INTRODUCTION

The Indian start-ups community; ranked third globally in terms of number of start-ups, has
been creating new job opportunities and attracting capital investment. We believe that start-ups
need to focus on societal problems, including healthcare, sanitation, education, transportation,
alternate energy management and others, which would help deal with the issues that India and the
world face. Start- up are usually and wrongly get confused with small business, this particularly
happens in India, where start -up took off a bit late as compared to other parts of the world. Start-
ups, must not be confused with small business, as the biggest difference being is innovation.
On 15th August 2015, PM Narendra Modi announced this initiative at the Red Fort as Start-
up India and on 16th Jan 2016 it was officially flagged by Finance minister Arun Jaitley. The main
aim of the Govt. is to provide maximum help and support for the new emerging businesses and
ideas.
The support will be in the form of finance, technology, economic, social as well as
environment. As it is a known fact that when someone starts a new enterprise or tries to get into
entrepreneurship they face many problems like finance, land permissions, environmental
clearance, foreign investment proposals, family support etc. It is one of the much needed initiative
plan of Govt of India.
Startup India is a revolutionary scheme that has been started to help the people who wish to
start their own business. These people have ideas and capability, so the government will give them
support to make sure they can implement their ideas and grow. Success of this scheme will
eventually make India, a better economy and a strong nation.
Small enterprises are often cited as a major driver of Indian economy due to its significant
contribution in output and employment generation. According to a report given by Confederation
of All India Traders, small enterprises contribute 45% on India’s GDP which is around three times
of what corporate India contributes. This sector employs approx. 46 crore people and is earning a
growth of 11.5% annually. But it is still deficient in securing proper finance to prosper.

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 THEORIES

.
With a population of 1.21 billion (census survey, 2011), India stands as the 2nd most populated
nation and it is quite obvious that unemployment is a critical challenge being faced by the country.
As per Labour and Employment Report 2016, of about 511 million work force, just 17% is
employed in regular formal employment in the organized sectors. Overall, India‟s unemployment
rate grew from being at 6.8% in 2001 to 9.6% in 2011(census survey, 2011).
Rising aspirations and growing youth population make it imperative for India to find solutions to
unemployment for channelizing its energy in the right direction. Launching up of the start-up’s is
to provide an impetus to the domestic challenges of unemployment and foster growing
opportunities for multisector productivity.
Start-ups in India have been facing two sets of impediments. The former refers to a range of
government departments apathy, corruption and complex approval procedures. The latter relates
to the power of big and powerful corporate, to resist or counter start-ups which challenge them.
The Start-up India Action Plan lists out a comprehensive set of structural and regulatory reforms
designed to build a strong eco-system for nurturing innovation and Start-up’s in the country that
will drive sustainable economic growth and generate large scale employment opportunities. These
action plans are aimed to accelerate start-up movements from digital/technology sector to a wide
array of sectors including agriculture, manufacturing, social, healthcare, education, and others.
There are various reasons behind setting up the start-ups. Few but the important reasons for setting
the start-up are as follows:

 Monetary Gains-Everyone wants more and more money. And the best way to get it by
having your own business. In the job one gets the fixed amount of salary but in own
business one can get monetary gains as per his choice.
 Secured Job-Job security is one of the basic need of human beings and it is also referred
in the Maslow need hierarchy theory. If job is not secured one cannot work with full zeal.
And on the other hand when one works in the business with the tag of an owner the zeal
and enthusiasm comes automatically and the job is secured.
 Job creation-When any entrepreneurship is started people tend to create jobs for others
also. An individual can start a business but cannot run it alone. So the opportunity of jobs
being created.
 Own Brand-It always feel good when one tells the other person that the particular brand
belongs to him or he is the owner of that developing brand. It gives immense pleasure to
introduce yourself as an entrepreneur.
 Quality of Life-Due to the impact of globalisation and e-commerce everyone wants to be
at ease and desires to the best quality of life. Being as an owner one has the freedom to
choose the life accordingly.

