Student’s corner

Dear Students,

LAST WEEK WE ASKED:

Do you think the economic slowdown might result in lower number of start-ups this year?

BEST RESPONSE

During the initial start up phase financial support is required to run the business. Due to the economic slowdown there will be less infusion of money in the economy which will hamper the potential loan capacity of entrepreneur and running cost of business. Even during the slowdown the government can help the entrepreneur by making policies by which loan taking will be easy for them, providing them with expert support, training, workshop to convert their ideas into product otherwise economic slowdown might result in lower number of start ups this year.

- Nilaya Mitash Shanker, Shri Ram Swaroop Memorial College of Engineering and Management (SRMCEM), Lucknow.

OTHER RESPONSES

Launching a company even in the best of times is not for the faint of heart. Doing so in an inhospitable economic environment requires true grit and supreme confidence. Many Indian entrepreneurs have shown just these traits by starting companies in the middle of the worst global slowdown since the Great Depression. If a company has a great idea, it should just take the plunge, economic downturn is as good a time as any to startup. Keynesian economics may support fiscal expansion during a recession, and in the Indian context, this great economist's views have always proven to be true.

- A Bhuvana Bhimaiah, Alagappa University, Karaikudi

Risk and returns are the two primary elements an entrepreneur will be looking at while initiating a start-up. Risk minimization and maximum returns on investments are the primary goals but vice verse happens during economic slowdown. Start-ups are definitely affected in a negative manner as the entrepreneur's risk capacity is at minimal. So the negative impact of slowdown on risk and return indeed will lower the number of start-ups this year.   

- Jimit Parikh, St. Kabir Institute of Professional Studies, Ahmedabad.

Unlike western countries where there is almost a visible impact of economic slowdown, India however faces a somewhat paradoxical situation. Despite slowdown campus placements are seen moving albeit at a slower pace. Incidentally, Indians don't seem to be concerned so much about slowdown as much as their western counterparts. As the economy moves forward to roll on to high growth trajectory, possibly the number of start-ups might witness a spurt.

- Arvind Umashankar, VNIT, Nagpur.

The present economy is very typical for newcomers to survive. As of now Europe is struggling hard to cope up with its financial crisis. When a major part of the world is on the downside, India too is having a hard time on the economic front. Thus the present critical situation is bound to decline the number of start-ups this year. Usually start-ups having limited operating history would obviously find it difficult to achieve success thereby automatically subsidising their number.

- Shivam Chhabra, Integral University, Lucknow.

Start up through personal initiative is an attitude and is independent of the socio economic political atmosphere. The challenge is to think beyond to create new opportunities in times of adversity. When the economic scenario doesn't reassure one's capabilities then the country will see more people trying to carve their own future through innovation. Economic slowdown opens the floodgates of personal initiatives to position a product and/or service conceived and developed by oneself by ensuring adequate returns on investment and assuring utility and amenity value.

- Soma Dutta, Jadavpur University.

The economic slowdown presents a grim picture of the present industry where there is a decline in the number of job opportunities in the market. This scenario, though not conducive for start-ups, makes the person look for other alternatives, and transit from job-seeker to a job-creator. As a result, the market will witness a spike in the number of niche start-ups, particularly in the field of research and innovation, where the opportunities in terms of growth and scalability are much higher than the present industry offers.

- Akshay Chadha, NSIT, Delhi.

For start-ups, the global market is most concerned. But the important thing is the industry growth in which the business is going to start, so the respective field must be booming or there must be growth opportunity for the start-up to success. As far as economic slowdown is concerned there is help from the government to encourage such start-ups requiring investment. Here the question is of opportunity to start business and availability of resources.

- Nirav N. Choksi, SV Institute of Management, Kadi.

Entrepreneurs are the backbone of any economy. Zeal, self confidence and inner urge to excel are some of the drivers that motivate entrepreneur, especially in the bad times. The ups and downs are the two side of the business cycle which the entrepreneur should be aware of. Instead it should not postpone one's business decisions for establishing new start-ups. Entrepreneur should always remember that 'big opportunities lies in big problems' and take brave steps to climb the ladder of success in the corporate arena.

- Harsh Mehta, St. Kabir Institute Of Professional Studies, Ahmedabad.

With the country witnessing an economic stutter, the areas that have been contributing to this effect - mainly, the manufacturing sector - would definitely feel the pinch and layoff quite a few workers. With the IT sector still showing some robustness, workers there would not feel as much heat as they did during the 2008 financial crisis and thus lack impetus. Nonetheless, a good idea will always find fund raisers although success of their product would depend on the buyer's purchasing power.

- Subhadra Nair, Rajagiri Public School, Cochin.

Your responses should reach us at edu@business-standard.com by Monday evening every week. Please ensure that your responses do not exceed 100 words. Avoid attachments and email your full name, institute's name, batch and complete mailing address. The student who gives the 'Best Response' will be awarded Rs 500.

THIS WEEK'S QUESTION:

Do you think plagiarism has increasingly stunted research among Indian institutes?