Evaluating the Relationship between Local Startup Ecosystems and MSME Development in Pune, Maharashtra

Abstract

The present study evaluates the relationship between the local startup ecosystem and the development of Micro, Small, and Medium Enterprises (MSMEs) in Pune, Maharashtra. The primary objective is to examine how startup incubation infrastructure, government policy support, and venture funding mechanisms influence MSME growth indicators such as registration, employment generation, and sectoral output in the Pune district. A descriptive-analytical research design was adopted, utilizing secondary data sourced from the Udyam Registration Portal, DPIIT Startup India database, MSME Annual Reports (2019–2022), and KPMG Maharashtra Startup Ecosystem Report. The study hypothesized that districts with stronger startup ecosystem components demonstrate higher MSME registration and employment figures. Results indicate that Pune district recorded the highest number of Udyam-registered MSMEs in Maharashtra, with 1,29,197 micro, 6,502 small, and 832 medium enterprises by July 2021, employing over 8.5 lakh persons. The startup ecosystem's contribution through incubation centres, seed funding, and technology transfer was found to be positively associated with MSME formalization and output diversification. The study concludes that integrated policy frameworks connecting startup incubators with MSME clusters can significantly accelerate industrial development in emerging urban economies like Pune.