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Assistant Professor, Amity Business School, Amity University UP, Noida , Email: ritesh_hariom@rediffmail.com, Mobile: 7291001299
Vol. VI, No. 1; December-2019
Indian Startups : Analyzing Their Vulnerabilities &Prevailing Challenges
Ritesh Dwivedi*
Startups have been the fashion of commercial markets over the last few years in India. Lack of Government
support and stringent policies for setting up the startup makes the process difficult. However with the
improvement in the policies regarding documentation work, banking facilities and other helps from
government departments, the startups have surged in past few years. Leftover complicated procedures and
regulations should also be studied and resolved as soon as possible. This study has tried to look into these
aspects and reflect the prevailing situation at ground level. Study has explored the effect of demonetization
and GST implementation on the startups as well as analyzed the overall performance of the startups across
many sectors. Study found funding as the most important factor for the survival of startups and easing up the
government rules and regulations have also been the priority area for the startups. Startup India initiative is
well known to startups but new entrepreneuris expecting more supportive and responsive ecosystem.
Keywords: Startups, Problems of Startups, Startup Challenges, GST & Startup, Vulnerabilities of startup
Introduction:
A startup is basically a small newly opened
organization which in form of a small business, a
partnership or a small venture formed to grow
rapidly a new business model.In other words,
startup is a new young company which aims to
work with dynamic approach to develop a business
model which earns huge amount of revenue.
Typically, a startup starts with the beginning of
building Minimum Viable Product (MVP), a
prototype, to assess and develop the new initiative
and business methods. In addition of this, the
founders do researches and surveys to deepen their
understanding of new concepts, technologies,
ideas, market concepts and commercial potential.
Then a shareholder's agreement (SHA) required
agreeing on early stage to confirm the ownership,
commitment and contributions of founders and
investors.
India is the third largest base for the startups in the
world and has a great market for various products.
But the failure rate of startups in India is
significantly very high. And around 90% of the
startups in India have to finally shut down due to
various factors.
SMS Journal of Entrepreneurship & Innovation
6 (1) 61-79
https://doi.org/10.21844/smsjei.v6i01.17665
0
2000
4000
6000
8000
10000
12000
14000
Tech Startups Non-Tech Startups Total
Type of Startups
1.1 Startups in India
Number of Startups
Source: Nasscom Report 2017
The number of startups in India is increasing day by
day as people are now more interested towards
entrepreneurship and the improved government
policies and working environment is making a
suitable place for startups to grow and nurture.
Currently, around 11500 startups are there
operating in India. There are around 5200 tech-
based startups, and around 6300 non tech based
startups presently working in India.
Government Initiatives for Startups
Now a day's government of India is taking lot of
steps towards the development of startups. There
are some schemes launched by Indian government
which is headed by different ministry and further
headed by various departments. Some of the
schemes are: -
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Table 2
Name of The Scheme
Support for International
Patent Protection in
Electronics &
Information Technology
(SIP-EIT)
MSME Market
Development Assistance
Coir Udyami Yojana
Raw Material Assistance
Bank Credit Facilitation
Scheme
Software Technology
Park (STP) Scheme
Pradhan Mantri Mudra
Yojana (PMMY)
Headed By
Department of
Electronics and
Information
Technology
(Deity)
Office of the
Development
Commissioner
(MSME)
Coir Board
National Small
Industries
Corporation
(NSIC)
National Small
Industries
Corporation
(NSIC)
Software
Technology Parks
of India (STPI)
Micro Units
Development and
Refinance Agency
Ltd. (MUDRA)
Agriculture
Sector-agnostic
Sector-agnostic
IT services, fintech,
enterprise software,
analytics, AI
Sector-agnostic
Industry Applicable
IT Services, analytics,
enterprise software,
technology hardware,
Internet of Things, AI
Sector-agnostic
Fiscal Incentive
Up to INR 15 Lakhs for each creation or half of
the a g gre g ate c o sts b r oug h t abo u t in
documenting and handling of the patent
application up to give, whichever is lesser.
Provides air fare reimbursements based on
category entrepreneur lies in (General, women,
SC/ST/PwD). It add up to sponsorship on air
passage and space rental charges will be
confined to INR 1.25 Lakhs for every unit.
It add up to endowment on air toll and space
rental charges will be confined to INR 1.25
Lakhs for every unit. The measure of bank
credit will be 55% of the aggregate task cost in
th e wa ke of d eductin g 40% e dg e ca sh
(appropriation) and proprietor's commitment of
5% from recipients.
MSMEs will be benefited financial aspects of
buys like mass buy, money rebate, and so forth.
Additionally, every one of the methodology,
documentation and issue of letter of credit if
there should be an occurrence of imports will be
dealt with.
N/A
Deals in the DTA up to half of the FOB
est ima t ion o f fa r es is adm iss i ble a nd
devaluation on PCs at quickened rates up to
100% more than 5 years is passable.
MUDRA offers impetuses through these
mediations:
>Shishu: covering credits upto INR 50,000/ -
> Kishor: covering credits above INR 50,000/
- and upto INR 5 Lakhs
>Tarun: covering credits above INR 5 Lakhs
and upto INR 10 Lakhs
(Source: Startup India website)
Research Objective
The research has the following objectives.
·To study the performance of startups as well as
the role of various stakeholders
·To study the effect of different barriers such as
demonetization and GST on startups
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Indian Startups:Analyzing Their Vulnerabilities &Prevailing Challenges
literature review
Macmillan et al (1987) investigated the major
differences between a successful and non-
successful venture by investing 150 ventures as per
5 major criteria. This study found two factors
insulation from competition and demonstrated
market acceptance of product responsible for the
venture's success.
Bosmae t al (2004) had concluded that an
investment in human and social capital tends to
increase the performance of the entrepreneurs. At
the same time they established importance of
inno v atio n s u sed tow a rds imp r oving t h e
performances of human and social capital. The
study also reveals that a skillful individual
entrepreneur is more likely to perform better in the
industry over others. Astebro and Bernhardt
(2003) explored negative the relationship between
fresh ventures and bank loans and positive
relationship between non-banking loan and
venture survival. This whole study was conducted
on small businesses launched in US 'between'
1987-1991. A lot of female entrepreneurs are also
venturing in the business and giving tough fight to
their peers. Female investors are working and their
stock picking skills are good and they generally
invest in financial market (Shukla, 2018).
Day et a l. ( 2004) mentioned the need of
broadening the concept of the leadership in case of
startups and stressed upon the emergence of the
shared leadership suitable for the expansion and
extension of start-ups.Pearce et al (2006)also
describes the perks of shared leadership over the
vertical leadership and how it has an edge in
reference to descriptive value. It suggests that the
high-profile cases of success of reckless start-ups,
whose different way of innovation and creativity,
are mere stories, rather than the actuality.
Innovation has always been one of the main aspects
for the startup to flourish and with the changing
needs and demands, some new innovations and
more optimized form of working and constant need
of changing is an important aspect. Success of
products largely depends upon management of
distribution channels in the target market.
Company has to upgrade the product over the time
to meet the expectations of customers (Appu &
Balaji, 2018).
Kumar (2015)analyzed the suitable environment
for startups within India and other countries and
found India as one of harshest environment for the
start-ups to grow. Government had also taken
various measures and simplified the various rules
and procedures to smoothen the process for setting
up a start-up. However, due to lack in breakthrough
innovation, there was some hesitation in initial
findings for the startups. Incubator and accelerator
culture had somehow, provided the relief to the
start-up ecosystem within India.
Research Gap
Above discussed research papers and studies have
explained different dimensions related with
startups. After going through all of them some gaps
such as employee issues, funding pattern and
challenges, government support, credit and
taxation problems, reasons of failure etc. have been
identified and covered in this study. Itanalyzed
prevailing challenges and vulnerabilities to
explore and develop better ecosystem for startups.
Research Methodology
The research is conducted to know the state of
startups in India and their different vulnerabilities.
It is also looking into the problems faced by
startups and also the factors behind the success or
failure of startups.
Descriptive research design has been used for the
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research and 100 respondents (10 each from 10
startups of NCR region) have been covered while
using c o nvenie n t sampli n g techni q u e. A
questionnaire consisting of close ended questions
have been used for the data collection. At the same
time a lot of secondary data has also been used to
analyse the prevailing state of startups across India.
Discussion on Startup's Different Aspects
Distribution of Startups Sector Wise
0
5
10
15
20
25
30
35
Fig 2: Tech Startups Distribution
E-commerce
B2B
Consumer Internet
Mobile apps
SAAS
Others
(Source: Xeler8)
It is clearly evident from the above graph that E-
Commerce has the highest number of tech based
startups in India, constituting around 33% of the
total tech-based startups, followed by B2B,
Consumer Internet, Mobile apps, SAAS. Most of
the E-Commerce companies like Flipkart, Paytm
etc. are very popular among the people of India,
and are quite a success.
While, the non-tech based startups includes
various fields like Engineering, Construction,
Agri-products, and Textile etc.
0
5
10
15
20
25
30
35
Fig 3: Non Tech Startup Distribution
Percentage Share
Engineering
Construction
Agri-Products
Textile
Printing & Packaging
Transport
Outsourcing
Others
Sectors
(Source: Xeler8 Analytics)
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Indian Startups:Analyzing Their Vulnerabilities &Prevailing Challenges
Employees in Start-ups
0
5
10
15
20
25
30
35
40
45
Emp Count
Employee Count
Fig 4: Employees in Startups
Less than 10
10 to 50
50-100
100-500
More than 500
Linear (Less than 10)
No. of Responses
(Source: Data survey)
The above graph shows that most of the startups
employs around 10-50 people and almost 85
percent of startups have employee strength of 100
or less. Around 15 percent startups do not have
strength of even 10 people. It suggests that the
strength of most of the startups are not very high
and they focus on specific set of people for their
work.
Mature Startups
0
10
20
30
40
50
60
70
Fig 5: Mature Startups ( of 4+ years)
Finance
Sectors
Education
Agriculture
Services
Mining
Manufacturing
Construction
Retail
Transportation
Information
(Source: startup stories, Times of India)
As per the graph mentioned above, Finance sectors
constitutes most of the startups surviving the
vulnerable period of first four years and still
operating after 4 years. And it is followed by
Education, Agriculture and Services. Mining,
Manufacturing, Construction sectors comes
behind them, followed by retail, transportation and
Information sector.
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43%
39%
7%
6% 5%
Capital Problem Infrastructure Problem Documentation
Lack Of Information Others
Problems Faced
Fig 6 : PROBLEMS FACED BY STARTUPS
(Source: Data survey)
As p e r t h e study, Capital P r o b l e m a n d
Infrastructure problems are the most critical
problems faced by the startups in India. Most of the
startups fail due to lack of funding as suggested by
oth er st udie s. Even the s tar tups w orking
successfully, they still have problem in generating
capita l o r resources a n d availing r i g h t
infrastructure. Government need to focus on how
to generate revenues or bring in more investment
for the startups and also has to work on providing
solution to infrastructure problem.
Fig 7 : Government Support
0
10
20
30
40
50
No of Responses
Borrowing Documentation Tax Concession No Help Other Helps
Government Responses
NUMBER OF RESPONSES
(Source: Data survey)
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Indian Startups:Analyzing Their Vulnerabilities &Prevailing Challenges
Fig 8: Time to reach Breaking Point
Less than 6 months 6 to 18 months 18 months to 3 years 3 years +
6% 16%
44%
34%
(Source: Data survey)
Time for Reaching Break Point
Many of the companies require more than three
years reaching the breaking point stage for their
businesses. More than 75 percent of startups took
more than 18 months to finally recover the
investment put in by them for setting up the
business, out of which 34 percent of businesses
took even more than 3 years. As per the study,
around 2-4 years is required for a startup to reach
the breaking point and start making profits.
1.6
1.8
2
2.2
Demonetisation Effect
SECTOR OF FIRM
Fig 9: Effect of Demonetisation
Consultancy Finance IT Others
(1- Severe, 2-Moderate, 3- Normal, 4- Almost Negligible, 5-Positive Impact) (Source: Data survey)
As the above graph states, the effect of
demonetization is visible on the various
sectors of startups. The responses received
shows that demonetization had an adverse
effect on the business of various sectors and
no sector found to have a positive impact of
the demonetization. Most of the companies faced
various difficulties due demonetization and termed
the demonetization as severe process for their
business. As per our study, Demonetization
affec ted compani es and sta rtu ps business
negatively and created several difficulties in the
running of business.
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0
0.5
1
1.5
2
2.5
3
3.5
STARTUP CATEGORIES
consultancy
finance
IT
Others
Fig 10 : Banking Facilities
(1- Very Poor, 2-Not Helpful, 3- Average, 4- Good, 5-Very Cooperative)
(Source: Data survey)
The graph above shows that banking facilities
available for starting new business in our country is
not very promising and need to be focused upon. As
per the survey, people working in startups rated the
banking facilities as average. Even after so much
efforts are being made by government to boost up
the ecosystem for startups in India, such responses
are little disappointing, more efforts must be made
and policies must be properly implemented to get
the desired results.
0
1
2
3
4
GST Effect
SECTOR OF FIRM
consultancy finance IT Others
Fig 11: GST Effect
(1- Severe, 2-Moderate, 3- Normal, 4- Almost Negligible, 5-Positive Impact)
(Source: Data survey)
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Indian Startups:Analyzing Their Vulnerabilities &Prevailing Challenges
The new taxation system, GST introduced by
government seems to have no odd effect on the
startups. As per the survey, the effect of GST was
normal and startup companies and firms have
accepted the new taxation system without much
difficulty. However, the responses suggest that
there was not much positive impact of GST too.
However, Survey states that introduction of GST
hasn't also guaranteed or provided any benefits for
the startups.
Sector wise Impact of GST and Demonetization
1
1.83
2.16 2.04
3.73
2.66
3.29 3.28
CONSULTANCY FINANCE IT OTHERS
SECTOR OF STARTUP
DEMONETISATION'S EFFECT GST'S EFFECT
Fig. 12
MEAN VALUE OF RESPONSES
(Source: Data survey)
Demonetization had adverse impact on the startups
as suggested by the survey. On the other hand, GST
too created difficulties for the startups, but impact
was not as critical as due to demonetization. The
respondents rated demonetization effect from 1.8
to 2.1 in various sectors, which states that
demonetization had bad to severe effect. While
GST was rated in the range of 3.2 to 3.7 which
states that the effect was moderate. However, GST
had no benefits for the startups too, as per the
survey.
Grants from Govt Loans Angel Investment
Help from family and friends Other sources
Source of Funding for Start-ups
11%
20%
34%
14%
21%
(Source: Data survey)
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Angel investment is the most common source of
funding for startups. Almost 34 percent of startups
generate their revenues from angel investment.
Loans are also one of the common source, with 20
percent of startups opting for loans to set up and run
their businesses. Around 14 percent of startups opt
for help from families and concerned people; while
as many as 11 percent receive grants from the
government. Around 21 percent generate their
revenues from other sources. It states that still there
is no specific source of funding and different
startups rely on different sources for their funding.
Discussion On Startups Funding (2015-2017)
0
1
2
3
4
5
6
2015 -16 2016 -17 2017 -18 (till Dec 2017)
Years
Angel Investors Venture Capitalists Private Equity Others
Fig 14: Comparison of Fundings
Total Fundings ($bn)
(Source: Nasscom startup report 2017)
Above table and graph below are showing funding
trend of different investors from last 3 years in
startups. Contribution of angel investors keeps on
increasing every year which is 19%, 21% and 23%
of respective year 2015-16, 2016-17 and 2017-18,
whereas venture capitalist consists the maximum
contribution of total funding all the three years. On
the other hand, demonetization effect can be seen
clearly on private equity as contribution of PE has
decline tremendously in the year 2016-17. Angel
investors had not got effected by demonetization as
they invests at very early stage with less amount of
money as compare to venture capitalists and
private equity firms.
Funding Pattern & Deals (2014-2017)
Figure 15(a)
Figure 15(a)
0 200 400 600 800 1000 1200
2014 -15
2015 -16
2016 -17
2017
TOTAL DEALS
Fig 15(a): Startup Deals
YEARS
Source – Indian tech startup funding report 2017)
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Indian Startups:Analyzing Their Vulnerabilities &Prevailing Challenges
0
5
10
15
TOTAL FUNDING
YEARS
Fig 15(b) : Startup Funding
2014 -15 2015 -16 2016 -17 2017
Figure 15 (b)
(Source – Indian tech startup funding report 2017)
It is clearly shown that number of deals has been
increasing from 2014 to 2016, but there is slightly
fall in number of deals in 2017. On the other side in
year 2016 there was drastic fall in the amount of
total funding which means average amount of each
deal is very low as that was post demonetization
effect where country faced problem of lack of
liquidity. It means funding of startups was also got
affected by demonetization.
Sectorwise Deals & Funding
Table 2
SECTORS TOTAL DEALS TOTAL FUNDING
(2017-18 till Dec 2017) (2017-18 till Dec 2017)
ENTERPRISE 131 $4.6bn
HEALTH 111 $3.01bn
FINTECH 111 $1.65bn
HYPERCOAL 99 $0.79bn
E-COMMERCE 79 $0.53bn
OTHERS 354 $2.92bn
(Source – Indian tech startup funding report 2017)
Table 3
SECTORS TOTAL DEALS TOTAL FUNDING ($bn)
(2016-2017) (2016-2017)
E-COMMERCE 142 $1.2bn
HEALTH SECTOR 115 $0.14bn
FINTECH SECTOR 96 $0.47bn
ENTERPRISES 93 $0.37bn
MEDIA AND ENTER. 54 $0.14bn
OTHERS 453 $2.48bn
(Source – Indian Tech startup funding report 2017)
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Above tables and statistics states that the E-
Commerce is the most popular sector which brings
in the highest number of funding and deals for the
financial year 2016-17 and 2017-18. While in
2016-17, the transportation sector brings in the
second highest number of deals, finance sector
fared better than transport sector in number of deals
cracked. The above chart clearly stated that the E-
commerce, Finance and transport sector are the
most favored sectors as per the investors, cracking
most of the deals and generating large amount of
funding.
Venture funds for Start-ups
Table 4
Annual Revenue YES, with success YES, but unsuccessful NO
1-10 Lac 0 0 7
10-25 Lac 0 1 20
25-50 Lac 2 9 4
50Lac-1cr 2 1 8
1cr-10cr 5 13 14
10 crore + 7 1 6
0
5
10
15
20
25
1-10 Lac 10-25 Lac 25-50 Lac 50Lac-1cr 1cr-10cr 10 crore +
Annual Turnover
Fig 16 : Diversification of Startup W.R.T. Turnover
YES with success YES but unsuccessful NO
(Source: Data survey)
Our analysis based on the responses received from
the survey among various startups finds out that
raising venture finance for new project is
dependent on the annual turnover of the startups
operating. As per the study, the attempts to raise
venture for a new project and the rate of success for
gettingfinance increases with the annual turnover
of the company. Startup companies having higher
annual turnovers, tried to raise the finance for new
project too often than other companies and their
success rate is also higher as compared to
comp a nies wit h l o wer ann u al turn o vers.
Companies with annual turnovers of over 10 crore
have success rate of around 50 percent, while
companies with annual turnover below 25 lac have
almost no success in getting finance. It suggests
that the investors are more interested in investing
with those startups which have established annual
returns and involve lesser risk.
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Indian Startups:Analyzing Their Vulnerabilities &Prevailing Challenges
Difficulty faced by start-ups in diversification of Venture
Figure 17
0
5
10
15
20
25
30
35
CONSULTANCY IT Finance and
Insurance
Others
Sector Of Firm
yes/no responses
(Source: Data survey)
As per the study, most of the startups needs
governmental help in order to setup their business
and to successfully venture their idea. Survey states
that most of the companies got help from
government departments in one or another form.
Most of the respondents found the information
provides by government agencies to be adequate,
but still feels that there is a scope of improvement
to ease out the process of doing business. Tax
concession and Documentation help is the most
common form of assistance startups receive from
the government.
Correlation Betw e e n G o vernment
Support and Satisfaction level within
Startups
The study was done to understand the degree of
association between support startups get from
government and satisfaction with that.
Null hypothesis H0: There is no significant
relationship between the help which government
provide and the level of satisfaction with that.
Alternative hypothesis H1: There is significant
relationship between the help which government
provide and the level of satisfaction with that.
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Table 5
What type of support you
get from the government
for your startup
Pearson Correlation 1.911**
Sig. (2-tailed) .000
N101 101
How much are you
satisfied with the
government policies
regarding your startup
Pearson Correlation .911** 1
Sig. (2-tailed) .000
N101 101
**. Correlation is significant at the 0.01 level (2tailed).
What type of
support you get
from the
government for
your startup
How much are
you satisfied with
the government
policies regarding
your startup
Interpretation:
·The degree of correlation between both the
variable is high
·There is positive correlation between the
variables
·Pearson coefficient r=0.911
·Sig. value (p) <a, therefore there is an
association between two variables
P =0.0001 < a =0.05
From table 14, the significance value is .000
which is less than alpha (.05) therefore we reject
null hypothesis and accept alternative hypothesis
and the Pearson correlation coefficient is .911.
Therefore, there is a positive, significant and high
degree of association between satisfaction level
of startups and government support they receive
towardstheir development.
5.5 Difficulties Facedby Startups
Table 6
Count
Difficulty faced while starting business
Total
capital
problem
infrastructure
base
documentatio
n
lack of
information others
Employees at start up less than 10 5 1 5 4 1 16
10-50 11 12 12 2 2 39
50-100 13 7 7 3 1 31
100-500 2 5 5 0 1 13
more than 500 2 0 0 1 0 3
Total 33 25 29 10 5 102
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Indian Startups:Analyzing Their Vulnerabilities &Prevailing Challenges
The above table shows that the difficulty faced by
most of the start-ups which have less than 100
employs while starting their ventures.Most of the
Funding Status of Failed Startups in Last Two Years
start-ups f a c e d t h e problem o f c a p i t a l ,
documentations and Infrastructure.
Discussion On Failed Startups
Number of Startups
0 200 400 600 800 1000 1200
Funded
Unfunded
Fig 18 : Funding Status of Failed Startups
Funding Status
(Source: Xeler8 Analytics)
It is very hard for the startups to survive in the
Indian ecosystem. There are various reasons like
lack of infrastructure, knowledge, government
policies, funding etc. due to which the failure rate
of startups are high. One of the main reasons is
funding. Most of the startups do not get the
required funding in order to survive and compete in
the Indian market. The above stats clearly suggest
that very few startups are able to raise funds for
themselves and most of the startups remain
unfunded.
