Entrepreneurs are significant to economies because they can play the role of catalysts in the process of industrialisation and economic growth. Coming up with a knock-out, risk laden idea and leading teams to global success, entrepreneurs bring innovation, creativity and growth to businesses of all sizes.
These are all very impressive achievements, and more so when these milestones are reached by people in twenties. Two of the significant outcomes of a vibrant entrepreneurial ecosystem is job and wealth creation.
Some of the world’s most valuable firms such as Apple, Tesla and Facebook had humble beginnings as startups and were founded by wildly successful entrepreneurs–Steve Jobs, Elon Musk, and Mark Zuckerberg.
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The 2022 Global Startup Ecosystem Report (GSER2022) shows $6.4 trillion in global startup economy value creation.
The #GSER2022 ranks startup ecosystems on seven success factors, including performance and talent. The same five ecosystems remain at the top of the ranking as in 2020 and 2021, but Beijing has dropped one place, with Boston taking its former place at #4. Silicon Valley is #1, followed by New York City and London tied at #2, Boston at #4, and Beijing at #5.
According to First Site Guide, the United States is the leading country by the number of startups (71,153), with over 69% of entrepreneurs having started their business at home.
The Guide further states that the highest-valued private startup in the world is Bytedance from China ($75 billion).
As of 2021, there were over 590 unicorns globally, with the majority based in the US and China, the Guide adds.
India has emerged as the third largest startup ecosystem in the world, with 107 unicorns (startups with valuations of $1 billion or more) boast of a total valuation of $340.79 billion, as of 7 September 2022.
In the year 2022 itself, the Indian startup ecosystem has added 23 new entrants to the coveted $1 billion valuation club.
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And by 2025, India is expected to have 250 unicorns. Home grown startups are known to have solved real world problems and disrupted the IT, education, healthcare, agriculture, among other industrial sectors.
According to GSER2022, several Indian ecosystems have risen in the rankings, most notably Delhi, which is 11 places higher than in 2021, entering the top 30 for the first time at #26. Bangalore has moved up one place from last year, to #22.
As per Global Entrepreneurship Monitor (GEM) India Report (21-22), India’s entrepreneurial activity expanded in 2021, with its total entrepreneurial activity rate(percentage of adults (aged 18–64) who are starting or running a new business) increased to 14.4% in 2021, up from 5.3% in 2020. GEM is an international project which seeks to provide information on the entrepreneurial landscape of countries.
With 7.1% of the startups in the world operating in the fintech (financial technology) industry, India has the highest fintech adoption rate in the world at 87%, the global average rate being 64%. India’s largest share from fintech startups is through ‘payments’ and is followed by lending, wealth tech, personal finance, insurtech, regtech and others.According to The Fintech Times, the untapped opportunities presented by the unbanked populations alongside a large population with a sizable youth demographic, large smartphone penetration and increased internet access have all led to the growth and expansion of the Indian fintech ecosystem. The ‘Digital India’ project launched by the Government of India also played a significant role in accelerating the adoption of fintech.