Why startups are pivotal for the Growth of the Economy?22nd June 2022
Reasons Why Startups are Important?
Startups indeed can help India to become one of the world's most skilled countries. The global data shows that India needs 10 million jobs every year and it is not big enterprises that provide people with jobs but the newly built startups that create opportunities for them to grow, earn, and skill themselves. Startup businesses are considered the most crucial businesses in the market because they add new competitive dynamics to any economy. This eventually helps any economy to stay healthy, vital, and diligent.
1. Increased Job Opportunities
India's major issue is unemployment. Small businesses, not large corporations, are the main sources of new jobs. Since startups are unaffected by recessions and are unencumbered, they are able to manage more employees.
2. Innovative Ideas Open Doors for New Markets in the Economy
Startups with innovative solutions help to create new market opportunities in the country, which ultimately helps to boost the GDP. Smart and innovative ideas help to create more outsourcing to India.
3. More Flow of Foreign Money
More foreign currency is circulated and distributed in the country as a result of increased outsourcing, which is beneficial for the expansion of the Indian economy.
4. Helps to Prevent Monopoly
There is more competition when there are more business owners, which avoids monopolies in specific industries. In order to guarantee profit margins and develop an audience that is advantageous to them, businesses will need to find better strategies.
5. Attracts Foreign Investments
India is considered an FDI hotspot, as it has managed to provide great returns to its customers. Having innovative startups with a large consumer base, startups will help attract foreign direct investment, which ultimately helps in the growth of the economy.
6. Lessen Imports
Imports reduce the flow of money in a country. When startups are able to meet the demand for goods or services, the flow of money is increased which stays in the Indian market and benefits the Indian economy.
7. Increase Exports
The flow of foreign currency into Indian markets will rise as we have more startups, which will allow us to develop more goods and begin exporting them.
8. More Convenience in the Lives of People
Innovative startups have made our lives simpler. Digital wallets, wearable technology, e-commerce, and other new ways of living have not only increased convenience but have also organized our life.
Conclusion Startups are important for the growth of the economy as they are the major contributors to innovation. They provide innovations in technologies, products, and services that can bring about a change in the way we live. Startups are also important because they create jobs. They employ people and their ventures often lead to employment opportunities for many people. The government should support startups by providing them with the necessary infrastructure and funding so that they can grow.