1. Chapter-4: Analysis & Result
Startups in any country are specifically of two types. One of those is that starts something from
the ground up and something which none can think about to and is often of outstanding. That
particular type of the startup is hard to formulate but if once will be created may face the
unbelievable growth in the wealth and strategy. Another type of startups is that one sees around
themselves are generally the ones which do not seem to reinvent or renovate the wheel of
progress (Kaddumi and Ramadan, 2012). They are more interested to add the flavor of the
previous type of organizations and add something new with it to show the renovation and are
invention of the type of organization. This kind of startups make the sense of the market
strategy and so they adopted one of the specific organizations and make the renovating ideas.
The government of India are more interested in those startups which shows the innovation
through the marketing and selling strategies. Thus, they can get fund and those funds are
allotted from the central bank that is Reserve Bank of India (Erasmus, 2010.).
Indian startups generally face challenges and barriers and some good opportunities from the
public side and from the side of government (Hair et al., 2016). Based on the challenges by the
startups, the government will decide for the funding which will result in the capital
management for India and for the startups as well. So, the challenges are the important
parameter to the startups to show their eligibility for getting the funds (Kaddumi and Ramadan,
2012).
The challenges are defined and discussed below based upon which the startups of the
Entrepreneurships get
Culture - Most of the companies that are basically the startups are based on Entrepreneurship.
Startups are only the latest phenomenon in the country India. This is only in the last few decades
that people in India have been moving from being the body to seek the job to the body who
basically create the job in the market. Executing a startup is very tough and challenging and
every country faces more failures than that of the success (Charitou et al., 2006). This may be
due to culture and influences that are the basis backbone of the Entrepreneurship. Previously,
in India, there was no concept of Entrepreneurship as for the lack of knowledge and
unavailability of resources. But now the government have allotted funds for the
Entrepreneurship and startups and this help to make the capital management in India.
Depending upon the type and size of the startups, the funds is allocated and the allocation is
dependent upon the location of the startups also (Hair et al., 2016). The location basically
2. defines the culture and thus defines the stability of the business there. So, depending upon this,
the finds are allotted to the Entrepreneurs and the overview of shown below.
Table-: Startups by city
Start-up by City
City No. of Start-up
Agra 2
Ahmedabad 35
Bangalore 628
Bangalore / Palo Alto 1
Bangalore / San Mateo 1
Bangalore / SFO 2
Bangalore / USA 1
Bangalore/ Bangkok 2
Belgaum 1
Bhopal 2
Boston 1
Chandigarh 10
Chennai 66
Chennai/ Singapore 1
Coimbatore 3
Dallas / Hyderabad 1
Delhi 4
Goa 7
Goa/Hyderabad 1
Gurgaon 240
Gurgaon / SFO 1
Gwalior 2
Hubli 1
Hyderabad 76
Hyderabad/USA 1
India / US 1
Indore 9
Jaipur 25
Jodhpur 1
Kanpur 4
Karur 1
Kerala 1
Kochi 2
Kolkata 19
Kozhikode 1
London 1
3. Lucknow 1
Missourie 1
Mumbai 446
Mumbai / Global 1
Mumbai / NY 1
Mumbai / UK 1
Nagpur 1
New Delhi 381
Delhi / California 1
Delhi / US 2
Delhi/ Houston 1
York/ India 1
Noida 78
Noida / Singapore 1
Panaji 1
Pune 84
Pune / Dubai 1
Pune / Singapore 1
Pune / US 4
Pune/Seattle 1
Seattle / Bangalore 1
SFO / Bangalore 1
Siliguri 2
Singapore 5
Surat 1
Trivandrum 2
Udaipur 1
Udupi 2
Vadodara 9
Varanasi 1
This tables shows the number of startups in India (Kaddumi and Ramadan, 2012). Those
startups are established due to the demand of the business perspectives in those cities. The
demand of the business makes the hype of the Entrepreneurship in India. It can be seen that,
some city are having high numbers of startups and this may be for the demand from the
consumers and the support to the government (Hair et al., 2016). So, this is the active support
to the startups to make the capital in India through the business and this will be helpful to
generate revenue for the government by making money from the customer as they are there for
such execution. The below figure shows the top 10 cities and bottom 10 cities of the number
of startups.
