economy.
Keeping everything in mind, the government of India has launched many schemes for the benefit of startups. The scheme helps them Simplification Work, Financial Support, Networking opportunities, and also government tenders.
Recent Data of Startups
The U.S. has the highest no. of startups. It has a 64.7% share of unicorns. China ranks third with a 13.8% share of unicorns. Whereas, India lies the third with a 4.1% share of unicorns. Japan also ranks in a good place. According to Startup Genome, London, Mumbai, and Bangalore are the top startup hubs, worldwide. America produces more startups than any other country but India has become the fastest-growing ecosystem of startups with a total of 82 unicorns.
The development of startups shows the healthy core of an economy. Whether it is a small or a big firm, startups play a major role in dissolving unemployment. And a much-employed economy is always a much-developed economy. It also develops economic productivity. Startups also allow people to get jobs that may not be capable of working in big companies.
Less Discussed Facts of Startups
Startups are not well structured. It pays you less. It has more workload. It has limited resources. It has financial risks and also uncertain job security. But the main and noticeable point is, that startups focus more on the quality of work than quantity. It gets tough in the starting phase but as the company establishes it could become a huge success for the economy. And then it comes with team culture, personalization, flexibility, efficiency, and so much fun.
Teachers in schools should encourage children to build their startups & contribute to economic growth.
