Promotion of entrepreneurship and start-up Companies remains a challenge, while there have been some efforts taken to encourage, availability of start-up capital by way of equity to be brought in by the promoters.
Union Finance Minister Arun Jaitley, in his Budget speech announced the setting up of Rs 10,000 crore fund to boost capital flow to startups and small and medium enterprises (SMEs) in the country, which will act as an equity and risk capital to such future companies. Incubator programs and bankruptcy frameworks are also in the works. Rural start-ups and firms led by scheduled castes and tribes have been earmarked with Rs 200 crore worth of funds each. Youngsters who want to follow in the footsteps of icons like Steve Jobs and Ambanis or Tatas have something to cheer about.
The Minister said, “To provide credit enhancement facility for young start up entrepreneurs from Scheduled Castes, who aspire to be a 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 a part of the 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.
The funds managed by Small Industries Development Bank of India, had received about Rs 500 crore and Rs 340 crore which were invested for the new fund. This is good news for youngsters looking for new jobs as a robust economy will mean a much better job environment. If all goes well, Budget 2014 might just be the first step in the road to India’s renewed success story.
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