emerging trends in new start up technopreneurs

EMERGING TRENDS IN NEW START-UP TECHNOPRENEURS

Dr. C. Paramasivan, Ph.D

Assistant Professor of Commerce

M. Selladurai

Doctoral Research Scholar, Department of Commerce,

Periyar E.V.R. College (Autonomous), Tiruchirappalli, Tamil Nadu

Abstract

Start-up is a basic thing that a person trying to do something original. Technopreneurs

are the genes of technology based entrepreneurs, but they are not only bearing the risk in

business and also crossing the danger zone in innovative and initiative a new kind of product

and service to the society. In recent years, India concentrates on the development of start-up

environment and deserves that, this is the best season to promote the techno start-up for the

massive pillar in the upcoming trends. Since 2010, entire developed nations were focusing on

the roar of technopreneurs of our nation. In the present situation, government of India highly

offering outstanding opportunities to its extent and this may set the new milestone for the

next phase of the start-up environment. This paper deals with the development of

technopreneurship in India and contribution to the start-up technopreneurs, new schemes and

well equipped technology parks will be implemented for the welfare of the new start-up and

commencing new technical education centres with mentors and advisers.

Key words:

Technopreneur, Start-up, Entrepreneur, Technology, Invention, Technopreneurship

Introduction

Start-up is the magnetic tool of the Indian entrepreneurs to taste the sweetest portion

of the business. This might be reflected in the emerging growth of the start-up in upcoming

years of the Indian economy. In the competitive globe, technopreneurs are playing the

dominant role to rule the global markets with tremendous achievements. With the support of

science and technology, the business minded peoples are innovating some curious and

practical products and initiating the same in their business, trying to satisfy the customer

needs. These predictable talents make them to the ultimate in the business league. It clearly

shows that, India travels in the right vision to achieve the top most in global economic

competition. Creating awareness and giving proper guidance to the youngsters are not enough

to face the great battle, instead of that the supporters like the training centres, educational

institutions, corporate companies, small and middle firms should contribute somewhat they

expects and build a friendly bridge with the young start-up environment.

The present era entirely turns its vision on the start-ups of the nation. Start-ups are the

only key players that can change the entire economic history of the nation. India also seeks

the best way to meet the world-wide competition and the past few years, India makes some

remarkable changes in its corporate policies to improve the number of industries in the nation

to satisfy the world needs (Prashant Mehra, 2016). It leads India to hold a positive position

across the world nations. This might be the perfect time to encourage and motivate the young

and new trend-setters cum entrepreneurs to shine in the universal corporate field. For the

benefit of the start-ups, our government spends much more time and energy to identify the

IJRDO-Journal Of Business Management ISSN: 2455-6661

Volume-2 | Issue-7 | July,2016 | Paper-5 81

technical oriented entrepreneurs and giving them a suitable guidance and practices to mould

the creativity mind of the young talented people. It may reproduce the skills and abilities of

the technopreneurs to generate vigour added new technical products and services; and also

they can eradicate the existing products with some technically advanced thinking.

Start-up India, the ruling party of the nation announced this scheme in the beginning

of the year 2016. This scheme grasps lot of freedoms to the entrepreneurial pitch. It includes

tax benefits, easy patent rights, relaxation of norms, financial assistance to the fresher,

incubating centres for the creative thinkers etc., The Indian government is setting a right path

and plans to construct an online gateway and mobile apps to share the messages and

information to the society includes investors, business peoples, title sponsors, incubators,

mentors and the governing body too. It is highly flexible to access the information freely by

the users and seekers.

Tech start-ups are leading the addition of start-up ecosystem and it is ready to boost

venue generated by information technology and business process management sector by

almost twelve to fourteen per cent for the current financial year. India witnessed the largest

mixture of capital from overseas through venture capital funds in the year 2014 by the native

start-ups (Mithilesh Kumar Sinha, 2016). India records the emerging start-up ecosystem in

the world. Evaluating the last few years, India has turned up from being the fourth largest

ecosystem in the world to the third largest. If this phase continuous, next two years by this

time India might be at the second top most in the start-ups. India experiencing the fastest

growing start-up base and stands third in science and technology after United States and

United Kingdom respectively. In particular, Bangalore ranked fifteenth among global start-up

ecosystem.

