While E-Cells can provide a primary platform for startups, many startups eventually die because of lack of investment in the startup sector. A variety of economic policy might be able to change the investment climate in India, but even simple barriers like bureaucracy and government restrictions are to blame. For example, the startupIntugine Technologies founded by IIT Kharagpur dropout Harshit Shrivastava, developedNimble: a revolutionary gesture control device with unparalleled accuracy compared to similar competitive devices. While Nimble alone justifies Shrivastava’s decision to dropout of college, Intugine could not successfully avail of the opportunity of crowd funding. Despite an engaging platform on the extremely popular crowd funding website Indiegogo, investors outside of India could not contribute significantly because “[the] Indian govt. limits receiving payments through Paypal” wrote Shrivastava in a comment on the Indiegogo website. Eventually, the funding campaign was closed and Intugine had raised merely 6 % ($3,202 of $50,000) of its original goal on the website. Hence, although there are many venture capitalists (VCs) in India, it is nonetheless still a problem that entrepreneurs lack access to crowd funding and similar fundraising methods that can significantly help new enterprises move beyond the incubator stage.
Yet, in a country that is blamed widely for its slow bureaucracy, there is much to celebrate. In recent years, India has seen an unprecedented spurt in innovation in technologies and business models. Citizens across a broad spectrum of the society have been witness to, or become partners with, innovative startups as consumers or vendors, mostly in the areas of IT, e-commerce, mobile applications and online travel booking. Even this engagement in a few sectors has built greater understanding of the role of entrepreneurship in improving consumer outcomes and services. Innovation- and entrepreneurship-support services like incubation, seed stage funding, mentorship, early stage and venture financing, and scale up to public holding have become widely available, though still limited to the upwardly mobile sections of the society. While these services were limited to the IT and e-commerce sectors till recently, there has also been a gradual expansion of incubation and support to entrepreneurship in social impact sectors such as livelihoods, handicrafts, rural services, transport, water, energy, etc.
Ultimately, a healthy characteristic of most any entrepreneurship ecosystem is that it is tailored to its own unique environment. In other words, a truly successful and robust Indian entrepreneurship ecosystem will be formed by the unique economic and social challenges that our country currently faces. However, in order to best tap the potential of entrepreneurship will require colleges, private companies, and the government to collaborate in a way that improves entrepreneurship education and reduces the fear of starting a new enterprise. As a result, if domestic entrepreneurship is eventually considered a highly fulfilling and profitable career, it will attract new ventures that will allow entrepreneurship in India to truly diversify and promote economic and social development.
World Bank Doing Business 2015 data:http://www.doingbusiness.org/data/exploreeconomies/india
Interview with Sunil Rao on Economic Times Now:
Intugine Nimble crowd funding campaign on Indiegogo: