Start-ups have been pipped to be the next big thing. Many economists and visionaries are openly stating that start-ups are going to be the drivers of Economy. Start-ups are being seen as the solution providers to the developed, developing and the under-developed economies. Start-up hubs are gaining traction across all continents. Each trying to solve problems and monetise along the way.
Having spent some time in this space, I am slowly getting an idea of the good, the bad and the ugly here.
The Good
Startups are trying solve problems with the use of technology. They are trying to organise sectors that have been dis-organised since ages. It's trying to cut out the middlemen and mediocrity and set a benchmark.
Companies like OLA and UBER have made life convenient and cut out the taxi Mafia. Flipkart, Snapdeal have transformed the whole shopping experience. Swiggy has helped us in getting food from our favorite eateries delivered to our doorstep. Start-ups like Encashea & Karma-recycling are making recycling old goods easier and convenient. Zoomcar is trying to give the common man, the experience of car travel. Life has become really easy and convenient thanks to these companies. These are exciting times! The world is watching closely on how these companies will scale and grow
Apart from solving problems, these companies are also helping in wealth distribution. I know these are still early stages, but it's happening. Today, a taxi driver who works for OLA//UBER earns anywhere between 50k-1lakh. Delivery boys who work for various hyperlocal startups are earning about 20k per month. Truck drivers are now getting a taste of steady income in the range of 30-40k. Small business whose sales were once confined to a particular region are now able to sell to places across India. Start-ups are giving new ways for people, SME's and MSME's to earn more. Technology has in many ways been the driver of this wealth distribution. For India, where the wealth distribution is so skewed, this is great news. I truly hope this is not a fad.
The startups are also giving youngsters an opportunity to take up responsible and challenging roles. Startups are handing key-roles to youngsters and most of the youngsters are living upto the expectations. Roles that were once reserved for the men with grey hair or no hair are now being given to dudes with Turkish hairstyle.
Start-ups are promising us a future that is more organised and transparent. It is giving hope to the people to grow economically.People's aspirations are going North, there is self-belief and confidence.
The bad
To begin with, some of the startups are like eccentric over-achieving kids. Like people who have always excelled and don't know what to do when faced with failures, these startups tend to struggle when faced with setbacks, quite a few of them have even closed down because they had no idea what to do when they failed and thus they shutdown or changed their Business model. Did they truly see no future in that line of Business or did they screw up big-time and not take the right calls at the right time or was it bad timing? No one will really know.
The result, employees are fired, suppliers are hit. There is too much uncertainty. Cities shutdown overnight, employees let go in an instant. Disruptions in the socio-economic balance, conning and robbery because of a lack of process and regulations.
Although, this is bad, this is also a phase of learning. We are trying to raise children and the children are generation-1, as parents, this is as much new to us as it's for the kids. We are learning how to raise them, we are figuring out which is the right path, so on and so forth.
The Ugly
Like every great company that's standing out there and made a name for itself, it takes time, patience and a mammoth effort to build companies. The people who are part of the company building exercise be it the investors or be it the founders/employees, should think and execute plans for the long run.
A very depressing trend these days (Esp from the investors) is that the folks who put money are looking at startups as a means to grow wealth (Of-course it's) but that's not the primary purpose. The purpose of an Angel/Venture investor coming on board is to not only put in money, but also to guide and counsel the founders/core-team, to transfer knowledge and expertise, to connect the core team to mentors and experts. Although the founder's are responsible for building and scaling the company, it's the fundamental duty of the investor to coach their founder who afterall are like new parents who are trying to raise kids.
Instead, the focus is on getting a quick exit, multiply your wealth 10X (Just saying) in a few months and say goodbye, scaling and building the company to greater heights is not their headache. Their only focus is to raise the next rounds of funding. When the time is right, make a quick exit with pocket bursting money.
The receiving end of all this are the poor founders and employees, who work their heart out and get no or very little wealth gain that they were hoping for.
Closing thoughts
Still day-1 for the Indian new-age entrepreneur. Many battles to fight, many myths to be broken...
Is there Hope ? Yes certainly.
But, we have to move fast and move right. If we don't, we risk the death of the whole eco-system..
Market-disruption is always better than disruption of the eco-system.
