Jharkhand innovation lab

Abstract

Startups, by their inherent definition, operate in an extremely volatile business context and intense competition. In Indian context, they face even greater odds for success owing to the strictly regulatory environment, age-old taxation laws and ever changing socio-political scenario. This reflects in the 130th ranking India obtained in ease of doing business, the 90% of startups failing within 5 yearsi of launch and the sky-rocketing burn rates of majority of Indian poster-boy startups. Moreover, the startup scenario is primarily confined to the metros and Tier-I & II cities enjoying more homogenous demographics and greater purchase potential. These cities are characterized by educated and salaried middle-aged Indian population, the prime target demography for majority of Indian startups. However, the startup outlook changes dramatically towards smaller cities and states like Jharkhand that is still reeling with the effects of extreme poverty and low literacy rates. Such states lack not only the basic infrastructures such as, connectivity and developed market, but also pool of skilled labor and exposure to global startup scenario. In this context, the set of challenges faced in developing a startup ecosystem, therefore, is not limited to having an incubator but a dedicated developer who can invest in improving the overall ecosystem. Such endeavors include training the local employment pool, giving them the required exposure, as well as attempting to improve the market and regulations affecting them. This calls for a holistic approach to fix the entire ecosystem, rather than providing support to individual startups.