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 Be your boss-Its good not to have a boss. In the business you are not answerable to anyone
accept yourself.
 Converting vision into Reality-Everyone has a vision but very less people turn it into
reality. While owing an entrepreneur you can convert your vision into reality.
 Social responsible-When you have the economic independence you can always choose
where you want to spend your money. And generous people are always socially
responsible. If one wants to help the humanity than the socially responsible start-ups come
in the play.
 Economic Independence-Having more money its one`s decision where to put that money.
One has the more economic independence
 Changing the World-Every time we talk about changing the world with lots of ideas but
we never take the initiative to do so. People who take the initiative can change the world
according to them, if not the world till they make a difference.
 Own Decisions-Right or wrong, whatever the decision is-one is responsible for that. Right
decisions boost up the energy and wrong decisions make people learn the lessons of the
life.

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 RESEARCH OBJECTIVES

The study is based on the secondary data which has been collected through websites, newspaper,
Govt. reports, research papers etc. The study is based on following objectives
 To study the reasons for starting a business.
 To study the influence of govt cooperation
 To study the various policies, programs, agencies involved in enhancing the start-ups.
 To analyse the important problems faced by the start-ups
 To identify the driving forces and barriers in India’s path of becoming a start-up hub.
 To produce suggestions to make the start-up environment more conducive in India.

REASONS OF STUDY

We are doing this research because as we wanted to know the Start-ups in India, in India what kind
of problem people are facing for start-up people are doing the job and experience now they starting
their own start-up of research.
In the research we know that people having different idea for start-up nowadays the people are
having new idea to start their business many of the research in data we get the people of Idea have
unique people have started a business premium locations the government also helping the people
who was starting the business and the people have getting benefit from the government for the
taxations and other things also the people who are having the idea of business but the problem is
financial problem the start-up.

The main problem of finance finding fund the business many banks giving the loan many of the
people taking loan from Financial institute for the family from the friends and the people who have
starting the business many time the face the problem of labour and employee and locations of the
business start-up business people have experience of working like 5 to 6 5 to 7 years the research
we know many thing of the people who was having a different ideas to come out the business plan
and challenging to the market targeting.

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 RESEARCH METHODOLOGY

Source of data

The data was collected from the interview. The present study is based on primary data for
qualitative analysis. The semi structured interview of decide questions was taken from the 10
business start-up owner.

Data collection

The data was collected through the interview of owner of business start-up. The question was pre
decided and it includes what difficulty does start-up face during setting up their unit, managing
fund, government policies etc. Both open ended and close ended question were asked to achieve
research objectives.

Limitation

Sample size of 10 is limitation, the finding may differ at higher sample size.

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 DATA ANALYSIS

Data is collected from the audio interviews for research on Problem faced by startup. Getting
the idea of startup for many startup owner is through previous job or from the surrounding, family
or they wanted to do something big to achieve their dreams. And for constructing their idea into
real business they had to face many obstructions. Initially finding location for the startup was quiet
difficult and they had taken land mainly on lease or rent, no one has purchase the land in the
beginning. Then they need to complete legal work which took lots of time in some cases such as
automobile sector. Mainly for licensing of the company it had taken time, government official
won’t work properly and always delay from the stipulated time. Some people had gather some
ground info before starting the actual business and some had past experience of that field.
For getting fund we had seen that startup owner has many option. If the person is from well
to do family, he gets funding from priory from his dad or family member. Some startup owner
took loan from relatives or siblings at lower rate of interest. Some of them from middle class family
took loan from bank by mortgaging their belonging. Very few get funding from venture capitalist.
Some startup cost is very much low so they need not to bother of funding. If venture capital has
invested in the business they do not pressurize the startup owner in decision making but they need
to inform once to venture capitalist before taking any major decision.
The startup owner keeps proper detail of their target market. They had target market such as
MNC, age group according to their products. They took proper steps in reaching their market
properly and tries to get update according to the market needs. In paying tax, startup owner of
selling products has getting benefit after GST was introduced. Because it had make working more
transparent and VAT and Sales tax was removed. The filing of GST is compulsory for them and
for their buyer and supplier which created little disruption for them. Because they need to force
their buyer and supplier to file GST. And other startup has many benefit and exemption for tax on
certain amount of revenue.

