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Start-ups Helps Economy in its growth. It is like saying water quenches thrist. Anyways.


We see that govt. across the world always force to churn out Start-ups in their economy. Why go far, when India also is a part of it.

So, ever wondered how it can help economy and you as a ‘citizen’?

Let’s do this.

First understand what a start-up is-

Start-ups in a business sense are something that a person or group of people decide to open and create some value in the economy by way of selling some goods or services. In short, starting something of your own.

Start-ups have always benefited our economy, said a famous economist but he doesn’t tell you what exactly is the economic story behind the start-up ecosystem.

So, to start with most important facet of any business- JOBS


The most common method of lifting economy is to create jobs.

Ask yourself? Who creates most of the jobs? Businesses. And start-up is just that.

But at an initial stage.

Although, the number of  Employees doesn’t solely depend on valuation but just to give a view. The most valued start-up of the world which is ByteDance (valued at more than $100 billion), the parent company of Tik-Tok employs approx. 60,000 people. Now, this is a pretty good number.

Not only that,

How many people earn income through their services cannot be expressed solely in figures.

But that does involves money.

This results in more spending in the economy which is an enabler of Economic growth.

Also, many economists believe that US economic recovery from the 2008 Financial Crisis was largely aided by growing startups and small businesses.

And India’s Startup India Initiative has created more than 6,00,000 jobs alone in India since 2016.


Consider the example of Alibaba which lifted millions out of poverty, while digitally connecting all sellers and buyers, which not only spurred economic growth but promised continued income for the Chinese.

Read more here


Start-ups and Innovations go hand in hand.

Studies prove that start-ups innovate more than established companies, which have all the resources in the hand. Despite, start-ups in the initial stages suffer cash crunches. 

Start-ups tend to be innovative. Doing what already been done doesn’t make sense and isn’t that great reason to start your business.

Also, they predict the future, think for a moment how Yahoo and Google in the 1990s predicted that technology is going to reach people via the Internet.

They started small with little or no resources.

We don’t know if the rise of the internet would be possible at current levels if these giants weren’t there. 

There are many others to be named, which well-disrupted their respective segment including Tesla, SpaceX, Tencent, Alibaba among others.

This kind of innovation starts another S curve of innovation by itself.


Every netizen may wonder that there is scope for more, but the world has also progressed in this era. 

There are more than 305 million startups in the world. This is most rough estimate we could find.

Obviously, there are more startups that are niche and aren’t getting public attention yet.

Also, the majority of startups are Tech-driven. Currently, the World is pretty much sold on AI, Blockchain, and Data Mining among others.

TECHNOLOGY may be the answer for all our questions.


In 1903, the President of Michigan Savings Bank advised Henry Ford’s lawyer, Horace Rackham, not to invest in the Ford Motor Company insisting, He said,  The horse is here to stay but the automobile is only a novelty — a fad.”

What happened is history.

Foreign Capital

Not only, startups are found to be beneficial for symbolic representations of the country but also invites huge foreign capital and investments from global firms.

Indian unicorns (valued at more than $1 billion)such as Paytm, BYJU, Ola, Swiggy, and Zomato among others are heavily funded by Chinese and American firms and investors.

For instance- India has seen tremendous growth in funding, as compared to $550 million funding in 2010 to more than $17 billion by 2019.

The majority of these startups have sold their majority stake to foreign investors.

Indirect growth-

Also, Startups where they are headquartered converts that place into a hub.

Opening up of new offices and buildings supports small businesses and gives rise to various other services. Also, it helps in moving fresh talent to that place straightway.

Consider how startups like BYJU, together, marked Bangalore as the so-called ‘Silicon Valley of India’.


If a person or a business earns, they also become cash cows of the government, prospering them with TAXES which again are invested in the growth of the economy.

Start-ups not just for Economy

Start-ups are good to go for every country.

They just not help economically but save resources up to a considerable level.

They tend to save cost and ENVIRONMENT.

Consider, Uber’s idea of the taxi which has the potential to save costs and time to a greater extent.

Additionally, Starts-ups help in marking the country’s progress at a global level. Which makes a country, an attractive option to come and invest in

And when they go public, they become money-minting machines for not just the owners but also for the employees and shareholders.

And this income again, if invested, in the economy back and more growth is achieved…

This never-ending cycle is exactly how the economy works… Investing and Reinvesting


As we seen that how startups help in the development of society and economy.

Now, we can know why any govt. have a close eye on startup culture.

Concluding this, it can be said that Start-ups can be a nation’s ticket to Globalisation. But it comes with its challenges like government barriers and lack of infrastructure to name a few.

Start-up culture has been prevailing since forever, but who beats who in this race of Making World A Better Place is yet to be seen…

Until then…

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