ASSOCHAM (Associated Chamber of Commerce Industries) Study on Start-Ups released on 2 August 2024 pointed out that India is expected to produce at least a score of billionaires and many times millionaires among the start-ups in the next five years.
These billionaires and millionaires will be created through e-commerce, financial services and other technology driven fields generating the maximum interest.
The paper said that India will be among the top Asian start-ups along with the Chinese and the South East countries. However, the structural problems in China are likely to create road blocks for the start-ups there. No such issue confronts the Indian start-ups.
Main points of the study
- Maximum of value creation is expected in the fledgling e-commerce, music-entertainment, payment gate-ways and city transport aggregators like radio taxis. The travel arena, especially in the ticketing and booking has already gained some level of maturity.
- Within the e-commerce, a lot more verticals well beyond groceries and fashion and electronic items like mobile phones are expected to be created. Online food orders and cinema ticketing are already generating a good amount of volume. As the internet broad band increases in smaller cities, the trend is set to catch up in these areas.
- The untapped areas for online business include e-coaching, medical consultations (with fool-proof safety features) and social networking in the cities, while in the rural landscape; the initiative is going to be led by the state sector.
At the same time, there could be a high rate of mortality as well. Those, entering the business only with the idea of commanding valuations and making exits would find it difficult going forward. The angel investors include some of the top industry leaders like Ratan Tata, Azim Premji and NR Narayan Murthy. Their presence would certainly have a moral pressure among the entrepreneurs who would like to stay put and prove their mettle rather than make quick bucks.
No interest in Manufacturing
However, in the area of hardcore manufacturing, there is not much interest among the budding entrepreneurs. On the other hand, the technology-driven solutions to help manufacturing and traditional industries are surely expected in areas like energy conservation, human resource, productivity measurement and training in soft skills.