Question Bank

Start-up Ecosystem Management -2023

Module 1: Start Up Eco system in India

2 Marks
1. What is Commerce/Business?

Commerce refers to the exchange of goods, services, or something of value between businesses or
entities. It encompasses all activities that facilitate the buying and selling of products and services,
including marketing, distribution, and logistics. Business, on the other hand, is an organization or
enterprising entity engaged in commercial, industrial, or professional activities. The purpose of a
business is typically to earn a profit by providing goods or services to consumers.

2. What are the Different Types of Business Forms?

The main types of business forms include:

• Sole Proprietorship: A business owned and operated by a single individual.

• Partnership: A business owned by two or more individuals who share profits and liabilities.

• Corporation: A legal entity separate from its owners, offering limited liability to its
shareholders.

• Limited Liability Company (LLC): A hybrid structure that provides the limited liability features
of a corporation with the tax efficiencies and operational flexibility of a partnership.

• Cooperative: A business owned and operated for the benefit of its members, who use its
services.

• Nonprofit Organization: An organization that operates for a charitable purpose and does not
distribute profits to owners or shareholders.

3. What is a Start-up?

A start-up is a young company founded to develop a unique product or service, bring it to market,
and scale it. Start-ups typically aim to address a gap in the market or solve a particular problem in an
innovative way. They often operate in the technology sector and are characterized by high growth
potential.

4. Why Does a Country Need More Start-ups?

Countries need more start-ups because they:

• Drive innovation and technological advancement.

• Create jobs and contribute to economic growth.

• Enhance competition and consumer choice.

• Attract foreign investment.

 • Foster a culture of entrepreneurship and problem-solving.

5. Which Year Did the Start-up India Initiative Start and Why?

The Start-up India initiative was launched in 2016 by the Government of India. It was started to
promote entrepreneurship, drive sustainable economic growth, and generate large-scale
employment opportunities. The initiative aims to provide a conducive environment for start-ups to
thrive by offering financial support, mentorship, and reducing regulatory burdens.

6. List Out the Central and State Government Institutions Supporting Start-ups in India

Central and state government institutions supporting start-ups in India include:

• Startup India (Department for Promotion of Industry and Internal Trade)

• Atal Innovation Mission (AIM)

• Small Industries Development Bank of India (SIDBI)

• National Science & Technology Entrepreneurship Development Board (NSTEDB)

• Ministry of Micro, Small, and Medium Enterprises (MSME)

• State Start-up Policies and Incubators (e.g., Kerala Startup Mission, Karnataka Start-up Cell)

7. Expand NISP

NISP stands for National Innovation and Start-up Policy.

8. Which Entities Are Eligible to Register as a Start-up?

Entities eligible to register as a start-up in India include:

• Private Limited Companies.

• Limited Liability Partnerships (LLPs).

• Registered Partnerships.

The entity must be less than 10 years old from the date of incorporation, have an annual turnover
not exceeding INR 100 crore, and work towards innovation, development, or improvement of
products or processes or services.

9. When Was NISP Commissioned?

The National Innovation and Start-up Policy (NISP) was commissioned in 2019 by the Ministry of
Education (formerly MHRD), Government of India.

10. Mention the Benefits of NISP for Students’ Start-ups

Benefits of NISP for student start-ups include:

• Encouragement and support for entrepreneurial thinking.

• Access to institutional resources such as incubation centers, research facilities, and

mentorship.

• Flexibility in academic schedules to work on start-ups.

 • Financial support through seed funding and grants.

• Networking opportunities with industry experts and investors.

11. What Are the Green Areas for Start-ups?

Green areas for start-ups refer to sectors that focus on environmentally sustainable and eco-friendly
innovations. These may include:

• Renewable energy.

• Waste management and recycling.

• Green technology.

• Sustainable agriculture.

• Water conservation and management.

12. What Are the Main Intentions of the NISP Policy?

The main intentions of the NISP policy are:

• To foster an innovation culture within educational institutions.

• To create a conducive ecosystem for start-ups and entrepreneurship among students and
faculty.

• To encourage the development of new technologies and solutions.

• To promote collaboration between academia, industry, and government for innovation and
commercialization.

• To support start-ups through mentoring, funding, and providing infrastructure.

5 Marks
1. Why Are Start-ups in India Failing? Justify

Start-ups in India face several challenges that contribute to their high failure rate. Key reasons
include:

• Lack of Product-Market Fit: Many start-ups fail to understand the needs of the market or the
target audience, leading to products or services that don't meet consumer demand.

• Inadequate Funding: Access to capital is a major hurdle, and insufficient funding can prevent
start-ups from scaling or sustaining operations.

• Poor Business Models: Weak or flawed business models that don’t generate enough
revenue or profit can lead to failure.

• Lack of Innovation: Start-ups that do not innovate or differentiate themselves from

competitors often struggle to survive.

• Regulatory Challenges: Navigating the complex regulatory environment in India can be

difficult, especially for new businesses.
 • Management Issues: Poor leadership, lack of experience, and internal conflicts can derail
start-ups.

• Economic Instability: Market fluctuations and economic downturns can negatively impact
start-ups, especially those in sensitive sectors.

2. Brief Note on NISP Policy

The National Innovation and Start-up Policy (NISP) was introduced in 2019 by the Ministry of
Education, Government of India. The policy aims to foster a culture of innovation and
entrepreneurship within educational institutions. It encourages students, faculty, and researchers to
pursue start-up ventures, offering support through incubation, mentorship, and funding. NISP
promotes the development of start-ups by integrating academic research with industry needs,
helping create an ecosystem conducive to innovation. The policy also emphasizes collaboration
among educational institutions, industry, and government to translate ideas into market-ready
solutions.

3. Important Government Schemes Supporting Start-ups in India

Several government schemes support start-ups in India:

• Start-up India: Launched in 2016, this initiative provides a host of benefits, including tax
exemptions, easier compliance, and a start-up hub for networking and mentorship.

• Atal Innovation Mission (AIM): A government initiative to promote a culture of innovation

and entrepreneurship across India. It supports incubators, research, and innovation.

• MUDRA Scheme: Provides micro-finance, low-interest loans, and credit guarantees to start-
ups and small enterprises.

• SIDBI Start-up Scheme: Offers financial assistance to start-ups and MSMEs for their
development and expansion.

• SAMRIDH Scheme: Supports start-ups by providing equity support and enabling them to
scale and achieve sustainable growth.

• Digital India: Promotes digital infrastructure and digital literacy, creating opportunities for
tech-based start-ups.

4. Start-up Failure Rates and Primary Reasons

It is estimated that around 90% of start-ups in India fail within the first five years. The primary
reasons for failure include:

• Lack of Market Need: Many start-ups fail because they build products that do not have a
sufficient market demand.

• Running Out of Cash: Poor financial management and lack of adequate funding often lead to
start-up failures.

