So the government is finally taking a decisive step to help entrepreneurs. They better! A new policy is in the making and the makers, who submitted the draft to the government last month, are inviting suggestions. If you have one, go here.
The 32 page draft prepared by Ahmadabad based Entrepreneurship Development Institute of India is an interesting document. But if you don’t care to slog through all of it, here’s an edited version of the recommendations made in the draft.
1. The policy does not focus on hard measures like large financial incentives. Instead, its focus is on soft measures like raising awareness, promotion, skill development, networking and mentoring.
2. Promote entrepreneurship through electronic and print media.
3. Entrepreneurship traits to be introduced in the education system.
4. Focus on introduction of entrepreneurship as a core subject in engineering colleges and other technical institutions to promote technology based enterprises through promoting Incubators and creating a system to encourage scientists to commercialize R&D.
5. Promote‘inclusive entrepreneurship’ by bringing women, minority communities, scheduled caste and scheduled tribes and other underprivileged.
6. Foster ‘Social Entrepreneurship’
7. Cut the red tape: Create an eco-system for accelerating entrepreneurship, enhancing the flow of information on procedures and formalities to set up an enterprise by strengthening the single-window system.
8. Enhance access to finance for start-ups, growth enterprises, tech enterprises and micro entrepreneurs.
9. Recognize entrepreneurial achievements and organising ‘Awards’
10. Create an organisational structure to promote an ‘Entrepreneurship Movement’.
11. Facilitate setting up of at least 200 new incubators in the next 5 years. Encourage incubators beyond metros.
12. Encourage Rs. 100 crore plus companies to organise entrepreneurship awareness and orientation camps to encourage employees to set up their own ventures as their vendors or suppliers.
13. The government will make a serious bid to reduce the time of starting a business from the present 29 days to about two weeks.
14. strengthen venture capital companies in quasi-public sector such as Gujarat Venture Finance Ltd. or Andhra Pradesh Industrial Development Corporation, by infusing capital through equity participation.
15. Introduce a ‘Give An Entrepreneurial Hour’ scheme to encourage established entrepreneurs to commit 1-hour a month for promotion of entrepreneurship
Pi Comment: It takes only a day to setup business in New Zealand, two days in Australia, 13 in the United States and 19 days in the United Kingdom, according to the Doing Business 2011 report which ranks countries by the ease of doing business there. India is ranked at 132, way behind China (91), Brazil (126), Pakistan (105) and countries like Ghana (63) and Uganda (123). And yes, we still haven’t forgotten the earlier promise made by the government that one will be able to setup a company in 24 hours starting August 2011. It made great headlines but we haven’t seen any that started in 24 hours, have we?
Also, are we going to have caste based reservations in the entrepreneurship policy (See point 5 above)? A policy of such nature, perhaps with few additions and omissions, is totally welcome. But we hope that this one does not wind up in the trash can or get caught in the endless political process.
Read the whole draft for more specifics.
Note: The list above is not exhaustive.