What are different factors and routes of emergence of Start-up firms? Discuss in the light of evolution of start-ups in India.

Published: March 2, 2016

Factors for emergence of a start-up can be broadly classified into four
categories as follows:

  1. As means of livelihood. eg cottage industry,  Own Account Enterprises 
  2. As a result of policy support or inducement. eg:  MSMEs,  Khadi &village industries etc
  3. In response to demand of large firms and market opportunities. eg: ICT industries, R&D, Technology Business Incubators etc
  4. 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:

  1. Traditional Manufacturing Industries and services:
    As cottage or household industries or small workshops with hired labour.
  2. In modern manufacturing industries and services:
    MSME
  3. In technology / knowledge intensive industries:
    eg: Flipkart, oyoroom etc
     

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