A startup is an endeavor that is initiated by its organizers around a thought or an issue with the potential for a noteworthy business opportunity and impact. We have all heard of how Bengaluru has become the startup capital of the nation. However, this pandemic has seen many startups shutter down thanks to a lack of funds to tide through the situation. This can be attributed to ambiguity surrounding why do startups need funding and the value they create.
Notwithstanding the advancement process itself, from thought to value-generating product and plan of action, new companies need to have a solid and committed funding team, with the potential to create both of these together into a genuine developing business and association that catches the eyes of investors. India, being a country with the third-largest number of startups has failed in many ways to support its budding entrepreneurs.
We are still unable to comprehend the necessity of startups and why do startups need funding.
Startups are Job Creators
The role of startups in enhancing the economic growth of the country is increasing day by day. Startups are creating more jobs in the country than most of the multinational companies based in India. India has one of the most dismal unemployment rates in the last couple of decades. Startups are willing to take risks, will hire less-experienced people, and have flexible wage options. They have employee-centric policies and are not rigid about their style of work. Sounds like the perfect place for your next job!
Promote Innovation and Create Wealth
New entrepreneurs can easily bring new ideas to the table to stir innovation and generate competition. Startups have the capability to create an entirely new market just to sell their products/ services. They can come up with solutions for existing problems or solve the same problem in many different ways. Startups with lucrative ideas attract funding from overseas and bring in wealth to the country thereby increasing their own value and contributing to the country’s growing economy.
Generate Value
Startups in India are quickly inching towards the coveted “Business Unicorn” status and we need to push as many Indian startups as we can to reach that level of entrepreneurship. Indian startups are creating value through their simple ideas that have far-reaching effects. For example, the Ola App includes different services like Ola Cabs, Ola Auto, Ola Bike, and others. It was built in order to help people travel from one corner of the city to another at affordable prices. Indian entrepreneurs are constantly trying to make life easier for the middle class.
There are a plethora of startups in India that can really use help from us to get back on their feet and become the huge successes that they are meant to be. Add a startup to your investment portfolio and help our economy to reach the top!
