JUNE 20249modernization and development is expanding out of the luxurious boundaries of metro cities of India. The internet is one of the strongest factors which help us to get connected to the whole world at a time from a corner of your home. The entrepreneurs have initiated their idea, executed it, and brought it in the market through the digital channels of marketing and by utilizing the D2C and B2C channel of businesses that they have started gaining traction in the market. Social media is another influencing factor which fostered the growth of such young companies which needs a special push to achieve the desired popularity among its customers.2. Remote Work Opportunity: Being attached to a corporate sector, it is very hard to get extra time to work on your passion. Thanks to the pandemic, for introducing us to a new concept which is remote working. With this approach, visionaries are converting their time into creating wonders.On the other hand, this remote-first approach with managed offices and co-working spaces enabled the new companies to sustain their work being in the small towns and cities of India, instead of moving to the metro cities.3. Abundance of Cost-effective Talent pool: In the smaller towns of the country, the opportunities are very less, but it could not affect the young talents from knowing more and developing their skills. As, these Tier II, III, & IV cities are out of the limelight of the prominent business tycoons, job opportunities are lesser than the metro cities of India.The startups are utilizing the efficiency of these talented pools of people and turning them into talented workforce of their companies. As the cost of living is not that high in these cities, the entrepreneurs are getting cheaper workforce for their organization, which is immensely impossible in metro cities like Mumbai or Delhi.4. Lower Setup & Operational Cost: Startups is not just about talents and skills, it is much more than that. Kick-starting a business needs a large pool of money to be invested to set-up a business from grassroot level. In the maximum cases, initially the startups don't have investors with them, so they prefer the cost-effective options for setting-up their companies. In comparison to metro cities, the Tier II & III cities offer cheaper lands, machineries, and other overhead costs to maintain a business organization.Umesh Uttamchandani, Co-Founder & Chief Growth Officer, DevX Venture Fund mentioned, "We have seen startups relocating to smaller cities due to lower costs of living, increased internet penetration, and the availability of semi-skilled talent".A recent report of Deloitte & NASSCOM, which is regarded as `Emerging technology hubs of India' the number of tech talents in Tier II & III stood at 11-15 percent, which is expected to grow after the widespread remote work trend. It also added that, the smaller town of India is contributing 60 percent of India's graduates who are offering competitive advantages for the companies.Government Policies & Initiatives for StartupsStartup is the driving factor for the economy of a developing country like India. Indian Government is empowering the young talents and encouraging the entrepreneurs for ushering economic growth and boosting the employment in the country. The honorable Prime Minister of India, Narendra Modi has started Startup India Initiative in 2016.Under this organization, the government has invested Rs. 945 crore in Startup India Seed fund Scheme in 2021. Added, 10,000 crore in `fund of funds' for growing the domestic venture capital industry. The government launched Digital India Startup Hub programme and established a Digital India Investment Fund to Fund companies for the young startups for mentoring and guiding the startups in a well-defined path, the government has started Atal Incubation Centres (AIC). This incubator is offering young entrepreneurs from low-tier cities a vibrant ecosystem with veteran mentors, IP support, investor and market connect, learning and development programmes, amongst many others.Small cities and towns are the new breeding ground of the startups which are empowering bold endeavors towards limitless success"SC COLUMN
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