Nation Start-up

2015 2020P

US 48,000 83,000+

UK 5,000 7,900+

India 4,400 10,000+

Israel 4,100 4,750+

China 3,500 10,000+

Canada 3,100 6,200+

Australia 1,320 2,800+

Germany 1,175 2.525+

France 1,050 2,300+

Brazil 775 1,650+

Russia 650 1,375+

Netherland 575 1,250+

Source: Momentous Rise of the Indian Start-up Ecosystem, NASSCOM

Start-Up

In general, start-up is a young concern which could be an entrepreneurial attempt.

Solid or provisional organisation designed to create some better turnover with nominal



earnings or profit. It may be a dynamic company built on technology and innovation wherein

the founders attempt to capitalize on developing a product or service for which they believe

there is a demand (Debaprosanna Nandy, 2016).

In government’s point of view, the meaning of start-up may differ and it formulated

that, Start-up is an entity (Private Limited Company or Registered Partnership Firm or

Limited Liability Partnership) shall be considered as “Start-up”. The organisation should

come under 5 years from the date of its registration. The total turnover (turnover as under the

Companies Act, 2013) of the organisation should never cross 25 crore of Indian rupees in all

five financial years. The organisation might be working towards innovation, expansion,

distribution and fascination of new products and services composed by science and

technology. The organisation should not be a combination or renovation of a business already

in the society. A proprietorship or a public limited company is not eligible as start-up

(Ministry of Commerce and Industry, 2016). Only private limited company is allowed to be

accepted as a 'start-up'.

Multiple indicators point to the fact that this eco system is not only undergoing rapid

evolution, but is also becoming increasingly attractive. Various central and state government

start-up initiatives are further supporting this progressive phase of start-ups in India. This

maturing start-up ecosystem is contributing to the Indian economy in multiple ways. In

addition to enhancing the lifestyle of citizens, start-ups are creating innovative technology

solutions that address key problems that India as a country face around power, healthcare,

employment, and education (Pari Natarajan, 2015).

Demography of Start-up founders

Depends on Age Education

Below 25 years 16% Engineering Graduate 35%

26-30 years 26% MBA Graduate 26%

31-35 years 31% Other Graduate 15%

36-40 years 15% Other Post Graduate 10%

41-45 years 6% Engineering Post Graduate 4%

Above 45 years 6% Others 10%


10,000 Start-up Programme

NASSCOM initiates to produce more than ten thousand start-ups by the year 2020

and in the list, most of them are purely from technology oriented start-ups. India has the real

potential and unpredictable sphere to become a start-up nation. Since 2010, The Indian

technology start-up background has seen a tremendous growth towards creation of innovative

start-ups. India retains its special place to the new breed of young start-ups. It clearly shows

that India having the electric opportunities to become the third largest base of technology

start-ups in the universe. In this obligation, NASSCOM receives more supporters includes

Google for entrepreneurs, Microsoft for ventures, Kotak Mahindra Bank, IBM and Amazon

Web Services.

Sharing of 10,000 Start-up

Tech Start-up (43%) Non-Tech Start-up (57%)

E-Commerce 1419 Engineering 969

Construction 741



Business 2 Business 1032 Agriculture 627

Internet 516 Textile 456

Mobile Apps 430 Print & Package 456

SaaS 344 Transport 342

Other 559 Outsource 285

Other 1824

Source: Start-up India - An Overview

The techno based entrepreneurs leads our Bharat nation to the third largest start-up

hub in the world. India took nearly fifteen years to attain this memorable achievement. India

holds another record that the average start-ups age is twenty eight years and this is the least

when compared to others. From the whole, only 9 per cent of the start-up is shared by our

women entrepreneurs and this was wiped out and it grows approximately 50 per cent of the

start-up shared by the women in the last twelve months. More than sixty per cent of job

opportunities will be generated by the small and medium sized industries between 1993 and

2013. Authorised register shows that nearly 85,000 employments were provided by the start-

ups in the year 2015 and it will be increased to 2,50,000 in the year 2020. With huge rise in

the number of start-ups in India, more employment opportunities are being generated.

