Demonetization has come as a boon for startups. Here’s how

My wallet has no legal money today; I can say the same for my friends, family and colleagues but we all have a smile on our face! The historic move by Prime Minister Narendra Modi this week, announcing demonetization of Rs 500 and 1000 currency notes is a significant step to check black money and corruption, twin issues that have been crippling many new and young or prospective businesses in India including upcoming and established start-ups.

Many of our businesses find themselves struggling to operate in markets riddled with lack of hard and soft infrastructure, cash and back money riddled markets and sectors virtually closed for legit business. All that is set to change and I am confident it’s for the good!

The 3 cheers I am expecting to come about...

The financial infrastructure we have longed for

For the last decade various new age businesses, start-ups have been struggling with abysmal financial infrastructure based largely on cash. While some of us have been working to get the financial infrastructure in place (read mobile wallets, payment gateways, and others), many more are creating alternate mechanisms to operate in the current financial mechanisms (read Cash on Delivery, cash backs on card payments, etc) making our businesses unviable.

So far it was a few of us who were promoting an electronic, plastic, cashless economy, this move is set to align the government, most businesses – big or small; new or traditional to promote the same! Cheers!

Fair play across sectors!

India is a country struggling with fundamental in-efficiencies and lack of infrastructure – both hard such as organized retail, construction, logistic, housing, telecommunication, etc and soft infrastructure – credit systems, free market trading, waste management, health services, financial products, education, etc. Many of these sectors, ecosystems have been largely in-accessible to the “common” entrepreneur primarily because of the extensive funding and/or dealings in these sectors with illegitimate cash. Now I look forward to a level playing field in many of these sectors, businesses where entrepreneurs will bring in innovation, high quality of service and eventually disruption! Cheers!

Less cash, less black money, more transparency!

While they might have the best products or solutions for the need, often you hear entrepreneurs say, ‘we don’t compete for this kind of business’. The kind of business where we find our capabilities in delivering innovation, value and exemplary service are not enough to legitimately win business. Or the kinds of business which survive on stealing on taxes! I am hoping this is going to start to change too. We will see more transparency in the economy, in its dealings and hence more young businesses to compete fairly, to grow and flourish. Cheers!

Three cheers to our Prime Minister for a bold, far reaching and game-changing action. The move will launch business opportunities for genuine trade to flourish and re-energize the young and dynamic startup ecosystem.

Himanshu Aggarwal is the Co-founder & CEO of Aspiring Minds.
(image: IndiaTimes)