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Start-ups in the new normal, the post COVID 19 Indian landscape

“Desperate times call for desperate measures” this saying can’t be truer than in the present scenario, where the pandemic is spreading like a wildfire, it is becoming  tedious for the start-ups to stay afloat. However, there are a few startup  industries who have turned lemons into lemonade, making the best out of the  grim circumstances. 

Start-ups

The start-up industry that depends largely on the funds by the angel investors  and revenue to stay in the business, have taken the biggest blunt of the times,  as the big investment houses are reluctant to put money at disposal for the  growth-stage businesses, and startups are forced to burn cash for mere  existence. Adding fuel to the fire, the economy is now projected to enter  recession by November, as disclosed by RBI in its recent report. Furthermore,  the increased joblessness has created a panic, as already more than 38 million employees have been laid off and startups don’t have enough cash flow to even  pay their resourceful employees.

With customer base disappearing, FDI  retreating, new investments being stranded in between, the concerns rise for  the survival of the small ventures and startups that live at the lowest point of  the economic food chain and also important to mention, the startups in real  estate, travel businesses, marketing, hospitality have suffered more than other  industries. 

Now, where there’s a will, there’s a way, for startups that are knee deep in the  economic floods, the government has stood up to the occasion by providing a  series of funds and compensations, like economic packages of 3 lakh crore Rupees as Emergency Working Capital Facility for Businesses, including MSMEs; another 50,000 crore Rupees as Equity Infusion and 20,000 crore as Subordinate Debt For Stressed MSMEs. In addition to these SIDBI has set up various schemes to provide financial and R&D help to start-ups that are engaged in the  manufacturing of products or offering services related to fighting the novel  coronavirus.

Other than the measures taken by the government, the Startups  themselves can take certain steps to combat the economic turbulence, i.e. by  keeping new acquisitions and expansions on the back burner to keep cash flow  running, moving towards co-working spaces to reduce cost of operations and  accommodations, putting resources at hand in projects that are highly efficient  and yield more output. Apart from these, welcoming innovation and creativity can go long way into not only keeping start-ups afloat but also making them  viable for success and the same has been adopted by e-commerce based start ups and by budding E-learning, E-pharmacy, online grocery shopping apps to small businesses who are now collaborating with MNCs like Amazon to extend  their customer base and earnings. 

If we can acknowledge one thing about starting a business, we can agree to the  fact that it is not an easy road, there are numerous hurdles on the way and in the worst case scenario, these hurdles come in the form of a global pandemic. In these  unprecedented times, we have witnessed some traditional start-ups who took a  nosedive, and at the same time, there were entrepreneurs who earned sky  rocketing profits, by being versatile and agile enough, to change the processes and capabilities as per the existing circumstances. So, what is needed for start ups is to keep an eye on the silver lining and take intelligible and dynamic  approach in regards with their resources. 

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Written by Eva Garg

Her name is Eva Garg, which means ‘Life’, in case you are wondering. She’s a writer by
passion and a lawyer by profession which allows her to voice and channelize her opinions in
her conceptualized writings. She identifies herself as a minimalist artist who has faith in
sustainable artwork and is very enthusiastic about environment.

She is fervid about different genres of music and recognizes herself as an old school rock
and roll aficionado who wants to own a record player one-day.

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