One of the key indicators of a consistently growing economy is NOT when market leaders grow and take the industry with them. It is when the smaller entrepreneurial ventures starts growing at a fast pace and provides newer dimensions to the economic ecosystem of a country. One such emerging domain is the Indian New Age Business space. With the emergence of new technologies, we are witnessing an onset of a whole new arena of businesses and businessmen and the decline in fortune of some old established ones who have failed to move ahead with this new technology. We can take the example of e-commerce which is a product of the internet and telecommunication revolution and today has challenged the traditional brick-and-mortar marketplace. According to the Global consulting firm, Gartner, the Indian e-commerce market is will reach $6 billion in 2015, a 70% increase in revenue 2014 revenue of $3.5 billion. India is now known as the US of the Asia Pacific Region. The entire competition amongst ‘etailers’ today is to grab the customer’s attention for just 10 minutes. From food to furniture, mobiles to kitchen ware, appliances to clothes, the sky is the limit for selling on these B2C e-stores. With easy access, low prices, effective supply chain, numerous vendors, various payment options, the modern e-shopper is spoilt for choice.
Small and medium sized businesses in India today have unprecedented access to new markets, vendors and of course, Customers. They are constantly shaping the industry and economy at large while understanding the needs of the customers to help them take a leap to dominate the market. A research claims that the Small and Medium Business sector in India is estimated to witness a year-on-year growth of 15 percent CAGR. This is expected to propel the IT spending in the sector to over $ 18.5 billion (about Rs 111 thousand crores) by 2018. This only goes on to show how the New Age businesses in India are innovating and adopting newer and better technology solutions to meet the growing competitive market both in the country as well as Globally. There was also an announcement from NASSCOM last year about its intention to partner with the Indian Government and industry associations to ensure successful adoption of IT in Small and Medium Businesses. The report also claimed that SMBs employed about 40 percent of the country’s workforce and contributes to over 17 percent of the national gross domestic product (GDP).
With the Start-Up boom taking over the subcontinent, increasing number of young and dynamic entrepreneurs are not only coming onboard, but also are entering the ‘super-rich’ list. The debutants include Ola founders Ankit Bhati, 28, and Bhavish Agarwal, 29, who are also the youngest on the list. With their personal fortunes estimated at Rs 2,385 crores each, the duo are jointly ranked 238th. The Indian who posted the biggest gain in wealth over the past year is reported to be Dhiraj Rajaram, the 40-year-old founder of Bengaluru-based analytics firm Mu Sigma. There are 76 new faces among the 296 who made it to the Hurun India Rich List this year, with the cut-off level being personal wealth of Rs 1,600 crore. Apart from Ola’s Bhati and Aggarwal, other prominent tech entrepreneurs on the list include Flipkart’s Sachin Bansal, 34, and Binny Bansal, 34, whose estimated wealth of Rs 9,010 crore each puts them at the 85th spot, a rise of 58 positions. Snapdeal’s Kunal Bahl, 32, is a new entrant, jumping straight to the 243rd spot with a wealth of Rs 2,314 crore. Most of these technology and internet companies have raised significant amounts of private equity capital at substantial valuations over the past year. Flipkart’s latest fund raise valued the firm at $15 billion, and Snapdeal’s valued it close to $5 billion. Most of the new-age startup founders are also exceptional in that they are self-made.
These new age entrepreneurs provide an in depth and smart insight into trends and preferences of consumers and create strategies based on that, which in turn goes on to redefine businesses. They innovate opportunities for themselves as well as for various small and medium suppliers spread across the length and breadth of the country who were hitherto inaccessible to the masses. They are the new age thinkers and doers, who have the knowledge and the courage to look beyond the traditional way of doing business. Approximately 800 start-ups are created annually in India, which is also the world’s third largest and fastest growing country for these budding companies. According to a report, these Indian start-ups that are building global solutions, primarily digital, are well equipped to address the demands of the entire Asian market—an opportunity to expand beyond the US and Europe.
Another very important aspect of new age businesses in India has been the advent of social media which has ushered in a new age of marketing for these firms. These digital platforms have become such powerful marketing tools that the use of social media in business is no longer considered cutting edge—it’s a standard norm these days. This platform has brought in a huge amount of transparency between the business and the end customer and has opened avenues through which customers can be engaged. By simply logging in to their Facebook or Twitter account and searching for your company, potential customers can easily discover more about you and your offerings by viewing your profile or following your company. It has helped businesses to promote organic, engaging conversations with their customers.
Earlier this year our honourable Prime Minister, Shri Narendra Modi, outlined his vision for a New Age India at The Economic Times Global Business Summit. He emphasized that the government is moving fast in framing policies and laws to promote growth and also highlighted many steps taken by his government. He further added that the objective of reforms must be to improve the welfare of the people. The Govt. of India is focused on nurturing an ecosystem where the economy is primed for growth and growth promotes all-round development; where development is employment-generating and employment is enabled by skills; and most importantly, the resultant prosperity is for the welfare of all.
Essential procedures coupled with Innovation and new technology aid the creation of an efficient economic structure where older processes are streamlined and replaced by re-engineering and dynamic entrepreneurship. And that is the underlying key to creating a nation driven by New Age businesses.