Age Pattern of Failed Startups
0
10
20
30
40
50
60
Year 1 Year 2 Year 3 Year 4 Year 5
Percentage of Failure
Fig 19: Age Pattern of Failed Startups
Year
(Source: Xeler8 Analytics)
Most of the startups failed in very early stage of
their lifecycle. Around 26% of the startup fails in
their inception year, while 36% cannot cross the
lifetime of two years. Around half of the startups
are unable to cross lifespan of four years. It is
clearly evident from the above stats that startups
have very high failure rates and they are more
prone to failure in the early stage of their lifespan.
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Sector Wise Failure
0
5
10
15
20
25
30
35
E-Commerce Logistics Food Tech Analytics Others
Sectors
Fig 20 : Sectorwise Failure
(Source: Xeler8 Analytics)
Since E-Commerce is one of the most popular sector for the
startups due to easy accessibility as well as user friendliness.
6.4 Mortality Analysis of Indian Startups
It also accounts for most failures in the startup arena. It is
followed by Logistics, Food-Tech and Analytics industry.
Figure 21
(Source: Nasscom Startup Report 2017)
It is clearly visible from the above study that
startups have very high mortality rate at the initial
stages and are most prone to fail at the earliest.
Around 45-50% of the startups die even before
securing seed stage foundation, i.e. without
generating any funds. The initial years of startups
are termed as “valley of death”. The startups need
maximum support at the kick start level only. If any
of the startups survive the initial stages, they are
more probable to succeed and have lesser failure
rates later on. As the revenue generated by a startup
increases, their chances of survival increase
exponentially.
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Indian Startups:Analyzing Their Vulnerabilities &Prevailing Challenges
FINDINGS
·Lack of funding is one of the main reasons for
the failure of the startups. Most of the startups
remain unfunded and finally led to their
shutdown. Around 90 percent startups fail to
survive the market.
·The government policies sometimes are also
very rigid, that hinders the process of setting up
startups. Startup India has smoothened the
process, but there is still lack of awareness and
stringent policies that need to be smoothen.
·Too many startups came up with the same idea,
lack innovative solutions and operate in the
same sector and fail to raise capital and finally
shutdown. Many entrepreneurs set up a start-up
without proper research about market, which
ends up in disappointment.
·As per the study, many times startup fails due to
“No Market Need”. Market and Product fit is
very esse n t ial. Th e s o l utions o f fered
sometimes are for a very rare problem, thus
leading to lack of customers for the product.
While many startups fail due to lack of proper
leadership and weak team. It is very necessary
to innovate and change as per the changing
needs of the customers.
·Poor Marketing and lack of business model
sometimes, lead to failure, even if the company
offer great prospect and have very good idea.
Bigger companies with better market research
and proper business model, out-competes
them.
·Majority of the respondents in a survey have a
view that the decisions like demonetization
have marred their progress of their startups and
many of them have faced huge loss of business
and still have not recovered from its impact.
·According to the study, introduction of GST
taxation in the mid financial year created
difficulties for the various startups to adopt the
change and also in managing their finances.
·Even after so many changes in policies for
making the process of setting up startups the
benefits are not much as the various facilities
provided are of average quality. Most of the
respondents feel that there have been some
improvements but still the improvements are
not sufficient.
·Angel Investment is the biggest source of
investment, followed by helps from friends and
family. Bank loans are still not very common
option for the people setting up startups.
2. Conclusion& Recommendation
The startups in India are improving and increasing
year by year, but the rate is not very good and much
more is needed to get the desired results. The
startups are not very strong with respect to the
changes financially and any change in taxation
s y s t e m l i k e G S T o r a n y p roc e s s l i ke
demonetization has adverse effect on startups.
Demonetization has affected all the sectors and
slowed down the progress rate. Lack of funding is
one of the main reasons for the failure of the
startups. Most of the startups remain unfunded and
finally led to their shutdown. Around 90 percent
startups fail to survive the market. Too many
startups came up with the same idea, lack
innovative solutions and operate in the same sector,
and fail to raise capital and finally shutdown. Many
entrepreneurs set up a start-up without proper
research a bout market, which e nds up in
disappointment.
Vol. VI, No. 1; December-2019
78
SMS Journal of Entrepreneurship & Innovation
[ ISSN 2349-7920 ]
Recommendations are as follows:
·Awareness level for all aspects related to
startups should be raised at proper level by all
stakeholders.
·Funding is crucial for the startups so that details
of all players such as angel investors and
venture capitals etc. should be provided.
·Better focus on core issues like taxation (GST),
business research and marketing has to be
taken up more professionally and vigorously.
Research Implications
The research has thrown light on different aspects
of startups and challenges they are facing which
can be further analyzed and solutions can be
designed. This study has shown impact of different
factors such as GST, demonetization etc. on the
healt h of sta rtups. Also , ro le o f di ffere nt
stakeholders have been discussed in detail to
understand how they can benefit the startups.
8.2 Limitations of the Study
ŸThe research is limited to the respondents in
researcher's network who were available and
agreed for the interview using convenience
sampling.
ŸResearch is based upon the NCR region only
the sample size of 100 (10 each from 10
startups). Respondent's age group was also
mixed no specific group has been targeted.
Future Scope of Research
Startups are becoming very essential part of current
economic progress and this momentum needs to be
strengthened further more. Future studies should
focus more on crucial business models and
innovative ways for performance enhancement in
for better tomorrow.
References
Appu, A. & Balaji, S.G. (2018), Measuring Effectiveness of
Distribution Channel Practices among Merchants: An
Empirical Study on Logistics Companies in Chennai City,
SUMEDHA Journal of Management, 7 (4), 136-144
Astebro, T. and Bernhardt, I. (2003), Start-up financing,
owner characteristics, and survival, Journal of Economics and
Business, Elsevier, 55(4), 303-319
Bruno, A.V. &Leidecker, J.K. (1984), Identifying and using
c r i t i c a l s u c c e s s f a c t o r s . L o n g R a n g e
Planning,Elsevier,17(1),23-32.
Day, D. V., Gronn, P. & Salas, E. (2004), Leadership capacity
in teams, Leadership Quarterly, Elsevier, 15(6), 721-892
MacMillan, I. C. Zemann, L. & Subbanarasimha, P. N.
(1987), Criteria distinguishing successful from unsuccessful
ventures in the venture screening process, Journal of business
venturing,Elsevier, 2(2), 123-137
Kumar, K. (2015), Indian Online Start-ups: Can They Stand
up Against the World, International Journal of Advance
Res ear c h in C o mpu ter S cie n ce and Ma nag eme n t
Studies,3(4), 236-243
Pearce, C.L, Ensley, M. D., & Hmieleski K.M. (2006). The
importance of vertical and shared leadership within new
venture, Leadership Quarterly, Elsevier, 17(3),217-231
Shukla, A. (2018), Are Women Better Investors???(An
Analytical Study), SUMEDHA Journal of Management, 7(
4), 4-14
Vol. VI, No. 1; December-2019
79
Indian Startups : Analyzing Their Vulnerabilities &Prevailing Challenges
DhauladharParisar - II, Dharamshala, Distt. Kangra, H. P., E-mail: kamlesh483@gmail.com
*Head of Department, Faculty of Commerce and COE, Udai Pratap Autonomous College, Uttar Pradesh, Bharat
**Dean, School of Commerce & Business Studies (SCMS), Central University of Himachal Pradesh [CUHP], Dhauladhar Parisar - II, Dharamshala, Distt.
Kangra, H. P., Bharat.
bhagwansingh.bs@gmail.com
***Assistant Professor, Department of Management Studies, NIT Hamirpur-177 005, Bharat, H. P., E-mail: sachincuhp@gmail.com
****Assistant Professor, Department of Commerce, Dev Samaj College for Women, Sector-45, Chandigarh, Email: ritarai.gjimt@gmail.com
*****Research Degree ScholarM Department of Marketing & Supply Chain Management[M&SCM], School of Business and Management
Studies[SBMS], Central University of Himachal Pradesh[CUHP]
Business Prospects For Entrepreneurs In Skill Based Online Education
G S Rathore*, Bhagwan Singh**, Sachin Kumar***, Rita Rai****, Kamlesh Kumar*****
Abstract
The present time is for Knowledge-Based Economy (KBE) because people can access any required
information via internet browsers or mobile phone applications. The mobile applications have created a high
demand for online education, as it is convenient to use, it has lower cost, higher reach etc. This is conceptual
paper highlighting the future business opportunities that are available for young entrepreneurs in the field of
online education. The young people who are aspiring to be entrepreneurs can help our country grow to a
knowledge-based economy by shaping the students' skills in a required way. It can create ample of business
opportunities to the aspiring entrepreneurs and job opportunities to the job seekers.
The content analysis approach is used to study the different websites of government and no-government
institutes. The study is an attempt to highlight few of the online education platforms for Indian i.e. Bhartiya
students and job seekers. The study concludes that online education system is rising as it generates the
student's satisfaction level. Moreover, anyone on job can continue (h)is/er studies. Many IITs, IIMs,
NPTEL, NPTEL (SWAYAM) and CEC are providing freer and online courses to the students. For young
aspiring entrepreneurs Government of India is providing freer online courses under startup India program.
The study identified 20 online courses under start up India initiative of Government of India (GoI) and many
freer and paid online education platforms in India. The findings reveal that there is rising demand for online
courses in India after launch of Digital India Programme. New entrepreneurs can avail this opportunity and
start their own online presence in online education.
Keywords: online education, skills, entrepreneurs, free
Introduction
“The youth of India should become job creators”
said by Shri Narendra Modi the Prime Minister of
India to the young generation, refers to Skill India
and Start up India movements (PTI, Jan 12, 2018).
The startup India has recognized more than 18,861
start-ups i.e. 1 startup in every hour. These start-ups
are spread across every state of country and
provided employment to 1,87, 004 persons
Vol. VI, No. 1; December-2019
SMS Journal of Entrepreneurship & Innovation
6 (1) 80-95
https://doi.org/10.21844/smsjei.v6i01.17666
(Bureau, Jun 04, 2019).The start-ups can also apply
for tax exemption after it is recognized by
Department for Promotion of Industry and Internal
Trade (DPIIT) under section 80 IAC of the Income
Tax Act (Startup recognition & tax exemption).
These startups have many online education
platforms, which are the main highlight of this
study. The online learning mode bridges the gap
between teacher and students which was not
possible earlier in the traditional modes of teaching
– learning. All this is because of advances in the
technology. MOOCs by UGC is an online learning
platform where academicians share their video
lectures and knowledge with the online learners.
The market for online education is rising more in
case of primary education, preparations and
certificate courses via online education. Online
education, is thus bringing a change in whole
education system of India i.e. Bharat. Thus internet
education tools are creating such environments
where the students as well as the entrepreneurs are
well engaged in online education activities.
Review Of Literature
Online education
Online education through internet has helped to
brought a new paradigm shift in changing the
behavior of society (Volery, & Lord, 2000). It's the
online education that is binding the distance
education. Online education has also contributed in
the a d v a n c e m e n t of t e a c h i n g pedagogy
(Larreamendy-Joerns, & Leinhardt, 2006). The
online education is preferred as the web based
environment is more customized as per the
requirements of the learners (Harasim, 2000).In
lieu of this, most of higher education institutes are
adopting online education courses and the number
of enrolled students is also rising day by day (Kim,
& Bonk, 2006). This online education system can
be made better if the learners are targeted with
definite learning modes (Eom, Wen, & Ashill,
2006).
