Here is how startups can create an entrepreneur-friendly ecosystem

Nikesh Arora, the vice president and COO of Softbank is the backbone of many Indian starups. An IIT alumnus and an ex Google employee, Arora is known for his economic wit. His company, dealing in broadband and telecommunications has been investing in Indian startups since quite sometime and have already become bliss to the daring entrepreneurs of the country. In his recent blog in The Economic Times, Arora has pointed out how the startups are gradually building a resource ecosystem in India. Differentiating between India and China, Arora says there’s no dearth of talent in this country, yet China leads in growing economy because it has infrastructure.

Arora says, “I see the new entrepreneurs creating the new infrastructure required to make businesses more efficient, provide goods and services to Indians that rival the West — and, perhaps, in some cases, provide an opportunity to leapfrog a few steps. So maybe this infrastructure is of some use?”
“The confluences of success in China, low interest rates in the world and a new political leadership in India have reduced risk in the minds of investors. Leaving money in the bank provides the same interest rate as hiding it under your mattress. So investors are out in droves, looking for interesting opportunities.”
Also, Arora with an excellent metaphor demonstrated the fact how middle class Indians are the most resource and cost effective mass in India. He has seen in his childhood that the Raddiwalas (people who buy old stuff) would buy old newspapers and in return give a utensil. Everything has a use and this aspires many Indians.
“Leaving money in the bank provides the same interest rate as hiding it under your mattress. So investors are out in droves, looking for interesting opportunities.”
“Currently, the top 20 venture-backed companies in India are collectively burning through more than $100 million in funding every month! Young Indians who are busy raising money need to ensure that they go back to our values, spend what they need to spend, try not to extend too far and make sure they are creating something for the longer term.”
“Such is the nature of venture capital, of startup, of innovation: not every idea succeeds, but rest assured, if you don’t try, you won’t succeed.” How can media play a big role in charging up the economy? Well, Arora opines, “This is where the media have a big role to play. They need to celebrate the entrepreneurs who tried and lost, so that they get up and try again. Most of the successful companies in the world did not start with the idea that made them what they are today. But the support of the ecosystem gave them the courage to keep pivoting their products and businesses.”
In the ET blog, Arora signs off saying, “The leadership needs to be constantly vigilant to ensure that we do not stifle entrepreneurship, and impose costs on fledgling startups.”

(Image: Indiatimes)