STARTUP INDIA

BY
DEEPIKA.T
REGISTRATION NO:412522631036
OF
SHRI SAI RAM ENGINEERING COLLEGE
AN AUTONOMOUS INSTITUTION
IMMERSION PROJECT REPORT
Submitted to the
FACULTY OF MANAGEMENT SCIENCES
In partial fulfillment of the requirements
For
the award of the degree
Of
MASTER OF BUSINESS ADMINISTRATION
ANNA UNIVERSITY
CHENNAI-600025
APRIL 2023
BONAFIDE CERTIFICATION

This is to certify that this project report titled “STARTUP INDIA”is the bonafide work of DEEPIKA.T
(412522631036) who carried out the work under my supervision. Certified further, that to the best of my
knowledge the work reported here in does not form part of any other project report or dissertation on the basis of
which a degree or award was conferred on an earlier occasion on this or any other candidate.

DR.V.SAILLAJA Dr.K.MARAN

Signature of the guide Signature of the director

 DECLARATION
I, DEEPIKA.T hereby declare that the project report, entitled “START UP INDIA” submitted to the Anna
University, Chennai in partial fulfillment of the requirement for the award of the degree of MASTER OF
BUSINESS ADMINISTRATION is record of original and independent research work done by me during
APRIL 2023 under the supervision of Dr.V.SAILLAJA Professor, Department of Management studies, and it
has not formed the basis or other similar title to any candidate of any university.

Place: Chennai Name: DEEPIKA.T

Date:
 ACKNOWLEDGEMENT

I am thankful to the management of Sri Sairam Institute of Management Studies which has imparted me
sufficient knowledge and confidence to complete this project in this field training.

I wish to express my deep sense of gratitude and indebtedness to our founder chairman MJF.Ln.Leo Muthu
and CEO-Mr.Sai Prakash Leo Muthu, Sri Sairam Groups of Institution, Chennai.

I would like to thank the Principle,Dr K Porkumaran, Sri Sairam Engineering college for providing me an
opportunity to enroll in this esteemed institution.

I’m highly obliged to Dr. K.Maran, Professor & Director, Sri Sairam Institute of Management Studies for
providing me an opportunity to embark on this project report.

I wish to express my sincere gratitude to my Dr.V.Saillaja for this commendable inspiring guidance, valuable
advice, encouragement and motivation given to succeed.

I’m very grateful to all the faculty members of the department of management studies for their encouragement
and kind-hearted advice.

Finally, I thank my family members and friends who helped me I all possible ways to make this project a
success.

Name:DEEPIKA.T
ABSTRACT
The Startup India program provides startups with a range of benefits, including tax exemptions, fast-track patent
filing, and easier access to funding. The government has also established a Fund of Funds for Startups (FFS)
with a corpus of Rs 10,000 crore to provide funding support to startups through various venture capital
funds.The initiative has been successful in creating a thriving startup ecosystem in India, with several startups
gaining recognition globally. The government has also launched various schemes and initiatives under the
Startup India program, such as Atal Innovation Mission, Standup India, and Innovation Fund for Rural
Development, to promote entrepreneurship and innovation across the country.

Despite the progress made, startups in India continue to face several challenges, including access to funding,
regulatory compliance, and talent acquisition. The government has taken several measures to address these
challenges, such as relaxing the norms for Foreign Direct Investment (FDI) in startups and setting up incubators
and accelerators across the country.

Overall, the Startup India initiative has been instrumental in promoting entrepreneurship, creating job
opportunities, and boosting the Indian economy. It has the potential to play a significant role in India's journey
towards becoming a global hub for innovation and entrepreneurship.

In this paper, we will discuss the various aspects of the Startup India initiative, including its objectives, key
features, and the impact it has had on the Indian startup ecosystem. We will also analyze the challenges faced
by startups in India and the measures taken by the government to address them.

Through this paper, we hope to provide an overview of the Startup India initiative and highlight its significance
in promoting entrepreneurship and innovation in India. We believe that this initiative has the potential to create
a significant impact on the Indian economy and contribute to the country's overall growth and development.

Keywords: startup, schemes, entrepreneur, innovation, funding

TABLE OF CONTENT
 ABSTRACT i
TABLE OF CONTENT ii

CHAPTER NO TITLE PAGE NO

1. INRODUCTION

1.1 INRODUCTION 2

1.2 REVIEW OF LITERATURE 3

1.3 OBJECTIVE OF THE STUDY

1.4 AIM OF STARTUP

1.5 BENEFITS OF STARTUP

1.6 ELIGIBILITY CRITERIA FOR STARTUP

I 1.7 PROCESS OF REGISTRATION OF STARTUP

1.8 KEY FACTORS OF STARTUP

1.9 STARTUP INDIA RANKINGS

1.10 SIGNIFICANCE OF STARTUP

1.11 GOVERNMENT SCHEMES

1.12 RECENT STARTUP WAVES

1.13 SOURCES OF FINANCE

2. METHADOLOGY

II 2.1 METHODOLOGY

2.2 ROLE OF STARTUP IN INDIAN ECONOMY

3. ANALYSIS
III 3.1 ANALYSIS AND INTERPRETATION

3.2 CONCLUSION

REFERENCES
I-INTRODUCTION

1
INTRODUCTION

Startup India is an initiative launched by the Government of India in January 2016 to promote entrepreneurship
and innovation in the country. The program aims to foster a culture of entrepreneurship, create a conducive
ecosystem for startups, and provide various incentives and support to facilitate their growth.

Under the Startup India program, startups are eligible for tax exemptions, fast-track patent filing, and other
benefits. The government has also established a Fund of Funds for Startups (FFS) with a corpus of Rs 10,000
crore to provide funding support to startups through various venture capital funds.

