Supportive eco-system for start-ups need of the hour

 

India has a great potential in science and technology-driven start-ups. In recent years, we have seen a spurt in the growth of start-ups in the country. Flipkart, Bigbasket, Snapdeal and Oyo rooms etc., have made a spectacular growth in the Indian market.

Local laws need to be easy to understand and comprehend. A single window facility for clearance of all such legal hurdles will go a long way in promoting start-ups in India

However, many more start-ups can be fostered if the government just creates an enabling environment. Bangalore, Hyderabad and Delhi have become hubs for such start-ups in the country. Most of the start-ups, start with great ideas which need to be scaled up very fast and hence they need enabling environment to scale up. 

Hence there is a need for: 1. Adequate avenues for risk capital- the core of every start-up is a killer idea but this idea needs nurturing in order to develop into a product/service for which adequate risk capital is needed. An environment needs to be created so that such capital is readily available; and 2. Ease of doing business.

Land clearance should be easy and made available by the government. Typically start-ups don’t need a lot of land and can operate from incubation centres. Hence, more incubation centres need to come up in the country. This will allow the start-up firms to concentrate on its core business and idea rather than worry about procuring land etc.

Hassle-free electricity connection and connections for other utilities need to ensured. There is also a need easy mechanism of dealing with tax authorities. Most start-ups are promoted by first time entrepreneurs who are keener to scale up their product sales and prefer a transparent dealing with tax authorities.

Local laws need to be easy to understand and comprehend. A single window facility for clearance of all such legal hurdles will go a long way in promoting start-ups in India. Faster scale-up needs large-scale requirement for trained human resource and hence high quality human resource needs to be readily available.

Business support functions are also required by start-ups and an eco-system for this facility needs to be developed. Entrepreneurship culture needs to be nurtured among college and University graduates so that they can connect their ideas to market needs and are willing to promote start-ups by taking risks and not getting satisfied with a nice job only.

The workshop will deliberate on all such issues and the mechanisms to create an enabling environment in which thousands of start-ups bloom. (The writer is Dean of Research and Management Studies, ASCI. The note is circulated by him as a prelude to the one-day workshop organised by ASCI on December 9)