EMERGING TRENDS IN NEW START-UP TECHNOPRENEURS

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1 81 EMERGING TRENDS IN NEW START-UP TECHNOPRENEURS Doctoral Research Scholar, Department of Commerce, Dr. C. Paramasivan, Ph.D Assistant Professor of Commerce M. Selladurai 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

2 82 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 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. Start-up Nation P 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, 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

3 83 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% years 26% MBA Graduate 26% years 31% Other Graduate 15% years 15% Other Post Graduate 10% years 6% Engineering Post Graduate 4% Above 45 years 6% Others 10% Source: Momentous Rise of the Indian Start-up Ecosystem, NASSCOM 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%) Engineering 969 E-Commerce 1419 Construction 741

4 84 Business 2 Business 1032 Agriculture 627 Internet 516 Textile 456 Mobile Apps 430 Print & Package 456 SaaS 344 Transport 342 Outsource 285 Other 559 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 Authorised register shows that nearly 85,000 employments were provided by the startups in the year 2015 and it will be increased to 2,50,000 in the year 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 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 and 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

5 85 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. Start-up Index Value (0-5) Source: Momentous Rise of the Indian Start-up Ecosystem, NASSCOM 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

6 86 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 Make Sell products and Offer message Sell products to Offer a range of payments services through about goods/ remote/ smaller services through internet and services from areas with short targeted directly software and online several sources delivery time to consumers hardware

7 87 Edu-Tech Health-Tech Gaming Analytics Others Operate in the Operate in the Provide Involved in education sector health care sector analytics linked development of and provide and provide services as the computer and technology technology allied final products/ mobile games related services services solutions Source: Momentous Rise of the Indian Start-up Ecosystem, NASSCOM 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, Mithilesh Kumar Sinha, Startup: A Change Agent for transforming India from within, Economic Challenger, Vol 72, No 18, July Momentous Rise of the Indian Start-up Ecosystem, NASSCOM and Zinnov, Debaprosanna Nandy, Startups for sustainable growth, The Management Accountant, Ministry of Commerce and Industry, The Gazette of India, February Pari Natarajan, Momentous Rise of the Indian Start-up Ecosystem, NASSCOM and Zinnov, Startups India - An Overview, Grant Thornton, India, Rupesh Mishra, Everything you wanted to know about Startup India, Article, Forbes India, 2016

8 88 9. Startup India Standup India Schemes, Pradhanmantri Yojana, 2016

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