Online education and skills and entrepreneurship
The skills do not develop with just knowledge of
internet and time devoted online (Van Deursen, van
Dijk, & Peters,2011). But, the online learning is
p o s s i b l e o n l y b e c a us e o f i n c r ea s e i n
communication tools (Compton, 2009). The
success of online teaching depends on certain skills
of tutors. The skills required are dealing with
technology, using its benefits, and social skills,
creativity etc. (Hampel, & Stickler, 2005).The
thinking skills are also needed in delivering quality
education (Wickersham, & Dooley, 2006).The
entrepreneurship education can be enhanced by
adopting a dynamic tool using the theory of
planned behavior (Fayolle, 2005). But if the
aff ectio n p art is add e d in educ a tion the
entrepreneur learning becomes more significant
(Kyro, 2008).There are many barriers in achieving
online education and these can be removed by
rigorous and in-depth research (Matlay, 2006).
Research Gap
The literature reveals that although internet has
c o n t r i bu t e d i n t e r m s o f tec h n o l o g i c a l
advancements in India & the world, and many
studies have favored it. But, most of the studies
have focused on the concepts of how internet has
contributed in the field of modern education, but
there are few/no such studies which represent the
details of various online education platforms for
the students and job seekers. Moreover, no studies
have explained the business prospectus for
entrepreneurs in skill based online education. This
led the researchers to choose this topic for research
purpose, so as to provide a descriptive detail of the
online education platforms functioning in India for
both students and entrepreneurs.
Vol. VI, No. 1; December-2019
81
Business Prospects For Entrepreneurs In Skill Based Online Education
Methodology
Objective of Study:
In the support of theory the research has focused
on:
1. To provide a detail of online education platforms
functioning in India.
Research Design
The websites for study were selected after an
exhaustive research on websites from Yahoo and
Google between September 2, 2019 to September
20, 2019. It has been adopted from the study of
Choi, Lehto, & Morrison, 2007. The keywords
searched were online education, entrepreneurship
and India. This study is a conceptual paper based on
content analysis of various government and non-
government websites in India. The research looks
into parameters like name of courses, created
by/owner, language of course, study content,
duration of course, fees etc. The website ownership
details are taken from copy-right information on
the webpage (Kaaya, 2004).
Discussion
Business Prospects for Entrepreneurs
There are huge number of business prospects
available for entrepreneurs in online education.
The entrepreneurs need to understand the present
models of online teaching and implementing new
changes, new technological innovations, they can
think of starting a new business or startup. There
are many platforms for online learning in India.
Some are for students of primary to post graduates,
for competitive exam aspirants, for Ph.D. students,
by IIM Bangalore and bystartup India initiative.
The following is the detailed account of few of the
online learning platforms:
Vol. VI, No. 1; December-2019
82
SMS Journal of Entrepreneurship & Innovation
[ ISSN 2349-7920 ]
4.1.1: Online learning platforms for students
Table 1: Online learning platforms for Students (Primary to Post Graduation)
S.N.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Name of Course
e-learning for kids
founding dreams
120 HOURS OF
INTERNATIONA
L TEFL
CERTIFICATE
PROGRAM
EdX:
Academic Earth
Internet Archive:
Big Think
Coursera
Maths, Science,
English, Finance,
Economics,
Humanities etc.
Byzu’s
LinkedIn Learning
Amazon Kindle
Youtube
Founder / Chairman /
CEO
founder and
chairman, Nick van
Dam
TEFL
Harvard University
Standford University,
Berkely University
etc. in collaboration
courses
Internet Archive 300
Funston Avenue San
Francisco
BIG THINK, BIG
THINK EDGE
Founded by Stanford
computer science
professors in 2012
Khan Academy
Byzu’s the Learning
App
LinkedIn
Amazon
Google
Syllabus
children ages 5-12 in
Math, Science,
Environmental skills,
Computer skills,
Health, Language and
Life skills
Phase –I to Phase 8
Entrepreneurship,
supply chain
management,
International Law etc.
Accounting,
economics,
engineering, computer
science, mathematics
etc.
Non-profit digital
library for free books,
audios, videos, images,
softwares
Videos, Newsletter
Specialization
certificates, Master
Track Certificates,
Online Courses.
Maths, Science,
English, Finance,
Economics, Humanities
• Class 4 – 10 • 11-12, •
JEE/NEET • TEST
PREP for IAS, CAT
Office skills, creativity
skills etc.
Books on different
subjects
Video Channels on
different subject
Duration
of Course
--
--
Vary as
per course
Vary as
per
different
University
--
--
Vary as
per
different
course
--
--
--
--
--
Fees
Free
14500 INR
Free
Free
Free
Free
Some
course free
and others
paid
Free
Free
Free
Free but
books cost
money
Language
English
English
English
English
English
English
English
English,
Hindi
English
English /
Hindi /
Others
English /
Hindi /
Others
Website
https://www.e-
learningforkids.org/
parents-teachers
https://www.teflcour
se.in/certificate-in-
tefl-online.php
edx.org
academicearth.org
archive.org
bigthink.com
https://about.courser
a.org/
https://www.khanac
ademy.org/
www.byjus.com
https://play.google.c
om/store/apps/detail
s?id=com.linkedin.a
ndroid.learning
https://www.amazon
.in/Kindle-
eBooks/b?ie=UTF8
&node=1634753031
https://www.youtub
e.com/
Remarks
--
---
---
Total Course:
615
Only for free
knowledge
gain not for
degree and
admission
Partners top
University of
world for free
education
--
--
--
--
--
--
Source: Data Complied by Researchers from Official Websites (Link pasted in table)
Vol. VI, No. 1; December-2019
83
Business Prospects For Entrepreneurs In Skill Based Online Education
The above tables 1 shows the details of online
education courses for students from primary to post
graduation. Using these platforms the students can
learn the basic subject knowledge by watching
audio-visual tutorials, e-books and study notes.
Table 2: Online learning platforms for Competitive Exams
S.N.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Name of
Webpage
Easyshiksha
Online Tyari
Test Book
Freshers Live
Takshila Learning
Eduhat: A journey
of Knowledge
Examin
Sarkari Exam
Jagran Josh
Bankers Adda
Career Power:
Best Bank PO,
SSC & Teaching
Coaching
Lofoya
ixamBee
Embibe
M4maths
EduDose
Competition
Mantra
Aptitudetest
English
English
English
English
English
English
English
English
English
English
Language
English
English
and Hindi
English
English
English
English
English
Website
https://easyshiksha.com/online_courses/
https://onlinetyari.com
https://testbook.com
https://www.fresherslive.com
https://www.takshilalearning.com/online-banking-
coaching-classes-preparation/
https://www.eduhat.com/
http://www.examin.co.in/quiz.php
https://www.sarkariexam.com
https://www.jagranjosh.com/
https://www.bankersadda.com
https://www.careerpower.in
http://www.lofoya.com/
https://www.ixambee.com
www.m4maths.com
https://www.edudose.com
https://competitionmantra.com/
www.aptitude-test.com
Name of Course
Online mock test SSC, finance,
economics, Maths, science etc.
Online mock test SSC, Banking,
IAS etc.
Exams, Current Affairs, Banking
etc.
Apptitude, Logical reasoning,
Current Affairs etc.
Banking coaching
For Gate and college studies
Reasoning, Quantitative
aptitude, GK etc.
For applying exams, admit
cards, preparation etc.
For applying exams, admit
cards, preparation etc.
Current Affairs, Reasoning,
Quantitative aptitude, etc.
Current Affairs, Reasoning,
Quantitative aptitude, etc.
Current Affairs, Reasoning,
Quantitative aptitude, etc. for
CAT, MAT
Current Affairs, Reasoning,
Quantitative aptitude, etc. Mock
Test
Mathematics
SSC, IBPS etc.
Current Affairs, Mock Test
Aptitude
Fees
Free
Free and Paid
Free and Paid
Free and Paid
Free and Paid
Free and Paid
--
---
--
Free and Paid
Free and Paid
Free and Paid
Free and Paid
Free and Paid
Free
Free
---
Source: Data Complied by Researchers from Official Websites (Link pasted in table)
Vol. VI, No. 1; December-2019
84
SMS Journal of Entrepreneurship & Innovation
[ ISSN 2349-7920 ]
The above table shows the detail of Online learning
platforms for Competitive Exams. Total 18
websites were focused, which are providing online
coaching for various competitive exams like SSC,
IBPS, IAS etc.
Table 3: Online education platform By IIM Bangalore
S.N.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Name
Introduction to
Managerial Economics
Strategic Management
Risk Management in
Banking and Financial
Markets Professional
Certificate Exam
Introduction to
Investments
Accounting for
Decision-Making
Corporate Finance
Strategy and
Sustainable enterprise
People Management
Organizational Design:
creative Competitive
Financial Accounting &
Analysis
Banking & Financial
Intermediation:
Concepts, Risks,
Capital & Regulation
Debt & Money
Markets: Concepts,
Instruments, Risks and
Derivatives
Equity Stock Markets:
Concepts, Instruments,
Risks and Derivatives
Foreign Exchange
Markets: Concepts,
Instruments, Risks and
Derivatives
Provided by
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
Length of
Course
6 weeks
5 weeks
1 weeks
5 weeks
7 weeks
5 weeks
5 weeks
6 weeks
7 weeks
6 weeks
7 weeks
5 weeks
6 weeks
5 weeks
Fees
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
10,616/-
Free with
certificate of Rs.
3468/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
10,616/-
Free with
certificate of Rs.
10,616/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
10,616/-
Free with
certificate of Rs
3539/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
7007/-
Free with
certificate of Rs.
7007/-
Free with
certificate of Rs.
7007/-
Free with
certificate of Rs.
7007/-
Language
English
English
English
English
English
English
English
English
English
English
English
English
English
English
Videos
English and Hindi
English and Hindi
English and Hindi
English and Hindi
English and Hindi
English and Hindi
English and Hindi
English and Hindi
English and Hindi
English and Hindi
English and Hindi
English and Hindi
English and Hindi
English and Hindi
Website
https://www.edx.org/course/introductio
n-to-managerial-economics-0
https://www.edx.org/course/strategic-
management-0
https://www.edx.org/course/risk-
management-in-banking-and-financial-
markets-professional-certificate-exam-
2
https://www.edx.org/course/introductio
n-to-investments-2
https://www.edx.org/course/accounting
-for-decision-making-0
https://www.edx.org/course/corporate-
finance-2
https://www.edx.org/course/strategy-
and-the-sustainable-enterprise-0
https://www.edx.org/course/people-
management-2
https://www.edx.org/course/organizati
onal-design-creating-competitive-
advantage-0
https://www.edx.org/course/financial-
accounting-and-analysis-2
https://www.edx.org/course/banking-
financial-intermediation-concepts-
risks-capital-regulation-2
https://www.edx.org/course/money-
debt-markets-concepts-instruments-
risks-and-derivatives-2
https://www.edx.org/course/equity-
stock-markets-concepts-instruments-
risks-and-derivatives-2
https://www.edx.org/course/foreign-
exchange-markets-concepts-
instruments-risks-and-derivatives
Vol. VI, No. 1; December-2019
85
Business Prospects For Entrepreneurs In Skill Based Online Education
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
Special Topics in Risk
Management of
Banking and Financial
Markets
Managing Innovation
New Product
Development
Crafting Realities:
Work, Happiness, and
Meaning
DO Your Venture:
Entrepreneurship For
Everyone
Effective Business
Communication
Marketing Management
Intellectual Property
Rights: A Management
Perspective
Predictive Analytics
Organizational Design:
Creating Competitive
Advantage
People Management
Statistics for Business –
I
Strategy and the
Sustainable Enterprise
Operations
Management
Accounting and
Finance
Accounting for
Decision-Making
Introduction to
Investments
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
5 weeks
6 weeks
6 weeks
7 weeks
6 weeks
6 weeks
9 weeks
9 weeks
7 weeks
7 weeks
6 weeks
5 weeks
5 weeks
7 weeks
11 weeks
7 weeks
5 weeks
Free with
certificate of Rs.
