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Honestly, the term entrepreneur and start-up is used very liberally in India. In the last 3-4 years there has been a deluge of 'entrepreneurs' who are basically social media consultants or SEO firms and 'startups' which are nothing but consulting firms who are basically a group of freelancers working together.

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A vague generalization. Can you conclusively say that all the YCombinator (or any other similar incubator) startups are groundbreaking innovations?

Given the transformation that technology is undergoing, there are too many low hanging fruits to be ignored. And if you try to define "startup", then you are already on a slippery slope.

Do note that I never said a startup has to be a groundbreaking innovation, nor that people shouldn't take advantage of low hanging fruits. Just that an SEO consultant not call himself an entrepreneur or a group of freelancers call themselves a startup.

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