Aid for Startups: Is it actually a positive economic reform?
- Krunal Shah
- Feb 3, 2016
- 2 min read
Startups are the current craze in the business world. It looks like all of a sudden everyone wants to be an entrepreneur and a number of things are responsible for this current situation. Firstly the recent success of major startups like Flipkart, Ola and other startups has sent a frenzy among the people and lead them to start thinking about becoming an entrepreneur. Also humans generally have, built in them a desire to do things their way and so they like to be in control of the happenings around them, this contributes in making entrepreneurship even more popular.
From the perspective of the economy, startups have their own advantages and disadvantages. Successful startups as the government thinks can help Indian Economy generate revenue from all over the world. It is true successful startups being well connected, play a part in the world economy and hence have interaction with the multinational companies and can therefore contribute in generating revenue from all around the globe.
On the other hand, funding startups is a risky business because startups are generally owned by graduate students who have an idea and are looking for funding to help them convert their idea into reality but do not have big pockets so the only way they can pay for the funding is by the revenue generated by the success of their product when created and launched, and funding also includes funding for research which does not pay off in present but is actually more of an investment. Also with the increasing frenzy about startups among the students and technical people, it is also important that the aid be provided only for the ideas that are promising enough that they can pay off in the future.
Startups becoming more and more popular, aid for startups can prove out to be a really good investment and can really contribute to the economy if implemented in an accurate manner filtering out the promising ideas and aiding only those, else it can fall on its head and can cause some real troubles for the economy since the last thing we want is technical people who have failed in their startups giving up and staying unemployed.