Impact of startups on Indian Economy
India needs more than a 100 million jobs a year and the jobs which are generated are mostly from startups and not big enterprises. Startup entrepreneurship is crucial because it also brings new innovations, new jobs and competitive dynamics into the business environment and enterprises. This also brings great opportunity to be involved in dealings with new technology which generally lies at the highest end of value addition chain. Why are startups so important for a country like India:-
· Startups are free from economic downturns and free from encumbrance and that’s what makes startups so disruptive and agile.
· Startups work in an environment of changing technology and try to maximize profits by innovation.
· This induces backward and forward linkages which stimulate the process of economic development in the country irrespective of the economic environment.
· They even act as catalytic agent for change, which results in chain reaction. Once an enterprise is established, the process of industrialization is set in motion. This will generate demand for various types of units and will in turn, lead to overall development of an area due to increase in demand and setting up of more and more units. I.e. like OLA and Airbnd
references from www.quora.com