The sum of tech start-ups are expected to increase from 4,400 in 2015 to 11,500 in

2020. The government and the concerned ministry joins together and commencing more

initiative programmes for the start-up success. For the welfare of the start-up more

inducement programmes and financial assistance were announced by the government. Over

the intention, nearly 4300 start-ups are identified in the techno based start-ups. Majority of

the start-up plans and programmes with the investors are from the metro cities like Chennai,

Bangalore, Mumbai and Delhi. In this contest, Bangalore holds the most number of start-ups

in the additional years. So, the government plans to increase the number of incubation

centres, technology parks, research institutes and start-up hubs in the metro cities and its

surroundings.

Benefits to Technopreneurs

The start-up action plan keenly comes forward to reduce the burden of monitoring the

start-ups in initial stage. The ministry allowing the start-up to focus on their primary business

with eagle view. In favour of the start-up, the government launches many motivating schemes

and relaxing the judicial rules and norms. Start-ups are permitted to self-certification based

agreement and they have received the complete freedom from labour inspections for three

years. These relaxations are particularly beneficial to those start-ups who are committed in

the manufacturing sector.

Exemption from capital gain tax will be granted to start-ups. Start-ups will also be

exempted from income-tax for a maximum period of three years in the life of five years, if

they are registered between 1.4.2016 and 31.3.2019. Patent application of start-ups would be

fast-tracked and would be eligible for 80% rebate of the statutory filing fees. Government

will also appoint a panel of facilitators to assist in filing and disposal of the IP registration

applications filed by start-ups. The ministry takes necessary actions to implement the best

online portal for e-filing and also plans to introduce mobile applications in a pretty mode.

Government will set up incubators across the country in public private partnership,

centres of innovation and entrepreneurship (including start-up centres) at national institutes to



provide facilities to start-ups and new Research Parks in IITs. Government will also provide

the requisite training to potential entrepreneurs in various technologies as well as seed

funding to potentially successful and high growth start-ups. Special emphasis has been given

to promote the biotechnology sector in India. A special setup of bio-clusters, bio-incubators,

technology transfer offices and bio-connect offices in research institutes and universities

across India (Rupesh Mishra, 2016).

Top Holders

The solid interest of the government to implement the start-up programme in India. In

the meantime ministry of commerce and industry takes necessary actions for the perfection of

the series. These enormous benefits will be experienced by most of us. In particular, the

metro cities named Bangalore, Delhi and Mumbai are the most beneficiaries of the start-up.

Bangalore alone seized twenty six per cent of the total advantages of the programme. By this

practice, Bangalore witnessed more number of start-ups and investors and also in amount of

funding. So, the government plans to assign lot of incubation centres and technology parks

there. Delhi holds another twenty three per cent of the start-ups from the rest. Delhi mainly

focuses on e-commerce and aggregators. Mumbai stands third in the list with seventeen per

cent of the start-ups and highly deserves its success. Hyper local is the main spotlight of

Mumbai in this battle. More than sixty six per cent of the entire start-ups were shared by

these three skippers of the nation.


Chennai sited top in the emerging cities list of the start-ups. Chennai got eight per

cent of the start-ups and it primarily focused in SaaS hub on enterprise and analytics area.

Chennai has large base of B2B SaaS product companies triggered by the success of ZOHO.

Followed by Hyderabad and Pune registers only six per cent of the start-up ecosystem. Both

are concentrates in e-commerce and payment modes. Ahmedabad, Jaipur and Kochi also

joins in the contest to get more number of start-ups and investors to acquire additional

4.84.5

4

1.5

0.8 0.80.5 0.5 0.4

0

1

2

3

4

5

6

Start-up Index Value (0-5)



funding from the government. This start-up ecosystem facilitates making ease of investors,

incubators and accelerators spaces.