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 DATA INTERPRETATION

People generate different type of idea through their past experience and expertise of their
skills and some idea is generated by seeing the problem in the surrounding. As we can also see
that many startup owner get inspired from their family business and some had big goals to achieve.
We had observed that construction of actual startup business from an raw idea is quiet difficult.
The startup owner needs to face many issue such as legal, location, political. Because the
government official took more time for registering and rest of the legal work, more documentation
is needed. Finding suitable location for startup is difficult sometime they initially don’t invest in
purchasing land, they just take it on lease or rent. If their startup run successfully they took further
step in investing in land for their work setup. Finding funds for their startup is not that much
difficult for their owner. Because we had observed that many startup owner get funds easily from
their family and they also borrow from their relatives. It is the cheap way of getting fund instead
of approaching to banks at higher rate of interest. In some startup the cost of capital is so much
less so they manage from their savings only. For example. If you launch an app you don’t need
much capital for creating it you just need to have proper coding language and then you can upload
it on play store. If startup owner don’t get fund from family due to higher capital needed for their
startup. They can approach to many banks and venture capitalist. Because today many banks and
venture capitalist are interested in investing in startup if they seen any potential in it. For these the
startup owner needs to convince the bank or venture capitalist by showing what future that their
product and service will have and how bank or venture capitalist get profited from it. If they get
funding from venture capitalist, the startup is monitored by venture capitalist and decision making
is done by the startup owner only. But he needs to inform the venture capitalist before taking any
prior decision so they can guide him properly as their capital is also involved in it. So they don’t
pressurized in decision making but keep a check so their capital is not eroded. The target market
of startup owner is mainly MNC, age group related to their product and services. The startup owner
keeps proper track record of their customer, what are their needs, what improvements they needed
or any drawbacks. They do continuous improvement and tries to study properly about the market.
The government of India has launched startup India for the development of the country in
the long run because it bring innovation and increases business competition. We had observed
that the startup is also benefited by the various tax reform such as GST because it eroded VAT,
Sales tax and also reduced the tax liability of the startup. It creates transparency in the system and
also forces them to file GST return for their buyer and supplier also. And many tax exemption is
given to them under Angel tax scheme.

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 Business Research Methods
Topic – Start up as a career in India.

From where did you get the idea of startup

What initial difficulty you face in constructing your idea in to actual Business

Finding Fund for your Business. How did you do it

Does any venture capitalist funding you

Does venture capitalist influence you or pressurized you in taking business decisions

What is your target market and audience

Did you get any tax relief or angel tax is suitable for you

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 CONCLUSION
In India’s the idea generation of start up or for doing something different from the society is
because of the problem they seen in surrounding and get inspired by family or past experience of
their job. The Start-up in India take much efforts to bring idea into reality by facing barriers from
government authorities, political and legal aspects of the society. The funds for the start- up is
easily available in the market as the result of the research hardly needs one take capital funding
from the venture capital, but mostly the start- up is funded by the own savings, family, or the
relatives. If the start-up cost is high in nature then they approach venture capitalist or bank.The
government is boosting start up by bringing transparency in tax structure and after GST the tax
burden is also became less. Start-up also get many exemption for their certain amount of revenue.
As the result start-up has changes revolution totally although the financing is the major part and
the obstacles that any entrepreneur face while start-up the business. As many type of the finance
available in market .The entrepreneur of new start-up are satisfy by their work.It is important to
have a long term vision and self -confident about business development.

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 REFERENCES

 Y. Sharma, “Women entrepreneur in India”, IOSR Journal of Business

 N. Bosma, M. V. Praag, R.Thurik and G. D. Wit, “The value of human and social capital
investment for the business performance of start-ups”, 2002.
 Startup India: Action Plan, 2016
 Census Survey Report, 2011 [3].
 Labor and Employment Report, 2016 [4
. Introduction to Operational Research: Frederick S. Hiller and Gerald J. Lieberman

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