Take an example of our planet’s ecosystem, and you will understand how they complement and contribute to each other’s existence. The same procedure goes with the startup ecosystem as well, described as below.
– Accelerators, incubators, government, and enablers.
– Advanced adapters, users, customers.
Sustainability is the key to any startup that wants to make it big. Startups involve more than just entrepreneurs, and it goes beyond the task of Pvt Ltd company formation. At the end of the tunnel, it has users split into advanced adopters, generic consumers, and beta testing users accountable to advanced adopters’ influence. All these mingle into a defining moment for the success of a startup.
The ecosystem also consists of communities such as Kickstarter and other crowdfunding platforms where people even vow to either buy or try a product before it makes an inroad into the market. Entrepreneurs are eager to get their products validated to ensure the success of beta testing. That is how it all works.
There is one catchword that represents the interdependence of each component present in the ecosystem -“Everyone has a common ambition and vested interest – doing a sustainable business out of the startup.”
Start-up’s longevity and success is the aim of the whole ecosystem. The development of the startup ecosystem is dynamic, durability becomes the key to the survival of the business.
Now, let us investigate how each one of the benefits from the success of a startup.
How does everyone become the beneficiary of the success of the startup?
– Developing their brand and identity for entrepreneurs, which is no less than equity for them.
– Benefits for the government through successful policies that generate more jobs and employment for youth via startups.
– Enablers exist intending to enlarge the startup ecosystem and producing more ideas in the market.
– More opportunities to get greater returns for VCs and funders. Those are vying for the next big BYJUs or Paytm.
– Advanced adopters are the ones who are looking to be innovative, an early beneficiary of the next big work or think their way out to be tried and true ambassadors.
Symbiotic relationship of investors-entrepreneurs-government.
Investors getting benefits provided by the entrepreneurs
If we are put in a supply and demand scenario, then there is an overabundance of entrepreneurs and their need for investors’ funding. For instance, there are multiple ways to get funds other than a big agency. Investor’s key is to generate odds of winning better. They might find it difficult to get the best bet. Funders require accountability from VCs and investors. Industrial experts place their bets by considering the risk-benefit scenario because investors are fetching money in the fund to get results. Even when they are not aware of the next unicorn of the ecosystem, it all comes down to how they could make a call under a pressurized situation with the right intent, time, and rate.
Government benefits from startups
Government launches schemes for startups that promote the ease of doing business. The primary objective of such a scheme is to generate jobs and employment. It could work as a revenue generation as well through the taxes. It is a win-win situation for both parties as startups would get tax benefits as well.
It all starts with the investors taking a step forward without taking into consideration of risk involved. They bet on the entrepreneurs; hence no one can undermine their role in the success story of any startup. VCs usually invest in companies to create horizontal and vertical portfolios.
For instance, both Clear-tax and Paytm have a large portfolio. Having the scope of knowledge transferability via shared portfolio, the whole ecosystem benefits. Here, the agent works as an intermediator to link both ends.
The benefit of entrepreneurs from investors
Initially, entrepreneurs are eyeing the fundraising eagerly—there are so many myths created around the entrepreneurs that need to be cleaned before getting a clear picture. Funding does not determine the startup’s success, but it provides the initial thrust to the business. It applies to any business structure right from OPC to online registration of partnership firm while conducting business activities with business partners.
We can see the competition from both ends, on the one hand, entrepreneurs and on the other hand investors. On the other side, incubators and government departments have performance pressure on them; therefore, they continuously seek investment-worthy profiles.
The mutual dependency of consumers and startups on each other
There is a burgeoning trend of advanced adopters of products and services offered by startups. Startups are adopting themselves to be more centered around customers. There is an ample amount of incidence of corporate partnership between startups to benefit both. For example, LegalWiz.in works similarly with echai.in with the latter’s work as a client. It organizes podcasts, workshops, and seminars beneficial to the startup community where they can exchange ideas. In return, LegalWiz.in provides services at discounted rates to members of echai.in that’s how the symbiotic relationship blooms in the startup economy.
Are you thinking of any other elements playing an essential role in the startup ecosystem? How do you think they can pitch into the amicable existence of everyone involved without any lack of stability? Do ponder over it.