The economy is known as the backbone of the industry as well as the nation. The gig economy has emerged as the primary force, in the business world and innovation, and also presents new risks. To succeed in the dynamic and rapidly evolving environment startups must be strategic and proactive in their approach to risk management and growth. In the gig economy, the organization hires independent workers for a short-term commitment. In India, there are more than 15 million workers who are employed in different organizations, such as software, professional services, and many more.
However, the risk factor remains constant from both the company’s and the worker’s sides in the Gig Indian Economy. The gig economy has made it easier for the organization to hire occasionally skilled employees for a particular task, and once the job is performed by the hired employees, and allows the employees to work on the assigned task.
In order to focus on the core competencies of the organization, multinational companies have outsourced their task to small competitors. As a result of this many multinational companies and Indian venture capitalists are closely monitoring the progress of Indian ventures. No doubt, there is a vast expansion in the gig economy, but in this economy, there are some faults and significant risk components attached to it that need to be managed closely.
The gig economy has emerged as a major force in the business world, offering new opportunities for growth and innovations which also presents new risks in the business. To succeed in this rapidly and dynamic evolving environment startups must be strategic and proactive in their approach to risk management and growth.
Estimated number of gig workers in India from financial year 2012 to 2020(in millions)
Here are some key steps that startups can take to reduce the risk and accelerate the growth in their gig economy.
- Embrace flexibility and agility: One of the defining features of the gig economy is its emphasis on flexibility and agility. Startups that are not able to adapt to the changing market conditions and customer needs in India are more likely to succeed in a dynamic environment. To take advantage of these opportunities, startups must prioritize flexibility and agility in their operation and business models, to stay ahead of their competitors and contribute to bringing something new to the market.
- Build Strong Relationships With Freelancers And Contractors: The gig economy relies heavily on the work of freelancers and contractors, and startups must be prepared to build strong relations with these workers in order to succeed in their business. This requires a deep understanding of the needs and motivations of the workers, as well as the willingness to invest in the development of a positive and supportive working culture. By building strong relationships with freelancers and contractors, startups can reduce the risk associated with business development in India.
- Invest In Technology And Automation: Technology and automation play a crucial role in reducing risk and accelerating growth and success in the Indian gig economy. By automating routine tasks and processes, startups can free their team to focus on more high-impact work, while also reducing the risk of errors and mistakes. At the same time investing in technology, can also help startups to scale their operations more effectively.
- Emphasise collaboration and communication: The gig economy in India relies heavily on collaboration and communication, as workers and teams are dispersed across multiple locations and time zones. Startups that prioritize collaboration and communication are more likely to succeed in the business environment, as they are better equipped to coordinate their efforts and stay aligned with their goals and objectives.
5. Foster a culture of continuous improvement: The gig economy is an ever-evolving landscape, and startups must be prepared to continuously adapt and improve in order to succeed. This requires a culture that evaluates continuous improvement, where teams are encouraged to experiment and learn from the experience. By fostering a culture of continuous improvement, startups can reduce the risk associated with change and ensure that they are always at the forefront of innovation and progress.
There are different ethical dilemmas, which are yet to be explored, one of the primary dilemmas is loyalty to the organization. Let’s take a look at some of the ethical dilemmas which are required to be kept in mind:
Traditional Workplace Ethics
Traditional workplace ethics in startups in India should demand that the employees have some responsibility like being committed to their respective primary jobs and should prioritize the interests of the organization.
Time management is a very crucial aspect of every employee. Employees have the responsibility to manage their time effectively and ensure that they meet job duties and responsibilities. This alone can help to manage a lot of risks and bring a solution to many problems.
Physical and Mental Exhaustion
While working multiple jobs, there are possibilities that the employee may suffer from physical and mental exhaustion. When an employee is working on multiple projects, there is a possibility that the employee can suffer from physical and mental exhaustion.
On the basis of the second job, there might be some legal risks for the organizations. In case the employee’s second job involves working with the organizations on sensitive and confidential information.
The organization’s reputation might be damaged, if the employee’s second job becomes public knowledge. The organization’s reputation could be damaged, if there is a conflict with the organization’s values or mission.
Talent Retention Risks
When an employee is working with multiple jobs in India, there are more possibilities that the employee would leave the primary jobs, in search of new opportunities.
There are many risks, and in order to overcome these risks, the company should fabricate new paths that are having transparency and there is a framework of policies that is mandatory to follow for your startup. For the employees, working as a second job outside the organization, there are several ways that the organization can assure to follow, they are as follows:
- By Encouraging Transparency and Communication: The companies can encourage the employee to inform HR about any second job they are seeking to take. This can help to identify the risk and drive the best possible result in it timely and can allow the organization to solve the employee’s problems in a timely manner.
- Develop Clear Policies: Every organization has some policies, and these policies should be beforehand told to the employees, all the expectations from the employees should be beforehand told so that there is no confusion afterward. And if the employee gets a better opportunity outside the organization, there will be certain conditions that the employee needs to fulfill.
- Promote work-life balance: It is important to maintain a balance between work life and personal life. The startups can encourage the employee to take care of their physical health and work life. Considering your physical health can encourage the employee to work more efficiently and give more productivity.
Startups play a crucial role in accelerating the growth of the Indian Economy. Here are some ways in which startups can reduce the risk and help in accelerating the growth of the Indian economy:
India has a total of 112 million working population, and the maximum population in this number is from 20-24. The absence of government jobs has led to an increase in startups. These startups have emerged the opportunity to give a rise to more job opportunities in the same field that the government jobs are offering.
Many multinational companies have outsourced their tasks to small businesses in order to focus on the concepts more elaborately and briefly. This has not only given the opportunity to Indian venture capitalists, but to many multinational companies to closely monitor the progress of Indian startups to invest their money in it.
Research And Development
The startups in India have to deal with the high-technology and knowledge-based services. In this, the startup team acts as an innovative seeker and keeps the company updated. Startups, therefore, encourage independent research at the academic establishment.
GDP plays a crucial role in the country’s development process, and it has become more feasible to increase the revenue domestically, and if we keep on supporting and promoting our startup initiatives, it will be more feasible to increase the revenue domestically.
Startups create employment for the locals, and when this employment is generated the locals begin to purchase the goods and services, which contributes to boosting the economy. When more than one startup is blooming in one particular area, it gives rise to many things such as the development of that area, and the market of that particular area rises.
When there is an update in the infrastructure, there are a number of guesthouses, homestays, food outlets, and other transport services unlocked, this gives a rise to countless job opportunities in that area, thus reducing unemployment and generating revenue from that particular area.
Startups in India can reduce the risk and accelerate growth by taking a strategic and calculated approach to their business. This includes proper market research, developing a proper market plan, establishing partnerships and collaborations, leveraging technology, and seeking funding from credible sources. Additionally, startups can take advantage of the supportive technologies and initiatives introduced by the Indian government.
There is no doubt that the gig economy in India, carries the potential to change the world through the work they do and can even become the dominant mode of employment in the future. As startups are growing in India day by day, they can contribute a lot to the growth of the Indian economy. They help to create jobs, help to decrease unemployment, and further help to maintain the GDP of the Indian Economy.