It’s been a remarkable season of entrepreneurship in India; the number of startups has seen explosive growth from just 733 in 2016-17 to a whopping 14,000 registered in 2021-2022. This stunning surge is a testament to entrepreneurial ambition and innovation – moving Indian businesses into an exciting new era! Moreover, with its population growth, the demand for business services and products has also been steadily increasing.
Source: Economics Times
Indeed, starting a business in India can be an exciting and rewarding venture as it holds a promising future for entrepreneurs & 2023 is just a phenomenal beginning that comes with significant advantages & a few thought-provoking concerns. Let’s uncover them here.
Why is Starting a Business in 2023 Suitable?
India has made immense progress in creating a conducive business climate, as highlighted by the World Bank’s report that ranks India at 63 in 2022 for Ease of Doing Business – up from 142 in 2014. The new Insolvency and Bankruptcy Code (IBC) is another impressive move towards streamlining compliances, paving the way to meet international standards set by OECD (Organisation for Economic Co-operation and Development) countries.
Source: Economics Times
The environment and culture we witness today are incredibly business-friendly. With innovation in technology & Indian Government taking incredible steps for businesses to flourish both nationally & internationally, launching new schemes & creating a solid atmosphere for business enthusiasts gives an incredible boost to all who are starting new in 2023.
With the rising number of startups comes to another vital question: finding an apt location for the Business to grow, nurture & seek the potential support that every new business demands.
How Does a Location Affect Business Growth?
Choosing the right location for a business is vital and has long-term consequences. Although it may appear to be a simple choice, if done wrong, it can cost millions in lost talent and productivity – not to mention capital!
As such, companies must carefully consider where they are based when attempting to attract and retain the best employees who want an optimal work-life balance. But it’s clear: get this critical variable correct from day one, and you’ll reap huge rewards over time.
Also, location can be the difference between a flourishing business and one that struggles. Choosing the right place to launch your venture is key to success – access to talented employees, raw materials, investors, etc., all play an important role in determining how far it will grow!
So, what are the top cities most recommended in India to start a business and why? Let’s understand them in detail.
Top Cities to Start a Business in India in 2023
With its growing economy, India is becoming an attractive business destination in Asia. Therefore, entrepreneurs looking to set up Business in India should consider these top cities for Business in 2023. These cities offer entrepreneurs promising markets, attractive incentives from the Government, favorable business conditions, and more. Top Cities to Start a Business in India in 2023 are:
1. Mumbai (Maharashtra)
Mumbai, the business capital of India, is the most attractive location to set up a business. This city offers excellent infrastructure and business-friendly policies that make it easier for entrepreneurs to start.
The city has many business incubators and accelerators that help startups flourish early. It is also a dynamic metropolis offering extensive road transport options via national highways and the iconic Bandra-Worli Sea Link Bridge. With the Mumbai-Pune Expressway, this vibrant city has truly become an automotive hub of India.
Additionally, Mumbai enjoys a business-friendly environment with a large market for business services. It is an ideal destination for the business-minded, with a vast array of resources and innovative solutions.
Explore More: Best Coworking Spaces in Mumbai
2. Delhi (NCR)
Delhi is another great business city to consider. It has the highest concentration of business firms, making it an ideal choice for entrepreneurs looking to establish their Business in India.
Delhi also offers good transportation infrastructure and other essential amenities, such as educational institutions and housing facilities that make business operations easier.
As a result, Delhi is a premier metropolitan destination for conducting Business in India with many desirable benefits. From ample media coverage to government offices that provide easy clearance, the city offers much potential but comes with challenges like air pollution, women’s safety, and managing migrant workers.
Explore More: Coworking Spaces in Delhi
3. Pune (Maharashtra)
Pune is also a great business hub due to its proximity to Mumbai and other cities in the west. This makes it easier for business owners to move their business operations from one city to another. Pune is also a bustling city filled with opportunities and growth potential and has attracted attention from leading tech giants like Infosys, Tata Consultancy Services & Accenture Solutions.
In addition, Maharashtra Government’s MahaParwana (Mega Permission) Scheme is available to entrepreneurs in the area – adding an extra advantage for those looking to start or expand their business ventures here! All this makes Pune one of India’s top spots for doing Business.
Read More: Best Coworking Spaces in Pune
4. Bangalore (Karnataka)
Bangalore, the vibrant capital of Karnataka and one of India’s most populous cities, is more than meets the eye. Referred to as “the Silicon Valley” or city of technology, this IT hub harbors some major tech giants such as Infosys, Accenture, and Wipro, not to mention Cisco – who are all responsible for a 1/3rd share in software exports from India! And lastly, it even plays home to ISRO (Indian Space Research Organisation), making Bangalore an integral part of science & innovation on both local & global levels.