4. Fig-2 Analysis of Top-10 cities for number of startups
So, it can be seen that the Bangalore is facing the highest number of startups. Bangalore is well
known for the IT farms and everyday there are the new opportunities for the job. So, there most
of the people, after doing their job, should be interested for their own startups. They will
generally survey for the opportunities and find most relevant things to do (Charitou et al.,
2006). The local startups will be dependent upon the local culture and gradually this can be
made bigger in size with the support of the consumer that will be satisfied of their services.
Below the analysis shows the bottom 10 cites in India with number of startups (Kaddumi and
Ramadan, 2012).
5. Fig-3: Analysis of Bottom-10 cities for number of startups
From the analysis, it can be seen that Bhopal is facing the lowest number of startups in India
and it is for the local culture as well as the demand of the product which will not be fulfilling
the requirement and obviously the capital management.
So, depending upon the startups and the quality of operation and management, the funds are
provided by the government to the startups so that thy can grow more and can operate on the
basis of the capital and demand so that they can make the balance in between these two and
can propagate towards success (Charitou et al., 2006). The analysis will be done of the basis
of startup funding by the government and the table is shown below:
Table-2: Startup Funding
Investment by City
City Amount of Investment
Bangalore 8383774108
New Delhi 2750247500
Mumbai 2343694500
Gurgaon 2067821500
Chennai 411105000
Pune 282153000
Hyderabad 194762000
Noida 170338000
Ahmedabad 98186000
Pune / US 68500000
New Delhi / US 67000000
Jaipur 35560000
India / US 30000000
Chandigarh 26100000
USA/India 16600000
Bangalore / SFO 15300000
Pune/Seattle 15000000
Kolkata 13865000
Udupi 12000000
Mumbai / Global 11000000
Bangalore/ Bangkok 9900000
Bangalore / San Mateo 8000000
Vadodara 6040000
Bangalore / USA 5000000
Singapore 3850000
Boston 3000000
6. US/India 3000000
New York/ India 2950000
SFO / Bangalore 2700000
Goa 2380000
Bhopal 1900000
Indore 1672000
Coimbatore 1650000
Gurgaon / SFO 1200000
Bangalore / Palo Alto 1000000
Dallas / Hyderabad 1000000
Delhi 1000000
Lucknow 1000000
Pune / Dubai 1000000
Gwalior 900000
Panaji 825000
Hyderabad/USA 600000
Belgaum 500000
Missourie 350000
Noida / Singapore 300000
Kanpur 220000
Mumbai / NY 200000
Jodhpur 160000
Trivandrum 100000
Varanasi 52000
Mumbai / UK 40000
Kerala 27000
This table shows the list of entire cities of India which gets the relevant funds for the startups
from government. The Government will release the amount to the startups ot get it back in
terms of service and taxes (Azeez et al., 2016). So the high amount of funds will be given to
the startups, the more return can be obtained. The funds are released with high amount to those
cities which are capable of manipulating good business and hence catch the eyes of the
government and the customers also. The to-10 cities with capital funds are shows below:
7. Fig-4: Top-10 Cities with Capital Funds
So, the figure shows that Bangalore is having the high amount of fund and that is already shown
in the previous analysis that Bangalore is having high number of startups as there are the
number of Entrepreneurs is high and so he capital management is good enough to gram the
market. Hence, the bottom 10 cities are shown below which shows the analysis of the 10 cities
having lowest funds as they have not initiated good startups yet (Azeez et al., 2016). So,
Government is not releasing enough funds there as they know for the return will be satisfactory
if high amount will be released. So, the companies that is taken by the government is to release
good capital for the managing procedure of the cities which are well eligible for good business.
Thus, the Capital management good enough for those cities. The analysis is shown below:
8. Fig-4: Bottom-10 Cities with Capital Funds
So, the things are clear about the funding of the capitals is that this can be obtained if the
challenges are met the requirement of the nation and has the fruitful outcome for the naion.
Hence the government of India support with the funds with certain amount where it is required
(Azeez et al., 2016).
Startup India may be a theme of the govt of India to support startups and to encourage and
encourage new budding entrepreneurs. First, declared by the Prime Minister of Asian nation
on fifteenth August 2015, the campaign was launched on sixteenth Jan 2016 by the them
minister, Mr. Arun Jaitley. The event was attended by high ranking officers of business homes
and startup entrepreneurs (Dong and Su. 2010). underneath pop out Asian nation the govt has
provided many loan schemes to support the startups. As on 2018, the overall capital allotted to
the theme was Rs twenty,000 Crores. Government has additionally planned to setup startup
support hubs in NITs, IISERs and IIITs. Main objective of the program is to make an
atmosphere that is contributing to growth for startup businesses in Asian nation. Startup Asian
nation Standup India may be one more theme launched by the Modi administration for
advanced way forward for the Indian youths (Charitou et al., 2006).