The program has been successful in creating a thriving startup ecosystem in India, with several startups gaining
recognition globally. The government has also launched various schemes and initiatives under the Startup India
program, such as Atal Innovation Mission, Standup India, and Innovation Fund for Rural Development, to
promote entrepreneurship and innovation across the country.

Overall, the Startup India initiative has been instrumental in promoting entrepreneurship, creating job
opportunities, and boosting the Indian economy.

The Action Plan comprises of 19 action items spanning across areas such as “Simplification and handholding”,
“Funding support and incentives” and “Industry-academia partnership and incubation”.

2
REVIEW OF LITERATURE

Literature review helps in understanding the topic a bit more and finding out the research gaps as well. Usually
this review contents research work, reports and news paper articles which are related to the topic and provide a
deep understanding and sense about the topic/subject being discussed. This research paper has the following
literature review-

1. Badra, Shailja, Dr. and Sharma, Vivek in their research paper title “Start up India- New Opportunities For
The Entrepreneur” (2016) write “The success of Start up India campaign hinges on initiatives like faster and
easier registration of Companies, self-certification for many legal requirements, zero inspection for three years,
funding for patents, and speed of patent protection. It is important to add provisions which aid the closure of
dead companies within 90 days. Indian lawmakers could do this under the new bankruptcy bill. The central
theme is that ease of starting and ending is critical in the context high rate of start up mortality. The
Government proposal do so, across Universities, innovation movements, research parks and industry parks is on
similar lines. The promise of an initial capital of ten thousand crores over a period of four years from the
government is capable of attracting tenfold investment by 2022. Credit guarantee for start up lending is the
booster dose required to galvanize Indian industry. Incentives in the form of tax holiday for three years are a
benefit worth considering.”

2. Report title “Start-Up India- an Overview” Prepared by Grant Thornton for ASSOCHAM India (2016)
writes “Startups have been the flavour of the season over the last few years for the Indian markets. This has
resulted into the emergence of a number of home grown unicorns across the country. One of the major
contributors leading to this development has been the mega funding that has been ploughed into most of these
unicorns between the period 2007 and 2015. This has been in line with the global trend dominating the space.
Even the aspiring unicorns have had a decent run during this period, where managing to find investors is usually
considered a tough task. The trends of investments suggest that investors want to enter as an early investor, even
before the start of the firm. From an overall viewing, India comes across as a thriving under-penetrated
consumer driven market with a scope for exponential growth. Internet penetration and its increasing importance
will drive most of the businesses. On account of the consumer demographics, with China being out of bounds,
India offers the largest pie of investment opportunity that the world is eyeing.”

3. Wagh, Madhura, in her research paper title “Government initiative for Entrepreneurship development-
Start up India Stand up India” (2016) writes “In India Entrepreneurship is less desirable career choice.
3
Government policies and programmes, education and training are regarded as main constraining factors for

4
entrepreneurship. Recommendations were directed towards liberalisation of government policies, capacity
building through training and education, restructuring through incentives and tax structure to promote
entrepreneurship and increased investment in research and development through growth in innovation. To
address these recommendations ‘Start up India Stand up India’ initiative is announced by government. It is an
initiative by government ‘to build strong eco system for nurturing innovation and startups in the country that
will derive sustainable economic growth and generate large scale employment opportunities”

4. “Start – Ups: What You Need To Know”(2016) Prepared by “Nishith Desai Associates (NDA)” explains “A
startup is faced with a number of issues that have to be dealt with in order to grow into a successful
organization. Apart from planning the most effective business strategy for the company, the startup needs to
look at the regulatory environment, various legal issues, and the laws of the country where the start-up is
proposed to be set up. In addition to this, the startup will also need to examine the regulatory and tax regimes of
locations it plans to do business in. In many instances, structuring the correct set up for a startup helps to
prevent future complications, and mitigate regulatory and tax risks at a future stage when the startup is nearing
maturity Perhaps the first step a startup needs to take is to determine how it will be setup, from where the seed
investment required to set up the startup entity needs to be brought (colloquially referred to as “Structuring”)
and what sort of entity it would like to function as. For certain professions, this may be limited to partnerships
though the preferred entity tends to be a company. Incorporating a company requires certain steps, which we
deal with in this paper.”

5. Deepak Menon-"Startup India: Government Policies and Startup Ecosystem in India" a business
strategist and author, provides a comprehensive analysis of government policies and the startup ecosystem in
India. Menon discusses the key initiatives undertaken by the Indian government, such as tax exemptions,
funding mechanisms, and regulatory reforms, to promote startups through the Startup India initiative. He also
analyzes the challenges and opportunities faced by startups in India, and provides insights on the policy
interventions required to foster a conducive environment for startups to thrive.

6. Dr. Ashwani Kumar Sharma-"Emerging Trends in the Indian Startup Ecosystem conducts a literature
review on emerging trends in the Indian startup ecosystem. Sharma analyzes the current research and literature
related to the Startup India initiative, including the impact of government policies, challenges faced by startups,
success factors, and opportunities for growth. He also identifies gaps in the existing literature and proposes
areas for further research to better understand the dynamics of the Indian startup ecosystem.

7. Dr. Swati Panda-"Innovation and Entrepreneurship in India: A Review of Startup India" a researcher
5
in the field of innovation and entrepreneurship, provides a critical review of the Startup India initiative. Panda

6
examines the role of government policies in fostering innovation and entrepreneurship in India, and analyzes the
impact of the Startup India initiative on startups' growth and development. She also discusses the challenges
faced by startups in India, and offers recommendations for policy interventions to promote a culture of
innovation and entrepreneurship in the country.

