Know How to Become a Successful Entrepreneur in India

Over the past few years, there’s been a sudden interest among different age groups in how to become an entrepreneur in India. In fact, a 2021–2022 economic survey posits that India has the third-largest startup ecosystem in the world. This clearly translates into more and more professionals embracing entrepreneurship.

However, this is not a path without its challenges. In contrast, entrepreneurial opportunities have increased in India, but only a handful of people manage to achieve success, like OYO’s Ritesh Agarwal or FreeCharge’s Kunal Shah. Read ahead to learn how to become a successful entrepreneur in India’s current startup climate.

In this blog, you will learn:

1.     How to become an entrepreneur in India: Skills needed for starting up
2.     What are the key challenges faced by entrepreneurs in India?
3.     How can I secure funding for a startup in India?
4.     Are there any government initiatives that support startups in India?
5.     What are the legal requirements for registering a business in India?
6.     What are some successful startup stories in India?

How to Become an Entrepreneur in India: Skills Needed for Starting Up

Entrepreneurship offers one the freedom to be their own boss. The question, however, is how to become an entrepreneur in India. We, therefore, look at five critical skills required to become an entrepreneur in India.

1. Business Management

First and foremost is business management. It is, in fact, a crucial entrepreneurial skill that plays a pivotal role in the growth and success of any startup. It not only enhances planning, strategizing, and team management but also imparts financial management skills. All of these are the foundations for entrepreneurial success. Moreover, good business management skills equip entrepreneurs with a wide range of skills and practices that help them achieve their desired business goals.

2. Effective Communication and Listening

Effective communication skills enable entrepreneurs to express thoughts, ideas, and emotions clearly through speaking, writing, and other forms of expression. Furthermore, the ability to communicate well is also necessary to explain concepts, plans, and strategies and build a collaborative team. On the other hand, good listening skills allow them to understand information and provide appropriate responses.

3. Critical Thinking

Another significant skill is critical thinking. An entrepreneur must be open to exploring new ideas that can lead to multiple solutions to a problem. Critical thinking, therefore, is a required skill. It allows one to consider different perspectives before making an informed decision and arrive at the most efficient solution.

4. Time Management

Effective and smart time management is the bedrock for understanding how to become an entrepreneur in India. Entrepreneurs must be good with delegation, task prioritization, and resource management; it helps foster a well-structured and efficient work environment. Moreover, with strong time management, entrepreneurs can achieve goals, reduce stress, maintain work-life balance, and enhance their overall well-being and satisfaction.

5. Networking Skills

Finally, entrepreneurs must possess networking skills to expand their businesses and seize opportunities. These skills help promote and sell products or services effectively. Additionally, excellent networking skills facilitate valuable relationships with potential customers, partners, suppliers, and colleagues.

ALSO WATCH: Skill Sets That Will Dominate in the Digital Economy

What are the Key Challenges Faced by Entrepreneurs in India?

Understanding how to become an entrepreneur in India also means acknowledging the challenges that can crop up. Some of these are:

1. Raising Funds

Money remains a significant challenge, especially in India, where 99.5% of the Micro, Small, and Medium Enterprises (MSMEs) stagnate due to banks’ lack of financial support. Therefore, entrepreneurs planning to set up their business in India must decide when, how, and from whom to raise capital.

2. Getting the Right Talent

Getting the right people for the right job is also a challenge. After all, assembling a dream team is crucial for success. However, finding the right team members who share the same vision and believe in the idea can be challenging yet vital.

3. Limited Budgets for Marketing Campaigns

As a new business, increasing visibility among consumers is crucial. Effective and efficient marketing campaigns, including digital and social media marketing, are essential. However, increasing online presence with organic ads is time-consuming, and opting for paid ads can be expensive, especially for bootstrapped businesses. So, entrepreneurs need to get creative with their marketing solutions to generate buzz around their products or services and increase their visibility.

ALSO READ: 5 Important Benefits of Innovation in Business

How Can I Secure Funding for a Startup in India?

When venturing into entrepreneurship in India, a crucial question before ‘how to become an entrepreneur in India’ is how to secure funding for the company. Here are four ways an entrepreneur can secure funding for their startup.

