Aimed to turn India into one of the largest start-up ecosystems globally, the Government of India’s started its flagship Start-up India and Stand up India program on 16th January 2016. It took a string of policy initiatives for building a robust, growth-oriented and conducive environment for start-ups, thereby generating millions of job opportunities in the nation.
Maintaining cash flow, scaling up and finding the right set of people have posed a significant challenge for Indian start-ups so far. This scheme is aimed to address these issues and create an opportunity for growth and generate employment.
Primarily, the ‘Startup India’ campaign aims to promote financing for start-up ventures through financial institutions and promote entrepreneurship and job creation. On the other hand, the ‘Stand up India' initiative aims to encourage entrepreneurship among the minority communities and women. It is one of the great sources of financing for business women.
Although the Start-up India scheme flagged off phenomenally, over 3 years, it had its share of success as well as challenges. Let's take a look at where does this scheme stand now.
The success of Start-up India initiative
The Start-up India program intended to build a robust and self-sustaining ecosystem that is both conducive to the growth of start-up ventures and also supports their entrepreneurship. With an initial investment of Rs. 10000 Crore under ‘Fund of Funds' – the Government of India created a stepping stone for start-ups growth. The impact of this scheme has been tremendous:
- India now ranks 3rd in the global start-up industry with over 4200 registered entities.
- Rajasthan opened the Bhamashah Techno Hub, the largest incubator in India.
- Kerala launched the country’s biggest co-working space.
- Karnataka announced their credit line of Rs. 2000 Crore for creating at least 20000 start-ups by the year 2020.
The minorities from states like Telangana, Odisha, and Andhra Pradesh have been provided with end-to-end support to come up with new initiatives. With the introduction of start up business loans, the scenario is all the more significant to boost start-ups’ respective ecosystems.
Now with the introduction of GST, the growth rate is scaling up with no irregular taxes to deal with. Hence, this is the best time to start one’s small business loan search. However, you must check your eligibility and the documents required before applying for start-up business loans.
Failures of Startup India initiative
Although this scheme has its share of promising aspects, there are a few hindrances that must be looked into. Start-ups often face indifference from government bodies and anti-competitive practices still prevail.
According to a recent survey, only 18% of the total respondents expressed that they have benefited from this scheme. A plethora of issues like angel taxation, pending policies, bureaucratic and infrastructural hurdles still pose significant obstacles for start-ups. This needs to be solved at the earliest.
But, amid these successes and failures, India’s start-up ecosystem continues to grow manifold and is carving out an expanding niche for itself. Thus, if you own a start-up, you can start investing today with the available financial options and reap the benefits under the Start-up and Standup India scheme.