Challenges for Start-ups in India
Despite having raised good investments, many start-ups struggle to survive the tough competition in the market and are eventually forced to shut down their businesses.
The Start-up India Action Plan, which is the layout that the Indian Government plans for Start-ups, is designed to ease the burden for start-ups and provide them many benefits besides a business conducive environment. However, the plan is vulnerable to many challenges such as –
- Raising of funds which the Government plans to provide for Start-ups.
- Co-operation from the State Governments, as the Central Government alone cannot execute the plan and hence, will require co-operation from the State Governments.
- Co-operation from banks and other lenders for providing debt funding to the Start-ups.
- Lack of manpower and infrastructure in the office of Controller General of Patents Designs and Trade Mark.
Start-up Funding in India
There has been a tremendous rise in the number of Angel Investors and Venture Capital firms investing into and funding start-ups in India. Adequate roles have also been divided among the Central and State governments respectively for the establishment of new technology business incubators and research parks with regard to the percentage of funding they will respectively provide to incubators, i.e. 40% by the Central government (subject to maximum of INR 10 Crores / 100 Million), 40% by the State governments and 20% by the private sector.
The Human Resource Development Ministry and the Department of Science and Technology have agreed to partner in an initiative to set up over 75 such startup support hubs in the National Institutes of Technology (NITs), the Indian Institutes of Information Technology (IIITs), the Indian Institutes of Science Education and Research (IISERs) and NIPERs or National Institutes of Pharmaceutical Education and Research.
Another crucial piece of information in this regard would be that setting up of these incubators shall be provided for by ‘NITI AYOG’ as a part of the ‘Atal Innovation Mission’.
In the News
Keeping one of the major challenge of startup funding in mind recently the National Research Development Corporation (NRDC), the Indian Oil Corporation Limited, and the A.P. Innovation Society organized a roadshow on startup funding opportunities. The objective was explaining the potential entrepreneurs/startups about funding opportunities available with the Indian Oil Corporation Limited (IOCL) under its startup scheme.