Startups: Igniting Dreams for Crafting a Better Tomorrow in Tier II & III Cities


The startups are the storehouse of innovation, nurturer of talents, and creators of wonders. Hanging on these startups our economy is progressing and touching new heights unlocking numerous boundaries. These startups are the testament of incredible potential, unwavering determination which are not only cherishing their dreams but boldly achieving it. Entrepreneurship is not just a random endeavor by rich businessmen, but it’s a genuine story of leadership which achieves its zeal of creating and innovating products for this industry solely depending on their talents and wisdom.

Indian startups have invigorated the economic outlook of our country and today, India has emerged as the 3rd largest ecosystem for startups across the globe. India has also achieved the 2nd rank in innovation quality. In past few years, the startup ecosystem has evolved drastically with 15x increase in funding, 9x increase in investors, and 7x increases in incubators across the country.

Small cities and towns are the new breeding ground of the startups which are empowering bold endeavors towards limitless success

As per the data from the government portal of StartupIndia, 99000+ startups were recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) as successful startups and surprisingly, 58% of them having their headquarters in Tier-II & III cities. The cities which achieved the praiseworthy positions as the breeding ground for startups are Gujarat, Karnataka, Kerala, and Tamil Nadu.

The Union Minister of Commerce and Industry, Piyush Goyal enthusiastically mentioned, “India has emerged as a global powerhouse for innovation and achieved multiple milestones in 2023. Over 1.15 lakh startups have now been recognized by DPIIT, and over 12 lakh direct jobs have been created by these recognized startups”.

Growth of Startups in Tier II & III Cities of India

Startups are the catalyst for economic growth globally as well as locally. As soon as a company develops an impactful robust business model and a committed mindset, it is ready to scale-up responsibly and sustainably. To speed up the productivity, an economy must have better tools and equipment, like capital goods, and highly specialized labor-force. The startups are fueled up with those qualified and coherent groups of young visionaries who are constantly targeting to achieve more innovation.

The narrative from the market depicts that startups from the Tier II & III cities were those underdogs of the industry, who kick-started from a humble beginning and reached to a crescendo with their dexterous perseverance and dynamic thought system.

Influential Factors Influencing Startups: To Move to Grow in Tier II & III Cities

1.Widespread of Technology: With the vivacious development of Science and Technology, the wave of modernization and development is expanding out of the luxurious boundaries of metro cities of India. The internet is one of the strongest factors which help us to get connected to the whole world at a time from a corner of your home. The entrepreneurs have initiated their idea, executed it, and brought it in the market through the digital channels of marketing and by utilizing the D2C and B2C channel of businesses that they have started gaining traction in the market. Social media is another influencing factor which fostered the growth of such young companies which needs a special push to achieve the desired popularity among its customers.

2.Remote Work Opportunity: Being attached to a corporate sector, it is very hard to get extra time to work on your passion. Thanks to the pandemic, for introducing us to a new concept which is remote working. With this approach, visionaries are converting their time into creating wonders.

On the other hand, this remote-first approach with managed offices and co-working spaces enabled the new companies to sustain their work being in the small towns and cities of India, instead of moving to the metro cities.