• Incompetence of the Founding Team: The inability of the team to execute the business plan
effectively can cause failure.

• Stiff Competition: High competition, especially from established players, can overwhelm
new start-ups.
 • Regulatory Hurdles: Complex regulatory requirements and compliance issues can be
challenging for start-ups to navigate.

• Scalability Issues: Inability to scale operations effectively or manage growth can lead to
business failure.

5. Design Thinking in Start-ups

Design thinking is a user-centric approach to problem-solving that involves understanding the needs
of end-users, prototyping, and testing solutions. The statement suggests that design thinking should
only be applied when a start-up begins scaling after establishing product-market fit. However, in the
context of a start-up developing solutions with technologies like Blockchain, AI, and IoT, design
thinking is crucial from the beginning. These technologies require a deep understanding of user
needs, seamless integration, and innovation, all of which are facilitated by design thinking. By
applying design thinking early, start-ups can create more effective, user-friendly solutions, which can
lead to better market traction and smoother scaling.

6. Areas of Interest for Promoting Student Start-ups Through NISP

The NISP focuses on several areas to promote student start-ups:

• Technology Innovation: Encouraging students to develop new technologies or apply existing

technologies in innovative ways.

• Sustainable Development: Promoting start-ups that focus on sustainability, green

technology, and eco-friendly solutions.

• Social Entrepreneurship: Supporting start-ups that aim to solve social problems and
contribute to societal well-being.

• Digital and Tech-Based Solutions: Fostering innovation in digital technologies, including AI,
IoT, Blockchain, and cybersecurity.

• Healthcare and Biotechnology: Encouraging start-ups in healthcare innovations,

biotechnology, and pharmaceuticals.

• Agri-Tech and Food Processing: Supporting start-ups that bring innovation to agriculture and
food processing sectors.

Module 2: Recognition
2 Marks
1. Expand DPIIT

DPIIT stands for Department for Promotion of Industry and Internal Trade.

2. Mention Any Two Benefits of DPIIT Registration

• Tax Exemptions: Start-ups registered with DPIIT are eligible for tax exemptions under the
Income Tax Act, including a 3-year tax holiday.

• Simplified Compliance: DPIIT registration provides start-ups with easier compliance under
various labor and environmental laws.
3. List the Documents Required for Registration of a Start-up

• Incorporation/Registration Certificate: The certificate of incorporation or registration for the

entity.

• Details of the Directors/Partners: Identification details like PAN cards and proof of
addresses.

• Brief Description of the Business: A short description of the nature of the business and its
innovative aspect.

• PAN Card of the Company: The PAN card issued in the name of the company or LLP.

• Proof of Concept or Pitch Deck: Any evidence to support the innovative nature of the
business (e.g., patents, designs, or a pitch deck).

4. Mention Any 4 Sources of Funds Required for Start-Ups

• Bootstrapping: Self-funding or using personal savings to start the business.

• Angel Investors: High-net-worth individuals who provide capital in exchange for equity or
convertible debt.

• Venture Capital: Investment from firms that provide capital to start-ups with high growth
potential in exchange for equity.

• Crowdfunding: Raising small amounts of money from a large number of people, typically via
online platforms.

5. Which Bank Became the First Private Sector Bank in India to Open a Dedicated Branch for Start-
ups?

RBL Bank became the first private sector bank in India to open a dedicated branch for start-ups.

6. What Is Intellectual Property? Give an Example

Intellectual Property (IP) refers to creations of the mind, such as inventions, literary and artistic
works, designs, symbols, names, and images used in commerce. IP is protected by law, allowing the
creators to control and benefit from their work.

• Example: A patent for a new pharmaceutical drug.

7. What Is a Trademark? Give an Example

A trademark is a recognizable sign, design, or expression that identifies and distinguishes products or
services of a particular source from those of others.

• Example: The Nike "Swoosh" logo.

8. What Is a Copyright? Give an Example

Copyright is a legal right granted to the creator of an original work, such as a book, music, film, or
software, giving them exclusive rights to use, distribute, and modify that work.

• Example: The copyright of a novel by an author.

9. Different Types of Intellectual Property Rights (IPRs) – Mention Any 3

 • Patents: Protect inventions and grant the patent holder exclusive rights to use and
commercialize the invention.

• Trademarks: Protect symbols, names, and slogans used to identify goods or services.

• Copyrights: Protect original works of authorship, including literary, musical, and artistic
works.

10. Who Is a Venture Capitalist?

A Venture Capitalist (VC) is an investor or firm that provides capital to start-ups and small businesses
with high growth potential in exchange for equity or ownership stake. VCs typically invest in early-
stage companies that have the potential for significant returns.

11. What Is a B-Plan?

A Business Plan (B-Plan) is a detailed document that outlines the strategy, objectives, market
analysis, organizational structure, product or service offerings, financial projections, and funding
requirements of a business. It serves as a roadmap for the business and is often used to attract
investors.

12. Mention 2 Differences Between a Private Company and a Public Company

• Ownership:

o Private Company: Shares are held privately by a small group of investors, and the
company is not listed on a stock exchange.

o Public Company: Shares are offered to the general public and traded on a stock
exchange.

• Disclosure Requirements:

o Private Company: Less stringent disclosure requirements and regulations.

o Public Company: Required to disclose financial information and adhere to strict

regulatory guidelines.

13. Mention the Components of a B-Plan

• Executive Summary

• Company Description

• Market Analysis

• Organization and Management

• Products or Services Offered

• Marketing and Sales Strategy

• Funding Request

• Financial Projections

• Appendix (optional)
14. Mention Any 4 Schemes Provided by the Government for Women Entrepreneurs

• Mudra Yojana for Women: Provides loans at low interest rates for women entrepreneurs to
start small businesses.

• Mahila Udyam Nidhi Scheme: Offered by SIDBI, it provides financial assistance to women
entrepreneurs to set up new industrial projects.

• Annapurna Scheme: Provides loans for women entrepreneurs in the food catering industry.

• Stand-Up India Scheme: Facilitates bank loans between INR 10 lakh to 1 crore to at least one
Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman per bank
branch for setting up a greenfield enterprise.

15. What Do You Mean by Start-up Action Plan?

The Start-up Action Plan refers to a comprehensive initiative launched by the Indian government to
boost entrepreneurship, support start-ups, and create jobs. The plan includes measures such as
simplifying regulatory processes, providing tax exemptions, and establishing start-up hubs to offer
mentorship and funding. The aim is to create a favorable ecosystem for innovation and
entrepreneurship across India.

5 Marks
1. Discuss the Benefits of DPIIT Registration

Registering with the Department for Promotion of Industry and Internal Trade (DPIIT) offers several
benefits to start-ups:

• Tax Exemptions: DPIIT-recognized start-ups can avail tax exemptions on income tax for three
consecutive financial years out of the first ten years since incorporation. This includes
exemption from capital gains tax under Section 54EE of the Income Tax Act.

