After the year 2021, there is no denying that Indian startups have left a mark on the global startup ecosystem. With 42 startups turning unicorn in 2021 alone and 12 more startups entering the coveted unicorn club within three months of 2022, the Indian startup ecosystem is going stronger. But as the startup ecosystem catapults its journey to greater heights, diversity and inclusion can become new hallmarks for the journey of its steady growth. Government initiatives, business programs, global investments, and academia-led efforts are driving the diversity and inclusion flywheel.
Additionally, startup success stories from women entrepreneurs, tier 2 and tier 3 cities, and differently-abled have swept the startup landscape in recent years. According to the stats – around 45 percent of Indian startups are emerging from tier 2 and tier 3 cities and are led by at least one woman director. This wave of diversity and inclusion can create a level playing field for diverse groups and propel the Indian startup ecosystem to unprecedented heights.
Access to larger talent pool
Diversity and inclusion can help startups open the gates to a larger talent pool as they are likely to attract candidates from diverse groups. Millennials and Gen Z form the bulk of today’s workforce and to attract the youth of India, startups must embrace diversity and inclusion in their organizational culture and practices. Diverse and inclusive startups stand to build a stronger employer brand which can be a key to attracting and retaining the best talent. As a result, employees from different gender, ethnicity, religion, skills, educational backgrounds and political affiliations can bring their unique talent to the table.
Enrich decision-making
Diversity in the ranks is essential to get multiple and different views that enhance the decision-making process of any company. Diverse and unique perspectives, opinions and ideas ensure that leaders consider all possible outcomes, risks and implications before arriving at a decision. Reports attest to the fact that women's representation in Indian tech startups still lacks with only 12-15 percent of startups and 10 unicorns led by one woman founder/cofounder. However, with a greater focus on diversity and inclusion, this grim reality can be reversed and startups can benefit from a greater depth of experience and perspective, thereby increasing accuracy, innovation and awareness.
Wave of innovation
India’s recent climb on the Global Innovation Index has largely been attributed to its startups but a lot of progress still remains to be made. We are witnessing startups led by women, differently-abled or entrepreneurs belonging to tier 2 and tier 3 cities identifying unique opportunities and building unique and innovative solutions. By including diverse groups into the startup ecosystem, startups can solve specific problems of these groups and bring innovative solutions to the fore. Diversity and inclusion are conducive to evoking honest conversations, appealing to different groups and encouraging creativity. Diverse and inclusive startups can foster a culture of innovation and develop solutions for the entire country.
Tapping the Untapped Potential of Tier 2 & Tier 3 Cities
For long the Indian startup ecosystem has predominantly been restricted to metro cities of Delhi-NCR, Bangalore, Chennai, Mumbai, Pune and Hyderabad. The concentration of technology in these established startup hubs has largely been responsible for this dominance. However, a wave of change can be witnessed in other cities like Jaipur, Kochi, Indore, Surat, Kolkata and Chandigarh. As per recent facts – about 29 percent of all tech startups are now based outside established hubs and 48 percent of tech startups are building solutions for India 1 and India 2 income groups. Startups who embrace diversity and inclusion can tap the untapped pools of talent in tier 2 and tier 3 cities and unlock the true potential of the Indian startup ecosystem.
Strengthening networks and communities
Startups that embrace diversity and inclusion stand to gain from the expanded networks and connections of diverse groups. By building a strong network and community of diverse people, startups can create a sense of belongingness and provide a platform for people to express their unique opinions and develop innovative solutions. Diverse and inclusive startups can reach out to the networks of women empowerment groups, LGBT networks or communities of differently-abled and expand their customer base as well. A diverse organization is more likely to attract diverse customers, investors and partners, thereby creating a diverse network and mutually-beneficial community.
Final thoughts
In the present scenario, global organizations are realizing the immense benefits of diversity and inclusion and many Indian startups are jumping on the bandwagon too. In the years to come, startups that capitalise on these diverse voices and include them in decision-making can chart steady growth. With government initiatives like Startup India Standup India and consistent efforts to attract global investments for startups in tier 2 and 3 cities, this wave of diversity and inclusion is soon to sweep the Indian startup ecosystem. As women continue to shatter glass ceilings, differently-abled overcome stigma and challenges and tier 2 and tier 3 cities’ entrepreneurs expand into new horizons, diversity and inclusion are bringing about a radical change in the Indian startup ecosystem. Apart from this, entrepreneurs from different walks of life are building solutions for the entire country and delivering equality and quality to the masses. Diversity and inclusion can be a real game-changer for Indian startups and put them on the global startup map.
(Priyanka Madnani, Founder & CEO, Easy to Pitch)
