How startups are changing the mindset of students

The Indian start-up ecosystem is moving at a scorching pace. India's start-up economy is no longer just a market buzz but gaining formidable ground. India is right now the 3rd largest start-up ecosystem in the world, just after the USA and China.

Hitherto, more than 57,000 start-ups have been registered and the combined total start-up valuation is close to USD 450 billion. More than USD 131 billion has been raised by start-ups between 2014 and the first half of 2022.

The sheer number and the volumes explain the magnitude of digital India and start-up India. It is chronicling the dawn of a new era, wherein start-ups are will be pivotal to the growth and transformation of the country.

From soundbites to substances

As the center of gravity of the economy is shifting and start-ups are increasingly playing a larger role, the mindset of students is also changing. Entrepreneurship is no more a fancy word, meant for a few college dropouts or a bunch of genius working in some garage space on the next big idea, as mostly the popular culture has shown.

Increasingly it is becoming more methodical, structured, systematic, and of course mainstream.

More and more students from tech institutions and other academic establishments are thinking of taking entrepreneurship as a viable career option and the trend is just not limited to larger metros.

In the times to come, we will witness a lot of ventures emanating from Tier 2 and 3 cities such as Indore, Patna, Lucknow, Cochin, Vizag, Jammu, Surat, Gwalior, and much more.

Not all the mega deals in the start-up space will have a metro tag. Many will come from smaller cities as general awareness about start-ups is increasing.

No more chasing the venture funding

As the start-up ecosystem in India is evolving, the existing mindset, of chasing big venture funding is also altering. The obsession with venture capital and PE monies is now transforming, and a sizable portion of start-up owners and enthusiasts now first wish to build a sustainable business. Thereafter they want to go for external funding.

This is a good sign in the long run as it will help in building more scalable, flexible, resilient businesses in India.

In the times to come, India's start-up ecosystem will continue to go from strength to strength. It will be a party to increased collaboration from incubators & accelerators, governing agencies, academic and research institutions, and the investor fraternity. Good ideas will be backed, supported, and an enabling environment will be provided to make them scale up fast.

Existing entrepreneurs will also have to play a prominent role and continue donning the role of the link between budding students and market knowledge. Though offering financial impetus will be integral, much more will be required. Offering mentoring will be very crucial for early-level entrepreneurs, especially by seniors who have already made successful businesses in the relevant categories. Creating an environment of knowledge and actionable insights sharing will be critical for start-ups in India to thrive. Similarly offering support, connecting with the talent pool, and help in early client acquisition will be other key components.

(The author is the Director, Rosemoore)