26 September 2015 12:01:56 IST

Do you think now is the right time for entrepreneurs and start-ups?

Students of IIM Kozhikode answer...

The start-up scene in India is thriving. And the surge of successful entrepreneurial endeavours is proof of that. But amidst this euphoric success, we often fail to acknowledge the far larger number of start-ups that fail. So, we couldn’t help but wonder: is the start-up scene everything it’s made out to be?

II-year student

Shubham Sharma He is currently the coordinator of the institute’s Entrepreneurship Cell and the Start-O-Sphere event.

There is no bad time to start up; only wrong plans at the wrong time can deter you from thinking otherwise. The basic intermediaries you would need are legal, financial and mentorship entities which ensure the resources are allocated to the correct firm. With India slowly moving from being a ‘developing’ to a ‘developed’ economy, these gaps in intermediaries are beginning to dwindle which in turn has also proven to be the ideal business models. In short, no time is a bad time to do business but the nature of the business you do – the start-up you initiate – needs to keep evolving with time. With the motivation levels in start-ups observed during our recently concluded event, Start-O-Sphere, it is the best time for people to start-up as intermediaries in support of the burgeoning idea pool.

I-year student

Vinita Chauhan She was part of the team that coordinated the institute’s recently concluded Start-O-Sphere event. Prior to this, she worked as an Associate Consultant in EY.

“India is not simply emerging, it has emerged”, said Barack Obama at a recent Joint Session of the Indian Parliament in New Delhi. A bigger chunk of this pie of growth and success belongs to the growing start-up culture in the country. Despite the volatility, uncertainty and complexity that surround the space, investors and aspiring entrepreneurs still can’t wait to cash in on it– with Rs 15,600 crores being pumped into start-ups in the first half of 2015 alone. It is, however, interesting to note that it is not only the increased funds flowing into the industry but the increased ease of access to funds that is the primary growth driver here.

PhD candidate

Sreevas Sahasranamam His dissertation, under the Strategic Mangement stream, focuses on understanding the effect of institutional context on social entrepreneurship.

India’s diversity offers entrepreneurs opportunities for differentiated product and services. And the IT revolution has helped create an excellent talent pool that is contributing to this. The whole ecosystem around entrepreneurship has evolved significantly in the last decade.

II-year student

Anvita Kasar Her mission is simple – to help out the community back home in Jabalpur, and to do it with a business model and not through an NGO. Over the past two years she has been striving to perfect this business plan.

In the present context, the trend is that most of the tech start-ups are making little money due to the low margins and high competition (in general). One of our guests commented during our entrepreneurship summit, Start-o-Sphere, that such a model simply transfers capital from the investors to the consumers. The sustainability of this model is, therefore, questionable. What we need right now for this to work is that people come up with ventures to support the current eco-system by engaging in development of the needful infrastructure and fill the institutional voids to facilitate all-round development of the ecosystem. Thereby setting-up a virtuous cycle. The good news is the increasingly supportive policy and regulatory framework that is in the talks. Hence, I believe, the time has really never been better for entrepreneurs to get their feet wet than now.