Setting up a business and sustaining it is no mean feat. While hard work, patience and competency are doled out as prerequisites to set up a business, there are many more underlying and interconnected parameters including economic freedom, logistical ecosystem and governmental assistance. A recent study by ecommerce support platform Oberlo that seeks to find out the top cities for entrepreneurial success has found that Mumbai (45), Bengaluru (52) and Delhi (58) rank among the top 75 cities. However, what stood out in the metric used is that Mumbai (72), Bengaluru (73) and Delhi (74) have been named the worst in the list of 75 cities when it comes to ease for women entrepreneurs to set up a business.
"After reviewing a list of over 200 global metropolises, we shortlisted the top 75 global cities based on factors which reflected their innovation, economic strength and entrepreneurial spirit," stated the report.
As for economic freedom too, the three metros fare rather poorly with Mumbai at 70th spot, Bengaluru at 71st and Delhi at 72nd spot.
Things are not rosy when it comes to the ease of setting up a limited liability company (LLC) either. Perhaps for bureaucratic red tape or other reasons all the three cities take as much as 17.5 days as median duration to set up an LLC, placing Mumbai, Bengaluru, and Delhi at 63, 64 and 65. To put in perspective, New Zealand's Auckland that topped the list needs 0.5 days. Poland's Krakow, last on the list, takes 37 days.
The three cities perform slightly better when it comes to COVID support, placing Mumbai at 30, Bengaluru at 31 and Delhi at 32.
The survey also takes into account the tech ecosystem, measuring the number of startups from 2010 and the number of startups from 2010 expressed as percentage of city population. As such Delhi (14), followed by Mumbai (15) manage a significant distance from Bengaluru (24).
Things are not all that different when it comes to human tech capital that takes into account the number of information and communication graduates, and number of information and communication graduates per 100,000 inhabitants. Delhi maintains a significant lead on this one too at the 8th spot, while Bengaluru and Mumbai fall back to 13 and 14 positions.
The logistics ecosystem that looks at the presence of logistical infrastructure to support an international trading business places Mumbai at 59th spot, while Bengaluru and Delhi are at the 67th and 68th spots. When it comes to accessing global markets, Mumbai, Bengaluru and Delhi are ranked 65th, 66th, and 67th.
While Mumbai (33) and Bengaluru (34) are ranked mid-range for unemployment benefits, Delhi is ranked all the way down at 75th position. Small business loans are easier for the three metros, with Mumbai at 16th position, Bengaluru at 17th and Delhi at 18th spots. But business taxes push Mumbai, Bengaluru and Delhi all the way to 58, 59 and 60.
When it comes to venture capital, Bengaluru fares rather well at 11th position, while Mumbai is 22nd position and Delhi is at 37.