Shaktikanta Das, Governor, Reserve Bank of India, has offered a word of advice to the young entrepreneurs and startups: they should constantly evaluate the build-up of risks and vulnerabilities in their businesses.
“I recognize that many of them are already doing it and that risk-taking is part of their business model, but these are things that should always be kept in mind for the long term sustainability of any business,” Das said at the Azadi ka Amrit Mahotsav Celebrations organized by the Central Board of Indirect Taxes and Customs,” Das said.
Das further stated: “Adoption of digital technologies and artificial intelligence (AI) is getting accelerated across firms/ businesses/ sectors. These disruptive technologies offer opportunities to young enterprises to create their own niche in markets dominated by incumbents. A reflection of this is seen in the emergence of several startups in the Indian business landscape as young entrepreneurs experiment with ideas in digital payments, online retail, on-demand delivery, education, software and more. Decision-making is increasingly supported by insights from data analytics, artificial intelligence and deep learning. These start-ups are supported by a new ecosystem of angel and venture funding, incubators and accelerators – as well as new patterns of consumption in society.”
A robust corporate governance framework would require that businesses follow prudent accounting practices and provide transparent disclosures, Das added.