8. Dr. Anju Singh-"Socio-economic Impact of Startup India: A Literature Review" a social economist and
author, conducts a literature review on the socio-economic impact of the Startup India initiative. Singh
examines the role of startups in creating employment opportunities, fostering inclusive growth, and promoting
economic development in India. She also analyzes the impact of government policies on startups' social and
economic outcomes, and provides insights on the implications for policy-making and further research in this
area.

9. Dr. Rohit Sharma-"Investment and Funding Landscape of Indian Startups: A Review of Literature" a
finance expert and researcher, conducts a literature review on the investment and funding landscape of Indian
startups. Sharma analyzes the various sources of funding available to startups in India, including venture capital,
angel investors, crowdfunding, and government funding, and examines the challenges and opportunities
associated with each source. He also discusses the policy measures undertaken by the government to address
funding challenges and foster a favorable investment ecosystem for startups in India.

10. Pranjal Sharma-"Startup India: Unleashing the Entrepreneurial Spirit of India", a business journalist and
author, provides an in-depth analysis of the Startup India initiative, focusing on its impact on India's
entrepreneurial ecosystem. Sharma discusses the key policy measures undertaken by the government to promote
startups, including funding mechanisms, regulatory reforms, and support programs. He also highlights success
stories of Indian startups and offers insights on the role of startups in India's economic growth and development.

11. Amitabh Kant-"Driving Innovation and Entrepreneurship: Lessons from Startup India", the CEO of
NITI Aayog (National Institution for Transforming India), provides a critical review of the Startup India
initiative, drawing lessons from its implementation. Kant discusses the strengths and weaknesses of the
initiative, including the policy measures undertaken, the challenges faced, and the outcomes achieved. He also
offers recommendations for further strengthening the startup ecosystem in India and fostering innovation and
entrepreneurship.

12. Rishi Kapal-"The Startup Revolution in India: A Comprehensive Review of Startup India" a renowned
7
entrepreneur and author, provides a comprehensive review of the Startup India initiative, focusing on its impact

8
on the Indian startup ecosystem. Kapal analyzes the policy measures undertaken by the government to promote
startups, including funding mechanisms, incubation programs, and regulatory reforms. He also examines the
challenges faced by startups in India and offers insights on the opportunities and potential of the Indian startup
ecosystem.

13. Varun Aggarwal-"From Idea to IPO: A Review of the Startup India Journey" a successful entrepreneur and
author, provides a detailed review of the journey of startups in India, from idea to IPO (Initial Public Offering),
with a focus on the role of the Startup India initiative. Aggarwal discusses the challenges and opportunities
faced by startups at different stages of their growth, including funding, mentoring, and scaling-up. He also
highlights the policy measures undertaken by the government to support startups and shares insights on building
a successful startup in India.

14. Nishant Saxena -"Startup India: A Critical Analysis of Policy Impacts" a policy analyst and author,
critically analyzes the impact of the Startup India initiative on the Indian startup ecosystem. Saxena discusses
the strengths and weaknesses of the policy measures undertaken by the government, including the effectiveness
of funding mechanisms, regulatory reforms, and support.

Objective of the study-

The present paper is based on certain objectives and efforts are made to meet these objectives. Objectives are
very important for any research work as it defines the area and scope of the study to be carried out. These
objectives are set after much deliberation and so that the outcome of the paper is productive enough. This
research paper has the following objectives

1. To understand the start-ups and their significance.

2. To unlock the patterns of start-ups their founders in India.

3. To underline the various roles of start-ups in India.

4. To identify the driving forces and barriers in India’s path of becoming a start-up hub.

5. To produce suggestions to make the start-up environment more conducive in India

9
 AIM OF STARTUP INDIA

The main aim of the Startup India initiative is to foster a culture of entrepreneurship and innovation in India and
create a conductive ecosystem for startups to thrive. The program is designed to provide startups with the
necessary support, resources, and incentives to help them grow and succeed.

The specific objectives of the Startup India initiative include:

✓ Promoting the creation of new startups and encouraging their growth.

✓ Providing easy access to funding for startups through various funding schemes and initiatives.
✓ Providing tax exemptions and other incentives to reduce the financial burden on startups.
✓ Simplifying the regulatory and compliance framework for startups to ease their operations.
✓ Creating a network of incubators and accelerators across the country to provide mentoring and support
to startups.
✓ Encouraging innovation and R&D activities by startups through various initiatives.
✓ Promoting women entrepreneurship and inclusivity by providing special incentives and support to
women-led startups.

The overall aim of the Startup India initiative is to make India a hub for innovation and entrepreneurship and to
create a conductive ecosystem that fosters the growth and success of startups.

10
BENEFITS OF START UP INDIA

• Financial Benefits

• Income Tax Benefits

• Registration Benefits

• Government Tenders

• Huge Networking Opportunities

1. Financial Benefits

Most of the startups are patent based. It means they produce or provide unique goods or services. In order to
register their patents, they have to incur a heavy cost which is known as the Patent Cost.

Under this scheme, the government provides 80% rebate on the patent costs. Moreover, the process of patent
registration and related is faster for them. Also, the government pays the fees of the facilitator to obtain the patent.

2. Income Tax Benefits

Startups enjoy a good amount of benefits under the Income Tax head. The government exempts their 3 years
income tax post the incorporation year.

But they can avail it only after getting a certificate from the Inter-Ministerial Board. Also, they can claim
exemption from tax on Capital Gains if they invest money in specified funds.

3. Registration Benefits

Everyone believes that incorporation and registration of business are far more difficult than running it. It is because
of the long and complex steps of registration.

Under the Startup India scheme, an application is there to facilitate registration. A single meeting is arranged to at
the Start-up India hub. Also, there is a single doubt and problem-solving window for them.

11
4. Government Tenders

Everyone seeks to acquire Government tenders because of high payments and large projects. But it is not easy to
acquire the government tenders.

