Startups in India have recorded a collection of $3.9 billion from venture capitalists in the six months until June 2019. The investments in 2019 is a 44.4% jump from the $2.7 billion received by domestic startups in the first half of 2018, according to data from Venture Intelligence, a startup data tracker. The investments in 2019 indicate an increase in capital allocation for startups in the last six months. This is indicated from the data, as per which, while there were full-year investments of $4.2 billion in 2016, the full-year investments recorded in 2017 was $4.3 billion in 2017.
What is a start-up?
A start up is a new company founded by one or more entrepreneurs to develop and market a new product or service. The hallmark of the product or service is its uniqueness/innovativeness vis-a-vis similar product or services in the market. After a start-up launches a product, its goal is to raise a substantial amount from lenders and investors to develop the product further. In the early stages of a start-up, the entrepreneurs have an idea, which is then developed and tested in the market. Start-up owners, for the initial period, use traditional funding sources like small business loans from banks, service providers and other lenders along with grants from government or non-profit organisations. Venture capitalists and angel investors often invest in promising start-ups in the hope of getting high returns, once the company gets off the ground.
However, as the start-up is a new venture, it is also prone to the risk of failure, and investors do not invest money in a start-up that does not show promise. Some of the most successful start-ups in the world include Microsoft founded by Bill Gates, Ford Motors founded by Henry Ford and Mc Donald’s founded by Ray Kroc.
Now, you can easily expand your start up with MSME (Micro Small and Medium Enterprise) loans by investing in its infrastructure, building a new warehouse, stocking goods and maintaining cash flow with the help of a start-up loan available on Finserv MARKETS.
A startup is invariably different from a regular job. Here is a comparison between a start-up and a job on the basis of three variables.
Learning opportunities and professional growth
A regular job can help you master a role or skill like sales or marketing. You can focus on your role without worrying about other responsibilities in the corporate company. This will allow you to hone your skills in one specific direction. In the case of a start-up, you will have to handle multiple tasks. This can help you master various tasks. While professional growth, to an extent, is fixed in a job, there is no limit for the professional growth in the case of a start-up. Conversely, if a start-up runs in losses, then it can adversely affect your professional growth.
Job stability or professional security
A regular job is, usually, more safe and secure than a start-up. Because in the case of a job, you have to meet the earmarked targets, which is the basis for evaluating your performance. In the case of a start-up, while you might love your role, the period of employment remain uncertain. If the start-up company is short of funds, you can be easily fired. Working with start-ups is also risky as these companies do not retain employees with a poor or mediocre performance. While you may get time to learn your role in corporate companies, there is no time for skill building in a start-up, even in the case of a new role.
In the case of a regular job your working hours are fixed. The working hours are outlined in the contract between the employer and employees, and overtime hours are at the employee’s discretion. Working for hours longer than those defined in the contract, are payable by a higher remuneration. Whereas in the case of a start-up, there are no fixed working hours, and you often have to work for long hours to create a solid customer base. This might take a toll on your family and social life.
Both regular jobs and start-ups have their own set of specific advantages and disadvantages. You have to first plan your professional goals and choose the option which provides the best trajectory for growth. Both jobs and start-ups are valuable in their own sense, and it is always a personal choice to join a corporate company or a start-up.
If you are an entrepreneur, who has just begun with a start-up company, you must ensure that your business survives in a cutthroat competitive environment. For this, you require substantial amount of funds along with sound management skills. A Business Loan for entrepreneurs in India, available on Finserv MARKETS, provides low interest, fee and charges along with zero hidden costs. You can avail a loan amount of up to Rs 30 lakh and meet several financial requirements of your firm like investing in infrastructure, meeting working capital requirements, installation of new plant and machinery and payments for several overheads. This loan also does not require a collateral.
Also, get to know more on the benefits of business loan
Read more about Government Schemes for Start Ups
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