Mentoring – Initiating a startup is the perilous and vry often a lonely and challenging journey.
The initiator may have the co-founders, but he may not necessarily possess the business acumen
9. to succeed. Having a brilliant idea is different from making that idea a business success. For a
startup, it is very important to have mentors who have been through a similar process of starting
or have business experience. A great mentor is often what separates success from failure by
providing valuable inputs (Azeez et al., 2016).
Depending upon the parameters, the government starts segregating the nation based on the
startups and funding them to managememt with the implication of GDP. The segregation of
the country with respect to zones are shown below:
Eastern Region
Region State
Sum of Authorized
Capital - Total
Sum of No. of
Companies - Total
EASTERN
REGION
Arunachal
Pradesh 0.43 11
Assam 9.01 190
Bihar 0.04 3
Jharkhand 0 0
Manipur 0.15 3
Meghalaya 0.84 15
Mizoram 0.11 6
Nagaland 0.11 10
Odisha 6.1 225
Tripura 0.15 11
West Bengal 189.64 1659
In eastern region, the highest number of startups are found in the state of West Bengal where
as the least number of startups are found in Jharkhand. So, the West Bengal has been recorded
with the high count for the Entrepreneur which is the positive sign for the state itself as well as
the country. This is the reason, in west Bengal is building more small industries for years as
the people of the state shown the capabilities and interest for the for growth of the
entrepreneurship and the industry itself. For this reason, the fund was allotted for West Bengal
is the one and no fund is allotted for the state of Jharkhand. This will show the interest and the
capability of the capital management on the basis of the state(Erasmus, 2010.). The analytical
and interpreted result is shown below which will reflect the analysis of the table show above.
10. Fig-5: Analysis of Sum of Capitals in Eastern Zone states
The above analysis shows the sum of capital allotted for the states on the eastern zone. The
below figure sows the analysis of the total number of companies on the basis of the states.
Fig-6: Analysis of Sum of companies in Eastern Zone states
So, in this section the analysis of ten eastern zone is visualized.
Northern Region
Region State
Sum of Authorized
Capital - Total
Sum of No. of
Companies - Total
NORTHERN
REGION
Chandigarh 9.18 94
Delhi 69.68 768
Haryana 5.65 95
11. Himachal
Pradesh 0.58 20
Jammu &
Kashmir 0 0
Punjab 3.7 119
Rajasthan 5.71 258
Uttar Pradesh 4.47 132
Uttrakhand 0 0
The table shown above demonstrate the status of the startups in the northern region. It ca be
seen that, the highest number of companies are see in the state of (basically U.T) Delhi. There
are 768 so counter startups in Delhi which is the highest count in India also based on the
population and the area. These high counts of the startups, the fund is allotted with high amount
whereas the Uttarakhand have faced the lowest count of startups and eventually there are no
startups in Uttarakhand and the reason behind that is the lack of knowledge of the
entrepreneurship and the wish to build a business. This kind of happening can be seen in those
places where the people are more interested in job and working under someone. In Delhi, as
this is the capital of the country, there are huge number people are there who wan to do business
rather by doing job. So, they choose the way of entrepreneurship through which they can earn
and obviously dedicate the mount to the government and help them to be motivated in the
enhancement of the GDP (Charitou et al., 2006). This GDP of the country, in most cases
depends upon the amount shared by the entrepreneurs and the startups.
The analysis result of the table shown above is defined below:
12. Fig-7: Analysis of Sum of Capitals in Northern Zone states
The analysis shows the outcome of the capital sharing for the states of the northern region and
the below analysis shows the number of startups of the states of the northern region.
Fig-8: Analysis of Sum of companies in Northern Zone states
So, this section is dealing with the analysis for the capital funding and the number of startups
of the northern region.
Southern Region
Region State
Sum of Authorized
Capital - Total
Sum of No. of
Companies - Total
SOUTHERN
REGION
A & N
Islands 0.11 2
Andhra
Pradesh 28.36 542
Karnataka 48.29 625
13. Kerala 18.6 324
Lakshadweep 0 0
Puducherry 1.76 14
Tamil Nadu 87.29 635
The above table shows the analytical outcome for the southern states or the southern region.