7007/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
10,616/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
10,616/-
Free with
certificate of Rs.
10,616/-
Free with
certificate of Rs.
7007/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
10,616/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
10,616/-
Free with
certificate of Rs.
10,616/-
Free with
certificate of Rs.
10,616/-
Free with
certificate of Rs.
3539/-
English
English
English
English
English
English
English
English
English
English
English
English
English
English
English
English
English
English and Hindi
English and Hindi
English and Hindi
English
English and Hindi
English
English and Hindi
English and Hindi
English and Hindi
English
English and Hindi
English
English and Hindi
English and Hindi
English and Hindi
English and Hindi
English
https://www.edx.org/course/special-
topics-in-risk-management-of-
banking-and-financial-markets-2
https://www.edx.org/course/managing-
innovation-2
https://www.edx.org/course/new-
product-development-2
https://www.edx.org/course/crafting-
realities-work-happiness-and-meaning-
2
https://www.edx.org/course/do-your-
venture-entrepreneurship-for-
everyone-2
https://www.edx.org/course/effective-
business-communication-2
https://www.edx.org/course/marketing-
management-4
https://www.edx.org/course/intellectual
-property-rights-a-management-
perspective-2
https://www.edx.org/course/predictive-
analytics-2
https://www.edx.org/course/organizati
onal-design-creating-competitive-
advantage-0
https://www.edx.org/course/people-
management-2
https://www.edx.org/course/statistics-
for-business-i-2
https://www.edx.org/course/strategy-
and-the-sustainable-enterprise-0
https://www.edx.org/course/operations
-management-2
https://www.edx.org/course/accounting
-and-finance-2
https://www.edx.org/course/accounting
-for-decision-making-0
https://www.edx.org/course/introductio
n-to-investments-2
Vol. VI, No. 1; December-2019
86
SMS Journal of Entrepreneurship & Innovation
[ ISSN 2349-7920 ]
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
Corporate Finance
Strategic Management
Valuation and Creating
Sustainable Value
Quantitative Marketing
Research
Micro Master Program
in entrepreneurship
Micro Master Program
in Business
Management
Risk Management in
Banking and Financial
Markets
Customer Relationship
Management
International Business
Environment and
Global Strategy
Management
Accounting for
Decision Making
Advanced Corporate
Strategy
Cooperatives and
Producer Companies
Managerial Ethics:
Reflective Practices For
Action
Innovation and IT
Management
Brand Management
Healthcare in India:
Strategic Perspectives
Introduction to
Accounting - Part 1:
Basics of Financial
Statements
Statistics for Business -
II
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
IIM Bangalore
5 weeks
5 weeks
5 weeks
5 weeks
1 Year
1 Year
1-7 weeks
6 weeks
3 weeks
3 weeks
5 weeks
3 weeks
5 weeks
4 weeks
5 weeks
5 weeks
5 weeks
7 weeks
Free with
certificate of Rs.
10,616/-
Free with
certificate of Rs.
10,616/-
Free with
certificate of Rs.
5591/-
Free with
certificate of Rs.
3539/-
Rs. 38218/-
Rs. 57327/-
$489.60USD
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
7007/-
Free with
certificate of Rs.
3468/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
5591/-
Free with
certificate of Rs.
1769/-
English
English
English
English
English
English
English
English
English
English
English
English
English
English
English
English
English
English
English and Hindi
English and Hindi
English
English
English
English
English and Hindi
English and Hindi
English and Hindi
English
English
English
English
English
English
English
English and Hindi
English and Hindi
https://www.edx.org/course/corporate-
finance-2
https://www.edx.org/course/strategic-
management-0
https://www.edx.org/course/valuation-
and-creating-sustainable-value
https://www.edx.org/course/quantitativ
e-marketing-research
https://www.edx.org/micromasters/iim
bx-entrepreneurship
https://www.edx.org/micromasters/iim
bx-business-management
https://www.edx.org/professional-
certificate/iimbx-risk-management-in-
banking-and-financial-markets
https://www.edx.org/course/customer-
relationship-management-0
https://www.edx.org/course/internation
al-business-environment-and-global-
strategy-0
https://www.edx.org/course/manageme
nt-accounting-for-decision-making
https://www.edx.org/course/advanced-
corporate-strategy
https://www.edx.org/course/cooperativ
es-and-producer-companies
https://www.edx.org/course/managerial
-ethics-reflective-practices-for-action
https://www.edx.org/course/innovation
-and-it-management-0
https://www.edx.org/course/brand-
mangement
https://www.edx.org/course/healthcare-
india-strategic-perspectives-iimbx-
st260x-1
https://www.edx.org/course/introductio
n-accounting-part-1-basics-iimbx-
ac101-1x-0
https://www.edx.org/course/statistics-
business-ii-iimbx-qm101-2x-0
Vol. VI, No. 1; December-2019
87
Business Prospects For Entrepreneurs In Skill Based Online Education
50.
51.
52.
Introduction to Retail
Management
Introduction to
Marketing Essentials
Introduction to Banking
and Financial Markets -
I
IIM Bangalore
IIM Bangalore
IIM Bangalore
6 weeks
6 weeks
7 weeks
Free with
certificate of Rs.
3539/-
Free with
certificate of Rs.
5591/-
Free with
certificate of Rs.
1769/-
English
English
English
English
English and Hindi
English and Hindi
https://www.edx.org/course/introductio
n-to-retail-management
https://www.edx.org/course/introductio
n-marketing-essentials-iimbx-mk101x
https://www.edx.org/course/introductio
n-banking-financial-markets-i-iimbx-
fc201-1x-0
Source: Data Complied by Researchers from Official Websites (Link pasted in table)
The table shows that there are approximately 52
courses run by IIM Bengaluru. It is surprising to
note that only one course is related to health, rests
of the 51 courses are from management field. All
th ese courses are free bu t for getting the
certificates, the students are required to pay certain
fees to the institute in digital mode.
Table 4: Online learning platforms at PhD. Level (for Management scholars) in India
S.N.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Provided by
Inflibnet
Academia
SSRN
Google
Informa UK
Limited, an
Informa Group
company
Springer Nature
Switzerland
By Sara Miller
McCune
Sage Group
Emerald Group
Publishing
Inderscience
publishers
John Wiley &
Sons
Elsevier
IEEE
Elsevier
Name
ShodhGanga
Academia
SSRN
Google scholar
Taylor and Francis
Springer
Sage
Emerald Insight
Inderscience
Wiley Online Library
Elsevier
Research gate
IEEE explore
Sceince Direct
Syllabus
Dissertatio
n/Thesis
on all
subjects
Research
Papers
Research
Papers
Research
Papers
Books,
Journals
Books,
Journals
Books,
Journals
Books,
Journals
Books,
Journals
Books,
Journals
Books,
Journals
Books,
Journals
Books,
Journals
Books,
Journals
Fees
Free
Free and varies
Free and varies
Free and varies
Vary as per
article
Vary as per
article
Vary as per
article
Vary as per
article
Vary as per
article
Vary as per
article
Vary as per
article
Vary as per
article
Vary as per
article
Vary as per
article
Language
English/Hindi
English
English
English/
Hindi/Others
English
English
English
English
English
English
English
English
English
English
www.academia.edu
https://www.ssrn.com › index.cfm
https://scholar.google.com
https://taylorandfrancis.com/
https://www.springer.com
https://www.sage.com
https://www.emerald.com
https://www.inderscience.com
https://onlinelibrary.wiley.com
https://www.elsevier.com/en-in/books-and-journals
https://ieeexplore.ieee.org/Xplore/home.jsp
https://www.sciencedirect.com/
Website
https://shodhganga.inflibnet.ac.in
Vol. VI, No. 1; December-2019
88
SMS Journal of Entrepreneurship & Innovation
[ ISSN 2349-7920 ]
15.
16.
17.
18.
American
Mathematical
Society
Elsevier B.V
American
Marketing
Association
Laerd Statistics
AMS (American
Mathematical Society)
Scopus
American Marketing
Association
Laerd Statistics: SPSS
Statistics Tutorials and
Statistical Guides
Books,
Journals,
e-content
Books,
Journals,
e-content
Books,
Journals,
e-books
SPSS
Guide
Vary as per
article
Vary as per
article
Vary as per
article
Vary as per
time duration
English
English
English
English
https://www.ams.org/journals
|
https://www.scopus.com/home.uri
https://www.ama.org/
https://statistics.laerd.com
Source: Data Complied by Researchers from Official Websites (Link pasted in table)
The above table is taken in reference to Ph.D.
students of management discipline. The table
shows that there are more than 18 websites in India,
which are frequently used by researchers (Ph.D.
students) to help in writing research thesis.
Figure 1: CRISP Model for presentation of Thesis (for Ph.D. Scholars)
[A] [B] [D] [E]
"CRISP" MODEL for Presentation of Thesis / Research / Project
The "CRISP" model is an INNOVATIVE Template for making comprehensive presentation in a
structured manner of the work undertaken during their Thesis / Research / Project in Social Science.
"CRISP" is an acronym for 5 important aspects that need to be emphasised while making
these presentations in Social Science.
C=Concrete Issues R=Research Methodology I=Insight Generation S=Summary P=Publications
I GAIN SOUL
I is for Introduction
G is for Gaps
A is for Additional Inputs
I is for Importance
N is for Need
S is for Scope
O is for Objectives
U is for Uniqueness
L is for Limitations.
ŸResearch
Framework
ŸResearch Design
ŸHypothesis Framing
(if any)
ŸSample Design
ŸSampling Frame
ŸSample Area
ŸSample Size
ŸData Collection &
Analy sis/ Validation
ŸStatistical Tools and
Technique
ŸInstrumentation /
Observation
ŸGoals Reached / Need
more time
ŸGaps covered /Not
Covered
ŸNeeds Satisfied / Not
Satisfied
ŸObjectives Achieved/
Not Achieved
ŸHypothesis Accepted /
Rejected
Gist & Findings
Suggestions &
Recommendations
Conclusions
Appendix / Annexure
· Researcher's
Publications
· Researcher's
Manuscript
[C] [C] [C]
Source: Singh, B. (2018)
Vol. VI, No. 1; December-2019
89
Business Prospects For Entrepreneurs In Skill Based Online Education
The above model is an innovative idea for making
the resea r ch papers , t h esis and proje c ts
presentations in a well-defined way for Ph.D.
scholars of sciences & social sciences and
corporate houses to present their project reports.
The entrepreneurs should adopt this model and
implement it in their course contents, which can
help the students in making thesis presentations
during Ph.D. and business presentations during job
and also while learning online.
4.1.2: Online Courses for Entrepreneurs under Start Up India Initiative
Table 5: Online Courses for Entrepreneurs under Start Up India Initiative of GoI
S.N.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Name of Course
Udemy Online Courses
Learning &
Development Program
by Upgrad
Accounting- A brief
introduction-in 60
minutes
Personal Development:
confidence
Android Development-
Learn Android 4.0
Programming in Java
Amazon Web Services.
