Startup Ecosystem in India: An Analysis

Abstract The creation of the ecosystem of startups has fundamentally altered the nature of entrepreneurship, innovation and economic development today. Startups are not seen simply as new enterprises but serve as platforms for innovation, job creation, transformation and regional economic development. However, a startup's success is seldom determined by the abilities of the entrepreneur himself/herself. It is shaped by the complex array of institutions, investors, universities, governmental bodies, incubators, accelerators, corporations, mentors, markets, technological infrastructure and social networks. Such a complex array is referred to as the startup or the entrepreneurial ecosystem. The current paper focuses on the structure, composition, dynamics and challenges of startup ecosystems, especially those in India. Qualitative research design and analysis are employed using review of academic literature and official data. The paper looks at the role played by entrepreneurial culture, human capital, finance, technology, institutions of higher learning, incubation, policy, access to markets and networking in startup development. It also considers the development of India's startup ecosystem through various programs such as Startup India, Startup India Seed Fund Scheme, Fund of Funds, MAARG mentorship, Investor Connect and state-level startup policies.