The entrepreneurial culture has been on the increase for a decade, and government and agency initiatives help a lot. Aside from such programmes, other organisations such as the Confederation of Indian Industry (CII) and The IndUS Entrepreneurs (TiE) support the growth of entrepreneurs and startups. Many large corporations and institutions also assist startups by contributing funding or making investments in them. This has aided numerous firms in their quest to become Unicorns.
Many organisations also give grants, which, if received, can be quite valuable to small businesses. The government has acted as enablers of growth in this business through these schemes and efforts, and ideally, as the world grapples with the pandemic, these schemes will continue to benefit others.
Enablers of Start-up Growth
In practically every industry, government assistance and subsidies are required. Without it, new and tiny firms may not be able to exist, and their competitors may crush them. Private agencies and institutions, in addition to government assistance, can assist startup founders in providing adequate assistance.
Such a collaborative approach with the government and private institutions can help in building a sustainable business environment and ecosystem for the startups, so that they can nurture and grow and so that a healthy competition is maintained in the market.
Let’s take a look at some of the Indian government’s startup programmes that are worth mentioning.
- DIGITAL INDIA
This campaign is a government of India startup initiative aimed at changing the country into a digitally enabled one. The scheme began with the distribution of biometric ideas to all Indians and the development of IndiaStack’s digital infrastructure system.
As a result, those who had never had a bank account before were able to open one. This was also a bid to turn India into a cashless society. This has facilitated the government’s direct payment of subsidies and benefits to citizens’ bank accounts. As a result, it becomes easier for entrepreneurs to take advantage of such benefits.
Owners can now obtain access to info that is credible and from reputable sources thanks to the Digital India strategy. This may aid them in establishing their firms and obtaining the resources and financing they require from the appropriate sources. It also assists start-up founders in reaching out to those who may be able to assist them, either by offering correct direction and guidance or by providing the necessary money backing.
- STAND-UP INDIA
This Indian government start-up plan has also aided female entrepreneurs and company owners from scheduled castes and tribes in obtaining funding. It has also attempted to make loans for greenfield projects in non-farm areas more accessible. These initiatives have been quite beneficial, and companies can take use of them to ensure their success.
Prime Minister Narendra Modi announced the government’s entrepreneurship programme in 2016. The government hopes to assist startups by providing them with sufficient money in a timely and convenient manner through this scheme. The goal is to persuade the younger generation to consider entrepreneurship as a viable career option as well. In addition, the initiative urged around 1.25 lakh bank branches across India to give loans and provide funds to at least one startup owned by tribal or Dalit individuals.
The major goal of this programme, as implied by its name, was to enable the growth of and provide help to 10,000 entrepreneurs in India over the course of ten years.
NASSCOM was founded in 1998 as a non-profit organisation. The National Association for Software and Service Companies is abbreviated as NASSC. The ‘10,000 Startups’ campaign, which began in 2013, is one of the organization’s key efforts.
The FAME Model, which is part of this programme, helps to stimulate growth and change in the startup environment. This model entails:
Funding – The organisation selects a few entrepreneurs and then works with them to raise cash from various sources. Venture capitalists, angel investors, government funding, and other sources are among them.
Acceleration – This step allows shortlisted firms to work with the country’s best accelerators. This aids the entrepreneurs in receiving sound advice and insight into their concepts.
Mentoring – In this case, the shortlisted entrepreneurs might benefit from the organization’s different workshops. Product management and distribution, branding and marketing, and other topics are covered in these sessions.
Enterprise Connect – This step primarily allows startup founders to expand their network and make industry relationships. It gives shortlisted businesses the opportunity to pitch their ideas to industry experts and form partnerships.
This plan has been in place for seven years. The programme has aided entrepreneurs in obtaining investment as well as providing them with worldwide market access.
- START-UP INDIA
The flagship project to support businesses is Startup India, which was launched by the Modi government. The main goals of the Startup India initiative were to make it simpler for companies to receive funding, to establish an environment that allows them to sustain themselves, and to promote their growth. Funding was offered to incubators and labs for this purpose, as well as tax benefits and a Rs. 10,000 crore fund to assist companies in raising capital.
Aside from that, the startup recognition procedure has been made reasonably straightforward. A smartphone app and a website were launched, allowing anyone who wanted to register to do so by filling out a form and providing the required documentation. As a result, the entire internet process has made it quite simple. It also contains patent evaluations that are completed quickly and at a minimal cost. Seven research parks have also been established to aid research and development.
Another goal of the government’s startup programme was to encourage people to create businesses. Startups created 2.64 percent of all jobs in India in 2018. Until 2019, this programme had created around 1,87,000 employment. The government hopes to reduce the country’s high unemployment rate with the support of StartUp India.