Our grandfathers were primordial, simple and
satisfied. The so called specialization and division of labour was nonexistent.
In our fathers’ generation, specialization was simple and the ‘seed of
ambition’ was at its nascent stage. They went for ‘sarkari jobs’ viz. IAS,
banks, etc. But once they entered the professional sphere, they never looked
anywhere else. A job guaranteed a marriage and they were consumed in the nitty-gritty
of family ties. Our elder siblings craved for money; there was a paradigm shift
where success was measured in monetary terms. MBA was the ‘means’ to the ‘end’.
A lot of opportunities were created with the embarking of world class
B-schools. They loathed the idea of going through the gruelling process of IAS
which ate away the prime period of a youth’s life. A MBA degree from a reputed
B-school gave them a ticket to the seven digit salary job. Now coming to our
generation, we are highly competitive, ambitious and balk to follow the
conventional path. The only similar thing about our generation is that everyone
wants to be different. We refuse to be one among the horde and espouse
something niche. So how do we achieve that?
Since success is a relative term, some individuals equate success with
established societal norms (they go for IAS since it gives you maximum social
respect and stature) while others pursue money. Here also there is a difference
between money earned as an ‘employee’ and money earned as an ‘employer’.
Whether it is entrepreneurship or quitting your job for IAS, both are
aberrations that contravene common norms. So what do we do? The tacit belief is
that if you are an employee, you are working for your organization and when you
start your own business, you sweat it out for yourself. In today’s globalized
world, there is a plethora of opportunities for the educated youth. Hence if
the individual is not satisfied in any job, he won’t think twice before
quitting. Here the concept of ‘self actualization’ comes into the picture. The
current bunch is restless and perceives start ups would not only bestow money,
but also lead them to self actualization.
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| ideas ideas and more ideas |
‘Start ups’ in layman terms means starting your own business. It is not
neologism. The ‘gujjus’ and the ‘marwaris’ have always tilted towards family
business or other forms of entrepreneurship. Their superior business acumen,
which is innate in them, would make them the dominant players in this trade.
Today, almost 40% of MBA graduates and almost 70% of MBA graduates from elite
B-schools opt for start ups. The startling increase in internet connectivity
via a variety of mediums- the computer, the tablets, the smart phones, etc.
coinciding with a rise of middle class that has more disposable income than
ever before and the aspiration to lead a life that qualifies as a ‘lifestyle’,
has translated in the burgeoning of start ups in India. When I talk of start
ups, a major chunk of them fall under the ambit of e-commerce. Much of the
rapid e-commerce growth is powered by greater consumer choice and consumer
awareness and the improved convenience offered by online shopping. Another
important aspect is the wider choice that the e-commerce vendors offer in terms
of products in sync with global trends. Services such as buying grocery and
vegetables are a click away. One can search for houses at a new place. Once can
book appointments in top tier hospitals through a common forum. One can compare
the prices, the specifications of myriad products and decide accordingly. E-retailing
in India is growing well beyond categories like apparel and electronics. It is
hitherto entering into domains like travelling, health, food, entertainment,
housing, insurance policies, income tax returns, etc. If there is a consumer
for it, there is bound to be an e-retailer proving services for it. And if
there isn’t, just wait for few months. Start ups such as FLIPKART, SNAPDEAL,
MYNTRA are the dominant players in the market today. Other start ups such as
ASKMEBAZAAR (a digital open market), MAKEMYRETURNS (empowering the payers to
pay their taxes with ease), POLICYBAZAAR (buying an insurance policy online),
PUMPKART (buying water pumps online), CREDIHEALTH (providing health facilities
from booking appointment to delivering medicines) are emerging at a very fast
rate.
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catch 22 |
Modi, being an astute politician, very well understands the aspirational
demographic profile and their psychosis. Hence in the recently announced
budget, the government has provided a huge impetus by reserving 10,000 crores
for these start ups. Earlier the investment in the form of venture capital
would arrive from foreign investors. But with such a step, the government has
given signal of its intentions. Hence with government backing, this is the time
to go for start ups and build an ‘Israeli culture’ (where children learn
innovation, creativity and entrepreneurship right from the school itself) in
India.
So what about the future of start ups in India? The first decade of the
twenty first century witnessed the so called ‘IT boom’, which culminated in the
bursting of bubble in 2008. (The Lehman brothers fiasco) Will start ups,
especially E-commerce meet the same fate? In the E-commerce sector, there is
already a lot of competition. So unless a new start up can provide something
new to the consumers, and perpetually revamp itself with the changing needs, it
won’t survive. Such a start up needs to benchmark itself and thus differentiate
itself from the rest of the flock. On the contrary, human needs are humongously
insatiable. Changing time will give rise to new wants. Hence there will always
be a window of opportunity to carter the new needs. Hence what is required is
that the start ups need to be on their toes to grab such opportunities. In
simpler terms, consumers can have needs ranging from health, education,
decoration to environment and hygiene.
So with new wants, will come new service providers. So the bubble of
start ups bursting in the current scenario seems to be a distant myth. So for
us, we need to play the ‘wait and watch’ game since the ultimate gainers will
be the consumers themselves.
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