Bengaluru Most Hospitable To Tech Startups: Study
India is home to the third largest number for tech startups in the world, after US and UK, according to a report.
In association with Thought Arbitrage Research Institute, Assocham revealed that Bengaluru is host to the largest share of technology driven startups, followed by Delhi NCR and Mumbai while Hyderabad and Chennai are also quite popular among the techies who are budding entrepreneurs.
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The study, done in association with the ‘Thought Arbitrage’, found that in the technology driven start-ups, India has moved up to third position, with the US occupying the top position with more than 47,000 and UK with over 4,500 tech startups. India’s tech startups number reached around 4,200 up to 2015.
In terms of the total number of start-ups, comprising tech and non-tech areas, India again figured among the five largest hosts in the world along with China. The number of start-ups in both India and China was 10,000 each. US is at the number one position among the overall list of 83,000 budding entrepreneurs.
Of the Indian start-ups riding on technology, IT hub Bengaluru was host to 26 per cent, followed by NCR with 23 per cent and Mumbai 17 per cent. Other Indian cities are slowly catching up with Hyderabad being a host to eight per cent of Indian startups, followed by Chennai and Pune at six per cent each.
“The disruptive innovation in technology and process is creating newer Indian start-ups and foreign investors including some of the well-known venture capital funds are showing immense interest in these start-ups,” ASSOCHAM President Sunil Kanoria said.
The awareness that a start-up is a vehicle of rapid growth through technological “disruption” and innovation has to spread across the economy. “Only then, there can be a true start-up revolution; otherwise if any small traditional business is treated as a start-up then the start-up eco system will never develop properly. Realization of this distinction needs to percolate to all strata of the policy making and economy to ensure that a real support system for the start-ups, in terms of technology, hand-holding, funding and rapid growth, can develop properly in the country”, the study noted.
The study further added that synergizing ‘Start up India’ with Make in India and Digital India has the potential to expand Indian ecosystem for new entrepreneurs. The paper suggested tax exemption for research and experimentation to encourage execution of fresh ideas without the fear of failure. Suggesting a Stanford University model in various Indian universities, the ASSOCHAM-Thought Arbitrage paper said courses on creation of small businesses should be encouraged in the learning campuses.