Why starting a business in a democracy like India is good!

Five reasons why start ups prefer democratic country

1.       Freedom to choose your trade/profession

The government is very proactive in providing subsidies and benefits to start ups whose service area is that of catering to a mass audience. For e.g. Logistics & e commerce companies like flipkart & redbus have thrived in a democratic Indian set up.

Most of the areas except defense and atomic energy had open for an entrepreneur. This is a rare scenario in communist countries like China.

2.       No fear of monopoly

As the government is elected, they need to keep all their stakeholders happy. This ensures a healthy debate before protecting any sector and to maintain a competitive atmosphere at the market. E.g. the entry of Walmart is/was highly debated as it would stifle the domestic players.

3.       A larger diverse audience/client base

In a country like India, even if your business caters to a single community, you have an enormous client base.  A tailor made business (expertise) will always thrive in a democratic set-up.

4.       Peaceful modifications in the Government are possible

Democracy offers modifications in the government without hostility. Authority can be shifted from one party to another, based on their performance. What we experienced first-hand this elections.

5.       Feeling of gratitude/power in the hands of people/businessmen

As they have complete authority and responsibility, they can have the constitution amended, file an RTI and get all the info they need, sue the government, make the government accountable and so on.

Many businesses have cajoled the government by enacting special laws for them. The government too has established the CCI to regulate competition and unfair trade practices. It helps start ups grow.

The reason why many industrialists start their own trusts and provide services which ought to be provided by the government, in a amicable PPP (pub-private partnership) set up.  This is not the case in many developed countries. Might be the most important advantage of operating in a democratic setting