Effect of Government Policies on Startups in India

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8. India: The economy after four months of Modi government.

Article written by Dr.Rumki Majumdar in Global Economic Outlook, Q4 2014 mentions that Economic growth has moderately rebounded, capital inflows have increased, exports have accelerated and helped the trade balance, confidence has increased, bond yields have declined and equity prices have risen. However, inflation, the budget, and a lack of policy response introduce challenges and uncertainty. The balance of payments situation has improved significantly in the past year due to substantial improvements in both the current and capital account balances. The trade balance improves due to strong exports as global demand firmed and imports fell due to the new policies that were incorporated. Although the government’s approach to various issues have encouraged investors and improves optimism about the economic outlook, actual measures have been incremental with limited consequences. Likewise, even though policies are introduced for startups, there is a lot to be done to get back phenomenal results.

9. The Effects of Government policies on business

Paper written by Frank Williams on studioD expresses that Governments establish many rules and regulations that guide businesses. Businesses will normally change the way they operate when government changes these rules and regulations. Government economic policy and market regulations have an influence on the competitiveness and profitability of businesses. For example, the government can underwrite the development of new technology that will bring the necessary change. A stable political system can make business – friendly decisions that promote local businesses and attract foreign investors. In a nutshell, the government policies introduced acts as market catalyst.

10. Startup India – The next big theme for economic growth

The Modi government has rolled up its sleeves to make India stand out in this booming startup world, though late but definitely they are doing there bit. The upcoming Startup India initiative is a live example with investors, founders and stakeholders flying down for the event. However, the government should see its role as catalyst of change and not a driver of change. It should look at creating an enabling environment that creates an ecosystem of taking risks rather than averting risks. In our study of the topic, we can incorporate how the government policies help in creation of a larger customer base, improve vocational skill sets, promote digital adoption and provide accessible capital to boost our startup eco system.

11. Startup Environment and the Government

The startup environment boom is limited to two locations – Bangalore and Gurgaon. This should spread out. The government can encourage this by having startup events organized in other large cities of India such as Pune, Jaipur, Lucknow, Kolkata.etc. This will provide exposure to local entrepreneurs. The startup environment boom is also limited mostly to consumer technology and there is enough venture capital funds chasing them. This boom again should spread out. This can be done by instituting startup awards in some sectors such as Biotech and Medtech. Also National Centers of Excellence should have startup incubators for these specific segments. The policies can be helped in a huge way not just to startups of a specific sector but also those sectors who are on the verge of rising in India.

12. Impact of Government Actions on Entrepreneurship Development

In his paper published in ‘Your article library’, DK Sinha explains that the Government by its actions or failure to act also does influence both the economic and non-economic factors for entrepreneurship. Any interested Government in economic development can help through its clearly expressed industrial policy; promote entrepreneurship in one way or other. With a view to further boost the development of small enterprises in the country, the Government of India has recently enacted “Micro Small and Medium Enterprises Development (MSMED) Act, 2006” and also set up a separate Ministry of Micro Small and Medium Enterprises. Government’s such measures minimize the risk involved in setting up enterprises, on one hand, and encourage the prospective entrepreneurs to plunge into entrepreneurial career, on the other.

13. Startup India Policy: Cleaning up the hassles

As authored by ‘Clean India Journal – Editor’ published on January 18, 2016. In India, beginning a new business requires approvals from multiple states and central agencies, quite a task for small startups with limited capital and understanding of procedures. Established corporate houses have dedicated departments and team of experts to address the demanding complex procedures that come in their way while seeking such clearances. A complex and diverse economy like India cannot run efficiently without involvement of private sector. Start-up India, thus can play a crucial role in bridging this gap and help to develop an alternative model of private investment in the country.

14. False Starts by Sonal Khetarpal

As opinionated by Sonal Khetarpal in her article ‘False Starts’, published in the Business Today - July 2016 Edition, learning lessons from failed startups can help to avoid future pitfalls. After examining and personally interviewing rising startups — PrepSquare, housing.com — key failure factors were found to be philosophies such as ‘piled up money, no brainstorming’, ‘failures or aberrations’, ‘ lack of timeline management’ and HR oriented issues. Evaluating the effect of such facts on the competitors, financing was found to be the root cause of unstable HR management. With money in their bank accounts, they stop brainstorming (Aditya Sharma, Genius). Having the government policies altering off late, such failed startups tend to lose their peace and further fail to formulate other ideas.

15. Finding your Co-Founder

The author, Aakar Rastogi in his article ‘Finding your Co-Founder’, published in Outlook Money, runs across the significance of having a talented co-founder, who could see through the share of tribulations that comes along with the new startups. He interviews and qualitatively analysis the experiences of startups — like Pompom, Bonita India, India lends and so forth — w.r.t. the effect of top level management or owners on the success of the new business. Adding values, complimenting skill sets, bring consensus on differing opinions