CONTRIBUTION OF STARTUPS TO INDIAN ECONOMY – A STUDY IN HYDERABAD

Abstract

A startup encompasses any venture dedicated to fostering the growth, commercialization, and introduction of innovative products, services, or technologies, often rooted in intellectual property or emerging tech. Over the past couple of decades, the startup landscape in India has experienced a remarkable surge, buoyed by increasing support across all fronts. These startups don't operate in isolation rather they are integral components of a larger business environment geared towards generating impactful solutions, thus serving as catalysts for socioeconomic progress and transformation. By virtue of their penchant for pioneering innovations, startups not only create employment opportunities but also play a pivotal role in bolstering economy of the country, fostering stronger communities, and revitalizing urban centres, as exemplified by the transformative impact of Information Technology, especially in a city like Hyderabad. While the main aim of the paper is to study the contribution levels of startups to Indian economy, Hyderabad city has been selected as the study area and the startup companies in this city considered as study units. Among the registered startups in the city, the author identified 338 through random sampling method and data was collected from these startups with the help of a structured questionnaire. Hence, the perceptions of entrepreneurs on contributions of startups to Indian Economy revealed that the startups create job opportunities in the country and contribute to increase in GDP and GNP of the country. Moreover, startups contribute to the economy of the country through taxes, they raise finance or capital for circular flow of money in the country and contribute to market capitalization. Therefore, it can be concluded that the startups are playing a significant role in contribution of wealth increase in the country.