The Narendra Modi government has been extremely vocal about its views and plans about encouraging the startup culture in India. And, now it finally seems, the government is finally ready with a blueprint in order to achieve its these aims and plans.
The blueprint prepared by the Government of India will help encourage more and more startups as it introduces flexibility in hiring norms and allows failed start-ups to wind up faster.
Further, it also has a plan set to encourage more and more women entrepreneurs to enter the business industry. Special women centric incentives include giving preference to women backed enterprises in public procurement and making it easier for them to access capital for their startups.
The government is quite hopeful that all this overhaul of the regulatory framework for startups would help in preventing an exodus of successful business ventures to foreign lands. The government’s focus is on making it easier to launch, run and close a startup in the country.
Keeping in line with Modi’s ‘Start Up India, Stand Up India’ initiative, the government of India has decided to allot a unique entrepreneurship number (UEN). This Unique number can be used by every startup to complete their various statutory registrations and report compliance with tax and labour laws. Thus, taking care of most of the hassles that a company has to face while starting up. Currently, the government is working on a composite application form for obtaining all statutory nods. Apparently, all the concerned ministries have already agreed on the idea.
According to Jyotsna Sitling, joint secretary in the ministry of skill development and entrepreneurship, “It is critical that there is some flexibility for startups in hiring and retaining employees during their first three or five years of operations. We are also pursuing easier exit for enterprises that fail to take off in their first three years of operations.”
“We want to promote a rescue culture by revisiting bankruptcy rules as well as provide advisory services to ventures that are struggling to take off. Incentives for angel funding and venture units in the quasipublic sector to bring in equity funds are also on the cards,” she further added in a statement given to an economic daily.
The Government’s main focus of the new approach is on entrepreneurship education. It aims to achieve this by a blend of experiential and online learning (through massive open online courses or MOOCS). “We will be starting entrepreneurship courses in 3,000 colleges, which are located around 325 industrial clusters with 50 nodal entrepreneurship hubs (e-hubs) over the next five years,” said Sitling talking about the same.
A mobile and web based platform will help students connect with a national network of accelerators, mentors and incubators. It will also help them in tapping government programs and schemes for small enterprises such as ‘Self-Employment and Talent Utilisation’ or SETU, the Rs 1,000 crore venture fund announced Budget 2015 and the Atal Innovation Mission etc.