small business idea: Dream big, your small business idea is no longer small!

“Young entrepreneurs will make a difference in the Indian ecosystem”

Visionary industrialist, philanthropist and one of the most influential global business tycoons, Rata Tata once said these words and now we can see them turn into reality.

Since the advent of the pandemic in 2020, the way users react to the products and services around them has undergone a huge change. People have realized the many benefits they can derive from integrating automation and technology into all aspects of their daily lives. From ordering food online to receiving medical supplies, makeup products, and household items at home, everyone is interacting with online businesses more than ever today. As a result, many startups that struggled to survive pre-COVID are now poised to conquer markets and transition into the businesses they aspired to be.

Over the years, India has successfully become one of the fastest growing economies in the world. In fact, according to a recent research report published by the State Bank of India, India is currently the fifth largest economy, surpassing the United Kingdom, and is on course to achieve the title of “third largest economy” in India. by 2029 given the current growth rate.

Lately, global investors have viewed India as a nation of exceptional potential. Untapped markets, cutting-edge technologies, large population, low-cost labor, amazing minds, and a variety of government initiatives have made this country the best destination for start-up investments. And clearly, our startup ecosystem has a crucial role to play in facilitating the growth of the Indian economy.

Meanwhile, the current growth rate of smartphones, increasing digitalization, and the unique set of challenges to be solved in our country are also driving innovation among many startups solving for

Bharath.

Since the launch of the “Make in India” initiative in 2014, the central government has put in place several plans and programs to provide the training, skills, technical and financial advice and subsidies needed to fuel the growth of small enterprises. contractors. With massive support from the government, individuals can not only make a name for themselves in local markets, but also benefit from the accessibility to attract the attention of foreign investors.

On January 15, 2022, Prime Minister Narendra Modi declared January 16 as ‘National Startup Day’ to recognize and accelerate the growth of India’s startup ecosystem. He told young entrepreneurs across the country – “
Don’t just keep your dreams local, make them global”.

Here are some of the best government programs every budding entrepreneur should know about

  1. SAMRIDH Program– Launched by the Ministry of Electronics and Information and Technology (MeitY) in 2021, the SAMRIDH program aims to provide a platform that can be instrumental in the growth of software product startups. Through this initiative, the government wants to offer financial support, mentoring, advanced skills, international expansion opportunities and any other assistance to startups ready for the acceleration phase.
    It is important to note that the MeitY Startup Hub will act as an implementing agency and take shares in the startup for government involvement through a promissory note, similar to any other accelerator.
  2. PMMY (Pradhan Mantri Mudra Yojna)– The government introduced this program in 2015 to support the growth of small businesses in rural areas. Under this scheme, many Micro Unit Development Refinancing Agency (MUDRA) banks have been established to provide credit facilities to business owners located in the underdeveloped parts of the country. Through this scheme, all small unincorporated and non-agricultural businesses can get a start-up loan of up to INR 10 lakhs.
  3. Multiplier Grant Program– With the Multiplier Grants Scheme launched by the Department of Electronics and Information Technology, the government wants to bridge the gap between research and development and commercialization. MSG intends to encourage companies to collaborate with accredited academic and government R&D organizations for product and package development. Through the implementation of this program, the industry-academia gap can be narrowed and market needs can be better met.
    For an individual industry, government grants would be limited to Rs. 2 crore per project, and the duration of each project must be less than 2 years. Whereas, for the industrial consortium, it is Rs. 4 crores and 3 years respectively.
  4. India Startup Seed Fund Program– Designed to help early-stage startups, the Startup India Seed Fund Scheme has been allocated a total budget of Rs 945 crore. Through this program, around 300 incubators and 3600 startups are expected to receive the funds. Grants of up to 20 lakhs will be offered to startups for developing trials and prototypes, and around 50 lakhs for scaling up their products and services. Also, grants of up to 5 crore will be given to selected incubators.
    A notable advantage of this plan is that it provides reimbursement of all expenses. A startup can expect the total reimbursement amount to reach 15 lakhs or 50% of the total cost, whichever is lower.
  5. Single point recording system – In the long list of initiatives launched by the government, the Single Point Registration System or SPRS is another system you can benefit from. Launched by National Small Industries Corporation, the objective of this program is to help MSMEs as well as facilitate the procurement department in every way possible. By opting for this scheme, MSMEs can be exempted from paying the security deposit or EMD and easily participate in major government tenders.
    What makes this program very beneficial is that MSMEs get a third party inspection certificate, which gives them an advantage over others in terms of reliability. All procurement agencies will mark certified MSMEs as trusted, which will ultimately help increase their sales.

Here are some of the schemes and programs introduced by the government over the past few years. You can easily enroll in programs that perfectly match your company’s vision and requirements and can help it reach greater heights.

India as a nation is gradually ushering in the golden age of entrepreneurship by constantly promoting the idea of ​​Atmanirbhar Bharat. The goal of these programs is not only to help and nurture existing small businesses, but also to provide a springboard for anyone who wants to enter the startup ecosystem and make a difference there.

Start small, but think BIG!

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