In the startup ecosystem, India emerged as a big picture in the conventional strategic market, and no doubt has managed to prove its entrepreneurial prowess on the global front. However, it will not be too wrong to say that when one chooses to say ‘STARTUP’, one cannot help but instantly think of Bengaluru, Mumbai and Delhi.
While we do agree on the hypothesis that the tier-one cities hold the Crème de la crème of startups in India, we certainly cannot dismiss the second tier cities that are creating a buzz and setting the bar high for others as well.
India, being a land of immense resources and large workforce, has a lot to offer if tapped at the right places with the right kind of infrastructure, and the cities mentioned above only takes this contention further.
However, tier II and tier III cities have flourished some well-known startups and have also showcased a plethora of innovations and skills. These markets are ripe with possibilities, especially in e-commerce because the ecosystem has not evolved in these towns. There is no framework or support yet, to organise, facilitate and usher in alternative capital for disruptive ideas. The stable utility is also one of the main concerns. Moreover, the cultivating land of tier II provides favourable opportunities for dynamic entrepreneurs to plant the seed of their businesses and gain a massive turnover in return.
Funding obstacles ! Mere Promises without IMPLEMENTATION
The underlying benefit here is the low cost of living, which brings down the overall cost of operating a business. Established role models showed that scalability is possible from a tier II city.
It surely, is a boost for entrepreneurs starting up in these towns as the Central Government being upbeat about promoting entrepreneurship and launching initiatives.
According to a report, 18 new cities with hefty foreign investments have arisen as attractive business hubs. Prominently, ten Indian states, account for more than 75% of India’s aggregate GDP including Rajasthan, Madhya Pradesh, and Uttar Pradesh, and tier II cities such as Surat, Jaipur, Indore and Patna have shown an economic growth rate of more than 40%.
Productive engagement of government in this division is apparent and optimistic.
Remarkable initiatives have been launched by the Prime Minister’s Startup India vision, to beef up entrepreneurship in India. The DST (The Department of Science & Technology) department also invested Rs 500 cr. to nourishing ideas and innovations in the startup ecosystem.
Also, the Chhattisgarh government launched the ‘Start-up Chhattisgarh’ initiative, which intends to foster entrepreneurship and encourage innovation.
The central government had called upon entrepreneurs from the following states including Gujarat, Telangana, Karnataka, Rajasthan and Kerala to exhibit their efforts on the startup ecosystem so that other states could accompany that paradigm and would create a virtue of economy in the country.
“However, it is the right time for start-ups and entrepreneurs to make the best use of government’s endeavors and hunt for the right solutions to concerned problems with the right tech, instead of chasing excited funds or duplicate models in overly cluttered divisions.”
Cost advantages are massive
Enterprising graduates from Tier-II towns are now interested in initiating and building companies from their hometowns and not migrating to large fancy cities.
Mushrooming of co-working spaces in tier II cities is due to the rise of startup aspiration and a sign of healthy and growing ecosystem. There is a cocoon community of entrepreneurs, and the co-working space is an oasis for them as it supports to network with like-minded people and share their expertise.
“While several barricades do exist, the chances of failure are far from overwhelming, but the fruits of success are great beyond.”
Adited is witnessing the rise of their own startup culture, aided by delivering other startups a prospect to establish their foot in the market as well.
Adited deals with traditional matters born in an early stage of every business including the shortage of fund, finding technology partners, working with like-minded and highly enthusiastic people and network building. It offers incentives that have made many startups to prefer this co-working space as their first step of raising a healthy business.