Government of India launched Startup India campaign to encourage entrepreneurship in India’s young generation who despite being skilled and able to launch their own ventures become dependent upon various types of jobs and remain under employed. . By encouraging start-ups, the country can create more and more jobs with more and more income, more and more disposable income. The Startup India is initiative of the “Government of India” launched in January 2016 by Prime Minister Narendra Modi which offered incentives to such ventures to encourage entrepreneurship and innovation.
Under this initiative, the government has launched the I-MADE program, to help Indian entrepreneurs build 1 million mobile app start-ups, and the MUDRA Banks scheme (Pradhan Mantri Mudra Yojana), an initiative which aims to provide micro-finance, low-interest rate loans to entrepreneurs from low socio-economic backgrounds. Good entrepreneurship education is one that imparts innovation skills in a holistic manner. An entrepreneur who has undergone good entrepreneurship education is likely to follow an entrepreneurial “method” which can be availed by pursuing degree program from list of top MBA College in NCR.
Three Pillars of StartUp India
The action plan of this initiative is based on the three pillars:
- Simplification and Handholding
- Funding Support and Incentives
- Industry-Academia Partnership and Incubation
An additional area of focus related to this initiative, is to discard restrictive States Government policies within this domain, such as License Raj, Land Permissions, Foreign Investment Proposals, and Environmental Clearances.
Startup Definition (DIPP)
Startup means an entity, incorporated or registered in India. India enlarged the definition of what constitutes a startup to a venture that’s as much as seven years old from five now, relaxed the norms for tax benefits and included employment generation potential to give a big push to job creation and entrepreneurship. These changes are an effort to ensure ease of starting up new businesses to promote the startup ecosystem and build a nation of job creators instead of job seekers, as mentioned by Department of Industrial Policy and Promotion (DIPP).
Objectives of Startup India
The main objective of Startup India initiative is to encourage entrepreneurship and generate jobs. At the end of the day this initiative is about the power of Entrepreneurship, how it can create lots of jobs and how there is a need to encourage our youngsters to create even more jobs. Startup India is focused to restrict role of States in policy domain. It proposes to abolish the ‘License Raj’ along with other obstacles like in land permissions, foreign investment proposal, environmental clearances among others .The definition’s scope has been broadened to include scalability of business models with the potential of employment generation or wealth creation working towards innovation, development or improvement of products or processes or service. The government has also eased norms for getting income tax benefits available under the Startup India programme.
Obstacles and Challenges faced
Despite the influx of venture capital funds into the startup ecosystem, many companies struggle to survive the competition and may eventually be forced to shut down operations. Startups are facing many challenges and hurdles despite commitment by the Government to provide all the support and finance. The biggest challenge before success of campaign is parameters of ease in doing business, funding, corruption, availability of skilled labor and team, market need and Revenue and capital burn.
Startups find it difficult to have access to credit. Attracting investors to fund ventures or getting loans from banks are perennial problems for startups. Despite all the commitment, Banks are not giving loans to startups without prior credit history. Many times despite raising sufficient initial capital, startups find it difficult to survive as they can’t match revenue and burn rate mostly because of changed economic factors. Finding right skilled human power is another biggest challenge before startups.
Government is the single largest enabler for the entrepreneurial ecosystem. Government’s role in ease of doing business and helping companies start is vital to ensuring success. The government’s role has so far been limited to giving out grants and loans, but without an effective, enabling environment, implementation is far off the target. For startups to thrive and succeed, the government has a lot to do and understand the importance of entrepreneurship in economic development.
Whatever may be the kind of startup, Indian startups face its own set of challenges and some stellar opportunities. Doing a startup is perilous and often a lonely journey. You may have co-founders, but you may not necessarily possess the business acumen to succeed. Having a brilliant idea is different from making that idea a business success. For a startup, it is very important to have mentors who have been through a similar process of starting or have business experience.
Entrepreneurship and startups are only a recent phenomenon in the country. It is only in the last decade and half that people in the country have moved from being job seekers to job creators with great scope ahead. Entrepreneurship education, therefore, has a large component of action-oriented learning and application of concepts in real-life projects which can be undertaken from Best MBA College in Noida. In entrepreneurship education, the students are equipped with tools that enable creative problem solving, need identification and developing a sustainable business model.
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