New Delhi: The general budget for 2014-15 presented by the Union Finance Minister, Shri Arun Jaitley will give a boost to Startups and Entrepreneurship in a big way. An amount of Rs. 10,500 crore has been allocated for various start-up funds and entrepreneurship programmes.
In his two hour long speech, the Minister said, “To provide credit enhancement facility for young start up entrepreneurs from Scheduled Castes, who aspire to be part of the neo-middle class, I propose to set aside a sum of Rs. 200 crore which will be operationalised through a scheme by IFCI. I also propose to set up a ‘Start Up Village Entrepreneurship Programme’ for encouraging rural youth to take up local entrepreneurship programmes. I am providing an initial sum of Rs. 100 crore for this.”
As part of a plan to further bridge the digital divide, a pan India programme ‘Digital India’ is being proposed. This would ensure Broad band connectivity at village level, improved access to services through IT enabled platforms, greater transparency in Government processes and increased indigenous production of IT hardware and software for exports and improved domestic availability. Special focus would be on supporting software product startups.
Promotion of entrepreneurship and start-up Companies remains a challenge. While there have been some efforts to encourage, one principal limitation has been availability of start-up capital by way of equity to be brought in by the promoters. In order to create a conducive eco-system for the venture capital in the MSME sector it is proposed to establish a Rs. 10,000 crore fund to act as a catalyst to attract private Capital by way of providing equity, quasi equity, soft loans and other risk capital for start-up companies.
“To establish technology centre network to promote innovation, entrepreneurship and agro-industry, I propose to set up a fund with a corpus of Rs. 200 crore”, he added.
A national multi-skill programme called Skill India is proposed to be launched. It would skill the youth with an emphasis on employability and entrepreneur skills.
Entrepreneur friendly legal bankruptcy framework will also be developed for SMEs to enable easy exit. A nationwide ‘District level Incubation and Accelerator Programme’ would be taken up for incubation of new ideas and providing necessary support for accelerating entrepreneurship.
Meanwhile, the Kochi based Startup Village, India’s first Public Private Partnership (PPP) model technology business incubator has welcomed the Union Budget 2014, saying it will give impetus to startup companies and will help create an entrepreneurship culture among youth in the country. The proposal to establish a Rs 10,000 crore fund for start-up companies is a very positive news for aspiring entrepreneurs.
Kerala IT News