Saturday, 25 June 2016

Start Ups Need Wooing ?


Economic Times ( 22 June 2016 ) , carries a report , which says :

#  In last 5 months , since launch of Start Up India initiative , only 200 applications have been received

#  Of these , only 30 got " short-listed "

#  Of these 30 , only  ONE  got approved  !


Not surprising if you consider the " ELIGIBILITY  CRITERIA " laid down for approval ( see my blog below ) !

The news report goes on to list a few " measures " that DIPP is planning to take to encourage many more Start Ups to come forward and apply

These are unlikely to make much of an impact !

It is not yet too late to consider my following blog / suggestion :

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Wednesday, 20 January 2016

 

START UP RE-DEFINED
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No doubt , you have read the " DEFINITION of a START UP " in the " Start Up Action Plan Document "


I have tried to envisage below, how that might look on that Mobile App for Registration :


*   Is yours a Private Ltd Co / LLP / Partnership  ?...........................................  Yes  /  No


*   Is your Company more than 5 years old ?....................................................Yes  /  No


*   Is your Start Up formed by splitting an existing business ?............................ Yes  /  No


*   In last 5 yrs, has your turnover exceeded Rs 25 Crores ?.............................  Yes  /  No


*   Is your product/service " DIFFERENTIATED "  ?............................................ Yes  /  No


*   Is your product / service " COMMERCIAL "  ?............................................... Yes  /  No


*  Is your product / service " INNOVATIVE "  ?................................................  Yes  /  No


*  Is your product / service driven by ,
    " TECHNOLOGY  / INTELLECTUAL PROPERTY "  ? ............................................Yes /  No


*  Is your product/service ,
   " NEW / SIGNIFICANTLY IMPROVED "  version "  ?.................... ...................... Yes / No

  
*  Does your product/service add " VALUE " to customers  ?................................ Yes / No


*  Does your product/service add " VALUE " to " WORKFLOW " ?.........................   Yes / No


*  Have you got certification  from Inter-Ministerial Board ?................................  Yes /  No


*  Have you got recommendation from Incubator in Post Grad Indian College ?....... Yes / No



MY  TAKE :

#  Each year 12 million persons join India's work force

#  Of these , 3.5 million are Graduates

#  Rest ( 8.5 million ) are 10th / 12th Standard pass or less

#  No more than 1,000  persons will fulfill above mentioned " ELIGIBILITY CRITERIA " for Start Up

#  There will be endless debates on the correct meaning of words in CAPITAL letters above !


WHY  SUCH  STRINGENT  " ELIGIBILITY  CRITERIA "  ?

#  At Rs 2.5 cr loan per Start Up, Govt Fund of Rs 2500 Cr can help only 1,000 Start Ups !

#  Any relaxation in " Eligibility Criteria " , may result in MILLIONs of persons queue-up !


WHAT  IS  THE  IMPLICATION  ?

#  Funds are just insufficient to help 12 million persons to become " Self Employed "


MY  SUGGESTION :

In India , we are talking of getting " Unemployed " to launch " Start Ups "

Anywhere between 100 million to 400 million " Unemployed " for whom neither Public Sector nor Private Sector , is in any position to create jobs

We want them to become " Self Employed " - what Shri Narendra Modi described in USA , as our " PERSONAL  SECTOR "

They are unlikely to launch technology driven , Web-based businesses , even if their businesses require them to have a Smart phone , on which , their customers can reach them !


They aspire to become ( list can run into 200 trades ! ) :


*  Street-side Vendors ( Vegetables / Shoes / Purses / Fruits / Trinkets )

*  Craftsmen ( Plumber / Electrician / Carpenter / Repairer  )

*  Dhobi / Barber / Pan Beedi shop-owner / Tailor / Mochi

*  Doodh-wala / Ruddi Paper-wala / Gajra-wala / Delivery Boy

*  Cook / Maid / Courier / Tuition Teacher / Beautician / Taxi Driver

*  Home-cooked Tiffin Service /  Car wash  /  Gardening ......



How can we help millions of  JOBLESS  to set up such  MICRO - BUSINESSES  ?

By Government ( Central / State / Municipal ) getting out of their way !


HOW  ?

*  No licenses / permits / approvals / conditions / criteria

*  Simple online registration on proposed Web site of DIPP for Start Ups

*  No personal Income tax for Individuals

*  No Corporate Income tax for Start Ups for 10 years ( no chance of profit in first 3 years )

*  Amnesty Scheme for enabling Rs 10 million*crores of BLACK MONEY to flow into such
   Self Employment


It is still not too late for our  Policy Makers will think " Out of Box " and implement :

www.hemenparekh.in > Blogs > A New Economic Order - Start Up Act - 2015

Anything less just won't make much of a difference !

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26  June  2016
www.hemenparekh.in / blogs


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