Apart from some of the states, all the other states like Tamil Nadu, Kerala, Karnataka and
Andhra Pradesh are mostly forwarded with the entrepreneurship and so they are mostly
encouraged for the startups. With that initiatives, the government are encouraging by providing
necessary funding to those states. Among those states, Tamil Nadu is most progressing and
forward in the field of the startups. So, the high number of startups are found in that state. On
the other hand, Lakshadweep has no count for the start-ups that is the people of there is not so
interested in that field. Fr this reason Tamil Nadu is getting the highest funds in the field of the
entrepreneurship and for the start-ups for which the government will also get back the revenue
for the same. With that comparison, Karnataka is getting lesser amount for the same and this
can be said that, the quality of the start-ups in Tamil Nadu is far better from Karnataka and so
the government is bearing extra amount in Tamil Nadu to get more revenue from the start-ups.
Fig-9: Analysis of Sum of Capitals in Southern Zone states
The analysis is showing the outcome for the capital provision for the state of the southern
region. The below analysis is showing the number of start-ups are there in the states of Southern
region.
14. Fig-10: Analysis of Sum of companies in Southern Zone states
So, this section is dealing with the analysis for the capital funding and the number of startups
of the southern region.
Western Region
Region State
Sum of Authorized
Capital - Total
Sum of No. of
Companies - Total
WESTERN
REGION
Chhatisgarh 0.04 4
Dadar & N.
Haveli 0 0
Daman & Diu 1.76 1
Goa 8.5 71
Gujarat 7.08 222
Madhya Pradesh 18.43 174
Maharashtra 83.9 1329
Thee table above is showing the statics of the startups if the western region. It can be seen that,
Maharashtra has the highest number of startups.
There are 1329 numbers of startups in Maharashtra which is the highest count in this region
also based high population of the state and also for the area. The population matters in this case
as is the population will be higher, the probability of building of the idea for the startups will
be greater but this is not be applicable for those states where the awareness is lesser. Th
awareness of the startups is appreciable and thus the people are interested in it. These high
counts of the startups, the fund is allotted with high amount whereas the Daman & Diu have
faced the lowest count of startups and eventually there is only one startup in Daman & Diu and
15. the reason behind that is the lack of knowledge of the entrepreneurship and the wish to build a
business. This kind of happening can be seen in those places where the people are more
interested in job and working under someone. In Maharashtra, as this is the capital of the
country, there are huge number people are there who want to do business rather by doing job.
So, they choose the way of entrepreneurship through which they can earn and obviously
dedicate the mount to the government and help them to be motivated in the enhancement of the
GDP. This GDP of the country, in most cases depends upon the amount shared by the
entrepreneurs and the startups.
Fig-11: Analysis of Sum of Capitals in Western Zone states
The analysis is showing the outcome for the capital provision for the state of the western region.
The below analysis is showing the number of start-ups are there in the states of western region.
16. Fig-12: Analysis of Sum of companies in Southern Zone states
Capital Management and GDP
Startup India campaign is a good action set up that has intent to market bank finance for the
start-up and their ventures to extend their entrepreneurship and encourage the start-ups with
several creativity of jobs. The startup campaign was initiated by Prime Minister Modi in his
while in the Red Fort on 15th August. The dedication of this on to limit role of the domain of
policy of the States and on the way of elimination of "license raj" and interruptions like in the
permission of land acquisition, proposal for the investment in foreign and the clearance to the
environmental issues. it had been organized by Department of business Policy and Promotion
(DIPP) (Iqbal and Zhuquan. 2015).
To fulfil the operation and the objectives, several measured were taken to feed and boost up
the entrepreneur for the mutual benefits for both the entrepreneurs and the government as well.
Some of the steps weer taken by providing money as loan to the startups so that the startups
can be formed and will not be backtracked for only the money issue. This is done by the
government as for the capital management for India so that the GDP will be higher and will
cross the limit (Kaddumi and Ramadan, 2012).
The Action set up is split across the subsequent areas:
Handholding and the Simplification to work procedure
17. Support the startups with permissible funding and give the opportunities for the
incentives
Initiate the partnership of the academics and the industry for better academic
enthusiasm and education for the need of it.
Main options of Startup Bharat campaign
Introducing mobile application for the clearance of the transaction and doubts also in a
single window
Introducing huge investors for the funding purpose to the startups.
