What is Entrepreneurship?
The entrepreneur is a person who establishes a new company, carries the risks, and benefits from the rewards. An entrepreneur is generally seen as an innovator, a source of innovative ideas, products, services, and business/procedures.
Entrepreneurs have a vital role to play in every economy, using the expertise and initiative needed to identify needs and come up with new ideas for the marketplace. Entrepreneurs who have proven to be successful in taking risks from start-ups are compensated with profits, fame, and continued growth opportunities. Those who lose, bear losses, and become less prevalent in the markets.
A Entrepreneurship refers to the process of planning, establishing, and managing a growing business, which is mostly originally a small business, or as “ability and desire to develop, organize and manage the organization along with any of those risks to make a profit.”
Advantage of Startup India
- Huge Networking Opportunities
- Financial Benefits
- Government Tenders
- Income Tax Benefits
- Registration Benefits
You can registration of startup can be done only from below kind of companies
- Private Limited Company
- Partnership Firm
- LLP – Firm
What are the Characteristics of Entrepreneurship?
1. Self–Motivation: Self-motivation is one of the most important qualities for entrepreneurs. If you wish to succeed, you have to be able to drive yourself. As an entrepreneur, you’re never accountable to someone else, and that also means it’s hard to get through without anyone making you. And if you don’t get immediate payment, you need to be committed to the strategy and keep moving forward.
2. Understand What You Offer: As an entrepreneur, you have to identify what you’re selling and how it blends into the market. You need to recognize where you blend in, whether that’s a product or a service. That means you have to find the right time to change the game a little better. This also involves understanding whether you’re on the top end, in the middle of the road or in the compromise. Being able to place yourself and adapt as needed is an important part of entrepreneurship.
3. Take Chances: Sometimes it’s important to take risks to be successful entrepreneurs. Playing it safely never really leads to growth as a company owner. It’s not just taking any risks, however. Recognizing the measured risks that are most likely to pay off is an important aspect of becoming an entrepreneur. You’re going to have to be able to take a few chances to succeed.
4. Networking: Recognizing how and when to network is a vital aspect of entrepreneurship. Often, an important part of success is who you meet. Being willing to communicate with others and understand your collaboration opportunities will take you far as a business owner. Seek out where to look for networking opportunities and take the opportunity to learn how to be successful.
5. Basic skills and knowledge in money management: We frequently think of successful entrepreneurs as “big picture” people who don’t worry too much about handling the day-to-day. And it’s true that to help you manage the company, you may have an accountant or other team members. However, you should also have basic money management skills and knowledge if you want to be successful. Know how money works so that you know where you are, and that you manage your company on sound principles.
6.Flexibility: You need to be flexible as an entrepreneur. Be ready to change as needed. Continue on top of the competition and, if appropriate, be prepared to make improvements to processes and products. Often, in your thinking, you also need flexibility. This is an important aspect of problem-solving. You want to be able to find distinctive and reliable solutions to problems.
7. The Passion: Ultimately, successful entrepreneurs are passionate. They have a profound sense of their good or service or mission. When you are discouraged, passion is what will help you find inspiration and it will move you further. Passion is the guiding force for productive entrepreneurship. If you lose your enthusiasm, it could be a hint that it’s time to move on somewhere else (that stokes your passion). There are many serial entrepreneurs who make, sell, and then create something new for successful companies.
What is the Startup India scheme?
Startup India – Initiative of the Government: Startup India Scheme is a program of the Government of India to generate employment and create wealth. The aim of Startup India is to develop and innovate products and services and to increase the employment rate in India. Advantages of Startup India Scheme: Generalization of work, financial assistance, govt tenders, networking opportunities. Startup India has been launched by Prime Minister Shri. Narendra Modi on 16 January 2016. Let’s learn more about the positive effects and eligibility of Startup India.
- Compliance regime based on self-certification: The objective of a compliance regime based on self-certification is to reduce the regulatory burden on startups. This self-certification will apply to laws like payment of gratuity, contract labor, employees provident fund, water, and air pollution acts.
- Startup India hub: A startup India hub will be created as a single point of contact for the entire startup ecosystem to enable knowledge exchange and access to funding.
- Simplifying the startup process: A startup will be able to set up by just filling up a short form through a mobile app and an online portal. A mobile app will be launched on April 1 through which startups can be registered in a day. There will also be a portal for clearances, approvals, and registrations
- Patent protection: The government is also working on legal support for fast-tracking patent examination at lower costs. It will promote awareness and adoption of Intellectual Property Rights (IPRs) by startups and help them protect and commercialize IPRs.
