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It is refreshing to hear that the 16th of January has been officially coined as the National Startup Day as a mark of recognition of the contribution of startups to the country. The PM Office proudly calls startups the backbone of New India. Of course, startups have a huge influence on the economy, creating jobs and new opportunities enabling the country to grow exponentially. You may recall that in 2009, there was also a big effort in celebrating and creating world entrepreneurs day.

Just looking at the stats, it is very impressive to note that in 2021 alone, over 2,250 startups have been added, raising a whopping $24.1bn funds. This quickly translates into new job opportunities and naturally better movement of money to boost the economy. (Source)

National Startup Day

With January 16 being coined as the national startup day – it is a great way to commemorate and recognise the contributions entrepreneurs make to the country. Although they work in their own siloed business, it is a valuable push to boost the economy for increased possibilities.

In addition, I will always be partial to a startup’s ability to innovate and bring new solutions into the market. This is perhaps the biggest advantage a startup has as compared to a large organisation where agility is compromised. If we look at India’s economic health and progression – we have come a long way from a country where most companies were govt let to LPG – Liberalisation, privatisation and globalisation. India has embraced all three principles effectively to enable strong growth.

As we grow together as a country, the next stage will indeed be driven by new-age ideas and innovation which is easily rampant. This is one of the best opportunities for an entrepreneur to thrive, embrace risks and create new solutions. Of course, entrepreneurship inherently comes with risks and challenges. But, if you have a burning idea asking you to do something about it – startup might just be the right option for you. (Related – Difference between startup and a small business)

What does it mean for startups?

Although it is great to recognise startups as the backbone – as an entrepreneur, your first question is always – how does this benefit me. As we know, funding is one of the top reasons why startups fail.

As a part of national recognition, I’d expect some more schemes to support startups and build an ecosystem where startups can thrive. This can come in the form of government grants for specific types of projects. In addition, also look out for startup accelerators that can help you grow.

Some other schemes can include new loans and ease of getting access to funding or even tax rebates for investors in the startup community. Ultimately, the biggest outcome for a startup is when investors have a higher risk appetite allowing entrepreneurs to explore new opportunities and work to bring that idea into fruition rather than worrying about sustenance.