Literature Review On Startup

1. Introduction:

A start-up is generally a young business which just begins to develop. These companies are generally meant for innovation of the existing ideas in order to offer product or service that is not available anywhere in market or which are available in an inferior manner. The main essence of start-ups has to do more with high ambition, innovativeness, scalability and growth. At first these companies has incur lot of expenses in the form of business modelling, testing and marketing their concept. Since, these companies are very small and initially operated and financed either by an individual or by partners together thereby the companies face many challenges with limited resources availing with ample opportunities.

Now, if we see

Literature Review:

The purpose of this chapter is to present a review of literature relating to start-up business. The following are the literature review by different authors and different research scholars.

Weiss: made a study in US and concluded that small businesses are generally less efficient when compared to large administrative companies and concluded that on an average, about half of total shipments in the industries covered are from suboptimal plants.

Pratten: he identified the suboptimal scale establishment accounts for 47.9% of total industry shipments in UK.

Stiglitz and Weiss: stated that unlike other markets, the market for credit is exceptional i.e., the price of good, the interest rates are not necessarily same for entire market.

Brown, Hamilton and Medoff: found positive relationship between employee compensation and firm size. It means lower levels of compensation for employees in small business.

Weiss: observed that survival of any small business within any industry is due to specialisation of items with shorter production runs or specific niche segments thereby their relative market share is

This is all because of the encouraging fiscal and monetary policies. The government is also very keen in encouraging the budding entrepreneurs. There are many fund houses now coming forward to provide funds and at the same time act as incubators. The FDI policies are also very encouraging; thereby the additional funds from other countries are also coming to our country. The same is also mentioned in “The Wall Street Journal”, the investments in Indian Start-ups are increasing over the period of last 5years, with the increase in the number of