Reduction of the registration fee which is one of the barrier to the startups
Introducing friendly Bankruptcy Code for easy clearance of the payment gateway
Independency of cryptic allocation of money for three years
Independency from financial Tax for three years
Independency from tax in profits for three years
Minimizing long term procedure
Self-certification compliance
Innovation hub beneath Atal Innovation Mission
Focusing on the entrepreneurship education program for the encouragement of the new
entrepreneurs.
New schemes to supply IPR protection to start-ups and new companies
Encourage the entrepreneurship over the nation.
Spreading awareness to the people of India.
Capital Funding
State 2016-2017 2017-2018
Andhra Pradesh 12758.83 14624.21
Arunachal Pradesh 2959.71 3410.48
Assam 12550.78 12039.32
Bihar 31932 29477.21
Chhattisgarh 9313.92 12080.89
Delhi 8752.22 10726.91
Goa 2177.45 3573.75
Gujarat 32892.36 35532.05
Haryana 8853.34 9805.18
Himachal Pradesh 4449.58 4850.93
Jammu & Kashmir 11420.62 11205.44
19. It can be observed that the capital funding is higher in the norther region and the most start
belonging to the state of Uttar Pradesh. So, this will affect on the GDP for the enhancement
and for this issue the funds were granted.
Indian GDP due to Capital Funding
States 2016-2017 2017-2018
Andhra Pradesh 468494 532922
Arunachal Pradesh 14607.36 16389.23
Assam 177745.2 198098
Bihar 317101.3 373919.9
Chhattisgarh 206785.7 236317.8
Delhi 446806.8 494460.3
Goa 42243.45 45547.55
Gujarat 807623.2 895926.7
Haryana 395747.7 441864.3
Himachal Pradesh 94764.16 104368.8
Jammu & Kashmir 97400.31 102680.5
Jharkhand 188566.6 217107.2
Karnataka 818167.2 920061.4
Kerala 465039.8 526774.4
Madhya Pradesh 435789.9 484537.6
Maharashtra 1647506 1792122
Manipur 16198.43 18042.76
Meghalaya 22938.24 24064.99
Mizoram 10293.37 11559.33
Nagaland 16611.85 18414.24
Odisha 277270.7 309807.2
Puducherry 21870.12 24088.57
Punjab 334714.3 368010.9
Rajasthan 549700.6 612194.5
Sikkim 13861.9 15209.33
Tamil Nadu 971089.9 1092564
Telangana 460171.5 522001.1
Tripura 25592.83 29666.62
Uttar Pradesh 944145.7 1043371
Uttarakhand 149816.6 161985.3
West Bengal 706561 800868
The analysis of the data is shown below for the effect of the Capital Funding on the GDP of
India.
20. Fig-14: Capital Funding and GDP
So, it can be said that the eastern region has the highest capability of having the high revenue
generation though the startup that will attract more funds and hence will generate more GDP.
GDP Growth:
States 2014-15 2013-14 2012-13 2011-12
2010-
11
2009-
10
2008-
09
2007-
08
Andhra
Pradesh 532922 468494
410960.
8
379229.
6 319864
27332
7
23738
3
21236
1
Arunachal
Pradesh
16389.2
3
14607.3
6
12546.6
5
11062.6
9 9021 7474 5687 4810
Assam 198098
177745.
2
156864.
2
143174.
9 112688 95975 81074 71076
Bihar
373919.
9
317101.
3
282367.
9 247144 203555
16292
3
14227
9
11368
0
Chhattisgar
h
236317.
8
206785.
7
177511.
3
158073.
8 119420 99364 96972 80255
Delhi
494460.
3
446806.
8
391071.
4
343260.
4 252753
21761
9
18953
3
15794
7
Goa
45547.5
5
42243.4
5
38647.2
9
42252.7
4 33605 29126 25414 19565
22. The outcome of the growth of the GDP with respect to the capital management by the strtaups
is shown below:
Fig-15: GDP Growth by the Indian Startups
Conclusion:
In this analysis, it can be seen that the investment of the government is seem good when
analyzing the GDP of India. In that analysis, the GDP is shown to be increasing with the
incorporation of the startups and hence the more return will be attained by the government. On
the way to achieve the success, the government also organize the awareness program for
encouraging the Indian people to make them highly engaged with the startup business and to
get the revenue back for the goodness on India and it is also seen to be successful on the way
to achieve the capital management of the startups with the help of the interest of entrepreneurs
and the government and with their collaboration.
