Explore start up success tips for long-term growth. The recent Economic Survey 2023-24 highlights a concerning statistic: only 51.25% of graduates in India are considered employable, implying that nearly half are not job-ready upon completing their education. This disconnect between education and employability suggests that many graduates may need more skills to meet industry standards, resulting in challenges for both job seekers and employers. However, India’s start-up ecosystem is thriving, with the Department for Promotion of Industry and Internal Trade (DPIIT) identifying it as the third largest globally, behind only the US and China. This growth provides an alternative avenue for graduates, especially those interested in entrepreneurship. Discover expert start up success tips to launch and grow your business.
Dr. Ganesh Natarajan—an influential mentor, investor, and thought leader in the Indian start-up scene—provides valuable insights into this ecosystem. With over three decades of experience supporting emerging businesses, Dr. Natarajan stresses that success in the start-up world requires innovation, resilience, and a realistic outlook. He notes that while the Indian start-up ecosystem has made considerable strides, challenges remain, particularly in limited “patient capital” (long-term investment willing to endure the uncertainties of start-up growth). In India, most investors expect quick returns, often pushing for companies to reach unicorn status in just two to three years. According to Dr. Natarajan, India needs a robust funding runway to support start-ups to IPO, particularly for deep-tech sectors requiring sustained capital.
The Start-up Landscape: India vs. the US and China
Dr. Natarajan compares India’s start-up scene to the more mature ecosystems of the US. In America, extensive support systems, a wealth of venture capital, and a tolerance for failure create an environment where entrepreneurs can bounce back and start anew even after setbacks. India, meanwhile, has a smaller pool of capital and limited resources for new ventures, creating a more cautious landscape where entrepreneurs must quickly prove their viability.
Despite these obstacles, the Indian start-up movement is steadily growing. While early-stage grants from the government, such as the ₹25 lakh Start-up India grant, are helpful, Dr. Natarajan argues that they only provide a foundation. Start-ups need subsequent, larger funding rounds to scale up and compete globally.
Barriers in the Ecosystem and Advice for New Entrepreneurs
Dr. Natarajan observes that while the start-up ecosystem in India is evolving, it’s not always as supportive or “founder-friendly” as it could be. He sees many people being drawn to entrepreneurship for the wrong reasons, mainly because of the glamour attached to the idea of running a start-up. He cautions young entrepreneurs to enter the space with passion and a strong idea, not just as a last resort due to a lack of job opportunities. He advises potential founders to focus on building a robust team and developing a sustainable business model before seeking funding. “It’s not easy to build a company,” he says. “Entrepreneurs have to sweat it out.”
Evaluating Start-up Ideas: Dr. Natarajan’s Perspective
As an investor in numerous start-ups, Dr. Natarajan looks for specific qualities in prospective founders and their ideas. First and foremost, he values “shining eyes”—a sign of genuine passion and enthusiasm. Next, he evaluates the uniqueness and market potential of the product or service. He seeks scalable business models and founders who are thoughtful about market entry and growth strategies. Without these components, entrepreneurs cannot expect significant investment.
Creating Opportunities Through the Light House Initiative
One of Dr. Natarajan’s most impactful contributions is Light House, an initiative focused on providing opportunities for India’s underprivileged youth. Recognizing that a significant portion of India’s population lives in poverty, Light House trains young people from urban slums, equipping them with skills needed to secure jobs and improve their quality of life. Beginning in Pune’s slums, Light House trained 600 young people, with 80% finding jobs upon completion. Today, Light House operates 42 centers across five states, training around 180,000 individuals. Dr. Natarajan’s ambitious goal is to reach one million youth by 2030.
Dr. Natarajan’s insights underscore the promise and challenges of India’s evolving start-up ecosystem. While obstacles remain, particularly regarding funding, India’s vibrant start-up culture continues to grow, fueled by passionate entrepreneurs and supported by mentors like Dr. Natarajan. Through his work with start-ups and initiatives like Light House, he envisions a future where entrepreneurship and skill development are key in driving India’s economic progress. Start Up Success Tips.
