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Can your start-up idea impact the Indian economy?

24 Aug 2021 by Team FinFIRST
can-your-start-up-idea-impact-the-indian-economy

Whether it’s ordering food and groceries online or paying your credit card bills in exchange for coins, start-ups since the past few years have become the epicenter in most people’s lives.

Such has been the success of these organisations that most young as well as experienced executives dream of becoming an entrepreneur. Hence, many are driven to take out a personal loan or an unsecured business loan as the first investment for their start-up idea.

Lenders too have recognised the contributions start-ups make to the Indian economy and now offer niche services to this sector. For instance, IDFC FIRST Bank offers a ‘First Startup Current Account’ with features such as nil balance requirement for the first three years or free cash deposit up to Rs 30 lakh per month.

However, while the lure of “starting up” is enticing, one has to sit and think about how his or her idea can taste success and in turn impact the Indian economy too. If you are a budding entrepreneur, here are a few things you must consider:

Does the idea help people solve a problem?


People remember brands that help them solve a problem - this is the base on which a start-up builds success. For instance, if you think people are finding it hard to decide which credit card to take, you can consider building an app that lets them compare credit cards from different lenders; throw in some pros and cons too. This will make things easier for people who find this process complex and also helps banks indirectly reach more people and spreads banking access to different parts of the country. 

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Will it generate direct and indirect employment?


One of the biggest contributions the start-up industry has made to India’s economy is employment. If your start-up idea can do that, you’re set. Say you’re a fashion designer whose new fashion house uses cloth material from diverse parts of India, you not only employ designers for your company but provide business to cloth material sellers from various parts of India and also the transporters who bring the goods to your fashion house. It is not always about direct employment but indirect employment matters too.

Can it help the banks?


The banking and financial world is the Indian economy’s backbone. If your start-up idea makes a profit, it means you will park your money in your start-up’s current account. Now, the bank has more money and it can lend it to people in the form of home, auto, personal loans or increase the interest rates offered on savings accounts. Your profits help the people.

Start-ups are the future of India’s economy and if your idea strikes gold, it will play a major role in shaping the country’s financial future and secure the livelihood of thousands or lakhs of people. Give your idea the right amount of time, shape it with precision, and see it shine and join the ranks of some of India’s best-known start-ups.

All the best!

 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.