Ps in Sri Lanka; the urney ahead

ing funds for growth is a part of startup systems it’s by no means the be all and end all. Equal if not greater time needs to be spent on building a great team, and a great team culture. Like most things in life start- ups will have good times and bad, and then times are difficult you need a team that works and have each other’s back! Once you have a great team you will be able to execute and execute very well so your start-up can be a winner.

Based on the studies done, The Economic Impact of Venture Capital: Evidence from Public Companies ( Stanford University Graduate School of Business Research Paper No. 15- 55. 2015). Start- ups add a significant percentage of jobs to the US economy. The paper goes on to say, “From research and development to employment to simple revenue, the companies funded by venture capital are a major part of the U.S. economy.” In terms of the US there are many opportunities created by both the government and private enterprise, which makes it relatively easy for start-ups to grow.

Unfortunately in Sri Lanka we have to do a lot more work in order to make sure start- ups flourish. For instance, one of the main contributors in the growth of start-ups is that the US government has made it very ‘cheap’ to fail.

This is hardly the case in Sri Lanka, and the government must take steps to address this ( terms of hiring/ lay offs/ bankruptcy). Also there could be far more incentives given to investors who invest in start- ups in terms of tax benefits since investor’s funds and mentorship are key drivers of the start- up eco system. The government should look into giving tax breaks for startups till they are able to stand on their own two feet.

In the 21st century start- ups will play a major role in developing economies of countries. Its in our best interest to make sure that we ( government/ public) create the framework and the mind set so that we will be able to gain from start- ups and as a country not get left behind.