Entrepreneurship and Governance Chapter 5 Entrepreneurship and Governance

1. notes
Describe the
support of
government for
start up leading to
emergence to new
entrepreneurial
class.

2. notes
EMERGENCE OF ENTREPRENEURIAL CLASS:
INTRODUCTION
Ancient India was known across the world for its
affluence and wealth. Traders from all over the
world travelled to India to take part in this
affluence. Be it the Mughals, the Portuguese, the
Turks or the British all the them ventured into
Indian boundaries for different financial reasons.
The entrepreneurial drive among Indians was
notably absent while over a long period of time,
modern India has risen up to the task again. Even
those who have little or no entrepreneurial
experience are selecting to take part in an
entrepreneurship management course to gain
the theoretical knowledge as well as practical
experience before starting their entrepreneurial
journey.

3. notes
ENTREPRENEUR MEANING -
An entrepreneur is a person who develops a new idea and
takes the risk of setting up an enterprise to produce a
product or service which satisfies consumer needs. An
entrepreneur is an organizer who controls, systematize
purchases raw materials, arrange infrastructure, throw in
this own inventiveness, expertises, plans and administers
the venture. This is infect the essence of entrepreneurship.
"An entrepreneur is one who organizes, manages
and assumes the risk of a business or an enterprise."
ENTREPRENEURSHIP : MEANING
Entrepreneurship is the carrying out of a fresh enterprise or
restructuring an enterprise, which has already been into
existence. It is an entirely different field involving unique
personality traits on the part of the entrepreneur such as
good communication skills, patience, foresightedness and
many more qualities and traits which leads his personality to
a brighter side. Entrepreneurism has different forms such as
sole trading, partnership firm, small scale industry etc.

4. notes
GOVERNMENT FUNDING AND SUPPORT FOR NEW ENTREPRENEURS
1. Startup India Portal and Mobile App: Startup India Portal and Mobile App have been launched as online
platform for providing updates, information, recognition and eligibility certificates to startups and other
stakeholders.
2. Startup India Hub: On April 1, 2016, Government of India operationalised the startup India Hub. The main
aim of startup India Hub is to resolve queries and offer handholding support to startups. Startup India Hub
has been able to resolve 12290 queries received from Startups through telephone, email and Twitter. One
can get in touch with the Hub on TollFree number or email to get clarifications relating to certificate of
Recognition as a Startup, certificate of eligibility to avail tax benefits, seeking information on incubators or
funding. Over 200 queries per day are handled by dedicated professionals. DIPP has requested has
requested State Governments and administration of Union Territories to set up Hub as well as incubators to
assist Startups during different stages of their life cycle.
3. Fund of Funds: A 'Fund of Funds of 1000 crore has been established to support innovation driven
Startups. This fund shall be managed by SIDBI. The fund will invest in SEBI registered Alternative Investment
Funds (AIFs) which will invest in Startups. The fund will act as an enabler to attract private capital in the form
of equity, quasi-equity, soft loans and other risk of capital for Startups. In Financial year 2015-16, ₹ 500 crore
has been released to SIDBI and 600 crore in Financial year 2016-17. The 13 proposals were examined for
funding under 'Fund of Funds' and 8 were recommended in the first meeting of Venture Capital Investment
Committee which was held on July 12, 2016.
4. Tax Incentives: The Startups (Companies and Limited Liability Partnership) can avail an income tax
exemption for 3 years in a block of 5 years under Section 80-IAC of The Finance Act, 2016, if they are
incorporated between April 1, 2016 and March 31, 2019. A Startup must get a certificate of eligibility from
the Inter-Ministerial Board of avail these benefits.
5. Self Certification : Central Pollution Control Board has exempted industries in white category from all the
applicable self-certifications under the following three environment related Acts :
i) The Water (Prevention & Control of Pollution) Act, 1974.
((ii) The Water (Prevention & Control of Pollution Cess (Amendment) Act, 2003. (iii) The Air (Prevention &
Conrol of Pollution) Act 1981, listed in the Startup India Action Plan.
6. Atal Innovation Mission (AIM): AIM started to provide an impetus to innovation and encourage the talent
among the people. Under AIM, guidelines have been formulated and published on NITI Aayog's and startup
India websites for harnessing private sector expertise to set up incubators, organising annual grand
challenge for innovative solutions to problems faced by industry.
7. Relaxed Norms for Public Procurement : Relaxed norms have been provisioned in the Procurement Policy
of Ministry of MSME for public procurement for micro and small enterprises.
8. Intellectual Property Right Benefits Government of India has constituted a panel of facilitators for
supporting in filing Intellectual Property applications. DIPP would bear the facilitation cost on behalf of
startups and also provide rebate in the statutory fee for filing application.

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