AWS-Concepts
Understanding Design
Thinking & People
Centered Design
Managerial
Accounting
Managerial Economics
Supply Chain
Analytics. Introduction
to Supply Chain
management
Human Computer
interaction
NPTEL and IIT Roorkee-
Prof. Rajat Agrawal
IIIT Allahabad
Created by
Udemy-Brain Labs
Government of India in
collaboration with Invest
India & UpGrad.
Brainy Money and Son Han
Martin Meadows
John Purcell
Linux Academy, Thomas
Haslett
NPTEL and IIT Kanpur
NPTEL and IIT Bombay-
Dr. Varadraj Bapat
NPTEL and IIT Bombay-
Prof. Triputi Mishra
No. of
Students
enrolled
NA
NA
26,258
students
enrolled till
September
17, 2019
41,167
students
162,211
students
195,050
students
NA
NA
NA
NA
NA
Time frame of
Course
NA
4 Weeks
17 lectures
Time: 58
Hours:58
Minutes
15 lectures Time:
55 Hours:28
Minutes
96 lectures Time:
15
hours:21minutes:
27 seconds
10 lectures Time:
01Hours:22
Minutes:28
Seconds
4 weeks
16 Modules, 40
Lectures
40 Lectures
8 Units, 40
Lectures
NA
Course
Fee
Free
Free
1920 Rs
NA
Free
Free
Free
Free
Free
Free
Free
Prior
Knowledge
Required or
Not
NO
No
No
No
Java
No
No
NA
NA
NA
NA
Course Content
and learnings
NA
Industry
insights,
certificate,
developing
business plans,
networking or
mentoring
Basics of
accounting-
debit-credit,
creating balance
sheet and
income tax
statement etc.
Learnings:
Developing
confidence,
successful
mindset,
overcoming fear
of failure etc.
Creating
android
applications
Tackling the
more complex
technical
concepts and
terminology
Problem
Identification
Managerial
Accounting
Managerial
Economics,
Theory of
demand,
production and
market
About Supply
Chain
Management
Interface of
Humans and
Computers
Rating if
available
NA
NA
NA
Rating
4.4 out of
3825
ratings
Rating
4.2 out of
2,752
ratings
Rating
4.5 out of
32,914
ratings
NA
NA
NA
NA\
NA
Lang-uage
English
English /
Hindi
English
English
English
English
English
English
English
English
English
Others
-Total 3500
courses
Area:
Manage-
ment By
India
Area:Mana-
gement By
India
Area:Mana-
gement By
India
Area:Mana-
gement By
India
Area:Mana-
gement By
India
By India
Vol. VI, No. 1; December-2019
90
SMS Journal of Entrepreneurship & Innovation
[ ISSN 2349-7920 ]
12.
13.
14.
15.
16.
17.
18.
19.
20.
Building and
Managing a Business
Economics/Manageme
nt/Entrepreneurship
Web development with
HTML and CSS- Web
Development By
Doing: HTML / CSS
From Scratch
Introduction to Data
Analytics
Financial Statement
analysis and report
Security analysis and
portfolio management
Developing Soft skills
and Personality
Consumer Behaviour
Economies of IPR
NPTEL and IIT Madras-
Prof. Nandan Sudarsanam
and Prof. B. Ravindran
NPTEL and IIT Roorkee-
Prof. A.K. Sharma
NPTEL and IIT Kharagpur-
Prof. J Mahakud
NPTEL and IIT Kanpur-
Prof. Ravi Chandran
NPTEL and IIT Kharagpur
NPTEL and IIT Patna- Prof.
Nalin Bharti
NA
NPTEL and IIT Kharagpur-
Pratap K.J. Mohapatra
Bradley Berger
NA
NA
NA
NA
NA
NA
NA
NA
132,024
students
Week 9, Lectures
47
Week 12
Lectures 40
Module 8,
Lectures 48
Lectures 41
Week 4, Lectures
20
NA
Lectures 50
21 lectures
Times:
01Hour:11
Minutes:09
Seconds
Free
Free
Free
Free
Free
Free
Free
Free
Free
NA
NA
NA
NA
NA
NA
NA
NA
NA
Introduction of
Data analytics
and its usage
Analysizing
companies
Financial
Statement and
financial health
Analyzing the
security and
portfolio
management of
companies
Learning skills
and personality
development
Understanding
consumer
behavior
About IPR,
Issues in IPR
and Disputes-
Development in
IPR
To choose
correct business
for first-time
entrepreneurs,
knowing the
right taxation
program, Basics
of raising funds
Applications
Basics of
Economics,
Management
and entre-
preneurship
Basics of
HTML and
Creating
websites
NA
NA
NA
NA
NA
NA
NA
NA
Rating
4.2 out of
6,825
ratings
English
English
English
English
English
English
English
English
English
By India
Area:Mana-
gement By
India
Area:Mana-
gement By
India
Area:
Humanities
and Social
Sciences By
India
Area:Mana-
gement By
India
Area:
Humanities
and Social
Sciences By
India
Area:Mana-
gement By
India
Source: Data Complied by Researchers from Website of StartUp India
Benefits of Online education
1. Lesser Costs or freer
2. Access to Experts of Industry: IIMs, IITs &
Central Universities like Business schools,
industry professionals and National level
organizations like CSI, AIMA, ISCA, ICA etc.
3. Easy Application process
4. Meeting new people whom we don't know
5. Self-paced courses
6. Location benefits
7. Enhancing self-discipline
8. Study ing from desktop, l aptop, iPa ds,
Smartphones etc.
9. A variety of options and choices in courses
10. On the job courses
Vol. VI, No. 1; December-2019
91
Business Prospects For Entrepreneurs In Skill Based Online Education
11. Boundary less education. (One can study from
Foreign Universities also)
Challenges for Online education
1. Internet connection mandatory
2. Brand selection
3. Authenticity of content
4. Training and placements
5. Lower awareness of internet and online
education platforms
6. Price of content
7. No physical interaction with teachers and
learning from e-gadgets only
8. Needs more concentration and self-discipline
9. More instructions from teacher end on set
pattern and less creativity by student end
10. Difficulty in selecting best course
11. Overloaded information
Findings
The study identified 18 online learning platforms
for competitive exams like SSC, IBPS, IAS and 12
learning platforms for students from Nursery to
Post-graduation. IIM Banguluru is providing
online-course training on 52 subjects, and all are
from management field. The study has also
identifies 18 websites for the Ph.D. Scholars in
India to satisfy their thrust for research knowledge.
The findings also illustrate that GoI offers 20
online education courses through different
pla tfor ms for asp irin g entr epre neurs a nd
en t r e p r e n e urs r e c o g nize d / r e g i s tered b y
Department for Promotion of Industry and Internal
Trade (DPIIT). Among these 20 courses, GoI runs
13 courses in collaboration with other parties,
whereas only seven courses are created by foreign
agencies. The courses created by Government of
India in collaboration with National Programme on
Technology Enhanced Learning (NPTEL, which is
a project of Ministry of Human Resource and
Development) are on Management (8 courses) and
Humanities & Social Sciences (2 courses). There is
only One course of Management that is run
exclusively by Government of India. This shows
that most of the skill development courses offered
by GoI are from management field. The rest Seven
courses offered by foreign agencies are related to
knowledge of computer, website developments,
applicatio ns develop ment, a ccounting an d
personality development etc. Some of these
courses are provided free while few courses charge
certain fees.
Conclusion
After analyzing the information and content of
websites it is found that there are a large number of
platforms offering online education. It is observed
after content analysis of different websites that
almost the entire content (from the language of
websites to study material) of the websites is in
English language. Since, most of the Bhartiya
people understand the native language Hindi or
local language like Tamil, Bengali, Punjabi,
Bhojpuri etc. The commonly preference by the
Bhartiya's is to take the courses in Hindi language
in which they are very much comfortable. But in
Hindi the internet based education is very low,
which is the major opportunities for entrepreneurs
to develop the content, websites, Mobile Apps etc.
However, one thing is certain that the future in
online education platforms is very bright for young
entrepreneurs. The new entrepreneurs have an
opportunity to start their own online education
Vol. VI, No. 1; December-2019
92
SMS Journal of Entrepreneurship & Innovation
[ ISSN 2349-7920 ]
platforms (websites and mobile applications both)
in Hindi language, which can be further started in
regional Bhartiya languages.
This conceptual study found that most of the online
education platforms, charge fees for certificates,
though they claim freer. The entrepreneurs can
grab this gap/ opportunities by charging un-paid
certificates via skill based online education by
getting the revenue from web based advertising
(WBA). The online education platforms are also
required to create awareness among the online
education seekers, so that the strength of online
students can be enhanced in near future. This
conceptual paper highlights the upcoming trends
which will enhance business prospects for
entrepreneurs in skill based online education. The
entrepreneurs can start similar online education
platforms or new platforms with technological
innovations which will substantiate to be a
milestone in business prospects.
Recommendations
Getting education is a fundamental right as well as
a continuous process that requires the active
participation of the learners. If the mode of
education is online than it becomes important for
the provider to provide the best education material
and c o u r s es i n t h i s g l o b a l compet i t i v e
environment.
The framework that is presented in the current
paper is based on the online education platforms. It
will be creating a base for displaying the strength of
online education in India. This framework will
provide a valuable insight to the people having a
business plan on online education. Since, GoI is
also providing benefits and also necessary aids for
the startups, the young entrepreneurs should come
forward actively and initiate it.
It is highly recommended that presentation models
like CRISP should be created, promoted and
accepted by the education system in India, where
the uni for mit y in th oughts, str uct ure and
presentation layout will be represented by the
presenters. Thus, the current study will be of
benefit to the people curious to learn new things
and the upcoming entrepreneurs.
Scope For Future Research
The present study too has some limitations which
can be considered as a problem in future research
works. The present study has focused only on 12
online education platforms for students from
Primary to Post-graduation but there are more
similar platforms available for them which are not
considered. Further, there are many more websites
for competitive exam seekers which can be
targeted in future research.
Future research can also be done to understand the
perception of students about these online education
platforms. The understanding and knowledge level
of students can be checked using pre and post
adoption of these online education courses.
References
Articles referred:
Choi, S., Lehto, X. Y., & Morrison, A. M. (2007). Destination
image representation on the web: Content analysis of Macau
travel related websites. Tourism Management, 28(1),
118–129.
Compton, L. K. (2009). Preparing language teachers to teach
language online: A look at skills, roles, and responsibilities.
Computer Assisted Language Learning, 22(1), 73-99.
Eom, S. B., Wen, H. J., & Ashill, N. (2006). The determinants
of students' perceived learning outcomes and satisfaction in
university online education: An empirical investigation.
Decision Sciences Journal of Innovative Education, 4(2),
215-235.
Fayolle, A. (2 00 5). Evalua tion of entrepr eneurship
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International Journal of Entrepreneurship and Small
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Hampel, R., & Stickler, U. (2005). New skills for new
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Kaaya, J. (2004). Implementing e-government services in
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Kim, K. J., & Bonk, C. J. (2006). The future of online
teaching and learning in higher education. Educause
quarterly, 29(4), 22-30.
