CHENNAI : Last week, we discussed the pros and cons of working on a startup idea in a metro versus in a non-metro. The pros in metros were the ecosystem and ease of finding skilled workforce and like-minded people while the pros in non-metros were low costs for sustenance and infrastructure.Today we will go deeper and compare other parameters.
Company Incorporation and Legal Hassles: Since metros are already populated with so many companies, it gets a little tricky to find a place of business and then further getting it registered. In non-metros however, since the city itself is small, the process is easier. In certain cases, where you need clarifications or paper work or travelling, it is convenient in non-metros and hence the process is simpler.
Banking Works: Corporate bank accounts are much easier to open in non-metros towns because the same bank in a Tier 1 town would require higher bank balance to open an account and to keep it running. A startup may not be able to afford as much. The minimum requirements for non-metros are
much lower.
Support from Administration: In metros, almost every other apartment is booming with startups but this isn’t the case in non-metro towns. Consequentially, a startup in non-metro is more valuable than the same in a metro. You are more important to local authorities as well. They are more approachable for calling down for events.
Human Resources: This really depends on what your startup demands. If you need technical workforce, you will get that easily in metros, but if you are okay with non-technical workforce, a non-metro is much better. Further, salaries and stipends that you will have to pay in non-metro is almost half as compared to a metro because as we discussed last week, the cost of living in non-metros in much lesser.
Contribution to Society: In cities like Bangalore, many people take jobs because they don’t like the work in their current roles. In smaller towns like Jabalpur, people take jobs because they need it. There are minimal youth employment options in these cities. So why not as entrepreneurs contribute to employment generation in cities which actually need it.Overall, I feel that non-metros or outer part of metros (like Greater Mumbai) are coming up as better and more sustainable options for running startups!