PM to launch start-up movement today to boost entrepreneurship
17 Jan 2016 5:09 AM IST
Prime Minister Narendra Modi will launch the ‘Start-Up movement’ on Saturday by unveiling the action plan aimed at boosting entrepreneurship at the grassroots level.
“The launch event is aimed at celebrating the entrepreneurship spirit of country’s youth and will be attended by CEOs and founders of top start-ups from across the country and abroad,” said a PMO statement here on Friday.
The Prime Minister will release the Start-Up Action Plan, visit a virtual exhibition and interact with start-up entrepreneurs to mark the occasion, the statement said.
The programme is aimed at promoting bank financing for start-up ventures and offer incentives to boost entrepreneurship and job-creation.
A question-and-answer session titled ‘Face-to-face with policy-makers’ is also being organized wherein Secretaries of key Ministries and Departments will respond to queries on how an enabling ecosystem for start-ups would be created, it said.
“The objective is to reinforce commitment of the government towards creating an ecosystem that is conducive for growth of start-ups, the statement added.
The event will also feature interactive talks with global leaders and venture capitalists such as Masayoshi Son, Founder and CEO of SoftBank and Adam Nuemann, Founder of WeWork.
With an objective of inspiring the youth, the event will be telecast live in IITs, IIMs, NITs, IIITs and central universities and to youth groups in over 350 districts of India, the PMO said.
Modi, who had made the announcement about the campaign in his last Independence Day address, recently said the programme will be designed to suit Indian conditions and focus would be on ensuring benefits for the youth from the lowest strata of the society.
Meanwhile, an investors’ body has sought tax incentives on investments and easier norms for opening and closure of a company to give a boost to such ventures. Investors’ association TiE Silicon Valley President Venktesh Shukla said a large number of startups are failing and “we should allow them to close their units in an easy way. It is extremely critical because lot of their energy is wasted in unproductive work”.
Norms should also be eased for Indian startups to raise money, he said while interacting with media on the ‘Startup India’ event to be held tomorrow, when Prime Minister Narendra Modi will unveil an action plan to encourage budding entrepreneurs.
The other members of the association asked for tax incentives in all investments coming from the US. Kanwal Rekhi, managing director of Inventus Capital said that India does not impose tax on investments in capital market but levies investments in startups.
“Investment made from Mauritius is not taxed but those made from the US come under tax ambit. We don’t want to invest through indirect route, we want to make investment directly from Silicon Valley to India,” Rekhi said. The members of the association emphasised on simple regulatory regime for new age ventures in India and global investors.
About 40 leading CEOs, venture capitalist and angel investors from Silicon Valley are attending the function. SoftBank CEO Masayoshi Son, WeWork Founder Adam Nuemann and Uber Founder Travis Kalanick will be among the top executives.
“There is an incentive to invest in stock markets but disincentive to invest in startups. Why so?,” Rekhi said, hoping for some good announcement on Friday. He said that 70 per cent of the jobs in the US are created by small units and this model can also be replicated in India.
Hindustan Semiconductors Manufacturing Corporation Chairman Deven Verma said Indians in Silicon valley are no different but perform extraordinarily because of environment there. “We need to develop Silicon valley-kind of environment in India,” Verma said. Sharing similar views, Vinod Dham, Executive Managing Director, IUVP, said jobs in India will be created by startups, “so why give them step-motherly treatment.”
“We have seen so many companies making billions of dollars. This government has a vision. This was not there in last ten years. Narendra Modi is trying to rally relevant people around that vision- entrepreneurs, investors,” Dham added.
Speaking at the briefing, DIPP Secretary Amitabh Kant said that all these people will meet the Prime Minister and would also invest here.
Growth, talent and funding top challenges for start-ups: Survey
Growth, talent management and funding are the top three challenges that small startups in the country face, a survey by industry body IAMAI on Friday said. According to Internet and Mobile Association of India (IAMAI) and IMRB International survey, raising fund and revenue expenditure mismatch are major challenges that small startups see in the next year. Over the past two years, investors have pumped in billions of dollars into hundreds of startups, many of which have grown into thriving businesses. However, many analysts believe that raising funding in later stages of evolution (series B and beyond) could become increasingly difficult. Also, startups see growing their business, sector and increasing market share as another challenge in the next one year.
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