Under this scheme, the startups get priority in getting government tenders. Also, they are not required to have any
prior experience.

5. Huge Networking Opportunities

Networking Opportunities means the opportunity to meet with various startup stakeholders at a particular place and
time. The government provides this opportunity by conducting 2 startups fests annually (both at domestic as well as
the international level).

Startup India scheme also provides Intellectual Property awareness workshop and awareness.

Registration of the Startup can be done only from following types of companies

1. Partnership Firm
2. Limited Liability Partnership Firm
3. Private Limited Company

12
 ELIGIBILITY CRITERIA FOR STARTUPS

Your company must meet the following criteria to be considered eligible for DPIIT startup recognition.

Company Age

Period of existence and operations should not be exceeding 10 years from the Date of Incorporation

Company Type

Incorporated as a Private Limited Company, a Registered Partnership Firm or a Limited Liability Partnership

13
 Annual Turnover

Should have an annual turnover not exceeding Rs. 100 crore for any of the financial years since its
Incorporation

Original Entity

Entity should not have been formed by splitting up or reconstructing an already existing business

Innovative & Scalable

Innovative & Scalable Should work towards development or improvement of a product, process or service
and/or have scalable business model with high potential for creation of wealth & employment

14
 Key Pillars of Support for Startups
Under the Startup India Initiative

Simplification and Handholding

Easier compliance, easier exit process for failed startups, legal support, fast tracking of
patent applications and a website to reduce information asymmetry.

Funding & Incentives

Exemptions on Income Tax and Capital Gains Tax for eligible startups; a fund of funds to
infuse more capital into the startup ecosystem and a credit guarantee scheme.

Incubation & Industry-Academia Partnerships

Creation of numerous incubators and innovation labs, events, competitions and grants.

15
 PROCESS OF REGISTRATION OF STARTUP INDIA

A person must follow the below-mentioned steps that are important for the successful registration of their
business under the Startup India scheme:

1. A person should incorporate their business first either as a Private Limited Company or as a Limited
Liability Partnership or as a Partnership Firm along with obtaining the certificate of Incorporation, PAN,
and other required compliances.
2. A person needs to log in to the official website of Startup India where he/she has to fill all the essential
details of the business in the registration form and upload the required documents.
3. A letter of recommendation, Incorporation/Registration Certificate, and a brief description of the
business are some of the essential documents required for the registration purpose.
4. Since the start-ups are exempted from income tax benefits, therefore, they must be recognized by the
Department of Industrial Policy and Promotion (DIPP) before availing these benefits. Also, they should
be certified by the Inter-Ministerial Board (IMB) to be eligible for IPR related benefits.
5. After successful registration and verification of the documents, you will be immediately provided with a
recognition number for your startup along with a certificate of recognition.

16
 Startup India – State Rankings

States’ Startup Ranking Framework is an evolved evaluation tool aimed to strengthen the support of States and
UTs to holistically build their startup ecosystems. The rankings are based on the criteria of policy, incubation
hubs, seeding innovation, scaling innovation, regulatory change, procurement, communication, North-Eastern
states, and hill states.

The latest edition of the States’ Startup Ranking 2020 was released on September 11, 2020. UPSC aspirants can
visit the linked article and get the list of top states with the best startup ecosystem.

The States’ startup rankings from 2019 and 2018 have been given in the following tables for the reference of the
candidates:

Startup India State Rankings 2019

Ranks States

Best Gujarat, Andaman and Nicobar Islands

performer

Top Karnataka, Kerala

performers

Leader Maharashtra, Odisha, Rajasthan, Bihar and Chandigarh

Aspiring Telangana, Uttarakhand, Haryana, Jharkhand, Punjab

leaders

Emerging Chattisgarh, Himachal Pradesh, Andhra Pradesh, Tamil Nadu, Madhya

states Pradesh, Uttar Pradesh Assam, Delhi, Mizoram and Sikkim

17
 Startup India State Rankings 2018

Ranks States

Best performer Gujarat

Top Karnataka, Kerala, Odisha, and Rajasthan

performers

Leader Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh, and Telangana

Aspiring Haryana, Himachal Pradesh, Jharkhand, Uttar Pradesh, and West Bengal
leaders

Emerging Assam, Delhi, Goa, Jammu & Kashmir, Maharashtra, Punjab, Tamil
states Nadu, and Uttarakhand

Beginners Chandigarh, Manipur, Mizoram, Nagaland, Puducherry, Sikkim, and

Tripura

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 Significance of Startups in India economy or why start ups matter-

The very nature of start ups make start ups a necessity for growing economies like India. What start ups offer in
terms of economic contribution is very huge and game changer in terms of innovation, opening of newer
markets and production/consumption of unique/innovative products for the consumer and creating a generation
which believes deeply in being job provider rather than job seekers. Other than that, start ups and their existence
and their successful operations motivates others to follow the same line. In a way, it creates huge hubs of
successful enterprises, and makes traditional economies innovation based economies. Start ups also help in
creating an environment of mutual development and creativity based employability. Other than that, some of the
significances of start ups in Indian economy are as under

1. Creation of entrepreneurs and grassroots employment in country which further reduces the burden of
unemployment and helps in evolving a developed country.

2. Building a culture of entrepreneurial excellence and incubation is encouraged by the Growth in start ups
which is a sign that, the country is moving towards technological advancement, betterment in societal standards
etc.

3. Encourages educational institutions to be more focused on innovation and entrepreneurial educational

curriculum.

4. Saving time and other resources can also be contributed to start ups, as they evolve solutions which are very
time and resources saving for the customers.

5. A better image, a better message goes out as well with growth of start ups in country. As they became the
identity of the modern growth in the world replacing industrialization, countries producing maximum number of
start ups are considered to be highly developed.

