Start up/Stand up & India Inc.
By: Amit Bhushan Date: 18th Jan 2015
Now we seem to have some official push for "Start-ups" with government deciding to back it up publicly. While the current commitment is to only remove some of the restrictions, rather than having a pro-support or favourable policy laying out commitment. Already discussions have started on the potential ability to achieve deliverables and what those deliverables can possibly be; in a practical scenario. While quite a few eyes are on to identify a potentially disturbing start up and identify ways its impact of running businesses in ‘real (read: Brick and mortar) world can be mitigated; provided it has potential for some significant impact in the eyes of the managers of the industry off course.
However even bigger impact of the initiative is likely to be that many more industry managers are becoming open to change themselves i.e. open to adopting hitherto new ways whereby which they can have better outcomes and this can transcend age/gender/position related bias in decision making. This, of course is subject to different company cultures as well as could be person specific i.e. degree of openness may vary wildly. It off course now behoves upon the company captains on whether and how they embrace this change or if they would still have tendency to fall back on old ways. There is every likelihood of trial and errors and potential for errors in the scenario can be many.
The captains will need to decide if and how they embrace these changes that are likely; and this would categorize companies as leaders/followers or middle majority or laggards. Such categorization in our markets about companies was at best very hazy hitherto, since almost no clear models existed. The initiative is likely to push investors to categorize industry by this new measure as well not only to manage their risk appetite appropriately but also to use it for portfolio diversification as well.
The HR managers will also need to be more open about new notions about result-orientationism, experimentalism, innovation etc. while guiding the companies to new paradigm whereby which newer norms would get greater priorities over traditional loyalty or years of experience took centre stage and ability to mimic one’s manager was an excellent measure to one’s dexterity.
The new measures would not only impact start-ups, but also old brick and mortar who want to compete in the hyper competitive talent market and this competition for talent would become more pronounced as some of the start-ups become more mature and their business model stabilizes as this would give comfort of a stable model alongside experimentalism which is likely to remain in the genetic makeup of these companies / entrepreneurs.
While the official bureaucracy may be expected to get a little softer as a result of government committing to support the nascent sector, the going for the start-ups is likely to remain tough as financial pundits are unlikely to review credit norms in the same hurried ways as politicians are removing restrictive practices and so raising finance to back one’s idea and prove its viability in an ever more competitive market is going to become tougher by the day. And as the competition goes up, the ability to get customer’s hooked to new ideas is also going to become tougher, although in a market as big, one may still find significant sized pools of people who have been untouched by a similar idea as of yet and plan for ways to secure adoption as a first mover and such advantage can continue to exist for some years from now.
It is this potential which makes India relatively more attractive, however one may wonder the socio-cultural-economic reasons for the same and how easy or difficult is going to be such adoption given the macro-factors and likely profitability of the venture. Nevertheless for now the market is ripe and has potential to become better as restrictive measures are removed or the businesses manage to get a few favourable policy choices for the nascent start-ups.
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By: Amit Bhushan Date: 18th Jan 2015
Now we seem to have some official push for "Start-ups" with government deciding to back it up publicly. While the current commitment is to only remove some of the restrictions, rather than having a pro-support or favourable policy laying out commitment. Already discussions have started on the potential ability to achieve deliverables and what those deliverables can possibly be; in a practical scenario. While quite a few eyes are on to identify a potentially disturbing start up and identify ways its impact of running businesses in ‘real (read: Brick and mortar) world can be mitigated; provided it has potential for some significant impact in the eyes of the managers of the industry off course.
However even bigger impact of the initiative is likely to be that many more industry managers are becoming open to change themselves i.e. open to adopting hitherto new ways whereby which they can have better outcomes and this can transcend age/gender/position related bias in decision making. This, of course is subject to different company cultures as well as could be person specific i.e. degree of openness may vary wildly. It off course now behoves upon the company captains on whether and how they embrace this change or if they would still have tendency to fall back on old ways. There is every likelihood of trial and errors and potential for errors in the scenario can be many.
The captains will need to decide if and how they embrace these changes that are likely; and this would categorize companies as leaders/followers or middle majority or laggards. Such categorization in our markets about companies was at best very hazy hitherto, since almost no clear models existed. The initiative is likely to push investors to categorize industry by this new measure as well not only to manage their risk appetite appropriately but also to use it for portfolio diversification as well.
The HR managers will also need to be more open about new notions about result-orientationism, experimentalism, innovation etc. while guiding the companies to new paradigm whereby which newer norms would get greater priorities over traditional loyalty or years of experience took centre stage and ability to mimic one’s manager was an excellent measure to one’s dexterity.
The new measures would not only impact start-ups, but also old brick and mortar who want to compete in the hyper competitive talent market and this competition for talent would become more pronounced as some of the start-ups become more mature and their business model stabilizes as this would give comfort of a stable model alongside experimentalism which is likely to remain in the genetic makeup of these companies / entrepreneurs.
While the official bureaucracy may be expected to get a little softer as a result of government committing to support the nascent sector, the going for the start-ups is likely to remain tough as financial pundits are unlikely to review credit norms in the same hurried ways as politicians are removing restrictive practices and so raising finance to back one’s idea and prove its viability in an ever more competitive market is going to become tougher by the day. And as the competition goes up, the ability to get customer’s hooked to new ideas is also going to become tougher, although in a market as big, one may still find significant sized pools of people who have been untouched by a similar idea as of yet and plan for ways to secure adoption as a first mover and such advantage can continue to exist for some years from now.
It is this potential which makes India relatively more attractive, however one may wonder the socio-cultural-economic reasons for the same and how easy or difficult is going to be such adoption given the macro-factors and likely profitability of the venture. Nevertheless for now the market is ripe and has potential to become better as restrictive measures are removed or the businesses manage to get a few favourable policy choices for the nascent start-ups.
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