What are the indicators of a Pro startup Ecosystem?

What are the indicators of a Pro startup Ecosystem?

Past few years in India have been exciting for startups & entrepreneurial community. India is expected to be second largest startup ecosystem in the world in next two years period according to a recent report published by NASSCOM.

According to the report, in 2014, India witnessed over 800 new startups. The total amount of funding received by startups since 2010 is exceeding over USD 2.3 Billion. Apart from private equity & venture capitalists, there are over 60 angel investors & over 80 startup incubators & accelerators are active in the country. As this connection between entrepreneurs & organizations providing support to them deepens, the strength of entrepreneurial ecosystem grows. Add to this the rejuvenation added by budget for 2014-15 which has several proposals announced by finance minister. Budget surely promises to be encouraging for entrepreneurs & shows some serious commitment from government towards unlocking India’s entrepreneurial power to fuel desperately-needed jobs and economic growth.

Research has shown that the job creating potential of new, young & growing companies is essential for the economy of the country.

Typical methods used for evaluation of entrepreneurial ecosystems focus on sizing up risk capital, incubators, a supportive culture, etc. However there is significant room for improvement if we focus instead on the relationships between these elements and if we measure how the ecosystem has evolved over time.

What are good indicators of a good startup ecosystem?

1.       Connected Entrepreneurs

Connections between entrepreneurs is extremely important & valuable. A good community/ forum for learning & support, observing each other’s performance & to provide a feedback is a good way to stay connected. Communication or interaction may not be between entrepreneurs working in the same field (obviously, due to competition anyone would want to hold the information to themselves).

Experienced entrepreneurs can guide the novice entrepreneurs & help them avoid common pitfalls or help with a typical problem.

2.       Connections between support organizations

Highly collaborated & co-ordinating support organizations are essential for a good startup ecosystem. Discussions & interactions between support systems can avoid unintentional & unnecessary overlap of support for specific companies.

New & upcoming support organizations, or changes in leadership of an existing support organization point towards constant changes in support organization. This indicates that injecting the missing elements to the support is not sufficient to create a healthy ecosystem, but relationships between the support elements is more crucial & matters the most.

3.       Relationship between Entrepreneurs & support organizations

A support organization could be helping an entrepreneur either by mentoring or with the financial support. While incubators work closely with startup on functional aspects of the business model, venture capitalist & private equities are focused mere towards financial viability & success of the business model. A right mix of both these types of support organization is key to success of any new venture. This is mainly because both the aspects are interlinked & cannot be considered in isolation.

Why Global e-Commerce giants are yet to conquer South East Asia

South East Asia (Popularly referred as SEA) is considered to be the most diverse & rapidly changing market in the world. With the population in excess of 650 million, the market is too huge to be ignored for any global player especially in the current booming space of online retail. In spite of this, we haven’t seen much of an activity from giants with likes Amazon, Alibaba & Rakuten in the region.

Let’s have a look at some interesting statistics.

Courtesy: https://www.techinasia.com/southeast-asia-internet-infographic/

Currently online shopping accounts for a minuscule number in the region. But with rapid penetration of internet & smart phones in the region the market is all set to explode. According to a report from Frost & Sullivan the region may see fivefold growth by 2018.

What is so very different about South East Asia?

1.       Six Countries six cultures:

Region comprises of 6 countries Singapore, Malaysia, Thailand, Indonesia, Philippines, Vietnam. Each of these countries has a different population mix, different language, religion & culture. Which is an important indicator of product preferences of people.

2.       Cross border transactions:

Crossing international boundaries means customs clearances, which add the complexity of payments of duties for imports, legal regulations on imports & restricted items in a particular country.

3.       Online security & cyber theft:

      The region in past has experienced some severe cyber theft cases. In the absence of a cross border jurisdiction mechanism & gaps in regulations potential consumers deter from online shopping.

4.      Penetration of Credit cards: 

Credit card penetration in SEA region is only about 10%. Add to that skepticism of those not very open to share the card details online for the fear of fraud. As a result cash on delivery (COD) & AT transfers is the preferred mode of payments. Handling of cash payments presents a bigger challenge than anything else. In most of the countries postal networks are either sluggish or unreliable. This means retailers need to have sophisticated delivery partners or build an in-house delivery capabilities.

5.       New sales channels:

With rapid penetration of social media & messaging services like “Line”, home grown e-retailers have already entered into strategic tie ups with the companies for exclusive promotions & campaigns in the region.

With above factors being critical to be successful in the region, even if likes of Amazon, Alibaba enter the market, it will take considerable amount of time for these companies to replicate the local knowledge acquired by home grown online retailers

In spite of all the factors SEA may still prove to be a market big enough for several large e-retailers to co-exist. However will it be profitable for these businesses, time only will answer that question.

iOS Vs. Android: Clash of the Titans

One of the hottest & most debated topics in the tech circle. Who is the winner? 

According to Apple Inc. iOS is an easy-to-use interface, with amazing features and security at its core. iOS is the foundation of iPhone, iPad and iPod touch. It’s designed to look beautiful and work beautifully, so even the simplest tasks are more engaging. And because iOS is engineered to take full advantage of the advanced technologies built into Apple hardware, your devices are always years ahead — from day one to day whenever.

According to Google Inc. Android is the operating system that powers more than one billion smartphones and tablets. Since these devices make our lives so sweet, each Android version is named after a dessert. Whether it's getting directions or even slicing virtual fruit, each Android release makes something new possible. 

We always hear from technology experts about the features, designs, app store, ease of use  etc. So we thought we will bring you an opinion from a end user prospective. Here you go.

Thanks to Athang for making this video available for publishing through Casestudy.co.in