• Easier Access to Funding: DPIIT registration makes start-ups eligible for various government
schemes, grants, and subsidies. It also provides access to funds from the government’s Fund
of Funds for Start-ups (FFS).

• Simplified Compliance: DPIIT registration helps in simplifying compliance processes under

labor and environmental laws, providing self-certification, and reducing regulatory burdens.

• Intellectual Property Support: Start-ups can avail benefits such as fast-tracking of patent
applications, reduction in IP filing fees, and support in protecting intellectual property.

• Government Tenders: DPIIT-recognized start-ups are exempted from prior experience or

turnover requirements in government tenders, making it easier for them to compete for
contracts.

• Networking Opportunities: DPIIT organizes start-up events, connects entrepreneurs with

industry experts, and provides opportunities for networking and mentorship.

2. Describe the Role of Intellectual Property Rights for Start-ups

Intellectual Property Rights (IPR) play a crucial role in protecting and promoting innovation within
start-ups:
 • Protection of Innovations: IPR safeguards start-up innovations, ensuring that competitors
cannot replicate or steal their ideas. This includes patents, trademarks, copyrights, and
designs.

• Enhancing Business Value: Intellectual property can significantly enhance the valuation of a
start-up. Patents and trademarks can be monetized through licensing or sale, providing
additional revenue streams.

• Competitive Advantage: A strong IP portfolio provides a start-up with a competitive edge in

the market, enabling it to differentiate itself from competitors.

• Attracting Investors: Investors are more likely to invest in start-ups with robust IP protection,
as it reduces the risk of infringement and demonstrates the start-up's commitment to
innovation.

• Facilitating Partnerships: IPR can facilitate partnerships and collaborations by providing a

clear framework for sharing and protecting intellectual property during joint ventures or co-
development projects.

3. Explain the Registration Process of a Start-up

The registration process for a start-up in India involves several steps:

1. Incorporate Your Business:

o Register your business as a Private Limited Company, Limited Liability Partnership

(LLP), or Partnership Firm.

o Obtain a Certificate of Incorporation or Registration.

2. Register with Start-up India:

o Visit the Start-up India portal (www.startupindia.gov.in).

o Create an account and log in to the portal.

o Fill out the start-up recognition form with details like the name of the entity, date of
incorporation, PAN number, and address.

3. Upload Required Documents:

o Upload the Certificate of Incorporation/Registration.

o Provide a brief description of your business.

o Submit any proof of concept, like pitch decks or patents (if available).

4. Self-Certification:

o Self-certify that your start-up is working towards innovation, development, or

improvement of products/services, and has the potential to generate employment or
create wealth.

5. Obtain DPIIT Recognition:

o Once submitted, the DPIIT will review your application.

 o Upon approval, your start-up will be recognized by DPIIT, and you will receive a
certificate of recognition.

6. Apply for Tax Benefits (Optional):

o If eligible, apply for tax exemptions by submitting a separate application through the
Start-up India portal.

4. Write a Note on Tax for Start-ups in India

In India, start-ups can benefit from several tax incentives aimed at promoting entrepreneurship:

• Tax Holiday: DPIIT-recognized start-ups can avail a 100% tax exemption on profits for three
consecutive years out of the first ten years since incorporation under Section 80-IAC of the
Income Tax Act.

• Capital Gains Tax Exemption: Start-ups can avail of exemption from capital gains tax if the
capital gains are invested in a fund notified by the government.

• Angel Tax Exemption: Investments received by DPIIT-recognized start-ups from angel

investors are exempt from tax under Section 56(2)(viib) of the Income Tax Act, subject to
certain conditions.

• Tax on ESOPs Deferred: Start-ups can defer the payment of tax on employee stock options
(ESOPs) for up to five years or until the employee leaves the company, whichever is earlier.

• MAT Exemption: Start-ups incorporated on or after 1st April 2016 can avail of a Minimum
Alternate Tax (MAT) exemption for a period of five years.

5. Start-up Business Model Canvas for a Travel Agency and Explanation of Components

Travel Agency Business Model Canvas:

1. Key Partners:

o Airlines, Hotels, Car Rental Services, Tour Guides, Local Experience Providers.

2. Key Activities:

o Trip Planning and Booking, Customer Service, Marketing and Promotion, Partnership
Management.

3. Key Resources:

o Travel Experts, Booking Software, Website, Marketing Team.

4. Value Propositions:

o Personalized travel itineraries, Cost-effective travel packages, 24/7 customer support,

Exclusive deals and offers.

5. Customer Relationships:

o Dedicated Travel Advisors, Loyalty Programs, Personalized Follow-ups.

6. Channels:

o Online Booking Platform, Social Media, Email Marketing, Travel Fairs and Events.
 7. Customer Segments:

o Individual Travelers, Corporate Clients, Group Tourists, Adventure Enthusiasts.

8. Cost Structure:

o Employee Salaries, Marketing and Advertising, Software and IT Infrastructure,

Partnership Fees.

9. Revenue Streams:

o Commissions from bookings, Service Fees, Premium Memberships, Partner

Collaborations.

6. Eligibility Criteria and Benefits for the Pharmaceutical and IT Sectors

Pharmaceutical Sector:

• Eligibility Criteria:

o Start-ups engaged in the development, manufacturing, or marketing of

pharmaceutical products.

o Compliance with Good Manufacturing Practices (GMP) and Drug Control regulations.

o Involvement in research and development (R&D) of new drugs or medical devices.

• Benefits:

o Access to government grants for R&D.

o Tax exemptions for investments in R&D.

o Priority in government procurement.

o Support from pharmaceutical incubators and accelerators.

IT Sector:

• Eligibility Criteria:

o Start-ups engaged in software development, IT services, or digital solutions.

o Focus on innovation in areas such as AI, IoT, Blockchain, or cybersecurity.

o Registration with the Software Technology Parks of India (STPI) or similar bodies.

• Benefits:

o Tax exemptions under the Software Technology Parks (STP) scheme.

o Access to seed funding and venture capital.

o Support in scaling operations through IT incubators and accelerators.

o Export incentives for software and IT services.

7. Detailed B-Plan for a Digital Marketing Agency

Executive Summary:
 • A brief overview of the business idea, target market, and goals for the digital marketing
agency.

Company Description:

• Overview of the agency, including mission statement, vision, and the core team.

Market Analysis:

• Research on the digital marketing industry, target audience, competitors, and market trends.

Organization and Management:

• Structure of the agency, key roles and responsibilities, and profiles of the management team.

Services Offered:

• Details of the digital marketing services, such as SEO, social media management, content
marketing, PPC advertising, and email marketing.

Marketing and Sales Strategy:

• Plans for acquiring clients, pricing strategies, and promotional activities.

