What Are The 3 Pillars of Startup India Initiative (2023)
Startup India Initiative aims to build an ecosystem of innovation, creativity, and collaboration, enabling startups to thrive and grow while creating jobs. This initiative provides access to funding, mentoring, and networking to maximize your ideas’ chances of success. This article is a guide on what are the 3 pillars of startup India initiative.
What Are the 3 Pillars to Initiate Startup?
The Startup India program is based on 3 main pillars:
- Providing monetary support and incentives to the different start-ups of the country.
- Providing Industry-Academia Partnership and Incubation.
- Simplification and Handholding
Providing monetary support and incentives to the different start-ups of the country:
The program provides funding and incentives for various Indian start-ups.
This is the money you put into your business from your savings or borrowed from friends and family. Use it only to create a minimal viable product (MVP) of your idea. Present your MVP to a select group of target customers or investors to get initial feedback. This will help you decide whether to pursue the idea or abandon it.
These may include first-round seed funding from HNI, or series A, B, or C funding from venture capital firms. This funding is only made available once the startup starts generating revenue from its existing customer base.
This is the profit you make when you sell your goods or services. As this is the most important source of funding for a startup, a lot of time should be invested in its development. Remember, if you’re selling B2C products, you need more sales initially to cover your costs.
Providing Industry-Academia Partnership and Incubation:
The program fosters collaboration and incubation between business and academia to foster entrepreneurship and innovation.
- Incubators provide services
- Basic business advice
- Networking opportunities
- Marketing support
- Financial management and accounting support
- Bank loans, funds, and guarantee programs
- Advice on presentation techniques
- Connections with strategic partners
- Access to angel investors and venture capital
- Extensive commercial training
- Mentoring and Advisory Board
- Business manners advice
- Technology commercialization support
- Legal advice and intellectual property management
Simplification and Handholding:
This plan simplifies the process and helps startups navigate the early stages of operations.
- Self-certification-based compliance system for startups
- Launch of mobile apps and portals for compliance and information sharing
- Startup India Hub helps startups in different stages of development.
- Inexpensive legal consultation and rapid patent examination
- Relaxation of public procurement standards for startups
What Is the Main Objective of the Startup India Initiative?
The objective of the Startup India initiative is:
- To create a one-stop-point for the entire startup ecosystem, enabling knowledge transfer and funding.
- To provide start-ups with a centralized forum for communicating with government and regulatory bodies on all business needs and sharing information among various stakeholders.
- Financial support for the creation and growth of innovative companies.
- To provide world-class intellectual property services and resources, including expedited patent application prosecution and reduced fees
- To support startup growth and meet working capital requirements.
- To revitalize and strengthen the Indian startup ecosystem on a national and international scale.
- To serve as a platform for promoting grand challenges, start-ups, and other forms of self-employment, especially in technology-driven fields.
- Facilitating seed capital investment in startups.
- The government creates policies and frameworks for establishing incubators in public-private partnerships across the country to ensure professional management of government-sponsored or funded incubators.
- Incubation includes collaborative research and development efforts between academia and industry to foster successful innovation.
- Bio-entrepreneurship should be encouraged and promoted. Create an innovative culture among science and technology students
What Are the Features of Startup India Scheme?
Below are the features of the Startup India scheme.
Form a partnership, LLP, or corporation:
The main feature of the campaign is that companies can be registered as candidates for startup companies. This means that you can easily use this scheme to register your project in the network whether you are planning with friends, colleagues, or relatives. No more maintaining separate pension plans or worrying about asset allocation.
Not all startups are instant successes. Many startups look good on paper but fail miserably. The campaign offers an early exit option within 9 days to save entrepreneurs from losses and grow faster.
The startup will be tax-free for the first three years. Both operating income and capital gains are tax-free. This means that the government is providing companies with lucrative growth opportunities.
In addition to tax obligations, it was used to leverage the need to maintain labour and environmental certification. To keep aspiring entrepreneurs from getting overworked, startups can provide a self-certified copy of their compliance with labour and environmental laws.
Hassle-free patent system:
Obtaining a patent just got easier. A newly formed committee reviews the Fast Track. The purpose of this section is to facilitate the issuance of patents. Patent owners will also benefit from faster processing times and approximately 80% fewer patent fees.
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