Almost every youngster studying in tech college has an idea about which s/he thinks to be grown as a business. There are a number of reasons why everyone has a unique idea and there is 99% chance of that becoming a successful business today in a developing country.
1) The major reason for the boom is the increasing dependency of everyone on online services. Today after a tiring day, everyone expects to lay down at home and have ready-made food available in their hands. Weekends feel good when you do not need to go to a busy shopping mall, but rather the services come at your hand. So, it is really clear that what type of services are coming as start up and why they are so in demand too.
2) Whenever amazon offers you a better offer than Flipkart, you obviously chose to buy the same product from amazon. So, this is how more competitors rise in the same market. From my college, I saw 4 apps which are built in the same year to just provide online food delivery services. All of them are getting good venture support because they are investing in same customers via various deals which the other one misses. So it is just not about the product, it is also about the customer service and marketing strategy. which has broadened today.
3) The customer segment has broadened a lot since the online services have made services cheaper. Even a lower-middle-class family, just running on the budget can look forward to buying daily necessities from say, snapdeal. Also, this has made the producers of the product diversify their products as per different societies. For example, HUL makes the same product in the different package to facilitate different needs.
4) The developing countries like India have always managed to make the best of the situation by the method named as "Jugad" which in normal words can be said as rudimentary innovation which are necessary for making things work in lack of best available facilities. The ideas like reverse innovation in medical technology are one of its consequences. This helps in low-cost technologies with same and maybe, even better results. This has helped many small scale enterprises to rise in rural areas or urban poor areas and develop as renowned projects throughout the country.
The bigger question - Does it help the bigger scenario i.e. the development of the country, as a whole? This question struck me as I had to take some decisions about my life myself. So I stumbled upon some interesting articles and studies. Here are some conclusions based on them and different work experiences -
1) When I worked as a summer intern at one of the biggest FMCG firm of world in India, I realised strikingly that the technical expertise hired was used only for management of projects and implementing something locally which was already carried out by someone sitting in a developed country. This was not innovation and not worth the skills of the students who were brightest from the best technical colleges. Luckily, I had the chance to do something completely innovative and I have always been thankful to the firm for that.
I think this is exactly what is happening in the trending online startups of India. We are copying something prevailing in western countries and setting them up locally. It is good for the consumers, and yes, it helps in improving employment but it doesn't mean we have innovated something new and thus it prevents us from being leaders. I have seen that investors are not interested when you claim that you are the only one in the market selling such a service or product. This discourages the startups more.
This makes us maintain a gap that is always going to be there between a developing country and a developed country. This gives us no hope of overtaking developed countries in future, until we innovate and sell OUR OWN products and services
2) Developing countries need a support from the base of the pyramid, first. Surveys reveal that we have a huge population struggling below poverty line (21-29%) and much more below livable living conditions. This is sad and it needs support. When only 19.19% of Indians are able to access the internet in India, it doesn't make sense if we are just catering to it. We need to cater to more pressing causes. Like, poverty and education first. Some are really doing great work in this - like Avanti Learning Centres and their efforts are worth appreciation. But more of such organisations need to raise and support the ground causes.
3) The online startups, except for some like social cops, are just providing luxury to a privileged class. Don't take me wrong, I support them and I know eve my life would have been not so awesome and easier except for them. But, I guess we have more causes to support than mere luxury options, say cheap medical services. Better apps for public transport like M-indicator are equally required and efforts are required in that direction.
Summarising, the growth in startup helps us build our economy more and promises the rise of leaders in the country. But, it is still not the way it is required for the best way for development.
So, if you are thinking about starting up, give a thought to all of this once. Just once. :)