Funding Request:

• Capital required for initial setup, marketing campaigns, and operational costs.

Financial Projections:

• Revenue forecasts, break-even analysis, profit and loss statements, and cash flow
projections.

Appendix:

• Supporting documents such as resumes, legal agreements, and additional market research.

Module 3: Funding
2marks
1. Basic Problems Faced by Women Entrepreneurs in India

• Access to Finance: Difficulty in securing loans and funding due to lack of collateral and credit
history.

• Social and Cultural Barriers: Traditional societal norms and gender biases that limit women’s
opportunities.

• Lack of Networking Opportunities: Limited access to professional networks and mentorship.

• Balancing Work and Family: Challenges in managing both business and household
responsibilities.

• Skill Development: Limited access to education and skill development programs tailored for
women entrepreneurs.

2. Major Schemes Provided by Central Government for Boosting Women Entrepreneurship in India
 • Stree Shakti Package for Women Entrepreneurs: Provides loans and financial support to
women entrepreneurs with lower interest rates.

• Annapurna Scheme: Offers loans to women entrepreneurs in the food catering industry to
start their own business.

• Mahila Udyam Nidhi Scheme: Provides financial assistance to women entrepreneurs to set
up new projects.

• Stand-Up India Scheme: Facilitates bank loans to at least one woman per branch for setting
up a greenfield enterprise.

3. Flow Chart for Registration of a New Start-up

1. Incorporation of the Business:

o Register as a Private Limited Company, LLP, or Partnership Firm.

2. Access the Start-up India Portal:

o Create an account and log in.

3. Fill the Start-up Recognition Form:

o Provide details such as name, incorporation date, and business description.

4. Upload Required Documents:

o Submit the Certificate of Incorporation, PAN, and proof of business innovation.

5. Self-Certification:

o Certify compliance with Start-up India’s eligibility criteria.

6. Submit Application:

o Review and submit the application.

7. DPIIT Recognition:

o Receive a recognition certificate from DPIIT upon approval.

4. Examples of Start-ups in India

• Ola Cabs: Ride-sharing platform.

• Zomato: Online food delivery service.

• Byju’s: Edtech company providing online learning.

• Paytm: Digital payments and financial services platform.

5. Eligibility Criteria for Start-up

• Innovation: The start-up should work towards innovation, development, or improvement of

products, services, or processes.

• Age of the Company: The entity should not be older than 10 years from the date of
incorporation.
 • Entity Type: Must be a Private Limited Company, LLP, or registered Partnership Firm.

• Turnover: The annual turnover should not exceed ₹100 crore in any financial year since
incorporation.

6. Who is a Woman Entrepreneur? Give 2 Examples

A Woman Entrepreneur is a woman who initiates, organizes, and operates a business venture.
Examples:

• Falguni Nayar: Founder of Nykaa.

• Richa Kar: Founder of Zivame.

7. Functions of Women Entrepreneurs

• Idea Generation: Identifying and conceptualizing business ideas.

• Risk-taking: Managing and taking financial and operational risks.

• Innovation: Developing new products or services.

• Management: Organizing and managing business activities.

• Marketing: Promoting products or services to reach customers.

8. Benefit of Stree Shakti Scheme for Women

The Stree Shakti Scheme provides women entrepreneurs with loans at concessional interest rates.
Women with majority ownership in small businesses are eligible for loans under this scheme, which
also offers a 0.05% concession on interest rates.

9. Three Plans Under Pradhan Mantri Mudra Yojana (PMMY) Scheme

• Shishu: Loans up to ₹50,000 for start-ups in the early stages.

• Kishore: Loans ranging from ₹50,001 to ₹5 lakhs for businesses looking to expand.

• Tarun: Loans ranging from ₹5 lakhs to ₹10 lakhs for well-established businesses.

10. Factors of Production

• Land: Natural resources used in production.

• Labor: Human effort and skills.

• Capital: Machinery, buildings, and other equipment.

• Entrepreneurship: The ability to bring the other factors together and take risks to produce
goods or services.

11. Five Schemes Under Ministry of Science & Technology, Govt of India

• Innovation in Science Pursuit for Inspired Research (INSPIRE): Promotes scientific research.

• Biotechnology Ignition Grant (BIG): Supports innovative start-ups in biotechnology.

• Promoting Innovations in Individuals, Start-ups, and MSMEs (PRISM): Supports individual

innovators and MSMEs.
 • National Initiative for Developing and Harnessing Innovations (NIDHI): Aims to nurture
start-ups through mentorship, incubation, and financial support.

• Accelerating Growth of New India’s Innovations (AGNIi): Facilitates the commercialization

of indigenous technologies.

12. Expand TREAD Scheme

TREAD: Trade Related Entrepreneurship Assistance and Development Scheme.

13. What is a Seed Fund?

A Seed Fund is an initial round of investment provided to start-ups to support product development,
market research, and business establishment before they generate revenue.

14. Expand 4E

4E: Empowering and Equipping Entrepreneurs with the Essentials for Enterprise

15. Expand WED

WED: Women's Entrepreneurship Development

16. Expand CPSUs

CPSUs: Central Public Sector Undertakings

17. What is Exemption from Tax on Long-Term Capital Gains?

Start-ups can claim an exemption from tax on long-term capital gains if the gains are invested in a
fund notified by the government or in equity shares of another eligible start-up.

18. Two Exemptions Under Income Tax Law for Start-ups

• Tax Holiday: 100% tax exemption on profits for three consecutive years out of the first ten
years.

• Exemption from Angel Tax: Investments made by resident investors in eligible start-ups are
exempt from tax.

19. Four Successful Women Start-ups from India

• Nykaa (Falguni Nayar)

• Zivame (Richa Kar)

• ShopClues (Radhika Ghai Aggarwal)

• Mamaearth (Ghazal Alagh)

20. Expand PRISM

PRISM: Promoting Innovations in Individuals, Start-ups, and MSMEs

5 Marks
1. Discuss the Problems Faced by Women Entrepreneurs in India
Women entrepreneurs in India face several challenges, including:

• Access to Finance: Many women find it difficult to secure funding for their businesses due to
limited access to credit, lack of collateral, and gender bias in the financial sector.

• Cultural and Social Barriers: Traditional gender roles and societal expectations often limit the
freedom of women to pursue entrepreneurial ventures. They may face resistance from
family and society, which can hinder their business activities.

• Balancing Family and Business: Women entrepreneurs often struggle to balance their roles
as business owners and primary caregivers. The dual responsibilities can limit their time,
energy, and focus on their business.

• Lack of Access to Education and Training: Many women lack access to education, business
training, and skill development opportunities, which can hinder their ability to run successful
businesses.

• Networking Constraints: Women entrepreneurs often have limited access to professional

networks and mentorship, which are crucial for business growth and development.