6. Overall, start ups have huge importance when it comes to India and similar countries, as these nations are
needed to move away from traditional sources of income and for creating new avenues of jobs, revenues.

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GOVERNMENT SCHEMES FOR STARTUP

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i)Raw Material Assistance Scheme
Nodal Ministry/Department: Ministry of Micro, Small and Medium Enterprises, NSIC

Key Sector Covered: Raw Material

Eligibility Criteria: The Entrepreneurs are required to apply for Raw Material Assistance only on the
prescribed application forms. The application forms downloaded from the link given below may be filled and
can be submitted to the nearest Branch Office. The blank forms are also available free of charge from the
Branch offices.

Brief: Raw Material Assistance Scheme aims at helping MSMEs by way of financing the purchase of Raw
Material (Both indigenous & imported). This gives an opportunity to MSMEs to focus better on manufacturing
quality products.

Benefits: Facilitating procurement of Raw Material with credit support up to 180 days SMEs helped to avail
Economics of Purchases like bulk purchase, cash discount etc.

iii) Technology Development Fund

Nodal Ministry/Department: Ministry of Defence, DRDO Key Sector Covered: Defence Eligibility Criteria:
Projects under this scheme are single phase fast-track projects open for applications. Some projects are
exclusive for startups

Brief: The TDF Scheme extends financial support and expertise to upgrade existing products/ systems,
processes, and its applications by reducing production costs, improving functionality and quality by promoting
Make in India, and the development of futuristic technologies with defence applications. The Scheme enlists
requirements of Service Headquarters of upgrading products/ systems and futuristic defence technologies as
Projects for which eligible stakeholders can apply through this platform.

Benefits: Financial Support and expertise to upgrade existing products/systems

Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme for Women

Nodal Ministry/Department: Ministry of Micro, Small and Medium Enterprises Key Sector

Eligibility Criteria:

✓ Be a legal entity with a minimum registration of three years.

✓ Having experience in thrift and saving programmes with Self-Help Groups (SHGs).
✓ Be engaged in income generation activities for women entrepreneurs.

21
✓ Have basic infrastructure, qualified support staff and services to undertake micro- enterprise
development for women.

22
 ✓ Prior experience in preparing project proposals on behalf of women entrepreneurs / women SHGs for
income generation activities and take loan from financial institutions for onward disbursement to them

Brief: This scheme envisages economic empowerment of women by providing credit , training, development
and counselling extension activities related to trades, products, services etc.

Benefits: Assistance in the form of the Government of India grant of up to 30 per cent of the total project cost.
Elected training institutions and NGOs conducting training programmes for empowerment of women
beneficiaries identified under this scheme can also avail of GoI grant of up to Rs.1.00 lakh per programme.

iii) Entrepreneurial and Managerial Development of SMEs through Incubators

Nodal Ministry/Department: Ministry of Micro, Small and Medium Enterprises

Key Sector Covered: Technology

Brief: The main objective of the scheme is to promote emerging technological, and knowledge based
innovative ventures that seek the nurturing of ideas from professionals beyond the traditional activities of
Micro, Small & Medium Enterprises (MSMEs).

There are multiple objectives of the scheme, some of which are:

✓ To promote emerging technological and knowledge based innovative ventures that seek the nurturing of
ideas from professionals.
✓ To promote and support untapped creativity of individual innovators and also to assist individual
innovators to become technology-based entrepreneurs.
✓ To promote networking and forging of linkages with other constituents of the innovation chain for
commercialization of their developments.

Benefits: Funding support for setting up of ‘Business Incubators’: The cost may vary from Rs 4 to 8 lakh for
each incubate/idea, subject to overall ceiling of Rs 62.5 lakh for each BI.

a) Upgradation of infrastructure Rs 2.50 lakh

b) Orientation/training Rs 1.28 lakh

c) Administrative expenses Rs 0.22 lakh

Total assistance per BI Rs 66.50 lakh

iv) Women Enterprise Development (WED)

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Nodal Ministry/Department: Ministry of Development of north-eastern Region

24
Key Sector Covered: NA

Eligibility Criteria: Skilled woman entrepreneurs in the age group of 18-50 years; the applicant must be
engaged in any viable income generating activity including small business trade., etc.

Brief: The scheme provides financial assistance to woman entrepreneurs for taking up business ventures.
Existing businesses will also be eligible for expansion, modernisation, and diversification.

Benefits: Financial Assistance of Maximum Rs. 100 Lacs.

v) Venture Capital Assistance Scheme

Nodal Ministry/Department: Ministry of Agriculture, SFAC

Key Sector Covered: Agriculture

Eligibility Criteria: Assistance under the Scheme will be available to Individuals; Farmers; Producer Groups;
Partnership/Proprietary Firms; Self Help Groups; Companies; Agripreneurs; units in agri-export zones, and
Agriculture graduates Individually or in groups for setting up agribusiness projects. For professional
management and accountability, the groups have to preferably form into companies or producer companies
under the relevant Act

Brief: Venture Capital Assistance is financial support in the form of an interest free loan provided by SFAC to
qualifying projects to meet shortfall in the capital requirement for implementation of the project.

Benefits:

(a) To facilitate setting up of agribusiness ventures in close association with all Notified Financial Institutions
notified by the Reserve Bank of India where the ownership of the Central/State Government is more than 50%
such as Nationalized banks, SBI & its subsidiaries, IDBI, SIDBI, NABARD, NCDC, NEDF, Exim Bank, RRBs
& State Financial Corporations.

(b) To catalyse private investment in setting up of agribusiness projects and thereby providing assured market to
producers for increasing rural income & employment.

(c) To strengthen backward linkages of agribusiness projects with producers.

(d) To assist farmers, producer groups, and agriculture graduates to enhance their participation in value chain
through Project Development Facility.

