It looks like the current Finance minister likes the word “start-up” more than any finance minister of the past! Otherwise why will he make reference to it so many times during the Budget speech 2014! We can boldly say that the government is definitely seeing the start-up community, the MSME’s in India as a powerful contributor of socio-economic development. There are many interesting things that the Finance minister mentioned in his talk, here are some of the key items of interest to the entrepreneurial folk:
- A 10,000 Crore Fund for fuelling entrepreneurship in the country. This fund should find itself being distributed as equity, soft loans, etc
- Strengthening the nation wide network of incubators and accelerators: This should go a long way in improving the early stage support that entrepreneurs badly require
- A 100 Crore Fund for encouraging entrepreneurship in our villages called the Village Start-up Fund: This is absolutely needed if we don’t want our cities to break down. It is also important for us to tap into the real potential of India. Rural Entrepreneurship is an absolute must in a country like India.
- A 200 Crore additional funding for supporting entrepreneurship among the SC/ST youth. This is an interesting way to move the backward communities out of that status.
- A special focus on helping build the next generation of technology product companies – something that India has really fallen behind in, especially in the IT Industry. A 500 Crore Fund to support potential software product start-ups is a great boost – hopefully we should see some Google, Apple, Microsoft, Facebook, etc come out of these initiatives!
While there are many other things that could be of interest to the industry, the start-up ecosystem in the country, especially the entrepreneurial youth of this country should be cheering.
In the past, plans have been made along similar lines, but not so specifically to tap into entrepreneurship. Hence we (all those involved in Indian Entrepreneurship) are all hoping that these policies will be turned into actions and they will truly reach those who need them the most. If the government can implement this, India can truly reap the benefits of her demographic dividend!
Yes, one more thing which has got missed in the large numbers is: The plan to ease the bankruptcy framework in India. Now, if there is one thing that can truly catalyse the entrepreneurial spirit in this country, it is this. Because, if it is easy to close down a failing enterprise, people will be more open to experimentation. This can also make the long held baggage (‘social stigma of failure’) become lighter and hopefully go away.
Over all I think this budget has been very pro start-ups and I think the government has read the pulse right. The entrepreneurship and small business ecosystem in this country badly need a boost. They can create the millions of jobs that India urgently needs.
With the budget fairly interesting and forward looking, all are now eagerly waiting to see how these policies are going to be rolled out. This requires policy to be turned into actionable plans and then staffed through the right people to ensure they see the light of day.
Well begun is half done, but half done isn’t really great either! Let’s all work along to make entrepreneurship thrive amongst the youth across the country.
What do you think about Budget 2014 and Entrepreneurship? Do share your views.