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NEW WAVE OF STARTUPS THE ONES THAT GREW BIG ARE NURTURING SMALL STARTUPS BY SUB-CONTRACTING AND INVESTMENT ACTIVITIES

 
 
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NEW WAVE OF STARTUPS THE ONES THAT GREW BIG ARE NURTURING SMALL STARTUPS BY SUB-CONTRACTING AND INVESTMENT ACTIVITIES
by System Administrator - Monday, 4 November 2019, 12:18 PM
 

By: M.S.Yatnatti: Editor and Video Journalist Bengaluru: The wave of entrepreneurship that began early this decade is giving rise to a secondary wave. The ones that grew big in the first wave are nurturing a host of other entrepreneurs through their contracting, sub-contracting and investment activities. In many cases, startups find that partnering with other new startups is often simpler and cost-effective than trying to do so with established enterprises. Digital transformation that the Indian Government has opened up on technology automation front both budget and complexities of adoption and great news for IT industry and its stakeholders. But it is trauma of IT Industry that Government tenders aremore towards vendors and principals and gives little opportunities to partners and they get eliminated in fist stage itself and predetermined companies only get tenders and also payment cycle is so designed that only vendors with deeper pocket and working capital coming from their overseas parent companies . it is time to think how Indian SMEs and start up take up Government tenders .Reportedly almost all states and Union territories are showing a friendlier approach to startups -- extending incubation facilities, facilitating early-stage funding, or even formulating policies for them. However, sourcing from these startups is still only on paper and not in practice. Requirements like prior experience, turnover limits to engage startups, earnest money deposits and other "archaic” sourcing policies impede opportunities for these newgeneration businesses. An analysis of Startup India's report that ranks states shows that the 27 states and 3 Union territories assessed fell short when it comes to providing an equal platform for startups vis-à-vis experienced companies in public procurement."Overall, performance of majority states is below average in this (ease of procurement) pillar as 26 states scored between 0% to 25% of the maximum marks,” the report said. The national average score under this particular criterion was 1.27 out of 14 marks, with performance of majority states defined as 'below average'."While at the policy level exemptions have been declared for startups in many of these aspects, the procedures followed by the states are sometimes not in alignment with the Centre,”. "It would be helpful to introduce easier bid eligibility, especially in the case of newer technologies like IOT and smart grids, which would aid infrastructure development,”. "Yes, there is more to be done to move away from age-old tendering procedures, but the open API policy under Digital India is a huge boon for tech entrepreneurs,” noted an expert