A story half-written and a building incomplete and many dreams would remain dreams..
Having spent some time in this space, I am slowly getting an idea of the good, the bad and the ugly here.
The Good
Startups are trying solve problems with the use of technology. They are trying to organise sectors that have been dis-organised since ages. It's trying to cut out the middlemen and mediocrity and set a benchmark.
Companies like OLA and UBER have made life convenient and cut out the taxi Mafia. Flipkart, Snapdeal have transformed the whole shopping experience. Swiggy has helped us in getting food from our favorite eateries delivered to our doorstep. Start-ups like Encashea & Karma-recycling are making recycling old goods easier and convenient. Zoomcar is trying to give the common man, the experience of car travel. Life has become really easy and convenient thanks to these companies. These are exciting times! The world is watching closely on how these companies will scale and grow
Apart from solving problems, these companies are also helping in wealth distribution. I know these are still early stages, but it's happening. Today, a taxi driver who works for OLA//UBER earns anywhere between 50k-1lakh. Delivery boys who work for various hyperlocal startups are earning about 20k per month. Truck drivers are now getting a taste of steady income in the range of 30-40k. Small business whose sales were once confined to a particular region are now able to sell to places across India. Start-ups are giving new ways for people, SME's and MSME's to earn more. Technology has in many ways been the driver of this wealth distribution. For India, where the wealth distribution is so skewed, this is great news. I truly hope this is not a fad.
The startups are also giving youngsters an opportunity to take up responsible and challenging roles. Startups are handing key-roles to youngsters and most of the youngsters are living upto the expectations. Roles that were once reserved for the men with grey hair or no hair are now being given to dudes with Turkish hairstyle.
Start-ups are promising us a future that is more organised and transparent. It is giving hope to the people to grow economically.People's aspirations are going North, there is self-belief and confidence.
The bad
To begin with, some of the startups are like eccentric over-achieving kids. Like people who have always excelled and don't know what to do when faced with failures, these startups tend to struggle when faced with setbacks, quite a few of them have even closed down because they had no idea what to do when they failed and thus they shutdown or changed their Business model. Did they truly see no future in that line of Business or did they screw up big-time and not take the right calls at the right time or was it bad timing? No one will really know.
The result, employees are fired, suppliers are hit. There is too much uncertainty. Cities shutdown overnight, employees let go in an instant. Disruptions in the socio-economic balance, conning and robbery because of a lack of process and regulations.
Although, this is bad, this is also a phase of learning. We are trying to raise children and the children are generation-1, as parents, this is as much new to us as it's for the kids. We are learning how to raise them, we are figuring out which is the right path, so on and so forth.
Don't be in a hurry to fix things; rather enrich your understanding in the ever going process of discovery and finding more the cause of your ignorance.
- Bruce Lee
The Ugly
Like every great company that's standing out there and made a name for itself, it takes time, patience and a mammoth effort to build companies. The people who are part of the company building exercise be it the investors or be it the founders/employees, should think and execute plans for the long run.
A very depressing trend these days (Esp from the investors) is that the folks who put money are looking at startups as a means to grow wealth (Of-course it's) but that's not the primary purpose. The purpose of an Angel/Venture investor coming on board is to not only put in money, but also to guide and counsel the founders/core-team, to transfer knowledge and expertise, to connect the core team to mentors and experts. Although the founder's are responsible for building and scaling the company, it's the fundamental duty of the investor to coach their founder who afterall are like new parents who are trying to raise kids.
Instead, the focus is on getting a quick exit, multiply your wealth 10X (Just saying) in a few months and say goodbye, scaling and building the company to greater heights is not their headache. Their only focus is to raise the next rounds of funding. When the time is right, make a quick exit with pocket bursting money.
The receiving end of all this are the poor founders and employees, who work their heart out and get no or very little wealth gain that they were hoping for.
Closing thoughts
Still day-1 for the Indian new-age entrepreneur. Many battles to fight, many myths to be broken...
Is there Hope ? Yes certainly.
But, we have to move fast and move right. If we don't, we risk the death of the whole eco-system..
Market-disruption is always better than disruption of the eco-system.
A story half-written and a building incomplete and many dreams would remain dreams..
