Startup Ecosystem is essential to the Sustainable Growth. Small businesses are key driving force of the economy. Most of Employment is created by Small Business. Vibrant Small Business drive the growth. Every Big Enterprise essentially runs on inputs and supports given provided by Small Businesses.
Startups and Small Business essentially needs environment which encourages and supports them. This Environment / Support Mechanism which make sure to build Success Story is called Ecosystem.
This Ecosystem has many components, which make sure things can move in right direction.
Early Education is first step. Education system should be creativity and curiosity driven. Enough importance should be given to building skills and knowledge driven by Creativity and Curiosity. Students should understand importance of learning to improve the lives. Building confidence to do something new, something different.
Yes, I Can, Attitude Can only Bring Change.
Which will develop creativity and curiosity
Which will build Entrepreneurial Capabilities. Training is essential component of success. Entrepreneurship Training Programs which will cater essential skills to the Entrepreneurs. These training programs should be available to everyone and widely promoted. Programs should build Entrepreneurial skills. These training programs must also tell, Failure is not End, it is only a step to success.
Right training will mentally strong Entrepreneurs who are ready to take risk.
No Risk no Reward
Entrepreneurship is all about taking risk. Putting your money and time to build bright future for self and society. Entrepreneurship is all about improving life for everyone, at the same time getting Rewarded.
Training programs must preach importance of Risk Taking, and Rewards on success.
Developing Ideas is very important. Feasibility Study, Market Strategy, Evaluation of Idea is essential. Evaluation is required to see if idea is commercially viable. What is market potential, what are the challenges. Once basic questions are addressed, now it is ready for launch.
Support for building Ideas
Even though Idea may be very good. What is important is its Commercialization.
Hand-holding is essential to building a Commercially viable Idea. Understanding the potential and then Monetization are very important.
Mentors are essential for Hand-holding. Mentors provides essential inputs and knowledge to successfully implementing the Idea. The role of Mentor is multi-functional and needed at each step. Mentors are essential to the Success of Idea.
The First investment must come from the owner of the Idea. This is essential to the commitment of the project.
After first money, next money should come from Near and Dear who trust the Owner of Idea and Idea.
Once Idea starts moving, it is time for others to cheap in.
Every good Idea can not be monetize and make money. It is most important to understand the monetization potential of the Idea. Unless the Startup does not potential for mass acceptance and success, no investor will put his money. The Entrepreneur must prove the Startup can be monetize and has potential to grow.
Venture Finance.. Investment
Once Startup Idea is commercialize, and it started growing. This is stage when Venture Capital sees potential and invest. Investors see long term growth potential. They see market opportunity and invest. At this stage the the Idea gets big boost and growth speeds up.
Growth Capital.. Private Equity
Once the startup comes to the breakeven and see huge growth potential, Private Equity takes interest to invest more money. Speed up the growth, so that it can be listed or sold to another investor.
Exit is essential, it is life. IPO, sell out or Mergers, what ever may be the name, Exit is life.