Building the global startup ecosystem: Joint action through Startup20
Startup20 is a major initiative under India's G20 Presidency
The Startup20 Shikhar Summit held under India’s Presidency of the G20 celebrates a successful first year and marks a major milestone in the global Startup Ecosystem.
The event, organised in Gurgaon by the Startup20 Engagement Group on July 3-4, 2023, culminated in the Startup Conclave and a Policy Communiqué that detailed the steps forward for the member nations of the G20.
Representing roughly 85% of the global GDP, 75% of global trade, and two-thirds of the world's population, the G20 has a thriving startup ecosystem.
Startup20 is a major initiative under India's G20 Presidency. The decision by Brazil (which will hold the next G20 Presidency) to continue its participation in the Startup20 Engagement Group in 2024 further reinforces the global significance of the initiative.
The Policy Communiqué discloses the intention of the G20 Startup efforts, which is to bring India at par with the other actors of the international system in socio-economic terms. It calls for voluntary action by members of the G20 to pitch into a joint annual investment towards the global startup ecosystem, to build a network of institutions and agencies for the making and implementation of policy, and to make the economy easier for startups to compete in.
The following policy recommendations have been given:
Laying a Strong Foundation: The Group urges members to create frameworks for the definition of startups and strengthening of the ecosystem across the G20 nations.
Forming Global Alliances: The members are implored to establish channels of communication within the ecosystems, build market access mechanisms, build mechanisms to find and nurture talent, and promote government bodies, private players, non-governmental organisations, and multilateral organisations to work with startups.
Unlocking Startup Finance: The members must raise the joint annual investment to USD 1 trillion by 2030, make favourable policies for the startup ecosystem, and enable easier flow of capital between countries.
Building for Inclusion: The Communiqué recommends that there be special focus on entrepreneurs from marginalised groups, and that the startup ecosystem focus on inclusion.
Scaling for Sustainability: Members are urged to increase the pipeline of entrepreneurs focused on Sustainable Development Goals (SDGs), and support their scalability.
The Communiqué then goes on to detail the specific actionable policy recommendations. These include the adoption of a global startup definition framework, establishing easier access to global capital and markets, emphasise on inclusion and diversity, scale startups of global interest, and establish a networked institution across G20 nations.
Union Minister of State for Commerce and Industry Som Parkash, along with India's G20 Sherpa Amitabh Kant and Startup20 Chair Chintan Vaishnav, were present at the event. The meeting was attended by a diverse group of people which included experts, policymakers, and thought leaders, offering them a platform to interact with the delegates of the summit.
It culminated in the event of the Startup Conclave, wherein different startups were able to pitch their work, gain mentorship, and request investments. It included some cultural events as well.
Som Parkash said: “The Startup20 Gurugram Summit signifies India's commitment to fostering an enabling environment for startups and reinforcing its position as a global leader in innovation and entrepreneurship,” divulging his vision for the future of entrepreneurship and technological innovation in the country.
Amitabh Kant maintained: “The Startup20 Engagement Group marks a milestone in the journey of the global startup ecosystem. The collective wisdom and tireless efforts of the Group, comprising distinguished delegates from G20 nations and invitee countries, have culminated in the final Policy Communiqué, which lays the groundwork for a transformative and the advanced future for our citizens with all our inclusive startup ecosystems across the countries working together; and am sure this group will continue to bring out the strongest commitments from all nations in the upcoming presidencies.”
According to Chintan Vaishnav, the continued commitment of Brazil and all other countries exemplifies their dedication to fostering innovation and supporting the global startup ecosystem.