(e) To arrange training and visits, etc. of agri-preneurs in setting up identified agribusiness projects.

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(f) To augment and strengthen existing set up of State and Central SFAC

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vi) Initiative for Development of Entrepreneurs in Agriculture (IDEA)

Nodal Ministry/Department: Ministry of Development of North-eastern Region

Key Sector Covered: Agriculture

Eligibility Criteria:

✓ Graduates and Postgraduates in agriculture and allied subjects.

✓ Graduates, Post-graduates from other disciplines having experience and skill to undertake Agriculture.
✓ Business ventures can also be considered.
✓ The proposed units could be proprietorship, partnership, or a company.
✓ The promoter or their units must not be a defaulter in any government scheme and /or with any bank or
any other agencies.
✓ The proposed unit for which financial assistance is sought should be located within any of the eight
North-Eastern States.

Brief: The scheme intends to promote agri-business ventures in the North-East Region and assist in establishing
agri-business as a profitable venture. It also provides gainful employment opportunities and makes available
supplementary sources of input supply and services.

Benefits: Composite loan comprising term loan and working capital; maximum project size should be Rs.25
lakh term loan from NEDFi, maximum up to 75% of the project cost, promoter’s contribution will be 25% of
the project cost.

vii) Samridhi Fund

Nodal Ministry/Department: Public Sector Enterprise, SIDBI

Key Sector Covered: Social Enterprises

Eligibility Criteria: The conditions necessary for getting funded are as follow: Be economically viable Provide
access to markets for the poor Be socially relevant and impact the poor as customers, producers, or employees
The enterprises must have plans to expand operations in any or all the following states – Bihar, Chhattisgarh,
Odisha, Uttar Pradesh, West Bengal, Madhya Pradesh, Jharkhand, and Rajasthan. Increase the flow of capital to
the above-mentioned states Focus on Environment, Social and Governance matters.

Samridhi will not invest in any of the following businesses or activities:

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✓ Illegal or banned activities, including child labour.

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 ✓ Businesses dealing with hazardous chemicals, asbestos, pesticides and wastes; ozone depleting
substances; and endangered or protected wildlife or wildlife products.
✓ Arms and ammunition.
✓ Companies which have been proven to be involved in fraud and corruption.

Brief: The Samridhi Fund is an approx. ₹430 crore social venture capital fund. SIDBI has envisaged the
creation of the Samridhi Fund to provide capital to social enterprises which can deliver both financial and social
returns, in Bihar, Uttar Pradesh, Madhya Pradesh, Odisha, Chhattisgarh, Jharkhand, Rajasthan and West
Bengal.

Benefits: ₹430 crore social venture capital fund .

viii) Pradhan Mantri Mudra Yojana

Nodal Ministry/Department: Public Sector Enterprise

Key Sector Covered: Non-Farm, Non-Corporate

Eligibility Criteria:

✓ Any Indian Citizen who has a business plan for a non-farm income generating activity such as
manufacturing, processing, trading or service sector whose credit need is up to 10 lakh can approach
either a Bank, MFI or NBFC for availing of MUDRA loans under PMMY.
✓ The usual terms and conditions of the lending agency may have to be followed for availing of loans
under PMMY.
✓ The lending rates are as per the RBI guidelines issued in this regard from time to time.

Brief: Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon’ble Prime Minister on April
8, 2015, for providing loans up to 10 lakhs to the non corporate, non-farm small/micro enterprises. These loans
are classified as MUDRA loans under PMMY.

These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs.

Benefits: Loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises.

ix) Self Employment and Talen Utilisation (SETU) Scheme

Nodal Ministry/Department: Niti Aayog

Key Sector Covered: Technology

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Eligibility Criteria: This scheme is for the Budding entrepreneurs who will be able to get incubation and other
support while doing startup.

Brief: SETU will be a Techno-Financial, Incubation and Facilitation Programme to support all aspects of
startup businesses, and other self-employment activities, particularly in technology-driven areas. It aims to
create around 100,000 jobs through start-ups.

Benefits: This scheme aims at increasing the number of startups by incubation and extending other services for
reducing the rate of unemployment in the country.

x) Stand-Up India

Nodal Ministry/Department: Public Sector Enterprise

Key Sector Covered: Sector Agnostic

Eligibility Criteria:

✓ SC/ST and/or women entrepreneurs; above 18 years of age

✓ Loans under the scheme is available for only greenfield project. Greenfield signifies, in this context, the
first-time venture of the beneficiary in the manufacturing or services or trading
✓ In case of non-individual enterprises,51% of the shareholding and controlling stakes should be held by
either SC/ST and/or Women Entrepreneur
✓ Borrower should not be in default to any bank or financial institution

Brief: Stand Up India Scheme facilitate bank loans between 10 lakh and 1 crore to at least one scheduled caste
(SC) or Scheduled Tribe, borrower and at least one women per bank branch for setting up a Greenfield
enterprise. This enterprise may be in manufacturing, services, or the trading sector. In case of non-individual
enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or
Woman entrepreneur.

Benefits: Loans between 10 lakh and 1 Crore

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xi) The Women Entrepreneurship Platform (WEP)

Nodal Ministry/Department: Niti Aayog

Key Sector Covered: Sector Agnostic

Eligibility Criteria: Potential women entrepreneurs, in collaboration with partner organizations can apply for the
scheme

Brief: NITI Aayog has launched a Women Entrepreneurship Platform (WEP) for providing an ecosystem for
budding & existing women entrepreneurs across the country. SIDBI has partnered with NITI Aayog to assist in
this initiative.