• Regulatory Challenges: Navigating the complex regulatory environment can be particularly

challenging for women entrepreneurs, especially those who lack legal and administrative
knowledge.

2. Write a Note on Any One of the Local Women Entrepreneurs Which You Have Studied

Let's consider Chetna Gala Sinha, a local entrepreneur and activist who founded the Mann Deshi
Mahila Sahakari Bank in Maharashtra. This is India's first rural cooperative bank for women. Chetna
started the bank to empower women in rural areas by providing them with financial services tailored
to their needs. Despite facing initial resistance from male-dominated banking authorities and local
communities, she persisted. Her bank now serves thousands of women, offering savings accounts,
loans, and financial literacy programs. Chetna’s efforts have empowered women to start their
businesses, improve their livelihoods, and achieve financial independence.

3. Discuss Any Two Important Schemes Introduced by Central Government for Women
Entrepreneurs

1. Stree Shakti Package for Women Entrepreneurs:

o This scheme is offered by various banks in India to support women entrepreneurs.

Under this scheme, women entrepreneurs can avail loans at concessional interest
rates. If a woman holds 50% or more ownership in a business, she is eligible for the
scheme. The scheme also offers a 0.05% reduction in interest rates for loans above
₹2 lakhs.

2. Stand-Up India Scheme:

o Launched by the Government of India, this scheme aims to promote

entrepreneurship among women and Scheduled Castes/Scheduled Tribes. Under the
scheme, women entrepreneurs can avail bank loans between ₹10 lakhs and ₹1 crore
for setting up new businesses. The scheme also provides handholding support,
including guidance on financial management and legal requirements.

4. Write a Note on Any Two of the Following

a. CPSUs (Central Public Sector Undertakings):

• CPSUs are government-owned corporations or enterprises in which the Central Government

holds a majority stake. These undertakings operate in various sectors such as energy, mining,
heavy industry, and telecommunications. CPSUs play a significant role in India's economic
development by contributing to industrial growth, infrastructure development, and
employment generation. They are also involved in social welfare activities and corporate
social responsibility (CSR) initiatives.

c. TREAD (Trade Related Entrepreneurship Assistance and Development) Scheme:

• The TREAD Scheme is designed to promote entrepreneurship among women by providing

them with financial assistance, training, and counseling. The scheme involves collaboration
with NGOs, which help women entrepreneurs by offering training and financial support. The
government provides grants up to 30% of the total project cost, with the remaining funds
sourced from financial institutions. The scheme aims to empower women, especially in rural
and semi-urban areas, to start and sustain their businesses.

5. Name Any 4 Successful Women Start-ups from India and Discuss the Competencies of Any Two
of Your Choice

• Nykaa (Falguni Nayar)

• Zivame (Richa Kar)

• ShopClues (Radhika Ghai Aggarwal)

• Mamaearth (Ghazal Alagh)

Competencies of Nykaa (Falguni Nayar):

• Vision and Innovation: Falguni Nayar identified a gap in the online beauty market in India
and leveraged it by launching Nykaa, an online beauty and wellness retail platform. Her
ability to foresee the potential of e-commerce in the beauty industry helped Nykaa become
a leading brand.

• Customer-Centric Approach: Nykaa's success can be attributed to its focus on customer

satisfaction, offering a wide range of products, and ensuring a seamless online shopping
experience.

Competencies of Mamaearth (Ghazal Alagh):

• Product Differentiation: Ghazal Alagh co-founded Mamaearth with a focus on natural and
toxin-free products for babies and adults. Her commitment to safety and quality has helped
the brand stand out in the crowded personal care market.

• Sustainability and Ethics: Mamaearth's emphasis on eco-friendly products and sustainable

practices has resonated with consumers, particularly the environmentally-conscious
segment.

6. Identify Any Two Successful Women Entrepreneurs from India and Discuss the Problems Faced
by Them While Establishing the Venture. Bring Out the Salient Characteristics of a Successful
Entrepreneur from India

Successful Women Entrepreneurs:

 • Kiran Mazumdar-Shaw (Founder of Biocon)

• Vandana Luthra (Founder of VLCC)

Problems Faced by Kiran Mazumdar-Shaw:

• Access to Funding: Kiran faced significant challenges in securing funding for her
biotechnology venture. Many investors were skeptical about the potential of biotech in India
and were hesitant to invest in a woman-led start-up.

• Lack of Infrastructure: During the early days of Biocon, Kiran had to overcome infrastructural
challenges, including a lack of skilled manpower, laboratories, and research facilities in India.

Problems Faced by Vandana Luthra:

• Social Barriers: Vandana faced societal skepticism when she started VLCC, as the concept of
wellness and beauty services was not widely accepted in India at the time.

• Scaling Challenges: Expanding VLCC across different regions of India presented challenges,
including maintaining consistent service quality and managing a diverse workforce.

Salient Characteristics of a Successful Entrepreneur from India:

• Visionary Leadership: Both Kiran Mazumdar-Shaw and Vandana Luthra demonstrated a clear
vision and the ability to innovate in their respective fields.

• Resilience: Both entrepreneurs exhibited resilience in the face of challenges, persisting

despite financial, infrastructural, and societal obstacles.

• Customer Focus: A strong focus on customer needs and quality has been a key factor in their
success, enabling them to build trusted and reputable brands.

• Adaptability: Successful entrepreneurs like Kiran and Vandana have shown the ability to
adapt to changing market conditions and consumer preferences, ensuring sustained growth
and relevance of their businesses.

Module 4: Schemes & Policies/ Market Access

2 Marks
1. What is Export Import? Give Example

Export refers to the selling of goods or services produced in one country to another country. Import
refers to buying goods or services from another country to sell or use domestically.

Example:

• Export: India exporting textiles to the United States.

• Import: India importing crude oil from Saudi Arabia.

2. What is Foreign Trade Policy?

The Foreign Trade Policy (FTP) is a set of guidelines and instructions introduced by the government
to regulate and promote foreign trade activities, including exports and imports. The policy aims to
enhance the country’s trade prospects and economic growth by providing incentives and support to
exporters and ensuring compliance with international trade agreements.

3. Who is the Biggest Competitor for India in Exports?

China is one of the biggest competitors for India in the global export market. Both countries produce
and export a wide range of goods, including textiles, electronics, and machinery, leading to
competition in various international markets.

4. What is EPCG Scheme?

The Export Promotion Capital Goods (EPCG) Scheme is an initiative by the Indian government to
facilitate the import of capital goods for producing quality goods and services to enhance India’s
export competitiveness. Under this scheme, import duties are reduced or exempted for capital goods
used in manufacturing export products. The main condition is that the exporter must fulfill an export
obligation equivalent to six times the duty saved within a specified period.

5. What is a Promotion Council in Relation to Exports?

A Promotion Council is an organization established by the government or industry bodies to promote

and develop the export of specific products or services. These councils assist exporters by providing
information, organizing trade fairs, and offering guidance on international trade regulations and
practices.

