ABSTRACT
Start-ups have garnered significant attention in India, as well as many other areas of the world, in the past few years. Start-ups may produce significant solutions through innovative and adaptable technology, acting as vehicles for socioeconomic growth and transformation. Some businesses were created in recent times, but the ecosystem was still in its infancy, with just a few investments and a limited number of support programs such as incubators. As business environments have evolved, there are signs that the function of incubators has shifted and extended to a center giving training, with over 20,000 start-ups and a year-on-year growth rate of 10–12%, India boasts the world’s second largest start-up ecosystem. Since business settings have changed, there are indications that the purpose of incubators has moved and expanded to a center for training and support, connecting, and consulting to new enterprises in all fields of specialization rather than just a business center with office space. According to incubators, the major worry or problem was establishing “suitable” infrastructure with specialized technology that met the demands of the companies. In terms of investment, incubators were concerned about the scheme’s rigidity. Some incubators opted to extend financing or make grants rather than make equity investments. This issue originated largely from the regulatory complexities of incubators at educational institutions that make equity-based investments in businesses. Start-ups do not exist in isolation, but rather as a component of the larger economy. In terms of the regulatory framework, it is thought that enhancing the execution of existing start-up regulations and eliminating inefficiency within the administration is critical to making it easier for start-ups to do business. Start-ups would benefit from less paperwork and documentation, improved access to information, more standardized operational processes, and clear criteria.