Benefits: WEP enables key partnerships to bring crucial content, workshops, campaigns and other avenues of
learning and growth to its users from trailblazers in the industry.

xii) Equity Fund Scheme (NEDFi)

Nodal Ministry/Department: Ministry of Development of Northeastern Region, NEDFL

Key Sector Covered: Sector Agnostic Eligibility Criteria: Individual entrepreneurs or groups of entrepreneurs;

The applicant should have a viable business plan which offers above average profitability leading to attractive
returns on investment.

Brief: The schemes intend to invest in projects promoted by entrepreneurs in NorthEastern Region having
sound business ideas with potential for high growth and more than normal returns on investment.

Benefits: Investment in a single project would range from Rs.50-300 lakhs. Assistance will be available for
financing terms normally included in the cost of a project, startup working capital and selectively for core
current assets during commercial operation.

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 The Recent Start ups wave in India

- India has becoming a start up hub in not only Asia but in the world. India stands at number three in terms of
start ups getting established and running smoothly. The recent undivided attention of government at the central
as well state level also contributed dearly in the process of establishing start ups in India. The important core
area of finance also got enhanced to better by the introduction of new age as well as professional angel investor
as mentioned above. These all factors are contributing in the current growth saga of start ups in India. Be it any
sphere of life, start ups are influencing it, right from tech based start ups to hyper local start ups have actually
made life more easy and less challenging in terms of stress and money spent. The most important and
innovative example which has emerged recently in India is OYO rooms. Which is a hotel rooms aggregator,
currently stand at number 14 globally and number 1 in India in its segment. OYO aims to become number one
in the world by 2020. OYO actually made the entire process of accommodation hassle free by giving a world
class user interface, where user is able to book rooms, while availing special discounts. In a way, OYO in all its
totality defines the essence and value creation process of Startups. In its core it is the great example of a start
up, which is pure Indian and helping in providing valuable solution to a long and ever existing problem of
finding a decent accommodation option. Another start ups which actually helped in a lot of ways to its core
customers; women. The idea is to save women from the embarrassment of buying their inner garments. Zivame,
was founded by young, enthusiastic, ambitious entrepreneurs Ms. Richa Kar. She founded the one of its kind
start ups venture in year 2011, after feeling the ground realities of Indian women’s dilemma.

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 Sources Of Financing-startup

Best Common Sources of Financing Your Business or Startup are:

1. Personal Investment or Personal Savings

2. Venture Capital

3. Business Angels

4. Assistant of Government

5. Commercial Bank Loans and Overdraft

6. Financial Bootstrapping

7. Buyouts

• Buyouts

This form of corporate finance can alter the form of a company’s ownership. After the company attains a private
status by being freed from the regulatory burdens of operating as a public firm, the ultimate goal of buyout remains
to build its value.

Selling off non-core assets, refocusing on the mission of the company, streamlining processes,
freshening product lines and replacing existing management might thus serve as essential parts of the buyout drive.

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 • Business Angels

These are the professional investors who invest either just a part or their entire wealth as well as time in the growth
of innovative companies.

As per estimations, the quantum of angel investment is equivalent to three times the venture capital. Frederick
Terman, the “Father of Silicon Valley” can be accredited with the introduction of business angels. He invested
$500 which in turn fuelled the growth of Bill Hewlett and Fred Packard.

• Venture Capital

Under this form of corporate financing, the financial investor participates in the fresh business in exchange for
strategic advice and cash.

Venture capitalists are thus on the lookout for companies having high growth potential, top-performing
management teams and low leverage capacity. You can look at the table to gain insights into the top VC firms in
India. It also lists the businesses being funded.

Venture Capitalists Startups Funded

BabyOye, Flipkart, Book My

Accel Partners
Show, Myntra

MakeMyTrip, Yepme, TAXI

Helion Venture Partners
For Sure

iYogi, JustDial,
Sequoia Capital India
bankbazaar.com

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 Printo, Carbon Clean
Blume Ventures
Solutions, Exotel

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 Yatra.com, Ozone Media,
IDG Ventures
FirstCry

Bharat Matrimony, Naaptol,

Canaan Partners
CarTrade

• Loans & Overdraft

Bank loans serve as a long-term mode of financing entrepreneurial business. Overdraft facility is for a short-term
span. Under a bank loan, the financial institution shall specify the loan tenure.

As well as the timing, amount of repayments and interest rate. The entrepreneur gives some collateral in exchange
for the bank loan. It serves as the ideal choice for financing fixed asset investments.

They offer a lower interest rate compared to a bank overdraft. However, they do not rank high in the department of
flexibility.

A bank overdraft can be of assistance when the bank balance of entrepreneurs fall below the minimum level. And
they can borrow some money from the bank itself in exchange of a high-interest rate. They are thus ideal for
dealing with seasonal cash flow fluctuations or when the business faces a short-term liquidity crisis.

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II METHODOLOGY

37
RESEARCH METHODOLOGY

The present paper is based on descriptive research method and undertakes secondary data into account. The
research was extensively done for certain purposes which are to be studies in certain limitation as well.
Research methodology further includes the various objectives and hypothesis designed for the study, along with
literature review. The information and inputs are gathered from various sources (Secondary sources) to
establish arguments and counter argument for start-ups in India. Present methodology advocates qualitative
research, thus making this research paper a qualitative research paper. Along with it information/inputs have
been incorporated on observation. The study is based on certain objectives and limitation, as mentioned earlier;
the efforts shall be made to meet objectives based on systematic analysis of inputs/information available
through several sources. Following are the source of information for the study

1. Reports of various government departments.

2. Special reports on start-ups and entrepreneurial development from various institutes like

FICCI.

3. Various research work done on similar or related field.

4. Publication of various reports by various state governments.

5. Special supplements published by news papers/magazines etc.

6. Other relevant online publications.

7. Any other information both online/offline

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Roles of Start ups/how they are becoming game changer in India-

The worthy and most productive discussion of the time would be “Defining startups as change agent” in a
way trying to understand the uniqueness of start ups in transforming the overall character and consumption
pattern of country. India expected to have more than 10,000 start ups by year 2020. The growth in startup is
huge and continuous with the efforts of both government and private decision makers.