6. List Down 5 Promotion Councils in India

1. The Apparel Export Promotion Council (AEPC)

2. The Engineering Export Promotion Council (EEPC)

3. The Pharmaceutical Export Promotion Council (PHARMEXCIL)

4. The Agricultural and Processed Food Products Export Development Authority (APEDA)

5. The Gem and Jewellery Export Promotion Council (GJEPC)

7. What are the Features of Promotion Councils?

• Export Promotion: They actively promote exports through trade fairs, exhibitions, and buyer-
seller meetings.

• Market Research: Conduct research to identify new markets and opportunities for exporters.

• Guidance and Support: Provide exporters with information on government policies, trade
agreements, and international market trends.

• Capacity Building: Offer training programs to enhance the capabilities of exporters in areas
like packaging, quality standards, and documentation.

• Policy Advocacy: Represent the interests of exporters to the government and help in
formulating export-friendly policies.

8. What is Letter of Credit?

A Letter of Credit (LC) is a financial document issued by a bank that guarantees payment to the
exporter on behalf of the importer, provided that the terms and conditions specified in the LC are
met. It is a common method of payment in international trade that ensures security for both parties
involved in a transaction.

9. What Do You Mean by Export Destinations?

Export Destinations refer to the countries or regions where goods or services from a particular
country are sold or shipped. These are the foreign markets targeted by exporters to sell their
products.

10. Mention Any 2 Schemes Provided by Government to Aid Exports

1. Merchandise Exports from India Scheme (MEIS):

o This scheme provides incentives to exporters of goods by offering duty credit scrips
that can be used to pay customs duties or sold in the market.

2. Duty Drawback Scheme:

o Under this scheme, exporters are reimbursed for the customs duty paid on imported
inputs used in the manufacturing of export products.

11. What are the Key Strategies to Boost Export in India?

• Enhancing Product Quality: Improve the quality and competitiveness of Indian products
through innovation and adherence to international standards.

• Market Diversification: Explore new markets and reduce dependence on traditional markets
to mitigate risks.

• Incentives and Subsidies: Provide financial incentives and subsidies to exporters to reduce
costs and improve profitability.

• Trade Agreements: Enter into bilateral and multilateral trade agreements to reduce tariffs
and trade barriers.

• Infrastructure Development: Invest in modern infrastructure, including ports, logistics, and

warehousing, to streamline export operations.

12. What is Trade Information System?

A Trade Information System is a digital platform or database that provides comprehensive

information about trade activities, including export-import data, market trends, trade regulations,
and tariffs. It helps businesses and policymakers make informed decisions related to international
trade.

13. What are Export Markets?

Export Markets refer to the foreign markets or countries where a country's products or services are
sold. These markets are identified based on demand, market potential, and trade agreements, and
they are crucial for expanding a country's trade reach and economic growth.

5 Marks
1. List Down 5 Promotion Councils in India and Discuss the Features of Promotion Councils
Five Promotion Councils in India:

1. The Apparel Export Promotion Council (AEPC)

2. The Engineering Export Promotion Council (EEPC)

3. The Pharmaceutical Export Promotion Council (PHARMEXCIL)

4. The Agricultural and Processed Food Products Export Development Authority (APEDA)

5. The Gem and Jewellery Export Promotion Council (GJEPC)

Features of Promotion Councils:

• Export Promotion: Promotion councils actively promote Indian products in international

markets through trade fairs, exhibitions, buyer-seller meets, and online platforms. They play
a crucial role in increasing the visibility of Indian goods and services globally.

• Market Intelligence: These councils conduct research and provide exporters with critical
market intelligence, including insights on emerging markets, consumer preferences, and
international competition. This helps exporters make informed decisions and strategize
effectively.

• Policy Advocacy: Promotion councils represent the interests of their respective industries to
the government, advocating for favorable policies, trade agreements, and regulatory
support. They play a key role in shaping policies that benefit exporters.

• Training and Capacity Building: Councils offer training programs, workshops, and seminars
to enhance the skills and knowledge of exporters. These programs cover areas such as export
documentation, international trade regulations, quality standards, and logistics
management.

• Assistance with Compliance: Promotion councils assist exporters in complying with

international trade regulations, standards, and certifications. They provide guidance on
meeting the specific requirements of different countries, which is essential for successful
export operations.

2. Explain the Current Export Scenario of the Indian Engineering Industry

The Indian Engineering Industry is a significant contributor to the country’s exports, accounting for
nearly 25% of India’s total exports. The sector encompasses a wide range of products, including
heavy engineering goods, industrial machinery, electrical machinery, and transport equipment.

Current Export Scenario:

• Growth: The Indian engineering sector has seen robust growth in exports, driven by
increased demand from markets like the United States, Europe, and Southeast Asia. In recent
years, the sector has diversified its export destinations, reducing dependency on traditional
markets.

• Key Export Products: Major export items include automotive components, machinery, iron
and steel products, and electrical machinery. India is also emerging as a global hub for
automotive components, with exports growing steadily.
 • Challenges: Despite its success, the sector faces challenges such as fluctuating raw material
prices, competition from other low-cost manufacturing countries, and regulatory barriers in
certain markets.

• Government Support: The Indian government has introduced various initiatives, such as the
Production Linked Incentive (PLI) scheme, to boost manufacturing and exports in the
engineering sector. Additionally, promotion councils like EEPC provide extensive support to
exporters in this sector.

3. Discuss the Scope and Challenges India is Facing in Foreign Trade

Scope in Foreign Trade:

• Market Expansion: India has the potential to expand its exports by tapping into new and
emerging markets, especially in Africa, Latin America, and Southeast Asia.

• Diverse Product Range: India’s diverse economy allows for a wide range of exportable goods,
from agricultural products to high-tech goods like pharmaceuticals, IT services, and
machinery.

• Government Initiatives: Initiatives like ‘Make in India’ and various export promotion
schemes are aimed at increasing India’s share in global trade.

Challenges in Foreign Trade:

• Trade Deficit: India often faces a trade deficit, where the value of imports exceeds exports.
This can lead to economic imbalances and pressure on foreign exchange reserves.

• Global Competition: Indian exporters face stiff competition from countries like China,
Vietnam, and Bangladesh, especially in sectors like textiles and electronics.

• Infrastructure Bottlenecks: Inefficiencies in logistics, port operations, and transport

infrastructure can hinder the smooth movement of goods and increase the cost of exports.

• Regulatory Hurdles: Complex and varying international trade regulations, customs

procedures, and compliance requirements can pose challenges for Indian exporters.

• Currency Fluctuations: Volatility in currency exchange rates can affect the profitability of
exports and make pricing competitive in global markets.

