ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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An Imbalanced Ecosystem

The rapid development of various institutions supporting company creation in India has the potential to generate economic growth, innovation, and economic development. However, this article shows that the start-up ecosystem has unevenly developed across cities and economic sectors, and has failed to empower the overall population, so far. Using a comprehensive database on start-ups retrieved from Tracxn, a business data and analytics company, the authors find that venture capital concentrates amongst graduates stemming from a handful of prestigious education institutes in India and abroad. The article analyses the role of entrepreneurship policies and argues for a shift of focus and resources towards the building of a more inclusive start-up ecosystem.

Cries for Protectionism

Start-up business models are largely unsustainable without raising additional funds from investors. The staged and performance-based nature of finance available to start-ups creates a valuable strategic opportunity for their competitors. A prudent strategic response is to pursue innovations that complement local realities instead of clamouring for government intervention.
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