Not So Easy for ‘Start-ups’ to Start in India: Government Policies and Start-up Scenario in Ahmedabad

Abstract

India has witnessed the birth, growth and collapse of many start-ups in the past few years. Some have stood against the odds, stride and emerged as home grown unicorns. The Government of India also through its various programs like Start up India, Make in India and Digital India have tried to promote private sector development through entrepreneurial ventures. In the backdrop, the central idea of this study revolves around identifying the hindrances start-ups face in Gujarat with special reference to the city of Ahmedabad. The paper addresses two specific objectives. First, it attempts to recognize the probable issues and challenges faced by start-ups in Ahmedabad; and, secondly, it examines the role State plays in providing assistance to promising entrepreneurs. The study identifies lack of government support, financial constraints, deficiency in appropriate human capital, unsatisfactory ecosystem, minimum interest from the financers and skimpy pricing policy are the major apprehension among the start-ups to mature in the city of Ahmedabad. The new ventures would require the State government to come with an a holistic step through integrating theoretical and policy frameworks. The paper contributes to literature in two distinct ways. First, it provides empirical evidence of the issues and challenges that the start-ups face at the grassroots level; and secondly, it documents how the State can play a role to solve the issue of stagnation in start-up growth.