Start-up* Investment#

Paytm 680 Mn

Ola Cabs 625 Mn

Snapdeal 500 Mn

Ecom Express 133 Mn

Oyo Rooms 100 Mn

Freecharge 80 Mn

Antuit 56 Mn

Big Basket 50 Mn

Homelane 50 Mn

* Top Start-ups in the year 2015

# Millions in US $

Source: Start-up India - An Overview

Opportunities and Challenges

Start-ups having more opportunities to develop their business as well as facing

disaster challenges to sustain them in the competition. Talent, equity, government assistance,

friendly environment, new technologies, existing market, global openings are the great

opportunities for the tech start-ups and recruitment, scaling, access of funds, financial aids,

tight competition, political interference, alive markets are the charming challenges to the high

tech start-ups in the present situation.

World Bank proves that India is ranked 130th out of 189 economies on the ease of

doing business, 133rd on the ease of trading across borders and157th on the ease of paying

taxes. India is ranked 155th in case of starting a business. On an average, Indian businesses

need to make 33 tax payments annually with around 243 hours spent to prepare and pay taxes

in a year. In contrast, China requires just nine tax payments annually, while the US doesn’t

trouble its taxpayers more than 11 times annually for tax payments. (Start-up India - An

Overview) Among South Asian economies, India makes the biggest improvement in business

regulations and increasing its distance to the extreme boundary.

The Indian culture has broken in people to look down upon failure. Entrepreneurship

is often about failing and learning from those failures and starting all over again. People need

to start accepting failures and allow second chances. Most originators of failed start-ups feel

that, lack of guidance and mentorship is a major reason for their failure. An important factor

lies behind failures and less growth of some organisations is the lack of quality adviser,

especially in terms of industrial knowledge and support. The subject of awareness should be

more evaluated on the environmental issues with their clients.

E Commerce Aggregators Hyper local Consumer deal Payments

Sell products and

services through

internet and

online

Offer message

about goods/

services from

several sources

Sell products to

remote/ smaller

areas with short

delivery time

Offer a range of

services

targeted directly

to consumers

Make

payments

through

software and

hardware



Edu-Tech Health-Tech Gaming Analytics Others

Operate in the

education sector

and provide

technology

related services

Operate in the

health care sector

and provide

technology allied

services

Involved in

development of

computer and

mobile games

Provide

analytics linked

services as the

final products/

solutions

Present

verticals

other than the

ones listed

over


Highlights of Start-up India Programme

Tax exemption and concession

E-Registration for start-up

Self-certification system

Special queue for women

No regulatory inspection

Application fee discount

Rs. 10,000 crore grant

Easy exit procedure

Credit guarantee fund

Fast-track mechanism for patent

Mobile app for start-ups within a day

Conclusion

Over the period of India’s industrial and economical history, Technical Entrepreneurs

have got a chance to establish their entire potential to the world. The government and the

policy creators are together and created an incredible junction. It turns the way of entrance

more flexible for new technical start-ups and investors. Will these roars are laudable, India’s

escalation never stoppable by the other business friendly enemies. New start-up requires a lot

to be done for India, a number one business destiny particularly with respect in fast track

business related clash. India should concentrate more in the regulation of the act passed and

should evaluate the progress in regular interval. Indian young start-up technopreneurs are

well prepared to dominate the whole commercial world. It’s the perfect time to transform the

Indian job chasers to Indian job makers. Finally the India’s triumph chronicle will definitely

reflects in the global economy and awaiting for the responses from the challengers.

Reference

1. Prashant Mehra, Startups India - An Overview, Grant Thornton, India, 2016

2. Mithilesh Kumar Sinha, Startup: A Change Agent for transforming India from within,

Economic Challenger, Vol 72, No 18, July 2016

3. Momentous Rise of the Indian Start-up Ecosystem, NASSCOM and Zinnov, 2015

4. Debaprosanna Nandy, Startups for sustainable growth, The Management Accountant,

2016

5. Ministry of Commerce and Industry, The Gazette of India, February 2016

6. Pari Natarajan, Momentous Rise of the Indian Start-up Ecosystem, NASSCOM and

Zinnov, 2015

7. Startups India - An Overview, Grant Thornton, India, 2016

8. Rupesh Mishra, Everything you wanted to know about Startup India, Article, Forbes

India, 2016



9. Startup India Standup India Schemes, Pradhanmantri Yojana, 2016



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