Entrepreneurship

Module 4- Government Support for Entrepreneurship Development

1. Start up India
Startup India is a flagship initiative of the Government of India, intended to build a
strong eco-system for nurturing innovation and Startups in the country that will
drive sustainable economic growth and generate large scale employment
opportunities. The Government through this initiative aims to empower Startups to
grow through innovation and design.

Overview of Startup India Action plan

In order to meet the objectives of the initiative, Government of India Action Plan
that addresses all aspects of the Startup ecosystem has been announced. With this
Action Plan the Government hopes to accelerate spreading of the Startup
movement:

 From digital/ technology sector to a wide array of sectors including

agriculture, manufacturing, social sector, healthcare, education, etc.; and
 From existing tier 1 cities to tier 2 and tier 3 cities including semi-urban and
rural areas.

The Action Plan is divided across the following areas:

 Simplification and Handholding

 Funding Support and Incentives
 Industry-Academia Partnership and Incubation
Highlights of the action plan

Further reading:
https://byjus.com/free-ias-prep/start-up-india/
https://vikaspedia.in/social-welfare/entrepreneurship/startup-india-1/startup-india

Further clarity:
https://youtu.be/uvQRDU0gN9o
https://youtu.be/5f29L3v-Njw
 2. Stand Up India Scheme
The Stand Up India Scheme launched with an aim to promote entrepreneurship
among the scheduled caste, scheduled tribes and women by loaning them an
amount sufficient enough to start a new business.
The Stand Up India scheme aims at providing people belonging to the scheduled
caste or scheduled tribe or women of the country a loan between Rs.10 lakhs to
Rs.1 crore, based on their requirement. Under the scheme, 1.25 lakh bank branches
would each be expected to lend money every year to at least one Dalit or tribal
entrepreneur and one-woman entrepreneur in their service area.
Stand up India Eco system (How stand up India works?)

Eligibility
1. SC/ST and/or woman entrepreneurs, above 18 years of age.
2. Loans under the scheme is available for only green field project. Green field
signifies, in this context, the first time venture of the beneficiary in the
manufacturing or services or trading sector.
3. In case of non-individual enterprises, 51% of the shareholding and
controlling stake should be held by either SC/ST and/or Women
Entrepreneur.
4. Borrower should not be in default to any bank/financial institution.
Loan details

 Nature of Loan - Composite loan (inclusive of term loan and working

capital) between 10 lakh and upto 100 lakh.
 Purpose of Loan - For setting up a new enterprise in manufacturing, trading
or services sector by SC/ST/Women entrepreneur.
 Size of Loan - Composite loan of 75% of the project cost inclusive of term
loan and working capital. The stipulation of the loan being expected to cover
75% of the project cost would not apply if the borrower’s contribution along
with convergence support from any other schemes exceeds 25% of the
project cost.
 Interest Rate - The rate of interest would be lowest applicable rate of the
bank for that category (rating category) not to exceed (base rate (MCLR) +
3%+ tenor premium).
 Security - Besides primary security, the loan may be secured by collateral
security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India
Loans (CGFSIL) as decided by the banks.
 Repayment - The loan is repayable in 7 years with a maximum moratorium
period of 18 months.
 Working Capital - For withdrawal of Working capital upto 10 lakh, the
same may be sanctioned by way of overdraft. Rupay debit card to be issued
for convenience of the borrower. Working capital limit above 10 lakh to be
sanctioned by way of Cash Credit limit.
 Margin Money - The Scheme envisages 25% margin money which can be
provided in convergence with eligible Central / State schemes. While such
schemes can be drawn upon for availing admissible subsidies or for meeting
margin money requirements, in all cases, the borrower shall be required to
bring in minimum of 10% of the project cost as own contribution.

How to apply for loans

The scheme, which covers all branches of Scheduled Commercial Banks, will be
accessed in three potential ways. (Check out the links given for further clarity)

 Directly at the branch or

 Through Stand-Up India portal (www.standupmitra.in) or
 Through the Lead District Manager ((LDM)

Further reading: https://byjus.com/free-ias-prep/stand-up-india-scheme/

For further clarity: https://www.youtube.com/watch?v=ZhgA3HG4p5k

 3. Skill India
The Ministry is responsible for co-ordination of all skill development efforts across
the country, removal of disconnect between demand and supply of skilled
manpower, building the vocational and technical training framework, skill up-
gradation, building of new skills, and innovative thinking not only for existing jobs
but also jobs that are to be created.
The Ministry aims to Skill on a large Scale with Speed and high Standards in order
to achieve its vision of a 'Skilled India'.
It is aided in these initiatives by its functional arms – National Skill Development
Agency (NSDA), National Skill Development Corporation (NSDC), National Skill
Development Fund (NSDF) and 33 Sector Skill Councils (SSCs) as well as 187
training partners registered with NSDC. The Ministry also intends to work with the
existing network of skill development centres, universities and other alliances in
the field. Further, collaborations with relevant Central Ministries, State
governments, international organizations, industry and NGOs have been initiated
for multi-level engagement and more impactful implementation of skill
development efforts.

Objectives of ‘Skill India’

The main goal is to create opportunities, space and scope for the development of
the talents of the Indian youth and to develop more of those sectors which have
already been put under skill development for the last so many years and also to
identify new sectors for skill development. The new programme aims at providing
training and skill development to 500 million youth of our country by 2020,
covering each and every village. Various schemes are also proposed to achieve this
objective.

Features of ‘Skill India ‘

 The emphasis is to skill the youths in such a way so that they get
employment and also improve entrepreneurship.
 Provides training, support and guidance for all occupations that were of
traditional type like carpenters, cobblers, welders, blacksmiths, masons, nurses,
tailors, weavers etc.
 More emphasis will be given on new areas like real estate, construction,
transportation, textile, gem industry, jewellery designing, banking, tourism and
various other sectors, where skill development is inadequate or nil.
 The training programmes would be on the lines of international level so
that the youths of our country can not only meet the domestic demands but also of
other countries like the US, Japan, China, Germany, Russia and those in the West
Asia.
 Another remarkable feature of the ‘Skill India’ programme would be to
create a hallmark called ‘Rural India Skill’, so as to standardise and certify the
training process.
 Tailor-made, need-based , customized programmes would be initiated for
specific age groups which can be like language and communication skills, life and
positive thinking skills, personality development skills, management skills,
behavioural skills, including job and employability skills.
 The course methodology of ‘Skill India’ would be innovative, which
would include games, group discussions, brainstorming sessions, practical
experiences, case studies etc.

Further reading:

https://byjus.com/free-ias-prep/skill-india-mission/