Published: Wednesday, 19 July, 2017 11:10 AM
Start-up India, Stand up India’ should stimulate young Entrepreneurs
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Read Current Affairs Topic: Start-up India, Stand up India’ should stimulate young Entrepreneurs
The Start-up India and Stand Up India programmes were initiated basically to inculcate the habit of entrepreneurship among the fellow Indians particularly the youth. As the Union Minister of Labour and Employment had set the target of providing jobs to 50 million unemployed people in the country by 2020, the present government needs to generate as much as 10.25 million jobs per year from 2017 to 2020. The past trends indicate that it is a herculean task to generate employment on such a scale in the present circumstances. In order to absorb the ever increasing surplus work force, the economy needs hundreds of new business organizations and for that matter, the Start Up India and Stand Up India programme is conceived to stimulate the young entrepreneurs in India that would create new businesses to help accelerate the economic growth and create employment opportunities.
As per the definition provided by Department of Industrial Policy and Promotion, a Start Up is an entity incorporated or registered in India with following conditions:
- Registered not prior to seven years, however for Biotechnology Start Ups, not prior to ten years.
- With annual turnover not exceeding INR 25 crore in any preceding financial year
- Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
The Stand Up India scheme's overall intent is to leverage the institutional credit structure to reach out to the under-served sectors of the population like SCs, STs and women entrepreneurs by facilitating bank loans repayable up to 7 years and ranging from INR 1.0 to 10 million for greenfield enterprises in the non-farm sector set up by such SC, ST and Women borrowers.
The Start Up and Stand Up India initiative indeed looks like a genuine effort by the government of India to stimulate the youth of the country to take up entrepreneurship. However, there is a difference between announcing a scheme, implementing it on the ground and achieving the desired results after implementation.
Due to cumbersome maze of laws and regulations, all the motivation of a young entrepreneur is vanished as soon as he or she thinks of materialising their ideas. Over the last few years, the government has initiated several measures to improve the business ecosystem in the country but still India is among the laggards in the Ease of Doing business Index. In the year 2017, India was ranked 130th in the Ease of Doing Business Index of the World Bank which was a minor improvement from 2016 when India ranked 131st.
For other procedures that are instrumental in setting up a business, India’s position is not very encouraging. For instance, India ranked 130th for starting a business, 185th construction permits, 172nd for paying taxes etc. There were only three parameters on which India ranked under 50 which are - Getting electricity (26th), Protecting Minority Investors (13th) and Getting Credit (13th).
In fact, the red tapism and multitude of regulations are the most significant obstacles in making Start up India and Stand up India a success. In the year 2016, a slowdown was witnessed in the start-up space, as there was a dip of almost 50% in the registration of new start-ups as compared to 2015. It means that government is still not able to stimulate the youth to take up entrepreneurship.
Indeed, the real intention behind the Stand Up India and Start Up India is to inculcate entrepreneurship among the youths which can be a panacea to all the ills of Indian economy like poverty, unemployment, income inequalities etc. However, in order to make this scheme successful, government should strive to build an ecosystem which doesn’t hamper the zeal of the youth and helps in creating the Start Up clusters in each district and block of the country as is desired by the Prime Minister.
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