Start-ups to create 300,000 new jobs by 2020

Research by HR consultants show that about 80% of job aspirants prefer start-ups instead of already established companies

Start-ups are likely to create as many as 300,000 new employment opportunities in the next few years, while 80% of job-seekers are opting for such ventures -- which are already attracting funds from investors.

According to HR experts, the start-ups employed about 50,000 to 60,000 people in the last year itself and the hiring outlook looks positive across sectors in the near term.

Research conducted by HR consultants also showed that a vast majority of job aspirants prefer jobs at start-ups, as compared to already established companies.

As per estimates of the talent assessment firm MeritTrac, the start-up ecosystem in India may hire 2.5 -3 lakh employees by 2020.

"The Indian start-up ecosystem is one of the fastest growing in the world. We are witnessing an unprecedented enthusiasm in the industry with respect to hiring in start-ups," MeritTrac Innovations and New Products Development General Manager Rajeev Menon said.

Noting that hiring for start-ups was not easy in the past, Menon said, "The situation is much different now. The firms that have attracted funding are surprisingly much better pay masters in industry and equity that is offered by some start-ups adds to the attraction.

Experts have attributed the hiring trend among start-ups to positive economic sentiments and increase in interest among venture capitalists to invest in these ventures.

Data provided by Career Shapers HR Consulting showed that venture capital firms invested about $1.06 billion (Rs 6,600 crore) in over 244 start-ups during 2014.

"Indian start-ups are not taking baby steps anymore and have sufficient funds to sustain and hire experienced professionals," Career Shapers HR Consulting Principal Consultant & Director Pankaj Minglani said.

Mobile commerce platform StoreHippo.com CEO & Founder Rajiv Kumar said, "Buoyed by government initiatives like e-governance, easing of regulatory norms, initiatives like 'Make in India' and a positive outlook for the Indian economy in the coming fiscal, there will be a huge rise in the number of start-up ventures."

"A big shift is underway in the Indian technology space where emerging ventures are winning business from large clients in the face of competition from established players," Kumar added.