Over the last two years, India has seen thousands of layoffs across startups, IT companies, edtech firms, product companies and ecommerce businesses. At the same time, many young professionals who lost jobs or struggled to find one suddenly started calling themselves founders, consultants, freelancers, creators or startup owners.
For some, these ventures are real businesses. For others, they are temporary experiments, side hustles or simply a way to avoid saying “I’m unemployed.”
The word “startup” has become more than just a business term. Today, it is also a social identity.
Why So Many Young Indians Are Starting “Something”
Many people are not necessarily launching a funded tech startup. Instead, they are starting:
- Small agencies
- Instagram businesses
- Event companies
- Affiliate marketing pages
- Freelancing services
- Dropshipping stores
- Consulting work
- Content creation
- Community groups
- Networking events
- Online courses or coaching
In many cases, these ideas require low investment and can be started quickly while someone continues job hunting.
The Real Reason Behind the “Founder” Trend
1. Fear of Saying “I’m Unemployed”
Many people do not feel comfortable telling relatives, friends, or former colleagues that they are jobless. Saying “I’m working on a startup” sounds more ambitious and socially acceptable.
2. Social Media Made Founder Culture Look Attractive
Today, almost everyone on social media wants to look busy, successful, and entrepreneurial. Terms like:
- Founder
- CEO
- Startup Owner
- Community Builder
- Consultant
- Investor
are often used even before a business starts making money.
3. Jobs Are No Longer Seen as Stable
Layoffs in the last few years have made people realize that even a high-paying corporate job may not be secure forever.
A lot of people now believe:
- One salary is risky
- Side income is necessary
- Building something of your own is safer long term
This mindset shift is one of the biggest reasons why more young Indians are trying business ideas.
Layoffs Changed the Way People Think About Careers
India’s startup ecosystem went through a difficult phase between 2023 and 2025. Hiring slowed down, many companies shut down, and thousands of employees lost jobs.
Startup Layoffs in India
| Year | Estimated Layoffs |
|---|---|
| 2022 | Around 20,000 |
| 2023 | Around 24,000 |
| 2024 | Around 4,700 to 9,000 |
| 2025 | Around 2,387 |
Layoffs fell sharply in 2025 compared to previous years, but the fear and insecurity created during the last few years still remain strong among professionals and freshers.
Source – Deccan Chronicle, Business Standards, Indiatimes.com
How Many Startups Actually Survive?
This is the biggest question.
Many people start something after layoffs, but only a small percentage continue beyond the first year.
Common Reasons Why People Quit Their Startup
- No stable income
- Family pressure
- Lack of funding
- Difficulty getting customers
- Competition
- Mental stress
- Lack of long-term planning
- Better job opportunities
For many people, the startup ends as soon as they receive a stable job offer.
Startup Shutdowns in India
India saw a large number of startup shutdowns over the last few years because of the funding winter, reduced investor confidence, and pressure to become profitable.
| Year | Estimated Startup Closures |
|---|---|
| 2021 | 6,494 |
| 2022 | 5,281 |
| 2023 | 2,190 |
| 2024 | 3,903 |
| 2025 | Around 730 |
Although closures reduced sharply in 2025, the last few years showed that not every startup idea becomes a real business. Investors became more cautious and many businesses that depended only on funding struggled to survive.
Source – Financial Express, Business Standards
Freshers Are Also Feeling More Insecure
Freshers are among the most affected in the current market.
Many college graduates are facing:
- Delayed joining dates
- Lower salary packages
- Fewer campus placements
- Hiring freezes
- Increased competition
- Pressure to upskill constantly
Campus hiring as a share of fresher hiring dropped from 55% in 2024 to around 40% in 2025, showing how much harder the market has become for fresh graduates.
Because of this, many freshers are:
- Starting YouTube channels
- Running Instagram pages
- Doing freelance work
- Building small online businesses
- Calling themselves founders
For some, it is a smart move. For others, it is simply a temporary backup plan.
What Is the Difference Between a Real Startup and a Temporary Side Hustle?
| Real Startup | Temporary Career Gap Startup |
|---|---|
| Has long-term vision | Started due to joblessness |
| Builds a product or service | Mainly built for short-term income |
| Has repeat customers | Depends on random leads |
| Generates stable revenue | Revenue is inconsistent |
| Continues beyond 1–2 years | Stops once a job is found |
| Has a team and operations | Usually handled by one person |
There Is Nothing Wrong With Starting Small
Not every startup has to become a unicorn. Even a small business, freelance service or side hustle can help someone survive during a difficult period.
The real issue starts when people use the word “startup” only to hide unemployment or create a fake image on social media.
There is nothing wrong with saying:
“I am building something while also looking for better opportunities.”
That is more realistic, honest and relatable.
Conclusion
India’s startup culture is changing. Many people are no longer starting businesses because they want to become the next unicorn. Instead, they are starting because they want security, freedom, side income, or simply a way to survive uncertain times.
Some of these businesses will fail. Some will become successful. Most will probably stop once the founder gets a stable job.
But one thing is clear: layoffs, job insecurity, and changing market conditions have completely changed how young Indians think about careers.
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