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Last updated: 24 Jan, 2017  

startup.thmb.jpg Start up, stand up: A distant dream

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Bikky Khosla | 24 Jan, 2017

In his Independence Day speech in 2015, Prime Minister Narendra Modi announced an ambitious scheme, 'Start-up India, Stand up India', to encourage entrepreneurship among the youth of the country. Addressing the nation from the Red Fort, he said, "We must be number one in start-ups." Later, the scheme was formally launched on January 16, 2016. Since then one year has passed, and now when we look back, we must admit that the reality seems miles away from the promise. In the last year, we have made hardly any progress in making the start-up ecosystem better.

Facts and figures point this out. According to a recent report, while the number of start-ups being founded increased 87 percent in 2015, the number dropped 67 percent in 2016. Funding also saw a decline of 47.7 percent. Since its launch, the Start-up India programme received around 25,000 enquiries and 1,200 applications out of which only 500 entities were recognised as start-ups and just five received funding as on December 7, 2016. So where is the progress? These data sets, along with a recent start-up 'Deadpool' list prepared by a data analytics firm, signal a deteriorating health of our start-ups.

Meanwhile, a new survey found that majority of start-ups surveyed want the benefits under the Start-up India scheme, which now apply only to those incorporated after April 1, 2016, to be extended to all those registered in the last five years. Another burning issue against which they have raised voice is unnecessary questioning and harassment due to tax inspectors' lack of understanding about start-up valuation. Also, they have complained that they have to deal with tax notices and scrutiny exercises even if they don't have any income or revenue. Start-ups, particularly those from technology domains are also against the newly introduced norm requiring them payment of service tax on services procured from overseas. The upcoming Budget should address these concerns.

Today, government policies and programmes for skill development, innovation, funding, etc. to promote start-ups and SMEs are a dime a dozen, but what is miserably lacking is any thorough and in-depth effort to implement them effectively. Unfriendly banks, bankers' insistence on collateral, high interest rates, bureaucratic red-tape, corruption, difficult licensing procedures, taxation issues, delayed payments by larger companies and government departments, etc. are some of the lingering challenges that have never been really addressed. The government must get down to these nitty gritties if the Start-up India dream is to be realised.

I invite your opinions.

 
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Startup a myth
Rohit | Wed Mar 8 04:51:53 2017
The startup word is a myth with government doing very little to practically provide employment opportunities to the lakhs of youth.90 % startups fail with very little government and institutional support. You go to a PSB for a loan and the first answer is We don't provide loans to new babies,do u have a collateral,we don't understand online stuff.All PSB employees needs to be upgraded because the government is launching schemes but very little is happening on the ground level. A little done with effect will reap more results. Its way ahead for the startup world to go.


Reply
Anita sangle | Sun Jan 29 10:03:18 2017
I don't believe govt simply they will announce schemes but as per my experience from last 15 years bank don't cooperate all these about  schemes they sanction for the people who have money they circulate this money as black money banks want mortgage


Start ups
Kunnakkattu. J | Thu Jan 26 08:52:14 2017
Just giving idea will not work, slogans will not produce results. Indian law, the bureaucratic approach, banks attitude etc bears significant outcome. All are interested in quick returns to become rich. So many turn to invest on Share Market, MF, FD etc. To make people entrepreneurs, the law should not be rigid. There shall be separate treatment for newcomers and existing ones. Single window system to start Ups, tax exemption for 10years, bank loans with 5% interest rate, participation of coop banks and commercial banks for audit, administration, investment will help organizations to form, perform well. Once the profit starts, bank can withdraw their share. New concept of partnership, one or two new entrepreneurs with idea, bank partner with financial guidance, an experienced business man for administrative and business strategy will help. If not start up will start but not stand up in Indian conditions.


Big talk no action
nation interest first | Thu Jan 26 04:30:08 2017
You will get big big talk only no better scheme till 2019 .The same scheme with different name only praising the leader who does not hear others even the party actually came to power by the then leader Advani he was sidelined due to the sycophancy of the party members without any conscience If we have little conscience we will not support any person blindly and point out his mistakes


CEO's Note.
Harishkumar Trivedi | Wed Jan 25 15:06:48 2017
Now a days Mr. P.M. 's entire economical policy is not run on the right way . I believe Mr. P.M. is derailed from his own policy , wrong advisers are given him wrong advise for our country's economy policy. This is my personal belief . I may be wrong or right that is show in our becoming budget.