Furthermore, Bangalore is a business hub and offers business opportunities in almost all business domains. The city’s business-friendly environment provides entrepreneurs with the right resources to build a business.
It also offers good infrastructure, educational institutions, and housing facilities that make business operations easier. As one of India’s most busy hubs, Kempegowda International Airport Bengaluru keeps the country moving with its fourth busiest airport status and connection to Indian railways & National highways. People and goods never stand still in Bangalore!
Explore More: Best Coworking Spaces in Bangalore
5. Ahmedabad (Gujarat)
Ahmedabad is quickly rising as a significant business hub in India due to its prime location, booming infrastructure, and dedicated workforce.
In addition, this city’s solid financial capital base and access to a skilled labor force have made it an attractive destination for many businesses seeking new locations with surging demands from the Saurashtra states. With renowned institutions like the IIM-Ahmedabad, Entrepreneurship Development Institute of India, and Mudra Institute of Communications churning out a steady supply of talented individuals with creative mindsets, there’s no better place than Ahmedabad to set up the business.
The city is alive with diversity and energy as well as cutting-edge tech support – so if you’ve wanted to take that entrepreneurial plunge, then now really could be your moment!
Explore More: Coworking Spaces in Ahmedabad
6. Hyderabad (Telangana)
Hyderabad is one of the best cities in India for starting a business because the city has attracted many entrepreneurs with its conducive business environment, favorable tax regime, availability of skilled professionals, and access to global markets.
The city’s thriving IT industry provides ready-made infrastructure and support services that make it easier for startups to set up and run their businesses. Hyderabad is home to some of India’s largest tech companies, such as Google, Microsoft, Dell, Wipro, and Infosys, which provide an excellent platform for networking and mentorship to entrepreneurs. The city also offers a tremendous cost advantage in setting up business operations with affordable real estate options, subsidized utilities, and access to a large pool of skilled labor.
In addition, the city’s strategic location makes it easier for businesses to export their products and services to other countries in the region. The Government of Telangana has also introduced several incentives and schemes like the Hyderabad Startup Fund, which offers financial support to early-stage startups. This has made Hyderabad an attractive destination for entrepreneurs looking to establish their own business ventures. In short, Hyderabad offers a great combination of a conducive environment, access to capital, and a talent pool, making it one of India’s best cities for starting a business.
Read More: Best Coworking Spaces in Hyderabad
What Are the Challenges of Starting a Business?
Starting a business is a challenging task. It requires a lot of hard work, dedication, and focus on making it successful. Some of the biggest challenges that entrepreneurs face when starting a business include the following:
1. Financing: Starting up any new business requires capital. Finding this money can be very difficult and requires access to reliable sources of financing, such as banks or private investors.
2. Risk Management: Starting a business involves taking risks, and entrepreneurs need to understand the many potential liabilities they are taking on and have the plan to minimize risk.
3. Legal Issues: Every Business needs to comply with specific legal regulations, so entrepreneurs must research their area’s laws and ensure they comply.
4. Time Management: Entrepreneurs need to manage their time efficiently to succeed. Juggling multiple tasks and delegating responsibilities can be challenging, but it is a necessary skill for business owners.
5. Competition: Entrepreneurs must always be aware of their competition and be prepared to adjust their strategies as necessary.
6. Planning: Starting a successful business requires careful planning, including setting realistic goals and ensuring all aspects of the Business are running efficiently.
7. Networking: Any entrepreneur must build a network of potential customers, partners, and suppliers. Networking is a great way to build relationships with others who can help your business succeed.
8. Workspace: Searching for a workspace is challenging. Buying a place can be extremely expensive, and renting out a space is also a liability; thus, choosing a coworking space can be a suitable option for businesses.
Stylework is one of the leading coworking aggregators that provide best-in-class coworking amenities and facilities personalized to one’s own requirements. From Giants like Google and Microsoft to fast-growing startups, Stylework has the best coworking environment to offer in 2000+ spaces in India.
To ensure business success, entrepreneurs must understand the city they operate in:
- Its population’s needs and resources.
- Its product offerings.
- Labor force to maintain operations.
- Materials for production or assembly plants.
- Existing customers and market trends.
Making an informed decision on where to locate a company can mean the difference between future growth and stagnation – which is why it should be at the top of any entrepreneur’s list when starting!