- Funds of funds with a corpus of Rs 10,000 crore: In order to provide funding support to startups, the government will set up a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over four years. The fund would be managed by private professionals drawn from the industry while LIC will be a co-investor in the fund. The credit guarantee fund for start-ups would help the flow of venture debt from the banking system to start-ups by standing guarantee against risks.
- Credit Guarantee Fund: A National Credit Guarantee Trust Company is being envisaged with a budgetary allocation of Rs 500 crore per year for the next four years.
- Exemption from Capital Gains Tax: Currently, investments by venture capital funds in startups are exempt from this law. Now, the same is being extended to investments made by incubators in startups.
- Tax exemption for startups: Income tax exemption to startups announced for three years; Tax exemption on investments above Fair Market Value
- Startup fests: Innovation core programs for students in 5 lakh schools. There will also be an annual incubator grand challenge to create world-class incubators
- Launch of Atal Innovation Mission: Atal Innovation Mission started to give an impetus to innovation and encourage talent among the people
- Setting up of 7 new research parks: The government shall set up seven new research parks – six in IITs, one in IISc with an initial investment of Rs 100 crore each.
- Promote entrepreneurship in biotechnology: Five new bio clusters, 50 new bio incubators, 150 technology transfer offices, and 20 bios connect offices will be established.
- Setting up of 35 new incubators in institutions: PPP model being considered for 35 new incubators, 31 innovation centers at national institutes
- Innovation-focused programs for students: There will be innovation core programs for students in 5 lakh schools.
- The panel of facilitators to provide legal support and assist in the filing of patent application
- 80 percent rebate on filling patent applications by startups
- Relaxed norms of public procurement for startups
- Faster exits for startups
Why is important to Entrepreneurship?
Employment generation: Entrepreneurship help to creates employment. It offers an entry-level job that is required for unskilled employees to gain knowledge and experience.
Innovation: The innovation center offers new product projects, the business, the technology and quality of products, etc., and increases people’s living standards.
Society and Economic Growth Effect: If the job base is wide and diversified, a society becomes greater. It brings in social improvements and encourages services such as higher education spending, improved sanitation, less slums, a higher level of homeownership. Entrepreneurship also helps the organization in achieving a more secure and high standard of community life.
Increase Standard of Living: Through rising wealth, entrepreneurship helps to increase a person’s standard of living. The standard of living means an improvement in a household’s consumption of different goods and services over a particular period of time.
Supports Research and Development: New services and products need to be researched and evaluated prior to market launch. The entrepreneur, therefore, also offers research and development grants to research institutions and universities. It promotes science, general building, and economic growth.
What is the definition of “Startup”?
Any corporation which falls into the below list of a category will be called “Startup” and eligible to be recognised by the DPIIT to avail the advantage from the Govt of India.
- Company Type – Should have been Incorporated as a Private Limited Company or a Registered Partnership Firm or a Limited Liability Partnership
- Turnover Annual – Should not exceed INR 100 Cr for any of the financial years since its Incorporation
- Company Age – The Date of Incorporation should not cross Ten years
- Scalable & Innovative – Should have a plan for the development or improvement of a product, process, or service and/or have a scalable business model with high potential for the creation of wealth & employment.
- Original Entity – The Co/Entity should have been formed originally by promoters & should not have been formed by splitting up or reconstructing an current entity.
What is the Eligibility for registering under the India Startup Scheme?
1. The corporation to be established must be a privately held company or a limited liability partnership.
2. firms were expected to obtain approval from the Department of Industrial Policy and Promotion.
3. It must have an incubation recommendation letter.
4. Innovative schemes or products must be provided by the company.
5. It’s supposed to be a new corporation or not older than 5 years.
6. The cumulative revenue of the company should not cross 25 Cr.
7. At the end of the day, it should not be the consequence of splitting up or rebuilding a business already in presence.
What are the Challenges with Startup India Entrepreneurship?
1. Generally people believe that startups are just saying about a new concept or plan. In reality, however, the implementation of such a plan is more essential than just having thought about it.
2. The govt’s view or view of India’s start-up plan is of a relatively short-term natural environment. It does not think about the long path of start-ups.
3. Qualified workforce is needed to ensure the excellence of any new business. However, in the case of start-ups, skilled labor is not feasible due to a complete lack of funds in the initial stage.
4. The chance of loss in start-ups is stronger than in other organizations. That’s because they tend to take a very quick step.
Comparative Structure of Business startup Enterprises
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