Dream still unrealized
Hareesh padigar | Wed Jan 25 06:43:18 2017
I started up, stood up...now I am sitting down since my legs are paining running around banks for business loans. Mine though not an tech start up, is a start up business dealing in MNC Industrial products. Banks are still least bothered to fund business loans for working capital. They cite examples of loan default cases, their preoccupation in demonetization issues, some banks merging their operations, no directives from their bosses to start disbursals, no guidelines from Govt finance dept etc for delay in loan approval. The situation is not at all easy for business as it is made to appear. We are professionals with 20yrs experience in the industry. But the banks are not discerning in identifying the clients whetehr they are genuine or tricksters.


STAND UP INDIA
PREM | Wed Jan 25 06:05:30 2017
2015--START UP INDIA 2016--STAND UP INDIA 2017--SLEEP UP INDIA 2018--FINISH UP INDIA


Opinion on the promoting start-ups and SMEs
Amit Kakdiya | Wed Jan 25 06:05:06 2017
Today I want new service sector firm, due to requirement of security & market rates of interest percent i am not being able to use my telnet & experience in sophisticated technological service sector. i think gov. shroud have to make some policy on security & startup promotion for new enthusiastic projects by providing facility for transparent faith in new firms. they can do it by providing some more eligibility for new one. Ex:in any gov/privet bank for security purpose new firm can submit any kind of property rather it is farming land/buildings /industrial shades/third party convective/local & villages property and many more. we hope it may support India to early stand up.


Comment
Rajesh K S | Wed Jan 25 04:44:38 2017
My dear brother, Don't try to present an initiative from any side in a negative manner. Let us see the good in that, and try to comment in that way instead of being like a terrorist attitude. For being bringing in positive you will find the healthy responses that pave way for healthy discussions and even for a good outcome. When pinpoint about Sri.Modi, can you say anyone from the Indian political frame in the last merely 30 years who has contributed and also being so without corruptions like him. Cannot not say what Mr.Modi ji has done has turned 100% to good, no one can do good in the universe suitable for all the 100% mass and also in a split of a short span of a period. CAN YOU DO THAT ? JUST THINK IN THAT WAY FIRST AND COMMENT LIKE THIS. I am not a person supporting any political party in India. Mr.Modi is a proven leader and personality before the world as well and the world started recognising his actions as a political leader behaving for the good. I think you will also admit why BJP is in power in majority it is only the outcome of Mr.Modi's good works from Gujarat. If Mr.Modi would have been started his political career with any other political party instead of BJP, that party would have been in power in India under his leadership. Should not say that the party BJP has done the good, but BJP is very fortunate to have the leader Mr.Modi with them and they are enjoying the fame through Mr.Modi and before the world. Let him bring, nation India to the forefront.

  Re: Comment
Nation interest first | Thu Jan 26 04:14:52 2017
There is no difference in your opinion and the people support corruption. the mistake of Modi is supported by you blindly like the people support corruption. Modi is going to do only not done anything so far though the people gave full majority not like congress depends upon many majority 60 years back India was having very very poor infrastructure no one can deny that congress and the leaders did something and better than Modi.


Implementation
prakash | Wed Jan 25 04:19:07 2017
All that is said is true, Every Leader, corporate or political, in India talk lot more than he or she can deliver. Say to Do ration is pretty small. All that is mentioned here i.e. , high interest rates, bureaucratic red-tape, corruption, worst enemy, difficult licensing procedures, taxation issues, delayed payments by larger companies and government departments, etc. are some of the lingering challenges that have never been really addressed. The government must get down to these nitty gritties if the Start-up India dream is to be realised. if the dream was meant to be kept as dream only then they can keep quiet. I do urge the Centre to take an action or at least focus on implementation then multiple schemes which is poorly implemented , this will cost the government much more as people of India will lose confidence in the leadership


 
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