Unlocking North East India’s Start-up Potential: Challenges and Opportunities

Back in 2019, during my MBA at IIM Shillong, I embarked on an in-depth research study with my professors to analyze the start-up ecosystem in North Eastern India (NER). Despite India’s booming entrepreneurial landscape, NER remained largely untouched by this movement, and the success stories from this region rarely make it to the mainstream entrepreneurship narrative beyond its borders. Our goal was to understand why start-ups in this region struggled to take off and what role business incubators played in supporting—or failing to support—emerging enterprises. The study conducted in 2020 provided valuable insights into the challenges and opportunities within NER’s business incubation ecosystem.

Understanding the Business Incubation Ecosystem

Business incubators play a crucial role in nurturing start-ups by providing resources such as funding, networking, mentorship, and office space. They act as a bridge between innovative ideas and market-ready businesses. In NER, however, our research found that incubators struggle to offer a comprehensive support system.

Only about 30% of the incubators we interviewed provide access to specialized services such as intellectual property rights (IPR), legal aid, and digital marketing. Around 48% of incubators offer office space, while 58% provide financial assistance. Given the high-risk nature of start-ups, these gaps significantly impact the success rate of businesses in the region.

Key Challenges Identified

Our study identified several challenges hindering the success of incubators and start-ups in NER:

1. Lack of Awareness – Many aspiring entrepreneurs are unaware of available start-up schemes and financial support.

2. Funding Issues – Securing working capital remains a significant hurdle, with banks hesitant to invest in high-risk ventures.

3. Limited Industry Collaboration – The absence of strong industry linkages restricts mentorship and networking opportunities.

4. Skill Gaps – A shortage of experienced managerial staff within incubators affects their ability to support start-ups effectively.

5. Infrastructure Deficiencies – Many incubators lack essential facilities such as co-working spaces, plug-and-play offices, and tech labs.

6. Market Access – Start-ups struggle with commercializing their ideas and scaling up operations due to poor market linkages.

7. Low Entrepreneurial Culture – The preference for stable government jobs over start-ups discourages risk-taking among the youth.

Potential Solutions and Policy Interventions

Based on our findings, several steps can be taken to strengthen the incubation ecosystem in NER:

• Awareness Campaigns: Governments and incubators should actively promote start-up policies through universities, business forums, and social media.

• Improved Funding Mechanisms: Introducing angel investors, venture capitalists, and dedicated start-up funds in NER could ease financial challenges.

• Enhancing Infrastructure: More incubators should provide co-working spaces, high-tech labs, and digital resources to support start-ups.

• Strengthening Mentorship Networks: Connecting start-ups with experienced mentors from across India can help guide them through business challenges.

• Encouraging Entrepreneurship Education: Educational institutions should integrate start-up culture into their curriculum and offer deferred placement options to encourage risk-taking.

The Road Ahead

The potential for start-up growth in NER is immense, thanks to its rich natural resources, talented workforce, and strategic location near international markets. However, addressing these challenges requires a concerted effort from policymakers, incubators, and the start-up community. If these barriers are overcome, NER can emerge as a thriving hub for innovation and entrepreneurship, aligning with India’s larger vision of a robust start-up ecosystem.