Kyro, P. (2008). A theoretical framework for teaching and
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Larreamendy-Joerns, J., & Leinhardt, G. (2006). Going the
distance with online education. Review of educational
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Matlay, H. (2006). Researching entrepreneurship and
education: Part 2: what is entrepreneurship education and
does it matter?. Education+ Training, 48(8/9), 704-718.
Singh, B. (2018). CRISP Model: A structured approach for
Presentation of research. CSI Communications, 42(7), 11-17
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R e t r i e v e d o n S e p t e m b e r 3 , 2 0 1 9 f r o m
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SMS Journal of Entrepreneurship & Innovation
[ ISSN 2349-7920 ]
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Business Prospects For Entrepreneurs In Skill Based Online Education
*Consultant, Ernst & Young, Mail: mishra.bgp@gmail.com
Skilling and Growth Nexus -
Measurement, Policy and challenges in the context of India
Sumit Kumar Mishra*
Abstract
“If we have to promote the development of our country then our mission has to be skill development and skilled India”
… Prime Minister Narendra Modi
Skill is the capability to do something nicely, create something new and innovations leading from existing talent,
training, or practice. It is also the ability to provide solutions to the different kind of problems and situations.
Developments of these skills are very important for the economic prosperity of the country. Skilling is considered to
be one of the most important factor as it certainly leads to economic growth by building capability and making
economy self-sustainable. Skill and the right set of knowledge are also regarded as the key factors for the growth and
social upliftment of any country. It is noticed that the countries having skilled labor force find it easier to adjust in the
competitiveness nature of world of work. Skilled labors are not prone to changing work environment of world.
India is on the verge of becoming a knowledge economy. It is therefore indispensable to identify the right set of skills
required to be imparted to labor force and lead them towards capability development.To accomplish the very objective
of the economic growth, the Gross Domestic Product (GDP) of India has to grow at a rapid pace of 8% to 9%
consistently. This will require some major changes and significant improvement in infrastructure sector, agricultural
sector, manufacturing sector and also need skilled labor force to fasten the process of goods and services delivery.
Major challenge India withholds is not only to impart skill leading to economic prosperity but to soak in the excess
supply of labor coming from rural sector. India is a labor intensive country and there is labor availability in abundance.
With the limited training infrastructure, it is indeed a challenging task to train this vast number of laborers in India and
turn them into productive skilled workforce. Even the lack of awareness among labor force to go through training
program is other issue. As per the National Skill Development Mission (NSDM) Document, there is a shortage of the
trained laborers in India. Only 2.3 percent of the workers in India went through formal training. If we look at the
statistics of labor force attending training for some other country, it was like sixty-seven percent in United Kingdom,
seventy-five percent in Germany, eighty percent in Japan and so on. All these countries are already a developed nation.
This fact reveals an interesting finding that the pool of Indian workforce mostly lacked requisite skills and was mostly
unemployable.High percentage of labor receiving training makes them skilled and capable. It also shows a pattern of a
linear correlation among developed nation workforce and skill.
Key words: Skill; Skilling and growth
Introduction
“Education, vocational training and lifelong
learning are central pillars of employability,
employment of workers and sustainable enterprise
development”- International Labor Organization
Vol. VI, No. 1; December-2019
SMS Journal of Entrepreneurship & Innovation
6 (1) 96-106
https://doi.org/10.21844/smsjei.v6i01.17667
Ski lls an d know ledg e are ke y driv ers of
macroeconomic growth and socioeconomic
stability. All those country characterized by
advanced level of skills adjusts more efficiently to
the challenge and prospects of the world. In a
know l edge econ o my-kno w ledge lea d s to
economic growth- it is imparted, acquired,
transfer red turning econom ic growth int o
development. A knowledge economy constantly
modifies its education system and incurs huge
amount of investment to modernize education as
per the trends, needs and requirement of the
changing economy. Far-reaching adjustments and
changes are required right from teaching stage to
learning stage. These adjustments are essential to
improving the skills. “Skills” not only includes
traditional hard skills and IT competencies but also
the “soft skills” which are knowledge discovery,
problem solving, spirit of enquiry, adaptability,
self-learning, social empathy and motivation to
work.
Skilling is the way to continuously improve
productivity. Capability building via skilling
makes economy self-sustainable. Skilling and
entrepreneurship complement each other and lead
to economic growth.
India is well poised when it comes to its
demographic dividend and can use this towards
accelerating its economic growth. However, the
excess supply of labor has to be turned into a skilled
workforce for fetching a gainful employment. The
demographic dividend also plays a very crucial
role in the nexus between skilling and growth. If we
look at India now, it's working age population is
growing faster than its young age population and
the old aged population. This increased percentage
of working class population in the “demographic
dividend” will benefit any economy socially or
economically. The economic growth will be
boosted up as the higher numbers of labors gets
productively employed, ultimately leading to
higher wages. This in turn will lead to higher
savings and therefore higher investment. Higher
investment will expand the economic activities and
India will be following a path to be a developed
nation from developing one.
Research Objective:
The research objectives addresses following
question:
Ÿ whether correlation exist between skilling and
growth
Ÿ Challenges in implementation of Skilling
Ÿ To understand policy measures taken towards
skilling and translating it into economic
growth
Literature review:
There have been various studies conducted to
know the trends and correlation among Human
capital (skilling) and economic growth right from
1980's. The quantitative association among these
two variables were found to be positive and
significant. Summary of the some of the empirical
research conducted are as follows:
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Skilling and Growth Nexus - Measurement, Policy and challenges in the context of India
Table: - Literature Review analysis
Authors
Romer
Benhabib and Spiegel
Freire-Seren
Ljunberg and Nilsson
Aka and Dumont
Haldar and Mallik
Country
112 countries
78 countries
72 , 65, and 22 countries
Sweden
USA
India
Period
1960-1985
1965-1985
1960-1990
1870-2000
1929-1996
1960-2006
Results
Increase in human
capital leads to surge in Growth
Romer conducted the study to assess the impact of
skilling in his endogenous growth models. His study
suggested that literacy rate has been significantly
associated with the rate of investment and showed it
indirectly lead to economic growth. Benhabib and
Spiegel conducted the study of impact on skilling
(Human capital) on factor productivity. There was again
a statistical significant result showing positive
correlation among the variables. His analysis can be
broken into two parts. Freire-seren analyzed the link
between the human capital and how it leads to growth
and development in various countries. His findings
were that level of income was positively and
significantly associated with human capital buildup.
Ljunberg and Nilsson studies and finding suggested that
human capital because of the education where the
th
primary reason for continuous growth during 19 and
th
early 20 century for Sweden. Higher education often
leads to growth. Aka and Dumont tried to study
howskill, knowledge education experience of an
individual leadto growth eventually leading to
development over USA during the period of 1929-1996.
Linear relationship between human capital variables
and economic growth was observed. In the Indian
context, Haldar and Malik tried to study the investment
behavior in physical capital and human capital and the
output. The findings were interesting. The result
showed that investment in physical capital had no long
run and short impact but investment in human capital
had significant and positive relation to long run per
capita GNP.
Research Gap:
The study is limited and confined to the India's
macroeconomic environment. Whether skilling leading
to growth and established nexus has not been studied in
global context. In data analysis, the only indicator used
to proxy skilling is employment data. This is done on
assumption that only skill people would have got
employed.
Research Methodology:
Secondary data sources (research papers, journals,
articles, and magazines) were used to study the defined
objectives. The research design is more of descriptive in
nature. Having the clear set of objectives, the research
design was formulated to conduct the in-depth analysis
of the study with accuracy.
The data for Human capital in term to skilling is
collected from CEIC website. The data for skilling is
proxy by data for number of person employed in India
from 2000 to 2011. In other words, employment number
were taken as a parameter for skilling on the assumption
that only skilled workforce were employed. The GDP
data for measuring economic growth for same time was
taken from Wikipedia. The standard OLS regression
framework was used to assess the relationship between
Skilling and growth rate. The data set look like as
follows.
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SMS Journal of Entrepreneurship & Innovation
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Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
GDP
(in bil. US$ PPP
2,077.90
2,230.40
2,353.10
2,590.70
2,870.80
3,238.30
3,647.00
4,111.10
4,354.80
4,759.90
5,312.40
5,782.00
GDP
(INR)
2,077,900,000,000
2,230,400,000,000
2,353,100,000,000
2,590,700,000,000
2,870,800,000,000
3,238,300,000,000
3,647,000,000,000
4,111,100,000,000
4,354,800,000,000
4,759,900,000,000
5,312,400,000,000
5,782,000,000,000
Employed person
(Number)
27,789,200
27,205,500
27,000,300
26,442,700
26,458,400
26,992,000
27,277,000
27,549,000
28,166,648
28,708,000
28,999,000
29,579,000
Analysis& Findings:
The findings of the study conducted were that
employment was positively related to growth rate. The
results were statistically significant and showed direct
relation between the economic growth and employment
data. Increase in employment will lead to increase in
2
economic growth. R value shows the proportion of
change in the dependent variable explained by
independent or explanatory variable. In my data growth
rate is the dependent variable and employment is the
explanatory variable. Since, only one factor was taken
as an independent variable, 70 % of the variation in the
growth is explained by employment factor. The P value
is less than 0.05 and therefore the result is statistically
significant and the regression model is a good fit of data.
Intercept term
Employed person
Slope Coefficient
-2.55296E+13
1052735.124
Significance(P value)
0.0015**
0.00062**
R square value
0.70
Further Discussion and Findings
Skilling and growth nexus:
There seems to be high correlation among the
proportion of skilled employees and the growth and
development of a nation. Inclusive economic growth
leads to more employment generation, which absorbs
skilled labor and in turn further trigger economic
growth. There are various macro-economic factors
leading to economic growth. Out of the various macro-
economic variables or determinant of the growth, Ex-
Vice President of India Md. Hamid Ansari made a point
that that Human capital would be the primary
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Skilling and Growth Nexus - Measurement, Policy and challenges in the context of India
determinants of the economic growth and the overall
progress of the country. Skill development creates a
po ol of productive workforce and widens the
productivity of the existing workforce. This leads to
inclusive growth as more of the country's youth
population are employed. As more working age
population gets absorbed in the formal or informal
sector, they will have their means of earning. The
quality of life or rather says standard of living will get
better. They will contribute to the economy in the form
of tax and their dependence on government help
programs will reduce. The government can carry out its
fiscal operation with much of ease and layout more
development programs. If the economy is self-
sustaining and well-functioning, the GDP growth will
be evenly poised showing good numbers and economy
will move swiftly. The GDP to Debt ratio will improve
and so the balance of payment giving huge acceleration
to economic growth.
India's demographic dividend can be used to its
advantage with proper skilling:
th
India has now become the 5 largest economy of the
word. The GDP growth rate in the year 2012-2013 was
5.6%, going up to 7.6% in 2015-2016, and 7.2% in the
last quarter of 2018-19(Wikipedia data).However, this
fast economic growth, contrasts with an unorganized
labor market. There has been certain gap in creating
inclusive growth, improving productivity of labor, and
a formal labor market. The demographic dividend of
India gives it a luxury to accelerate this economic
growth and move towards becoming a developed
nation. Investment in the skill development program
will ensure that economic growth is more inclusive as it
will fetch a gainful and productive employment to most
number of people.
Current skilling analysis:
According to the India skill report of 2015, India still
lacked on the developing the skills of its workforce. Out
of the total participants trying to enter the labor market,
rd
only 1/3 of them were having the appropriate skills
required for the job. However, there have been some
improvements over the last few years. The 2019 skill
report found that employability has continued to rise
and it has increased from 33.95% in 2014 to 47.38% in
2019.