4. What are the Strategies and Processes Needed to Take Your Product or Service to the Global
Market?

Strategies:

• Market Research: Conduct thorough research to identify target markets, understand

consumer preferences, analyze competition, and assess market demand for your product or
service.

• Product Adaptation: Adapt your product or service to meet the specific needs, cultural
preferences, and regulatory requirements of the target market. This may involve
modifications in packaging, labeling, or product features.
 • Entry Strategy: Choose the right market entry strategy based on your product, resources,
and target market. Options include direct exporting, forming joint ventures, franchising, or
establishing a local presence.

• Pricing Strategy: Develop a competitive pricing strategy that considers factors such as
production costs, competitor pricing, tariffs, and currency fluctuations.

• Branding and Marketing: Build a strong brand presence in the global market through
targeted marketing campaigns, partnerships with local distributors, and participation in
international trade shows.

Processes:

• Regulatory Compliance: Ensure compliance with international trade regulations, including

customs procedures, certifications, and product standards in the target market.

• Logistics and Supply Chain Management: Establish an efficient supply chain and logistics
system to ensure timely delivery and minimize costs. This includes selecting reliable shipping
partners and managing inventory effectively.

• Legal Agreements: Secure legal agreements that protect intellectual property, outline terms
with international partners, and mitigate risks associated with international trade.

• Financial Planning: Plan for currency risk management, secure financing options for
international operations, and ensure competitive payment terms.

• Customer Support: Provide excellent after-sales service and customer support to build trust
and maintain long-term relationships with global customers.

5. Discuss the Start-up India Regulatory Support Provided to Businesses

Start-up India Regulatory Support:

• Self-Certification: Start-ups are allowed to self-certify compliance with various labor and
environmental laws, reducing the regulatory burden and enabling them to focus on business
growth. This helps in easing the compliance process for start-ups, particularly in the early
stages.

• Tax Exemptions: Eligible start-ups can avail tax exemptions for three consecutive years out of
their first ten years of operations. Additionally, they are exempt from paying income tax on
investments received above the fair market value, commonly known as the "Angel Tax."

• Fast-Tracking Patent Applications: Start-ups are provided with a fast-track mechanism for
patent applications, along with an 80% rebate on patent filing fees. This encourages
innovation and helps start-ups protect their intellectual property quickly and cost-effectively.

• Simplified Exit Process: The Insolvency and Bankruptcy Code (IBC) provides a faster and
easier exit route for start-ups that wish to wind up their business. This process can be
completed within 90 days of applying for insolvency.

• Single Window Clearance: The Start-up India portal offers a single-window clearance system,
where start-ups can access various government schemes, apply for recognition, and avail of
various incentives and benefits. This reduces the complexity of dealing with multiple
regulatory bodies.
 • Support for Intellectual Property (IP): Start-ups can access legal and financial support for IP
protection and commercialization through schemes like the Start-up Intellectual Property
Protection (SIPP) scheme. This helps start-ups protect their innovations and scale their
businesses globally.

Module 5: Incubation
2 Marks
1. Who is an Incubator?

An incubator is an organization or a program that provides support to start-ups and early-stage

businesses by offering resources, mentorship, office space, and networking opportunities. Incubators
help entrepreneurs develop their business ideas, refine their business models, and prepare for
market entry, typically in exchange for equity or a fee.

2. What Do You Mean by Process of Incubation?

The process of incubation involves nurturing and supporting start-ups from their initial idea phase
through to development and early growth. This process includes providing entrepreneurs with access
to resources like office space, mentoring, technical support, business advice, funding opportunities,
and networking. The goal is to help start-ups overcome the challenges of early-stage development,
leading to successful commercialization of their products or services.

3. List Down 5 Prominent Incubators in India

1. T-Hub (Hyderabad)

2. Indian Angel Network Incubator (Delhi)

3. Startup Village (Kochi)

4. CIIE – IIM Ahmedabad

5. NSRCEL – IIM Bangalore

4. What is AIM – AIC?

Atal Innovation Mission (AIM) – Atal Incubation Centers (AICs) are a flagship initiative of the
Government of India under NITI Aayog. AIM aims to promote a culture of innovation and
entrepreneurship across the country. AICs are set up to foster innovation by providing startups with
the infrastructure and support required to turn their ideas into viable businesses. These centers
provide incubation, mentorship, and networking support to early-stage businesses.

5. What is NITI Aayog?

NITI Aayog (National Institution for Transforming India) is a policy think tank of the Government of
India, established in 2015. It replaced the Planning Commission and serves as an advisory body,
providing strategic and technical advice to the central and state governments. NITI Aayog focuses on
fostering cooperative federalism, promoting sustainable development, and driving innovation and
entrepreneurship across India.

6. What is DBT - BioNest Incubation Scheme?

The DBT - BioNest (Biotech-Nurturing Entrepreneurship for Scaling Technologies) Incubation
Scheme is an initiative by the Department of Biotechnology (DBT), Government of India. It aims to
promote the growth of biotechnology start-ups by providing incubation facilities, including lab space,
equipment, mentorship, and funding opportunities. BioNest centers are designed to support early-
stage biotech ventures in areas such as healthcare, agriculture, and environmental biotechnology.

7. What is DBT – TBI Incubation Scheme?

The DBT – TBI (Technology Business Incubator) Incubation Scheme is a program under the
Department of Biotechnology, aimed at supporting biotech start-ups by establishing Technology
Business Incubators in academic and research institutions. These incubators offer a conducive
environment for start-ups to innovate, with access to state-of-the-art laboratory facilities,
mentorship, funding, and networking opportunities.

8. What are the Benefits for Start-ups from the Incubation Centers?

• Access to Resources: Incubation centers provide access to office space, laboratory facilities,
technical equipment, and other resources needed to develop products and services.

• Mentorship and Guidance: Start-ups receive mentorship from experienced industry

professionals and entrepreneurs who provide valuable advice on business strategy, product
development, and market entry.

• Networking Opportunities: Incubation centers offer networking opportunities with potential

investors, partners, customers, and other entrepreneurs, helping start-ups build relationships
and gain market insights.

• Funding Support: Many incubation centers provide or facilitate access to funding through
seed capital, grants, or connections with venture capitalists and angel investors.

• Skill Development: Start-ups can benefit from workshops, training sessions, and seminars
that help improve their business acumen, technical skills, and understanding of market
trends.

9. Mention Two Prominent Incubation Centers from Karnataka

1. NSRCEL – IIM Bangalore: One of the leading incubation centers in India, offering support to
start-ups across various sectors, including social enterprises and women entrepreneurs.

2. IIITB Innovation Centre (IIIT Bangalore): An incubation center focused on fostering start-ups
in the technology sector, particularly in areas like IT, software, and digital innovations.

5 Marks
1. Explain the Objectives and Functions of DBT-TBI

Objectives of DBT-TBI (Technology Business Incubator):

• Promote Entrepreneurship: The primary objective of the DBT-TBI scheme is to promote

entrepreneurship in the biotechnology sector by supporting innovative start-ups.

