The Indian start-up ecosystem has been embarking on an ambitious journey and the wave of a digitally driven economy is bringing forth the emergence of start-ups in Tier II and III cities. However, in a highly competitive landscape, some entrepreneurs frequently encounter entry-level challenges due to inadequate access to resources, networks and mentorship. Fortunately, the rise of virtual start-up incubators is helping to bridge this gap and unlock the potential of India's smaller cities.

A recent survey conducted by IncuDash, a virtual incubator focused on the growth of start-ups from Tier II and Tier III cities revealed some insights into the impact of virtual incubators on these regions. The survey includes responses from over 400 entrepreneurs from Tier II and Tier III cities and states - 79 per cent of the respondents believe virtual incubators will help improve the quality of start-ups in Tier II and Tier III cities.

"In the start-up space in India Tier II and Tier III cities are most thriving and offer a large pool of talent at a lower operating cost than Tier I. Virtual incubators can provide unique solutions to their everyday challenges and hence, play a significant role in the wave of Tier 2 and 3 start-ups," said Rishabh Kumar Taneja, founder and chief executive officer (CEO) of IncuDash.

The survey also revealed that 82 per cent of the respondents agree that virtual incubators can help rural entrepreneurs to start and grow their businesses. This implies that virtual incubators can offer strategic support for the growth of entrepreneurship in rural areas and that people recognize their potential to uplift these communities.

Additionally, the survey highlighted that 71 per cent of the respondents feel virtual incubators will play a crucial role in reducing talent migration from Tier II and III cities. Reaching out to incubator support allows talent to stay in their city by gaining access to the same resources and support services as their counterparts in Tier I cities.

“Virtual incubators prove to be a cost-effective and efficient way for start-ups to access mentorship and guidance. Traditionally, entrepreneurs may have had to travel long distances to meet with mentors or attend training and development programs. However, virtual incubators enable start-ups to access these services from the comfort of their city, which can save them time, money, and resources,” Taneja added.