1. Angel Investors

Angel investors offer funding to entrepreneurs at the initial stage. They provide seed capital, which is the money required to set up the business. Generally, this capital comes in exchange for the startup’s convertible debt or equity ownership. CRED’s Kunal Shah and OYO Rooms’ Ritesh Agarwal are examples of angel investors.

2. Venture Capital Firms

Venture capital firms are institutions that offer capital to startups in return for equity in the company. They closely monitor the startup’s progress to ensure an investment return. Two types of venture capital firms are gaining momentum in India—micro venture capital firms and corporate venture capital firms.

3. Government Grants

In 2016, the Indian government introduced the Startup India initiative, offering registered startups patent cost rebates and income tax exemptions. The funds are disbursed as loans through the Small Industries Development Bank of India’s (SIDBI) Fund of Funds Scheme (FFS).

4. Banks

Additionally, Indian startups also have access to traditional bank loans. Banks provide different types of loans, like equipment loans, startup business loans, and working capital loans, each catering to specific business needs with varying terms.

Are There Any Government Initiatives to Support Startups in India?

The Indian government has undertaken various initiatives to support startups in the country, some of which include the following:

• Fund of Funds for Startups (FFS) Scheme

The Indian government has set up the FFS to meet the funding needs of startups. Under the FFS scheme, the Government of India provides capital to SEBI-registered Alternative Investment Funds (AIF) and the Small Industries Development Bank of India (SIDBI), who, in turn, invest money in growing and potential startups.

• Startup India Seed Fund Scheme (SISFS)

The scheme aims to extend support to startups at various stages of their business cycles. That is financial assistance for ideation, prototype development, product trials, market-entry, and manufacturing.

• Credit Guarantee Scheme for Startups (CGSS)

The Department for Promotion of Industry and Internal Trade (DPIIT) introduced the CGSS scheme to promote startup growth in India. In this scheme, the National Credit Guarantee Trustee Company (NCGTC) provides credit guarantee coverage to banks that provide loans to startups.

What are the Legal Requirements for Registering a Business in India?

A critical question that arises along with how to become an entrepreneur in India is how to register your entrepreneurial venture in India. Entrepreneurs willing to develop a legalized startup need to register it with the Ministry of Corporate Affairs (MCA). However, one doesn’t need to go to the MCA’s office for registration. This can be done from home.

Here’s a step-by-step guide on how to register a business legally in the country:

1. Before filling out the form, acquire a Digital Signature Certificate (DSC) to confirm the authenticity of the documents submitted with the form. DCS is a digital copy of an entrepreneur’s signature that ensures the security and authenticity of documents.
2. Get the Director Identification Number (DIN) number. It is a unique number allotted by the central government to directors of a new or existing company.
3. Create an account on MCA’s portal and fill out forms like Form-1, Form-18, and Form-32 of The Companies Act, 2013 to register the company.
4. Upload documents such as the Registrar of Companies (ROC) to confirm the availability of the Company name, DIN of all directors of the proposed company, and DSC with the form.

ALSO WATCH: Insights Into Leadership and Its Different Types

What are Some Successful Startup Stories in India?

Now that you know how to become an entrepreneur in India, let’s look at some successful Indian startup stories.

Ola

Bhavish Aggarwal and Ankit Bhati have transformed India’s transportation industry with Ola, a user-friendly and dependable ride-hailing platform. Ola is one of India’s first homegrown cab aggregators and is currently operational in 250+ cities.

Paytm

In 2010, Vijay Shekhar Sharma established Paytm to transform digital payments in India. With its user-friendly mobile wallet and strong payment infrastructure, Paytm has empowered millions to transact effortlessly online. Moreover, according to the Forbes 2020 list of the 100 richest Indians, Vijay Shekhar Sharma, the Paytm CEO, is the second-youngest billionaire right now, with a net worth of $2.35 billion.

Become a Confident and Successful Entrepreneur With Emeritus

If the above article has sparked an interest in you to wade into the waters of entrepreneurship, then Emeritus has what you need to get there. Sign up for leadership courses to realize those entrepreneurial dreams and become successful leaders who can steer the organization toward profitability. Furthermore, enrolling in these courses enhances the aspirants’ strategic thinking and leadership capabilities.