• Facilitate Technology Development: The scheme aims to foster the development and
commercialization of innovative biotechnological products and services.
 • Enhance Competitiveness: It seeks to enhance the competitiveness of Indian biotechnology
firms by providing them with the necessary resources and support to thrive in the global
market.

• Support Skill Development: The initiative aims to develop the skills of entrepreneurs and
their teams in areas related to biotechnology and business management.

Functions of DBT-TBI:

• Incubation Support: DBT-TBI provides incubation support, including access to laboratory

facilities, office space, and essential equipment needed for product development.

• Mentorship and Guidance: It offers mentorship from industry experts, experienced

entrepreneurs, and academic professionals, providing start-ups with insights into business
strategies, technology, and market trends.

• Funding Facilitation: The scheme helps incubated start-ups access funding through various
channels, including grants, seed funding, and connections with venture capitalists.

• Networking Opportunities: DBT-TBI facilitates networking opportunities for start-ups with

potential investors, partners, and industry stakeholders to enhance collaboration and
business growth.

• Training and Capacity Building: The incubator conducts workshops, training programs, and
seminars to build the capacity of entrepreneurs and enhance their skills in various aspects of
business development.

2. Discuss the Benefits of Incubation for Women Entrepreneurs in India

• Access to Resources: Incubation centers provide women entrepreneurs with access to

essential resources, including office space, equipment, and technology that may otherwise
be difficult to obtain.

• Mentorship and Support: Women entrepreneurs benefit from mentorship programs that
connect them with experienced mentors, helping them navigate challenges and develop
their businesses effectively.

• Networking Opportunities: Incubators facilitate networking among women entrepreneurs,

enabling them to build connections with peers, potential partners, and investors, which can
be crucial for business growth.

• Financial Assistance: Many incubation programs offer financial support or help women
entrepreneurs access funding opportunities, reducing financial barriers to starting and
scaling their businesses.

• Skill Development: Incubation centers provide training programs tailored to the specific
needs of women entrepreneurs, enhancing their skills in business management, marketing,
and technology.

• Encouragement of Innovation: Incubation fosters a culture of innovation and creativity

among women entrepreneurs, encouraging them to develop unique products and services
that address market needs.

3. Describe the Role of Start-up Incubator

 • Nurturing Early-Stage Companies: Start-up incubators play a vital role in nurturing early-
stage companies by providing them with the necessary support to develop their ideas into
viable businesses.

• Resource Allocation: They allocate resources such as office space, infrastructure, and
technology, enabling start-ups to focus on product development and market entry without
the burden of high operational costs.

• Mentorship and Advisory Services: Incubators offer mentorship and advisory services,
connecting start-ups with experienced entrepreneurs and industry experts who guide them
through the challenges of starting a business.

• Funding Support: Many incubators assist start-ups in securing funding through various
avenues, including seed funding, grants, and connections with investors, which is crucial for
their growth and sustainability.

• Networking and Collaboration: Incubators create opportunities for networking and

collaboration among start-ups, investors, and industry stakeholders, fostering an
environment of innovation and synergy.

• Training and Development: They provide training programs, workshops, and seminars to
equip entrepreneurs with essential skills in areas such as business management, marketing,
and technology.

4. Discuss Various Incubation Schemes Initiated by the Central Government

• Atal Innovation Mission (AIM): AIM, launched by NITI Aayog, supports the establishment of
Atal Incubation Centers (AICs) to promote innovation and entrepreneurship across various
sectors. AICs provide incubation support, mentoring, and funding opportunities.

• DBT-TBI (Technology Business Incubator) Scheme: This scheme by the Department of

Biotechnology aims to support biotechnology start-ups by providing incubation facilities,
mentorship, and funding assistance, facilitating the commercialization of biotechnological
innovations.

• Startup India Initiative: Launched by the Government of India, this initiative offers various
benefits to start-ups, including tax exemptions, self-certification for compliance, and a faster
exit process. It also supports incubation centers to nurture young entrepreneurs.

• SIDBI Make in India Seed Fund Scheme (SME): This scheme provides funding support to
start-ups and small enterprises in the manufacturing sector to promote entrepreneurship
and boost employment generation.

• Pradhan Mantri Mudra Yojana (PMMY): This scheme offers financial support to micro and
small enterprises, including start-ups, to help them access loans for business development,
infrastructure, and operational needs.

5. Write a Note on Any Two of the Following

a. AIM – AIC

Atal Innovation Mission (AIM) is a flagship initiative of the Government of India under NITI Aayog,
launched in 2016. AIM aims to promote a culture of innovation and entrepreneurship across the
country. The mission focuses on:
 • Establishing Atal Incubation Centers (AICs): AICs provide incubation support to start-ups,
offering mentorship, networking opportunities, and access to funding. They aim to create a
conducive environment for start-ups to thrive.

• Innovation Promotion: AIM encourages innovation through various programs and initiatives,
including the Atal Tinkering Labs in schools to foster creativity and problem-solving skills
among students.

• Support for Start-ups: The mission facilitates collaboration between academic institutions,
industry, and start-ups to enhance innovation and entrepreneurship, ultimately contributing
to economic growth and job creation.

b. NITI Aayog

NITI Aayog (National Institution for Transforming India) is a policy think tank of the Government of
India, established in 2015, to replace the Planning Commission. NITI Aayog's primary objectives
include:

• Promoting Cooperative Federalism: The organization works to strengthen the relationship

between the central and state governments, fostering collaboration for inclusive growth and
development.

• Advising the Government: NITI Aayog provides strategic and technical advice to the
government on various policies, programs, and initiatives, focusing on sustainable
development and innovation.

• Driving Entrepreneurship: The institution plays a crucial role in promoting entrepreneurship

and innovation through initiatives like the Atal Innovation Mission, which supports start-ups
and encourages research and development.

c. DBT - BioNest Incubation Scheme

The DBT - BioNest Incubation Scheme is an initiative by the Department of Biotechnology (DBT),
Government of India, aimed at promoting biotechnology start-ups. The key features of the scheme
include:

• Incubation Facilities: BioNest provides start-ups with access to state-of-the-art laboratory

facilities, equipment, and resources needed for research and development in biotechnology.

• Financial Support: The scheme facilitates financial assistance to incubated start-ups through
grants and seed funding, helping them cover operational costs and product development
expenses.

• Mentorship and Guidance: Start-ups receive mentorship from experienced professionals in

the biotechnology field, providing them with insights into industry trends, regulatory
compliance, and commercialization strategies.

• Networking Opportunities: The BioNest incubators create a platform for networking among
entrepreneurs, researchers, and industry stakeholders, fostering collaboration and
knowledge sharing within the biotechnology ecosystem.