Arvind Kumar, STPI DG, stressed that there is a need for greater awareness campaigns among the youth about the government's initiatives to promote start-ups
The Director General of Software Technology Parks of India (STPI) Arvind Kumar stated that the failure rate of start-ups in India is gradually declining. However, he stressed that there is a need for more awareness campaigns among the youth about the government's efforts to promote start-ups.
Kumar suggested that a subject on entrepreneurship should be introduced for 12th-grade students, where the product cycle should be explained and they should be encouraged to become job producers rather than job seekers. STPI directors are also giving lectures to youngsters about start-ups and how to obtain funding for them. Kumar acknowledged that although there have been no official studies on the failure rate of start-ups in India, some studies suggest that it is one against ten.
Further, he emphasised that failure is a natural part of the start-up ecosystem not only in India but also in developed countries. He added that India has just started the journey of start-ups, so it is expected that there will be more failures compared to countries that began their start-up journeys ten years ago.
However, initiatives such as the Centres of Entrepreneurship (COE) established by STPI are working to reduce the failure rate. These COEs have chief mentors who are experts in their fields and guide start-ups by providing support and advice. When a start-up idea is ready, STPI invites venture capitalists and fund managers to evaluate the product and decide whether to invest in it, Kumar added.