Image 2.1 India and Startup Ecosystem

Source-https://qz.com/1033285/as-funding-and-deals-dry-up-in-indias-startup-ecosystem-
quality-is-winning-over-quantity/

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As the graphical representation indicates the growth of start ups in India, as becoming best incubation, consultation,
funding, motivation, constant coaching and encouragement destination by efforts of government and other involved
stakeholders. Startups have been playing a vital role in writing the growth saga for India, by being very generous
towards economic contribution and job creation. According to a latest report by FICCI “Indian start-ups have begun
creating hundreds of high-quality jobs across sectors as they build new products and offer innovative services” various
industry experts estimate that about 16,000 start-ups in the country are likely to have created more than 100,000 direct
jobs and over 300,000 indirect ones since 2016. The report further states that the jobs rendered by the starts up in India
are going to cross 3,000,00 in year 2020.

It indicates the importance of start ups in economy as the job creator. Apart from that, the roles of startups have been in
uplifting the overall status of living of country by providing qualitative services with international standards. Some of the
India start ups have actually inspired a lot of similar start ups worldwide .Universities, colleges, schools or even
government departments have turned themselves into startup incubators to further surface the possible startups ides,
which might make life of people a bit more easy and convenient while creating values to both society and economy
alike.

Image 2.2 Jobs and Startups

Source-https://qz.com/1033285/as-funding-and-deals-dry-up-in-indias-startup-ecosystem-quality-is-winning-overquantity/

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The further role of startups in India, which could be termed as groundbreaking/game changer is as follow:

✓ Job creator both direct and indirect is the most important role of startups in India, which is regarded as
the game changer in an economy, which needs 10 million jobs per year.
✓ Boosting the economy by providing the services/products with added services to customers,
✓ Helping in preserving skills and artistic heritage of country by connecting cottage and handicraft
industry with national and then with international market.
✓ Competition is always better for customers as such startups increase the very nature of competition by
providing the product and services, which might break the monopoly of a local provider (saving a lot of
efforts, time in searching for taxi by OLA)

Inspiring young entrepreneurs for pursuing their dreams and never giving up, thus creating a society which is
more entrepreneurial then just a consumer.

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III ANALYSIS

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 ANALYSIS AND INTERPRETATION

One of the key benefits of the Startup India initiative is the simplification and handholding pillar. The
government has taken several steps to ease regulatory compliance for startups, such as providing a single-
window clearance system and reducing the time and cost of registering a business. Additionally, the initiative
has also launched a mobile app and a web portal that provides startups with information on government
schemes, funding opportunities, and other resources.

The funding support pillar of the Startup India initiative has also been a significant benefit for startups. The
government has launched various schemes and funds, such as the Fund of Funds for Startups, which aims to
provide startups with access to early-stage funding. Additionally, the government has also launched the Atal
Innovation Mission, which aims to promote innovation and entrepreneurship among students and researchers.

The industry-academia partnership and incubation pillar of the Startup India initiative has also been
instrumental in creating a condutcive environment for startups to thrive. The government has launched several
incubation centers and innovation hubs, such as the Atal Incubation Centers, which provide startups with access
to resources such as mentorship, networking, and infrastructure.

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 CONCLUSION

Startup India is an ambitious initiative launched by the Government of India in 2016 to promote
entrepreneurship and create a conductive environment for startups to thrive. The program aims to provide
various benefits and incentives to startups, including access to funding, mentorship, and networking
opportunities.

Since its launch, Startup India has made significant progress in promoting the startup ecosystem in India. The
program has helped in creating a favorable environment for startups by easing regulatory compliance, providing
tax exemptions, and launching various funding schemes.

The initiative has also helped in promoting entrepreneurship culture in India and has encouraged more people to
start their businesses. Several successful startups have emerged under this program, including Ola, Paytm, and
Flipkart.

However, there are still several challenges that need to be addressed, such as improving access to funding,
reducing regulatory compliance, and improving the ease of doing business. Additionally, the COVID-19
pandemic has also impacted the startup ecosystem, and the government needs to address the challenges faced by
startups due to the pandemic.

In conclusion, while Startup India has made significant progress in promoting entrepreneurship in India, there is
still a long way to go to create a robust and thriving startup ecosystem. The government needs to continue its
efforts to address the challenges faced by startups and create an enabling environment for them to grow and
succeed.

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REFERENCE

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REFERENCE
a) https://startup.google.com/
b) https://cloud.google.com/startups/
c) https://developers.google.com/startups/
d) https://marketingplatform.google.com/about/startups/
e) https://www.google.com/business/
f) https://ads.google.com/intl/en_in/startups/
g) https://workspace.google.com/startups/
h) https://trends.google.com/trends/
i) https://search.google.com/search-console
j) https://www.startupindia.gov.in/content/sih/en/startup-scheme.html
k) https://www.e-startupindia.com/
l) https://afleo.com/learn/learn-startup-india-registration/
m) https://www.startupindia.gov.in/content/sih/en/registration.html
n) https://seedfund.startupindia.gov.in/
o) https://www.slideshare.net/harinadhkarimikonda/types-and-sources-of-financing-for-start-up-
businesses
p) https://faculty.winthrop.edu/stevensl/ENTR373/Chapter10-
Getting%20Funding%20or%20Financing.ppt
q) https://slideplayer.com/slide/15732259/
r) https://www.thehartford.com/business-insurance/strategy/alternative-funding-startup/angel-
investors#:~:text=Angel%20investors%20are%20wealthy%20private,use%20their%20own%20n
et%20worth.

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