What are different factors and routes of emergence of Start-up firms? Discuss in the light of evolution of start-ups in India.
Factors for emergence of a start-up can be broadly classified into four
categories as follows:
- As means of livelihood. eg cottage industry, Own Account Enterprises
- As a result of policy support or inducement. eg: MSMEs, Khadi &village industries etc
- In response to demand of large firms and market opportunities. eg: ICT industries, R&D, Technology Business Incubators etc
- As a result of innovative idea based on knowledge and experience. eg: E-commerce ventures, remote education etc
There are three parallel tracks for startups to emerge:
- Traditional Manufacturing Industries and services:
As cottage or household industries or small workshops with hired labour.
- In modern manufacturing industries and services:
- In technology / knowledge intensive industries:
eg: Flipkart, oyoroom etc