India is a country of 138 crore population, and the percent by which India’s population is increasing is very frightening and scary. India is a very very big economy and almost 70% of the Indian economy is dependent on Agriculture which is drastically shifting to some other areas due to low output in Agriculture and Indian farmers still using old traditional method of Agriculture yielding very less production even after large efforts and inputs, many a times un-wanted natural disasters like floods and droughts and other such natural calamities also hampers the agriculture production and affects the choice of doing agriculture.
Anyways coming to the main theme of the article, how this economic slowdown is a good sign for the country like India. Yes, there is a economic slow down in the country, the economy has fallen to 5% , there is a record 45 year low in terms of jobs, the automobile & textile sectors have already started shutting down, banks have already started holding back giving the loans, many banks have been merged and there are several roll backs from the government to curb this slow down, The situation has become more worse than 1975 emergency.
In India now a days many so called entrepreneurs are coming into the market with their own startup ideas! Ideas which has no uniqueness, no sustainability model, no marketing budget and no traction and no customer yielding plan.
These young startups which comes into the market just for the sake of starting a startup with no concrete plans in terms of marketing, growth etc and no budget for sustainability, employees salary, marketing and advertising only act as debris which actually have no long term goals, customer retention and a long term vision.
They only come to spoil the market, do some small time business and then get eloped.
This economic slow down and crises will help India to filter out such crap and scrap from the market.
Now a days almost 90% startups comes in the market because of unemployment, every tom-dick-harry who is not able to secure a good job in corporate and MNC brings their own startups in order to keep themself engage, people who are entrepreneurs by force and not by choice comes with just one thought process that they don’t have to and wont run the business for long, they want to start a business today and want to be a millionaire tomorrow. They should understand that Rome Was Not Built In One Day.
They have no productive and unique ideas, no marketing budget, no vision, no aims and goals, no excellent team, they just start a startup copying the ideas from others without understanding the soul of the startup.
This is why we are able to see so many skill based startups coming in the country and very less product based startups as product based startups needs a huge money, time, energy and other investments in order to bring a fruitful business.
If you look around yourself, you will see so many startups working on content writing, social media, digital marketing, online news magazines, companies making websites, mobile applications, video production, graphics production, data selling and other such skill based business which do not require a large infra and large investment to start.
All you need is your laptop, one mobile phone and a internet connection to start and you are ready to go.
But at the end, one forgets that any business takes time to come into existence as well as acquire clients and gain momentum and till then you need some working capital and patience to sustain in market.
Today we see many such small startups coming into the market without patience, working capital and market budget and close down their operations in less than 60-90 days due to lack of business or we can say lack of confidence and potential to survive.
The only important role such startups play in the market is to spoil the market for other well established business.
Lets take an example a 6-7 years old IT company charges somewhere around 30-40K for a standard website development and 50-60K for a mobile app development, the very young startups will be happy to do it for only 8-10K for website and 10-12K for mobile app, sometimes even less.
But at the end, the quality matters a lot, the young teams may not be able to provide the quality of already established company but due to less price quotes customers tend to move to these startups and end up loosing money and get cheated and thus the market gets spoiled, The customers do not do their homework and gets blinded by the low prices and in the wave of excitement of discounts and low prices affects their own business by such low quality services.
Anyways this slow down may also have some negative effect on the country like increase in crime rates, frauds, cyber crimes, cheating, suicides, breach of trust but then this is all the part of the game, everything comes with their own pros and cons but the good part is that this economic slowdown will eventually clean up the market to a larger extent and will eradicate such small startups which comes only to spoil the market and will open up new dimensions for people who have long term vision and want to sustain their business by customer retention. The slowdown may also help people to think beyond a standard level and bring more creative and unique ideas for better and more productive and sustainable startups.
Disclaimer: This is an editorial article written by the editor of Inventiva and represents only the individual thoughts, this has nothing to do with the Magazine Inventiva and its parent company Nine Network Private Limited. The magazine and its parent company can not be held liable for individual thoughts.