This presentation is the out come of the research for my MBA thesis. Various Indian software start up company founders were interviewed for this project. This will be very helpful for those who are willing to explore more on Indian IT / Software startups.

1. Factors influencing Information
Technology startup companies In India
K PUSHPARAJ
(PUSHPARAJ.KAMARAJ@GMAIL.COM)

2. Introduction
 Information Technology is growing in faster rate across the globe. Every industry
and consumer facing services are revolutionized by software. For more than a
decade.
 IT is growing faster in India and contributing much to Indian GDP. It creates
tremendous opportunity for Indian entrepreneurs.
 The purpose of this research is to identify the factors which influences an
Information technology start-up and supports its success in India.
 The research methodology is based on questionnaire and discussion with
technology start-up founders

3. Organization background
Managemen
t
17%
Ars &
Science
33%
Engineering
50%
Education Qualifications
Yes
50%
No
50%
Business Background
<10
67%
20
16%
31 – 40
17%
No of employees
Private Ltd
67%
Sole
Owership
33%
Company Type
Product
67%
Services
33%
Company Market Domain

4. Operational Parameters
No
83%
Yes
17%
collaboration with university
50 Lakh - 1 Cr
34%
20-50 Lakhs
33%
<20 Lakhs
33%
Capital Invested
5%
40%
>5%
60%
R&D Expenditure
Own Fund
80%
Borrow from
Govt institute
20%
Recommended source of investment

5. Human resource related
Adequate
17%
Not Adequate
50%
Over supply
33%
Availability of skilled resources
Costly
67%
Average
33%
Cost of skilled resources

6. Organization Parameter
0
5
10
15
20
25
30
35
Innovative Idea Capital options Technology Customer base Time to market Importance of
marketing
Organizational
structure
Mode of marketing
Importance of various organization parameters

7. Factors influencing external funding
0
5
10
15
20
25
30
Type of industry Number of years of
operation
Employee Size of the
organization
Customer base Education qualification Location (With in SEZ / ITP
/ Business park etc)
% of export business
Factors influencing external funding

8. Importance of entrepreneur skills
0
5
10
15
20
25
30
35
40
45
50
Risk taking
capability
Decision
making
capability
Time
management
Planning &
Organizing
Financial
Planning
Self-motivation Customer
centric
Positive attitude Multi-tasking Negotiation Reputation
building
Importance of entrepreneur skills

9. Relationship between Education Qualification & the
choice of business type
 Null Hypothesis: H0: Variable "Education & Qualification" and "choice of business
type" are independent.
 Alternate Hypothesis: Ha: Variable "Education & Qualification" and "choice of
business type" are not independent.
Critical Value (7.71) > F ratio (0.25)
 Analysis of variance clearly shows that Education qualification and choice of
business type are independent.

10. Suggestion & Recommendation
 Government policy should change to encourage and support start-ups and attract them to
use SEZ infrastructure
 Various State Governments may do well to prepare entrepreneur-friendly Tech startup
policies to attract start-ups at Chennai and Hyderabad respectively.
 Government policy and support to change dramatically to help the startups to acquire the
required fund
 Start-ups should be open to approach various government R&D institutes and universities.
They need to collaborate lot with universities
 Various state governments i.e) Chennai, Hyderabad to improve the startup ecosystem to
attract more start-ups in their locality
 Need for integrated approach to tax, so that tax regime is achieved supportive of the
whole tax start-up ecosystem.