Table: year employability percentage since 2014
Year
2014
2015
2016
2017
2018
2019
Employability percentage
33.95%
37.22%
38.12%
40.44%
45.60%
47.38%
Source: Skill India report 2019
Skill requirement of India latest by 2022:
Because of abundantly available human capital,
India has become one of the firmest nation turning
into knowledge economy. With its strengthening
knowledge economy base, there will be massive
requirement of the highly skilled labor force across
major sectors like health care, financial services,
IT, pharmaceuticals, etc. Further, the “Make in
India” scheme under the flagship program is
expected to give a big push to the value added
industries and there will be requirement of high
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SMS Journal of Entrepreneurship & Innovation
[ ISSN 2349-7920 ]
skilled labor to meet the requirements of high-end
industries.
As per the research conducted by the National Skill
Development Cooperation over the period of 2010-
2014, it was reported that by 2022 there will be
requirement of additional 109.73 million skilled
workforces across 24 major sectors in India.
Table: Additional workforce necessity across 24 different sectors by 2022
S. No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Sectors
Auto and Auto Components
Beauty and wellness
Food Processing
Media and entertainment
Handloom andhandicraft
Leather and leather goods
Domestic help
Gems and jeweler
Telecommunication
Tourism, hospitality and travel
Furniture and furnishing
Building construction and real estate
IT and ITEs
Construction material and building hardware
Textile and clothing
Health care
Security
Agriculture
Education skill development
Transportation and logistics
Electronic and IT hardware
Pharma and life sciences
BFSI
Retail
Total
Removal of Duplication in retail sector
Total requirement
Employment figures
for 2013(million)
10.98
4.21
6.98
0.4
11.65
3.09
6
4.64
2.08
6.96
4.11
45.42
2.96
8.3
15.23
3.59
7
240.4
13.02
16.74
4.33
1.86
2.55
38.6
461.1
10.37
450.73
Forecasted Employment
by 2022(million)
14.88
14.27
11.38
1.3
17.79
6.81
10.88
8.23
4.16
13.44
11.29
76.55
5.12
11
21.54
7.39
11.83
215.6
17.31
28.4
8.94
3.58
4.25
55.95
581.89
21.43
560.46
Additional requirement
from 2013-2022(million)
3.9
10.06
4.4
0.9
6.14
3.72
4.88
3.59
2.08
6.48
7.18
31.13
2.16
2.7
6.31
3.8
4.83
24.8
4.29
11.66
4.61
1.72
1.7
17.35
120.79
11.06
109.73
Source: Ministry of skill development and entrepreneurship
As per the India Skill Report, 2019 it was estimated
that the Indian workforce would reach around 600
million by 2022 from the current level of 473
million, i.e., an increase of 27 percent. This
increase in work force would mainly be because of
a well-functioning and expanded Indian domestic
market and adoption of new technologies like
robotics and Artificial Intelligence (AI). The
automation technology has reached a high level
and therefore affects the Indian IT sector and the
business process outsourcing sector. These sectors
are the primary players for creating additional pool
of employment and are expected to create or hire
2.5 million to 3 million more workers by 2025.
However, the pre-requisite condition remains the
same that the workforce should have suitable
skilled as per the requirement of the companies.
Between 2014 to 2017, increased government
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Skilling and Growth Nexus - Measurement, Policy and challenges in the context of India
spending, massive hiring by IT, and increasing
t r en d a s a n i n d ep e n d e n t w o r ke r a n d
entrepreneurship fetched gainful employment to
almost 20 to 26 million people. Therefore, skill
development has to continue for the increasing
workforce to get absorbed in the market and
ultimately leading to growth trajectory and overall
development.
Challenges in the implementation of successful
skilling initiatives:
Investment in skilling and development will create
a pool of productive workforce and widen the
productivity of the existing workforce. The Boston
consulting group conducted a research where they
have discussed the mismatch problem of demand
and supply of labor faced by the world. It was
reported that the world will require 47million more
people by 2022 and India will have an excess of
supply of labor with an estimated number of around
56 million. Now if these workforces are equipped
with the appropriate skills, the supply gap can be
filled giving huge economic boom. India has the
problem of plenty, which needs to be resolved by
skill development for turning these into productive
and employable workforces.
However, there are many challenges in exercising
this skilling and implementing it:
ŸThe first and foremost challenge is to create
stimulus for the economic growth, which could
absorb the opportunity of demographic
dividend India has.
ŸSecond most important challenge is to either
up-skill or re-skill the working age population
lying between ages 30 – 59.Globally, it is
believed that 75 % of the workforce will require
adding new skill mainly in automation.
Ÿ It is expected that by 2022, nearly 1.25 million
people ageing 15-29 will join the workforce
every month.The working age population of
India ageing 19 to 59 is expected to expand, as
47 million more people will join the workforce.
This demographic dividend is expected peak by
2040. Overall nearly 70 million workers are
estimated to enter the workforce during 2018-
2022. These people have to be skilled India has
to reap the benefits of its demographic
structure.
Ÿ Nearly 468 million of workforce in India
requires up-skilling and re-skilling. The major
challenge here is that almost 92 % percent of
the Indian labor force population constitute in
the informal sector.
Ÿ Almost half of the workers in India have
educational attainment below secondary
school and no vocational schooling. It was
found that 31% of the workforce was illiterate,
13% percent were having primary education
and only 6% percent were college graduates.
Ÿ The unemployment rate for the graduates
ageing 20-24 was reported to be 29%, between
25-29 to be 12% and for 30-34 was 4%.
ŸIn addition, the participation of women in labor
force needs to be improved. In the urban area,
women labor force participation was reported
to be 21% compared to 36% in rural areas.
Between 2005 and 2012, almost 15 million
women dropped out from the labor force
participation.
As regards implementation of skilling, problem is
that the capacity of the Government/private
training institutes is limited to absorb the growing
working age population of India. Further, the
training programs have eligibility criteria, which
th
require minimum education until class 8 . This
excludes illiterate working population from
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receiving training. Moreover, the curriculum and
the course pattern of training programs are not in
alignment with the expertise and experience
required at working in companies and the market
behavior. Lack of participation by private sector
enterprises in training also makes apprenticeship
training for students far out reaching. These are the
major obst a c les in meeti n g t h e t r aining
requirements of working population of India.
Generation of productive and gainful employment
opportunities depends on the availability of skilled
labor force, which is possible by sustained
investment in skill and development leading to
enough job creation by entrepreneurship. Policy
measures are required to fill the void space between
skill deficit and the employment generation. Range
of policies will be required to address the issues
like education system, cognitive, technical,
vocational and behavioral skills, on job training in
both formal and informal sectors.
Government initiatives:
The government has taken various policy measures
to address the problem of lack of skills in the labor
force. The Ministry of Skill Development and
Entrepreneurship has been established by the
central government of India to boost up the
entrepreneurial skills of the workforce. Some of the
entrepreneurial training programs are as follows:
·Startup India learning program: free online
learning classes and promoting bank
finances for the startup venture.
·De en D ayal Upadhayay Swa niyojan
Yojana- promotes entrepreneurship among
self-help groups and women. This program
provides skill for livelihood generation and
self-employment with the availability of
credit access through government backed
loans.
·Pradhan Mantri Kaushal Vikas Yojana-
ensures self-employment for those unable
to fetch secured wage employment.
Apart from this entrepreneurship, training
programs, various flagship programs have also
been launched - Make in India, Start-Up-India, and
Digital India. The main motive of these flagship
programs is to spur employment generation by
creating productive and skilled micro, small and
medium enterprises. These will create huge
demand of labor and job creation.
For training, PPP (Public private partnership)
model has been introduced where the training
provided is being funded by private enterprises.
The g overn ment h as also i ntro duce d t he
Apprenticeship Act where private entities are
compulsorily supposed to hire certain number of
apprentices and train them. The government is also
taking initiat i v e s t o make intern a t i o n a l
collaboration with institutions like the UN
prioritizing on skills, entrepreneurship and job
creation programs.
Conclusion:
For any economy to be competitive and accelerates
its existing growth rate, skilled workforce plays a
very crucial and important role. Skill development
is regarded as the prominent factor for the growth
of the economy. There is a requirement of the
collective determination from all the participants
like training institutions, government, and
workforce to make it a successful program. The
policy has to be far reaching and if reached to larger
audience, will have greater impact on employment
generation. This will not only boost up the
functioning of the economy but also provide
skilled labor for the flagship program like Make in
India. Vocational training and PPP model also play
their part in imparting skill. NSDC has made recent
p r o g r es s i n d e v el o p i n g b e t te r t ra i n i n g
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Skilling and Growth Nexus - Measurement, Policy and challenges in the context of India
infrastructure by more public private partnership.
There has to be emphasis on the skill India
entrepreneurship as it leads to creation of massive
employment opportunities. The schemes like Start
up India and Stand up India need more promotion
for maximum awareness among people and so that
they can be the beneficiaries of the model. India is
moving towards becoming a Knowledge economy
and therefore it is very important to have a skilled
work force and the skills imparted have to be very
much in alignment with needs and requirement of
the modern day business.
Sug g e s t e d p o l i c y m e a s u r e s a n d other
Recommendation:
The favorable conditions for sustained and stable
economic growth can be created by imparting the
required skills to the workforce for fetching gainful
employment. There is no reason why a country
cannot become an aspiration nation fulfilling the
dreams of millions of its citizens. However, the
challenges faced are numerous and require
additional policy measures:
Government policy measures:
·De-regulation of the labor market is required.
Formalisation will provide incentive to the
private entities to invest in up-skilling their
workers. The workers also find it in their interest
to be up skilled apart from having better
working condition and the social security
benefits. There should not be any legal
hindrances in conversion of informal jobs into
formal sector jobs.
·There should be investments in the sectors that
seem promising for employment generation-
directly inside the sector and indirectly even
outside the sector. The government should
promote ease of doing business and structured
investment.
·The focus should be on the inclusive growth
where investment in skill and development will
provide gainful employment to the massive
unemployed work force.
Skill provider's policy measures:
·The existing and new workforce should be
trained as per the needs and requirement of the
modern day functioning of industry and the
business. It is very important to determine the
type of skills required which can actually break
the vicious cycle of low skilled labor and lack of
job creation.
·Analysis and effective method of performance
evaluation are very important parts of training
as these are pre-cursor for up-skilling, and
resultant growth.
·The concept of on the job training has to be
taken more widely not just be applicable to large
firms. It has to be applicable to smaller firms and
in informal sector as well.
·The skilling institutions and the education
system need to be work in alignment with the
trends and the skills and competencies required
by industry. This could be followed effectively
by measures like Apprenticeships act, and on
the job training measures.
·The education system should be revised
gradually based on the changing nature and
trend developing in the economy. The education
should also impart social and behavioral skills
along with higher cognitive skills. Vocational
education needs revision to be up to the
workforce requirement.
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SMS Journal of Entrepreneurship & Innovation
[ ISSN 2349-7920 ]
Policy measures from employment perspective:
·There should be increased participation into
practices like apprenticeships act, and on the
job training measures.
·Firms should be following the corporate social
responsibility.
·Employers should be continuously involved in
up-skilling and re-skilling the existing
workforce and providing training to the new
entrant in the work force.
·Modern labor and human resource practices are
expected to be adopted by the employers.
·The employers should be supportive to their
employees and not lay them off during
economic crunch.
These policy measures can actually lead to creation