Management Conclave 2017

TITLE START- UP INDIA: SUCCESS STORIES AND CHALLENGES

AHEAD
PRESENTED BY AMISH SURI
(BBA M1 SEM 6 suri.amish@yahoo.in ,7838875405)

COLLEGE INSTITUTE OF INNOVATION IN TECHNOLOGY AND

MANAGEMENT (IINTM)

ABSTRACT

OBJECTIVES - This paper focuses on Start-up India and its success till
date as well as the challenges it is likely to face. STARTUP INDIA is an
initiative announced by The Prime Minister of India, Shri Narendra Modi
last year in his Independence Day speech . This research paper aims at
fostering entrepreneurship and promoting innovation by creating an
ecosystem that is conducive for growth of Start-ups. The objectives of this
research is to explain about start-ups, success stories of resent start-ups and
future hurdles in the running, In this research paper I will be explaining
how the concept of start-up started in the country .The objective of start-up
Is to make India a nation of job creators instead of being a nation of job
seekers. This paper also highlights the important parameters of the
government on which the government helped the start-ups.

THE RESEARCH PAPERS COVERS THE FOLLOWING ASPECTS:

WHAT IS A START UP ?
HOW HAS GOV. DEFINED STARTUP.
START-UP INDIA SCHEME
19 POINTS UNDER THIS SCHEME
FORMING OF A START-UP
GOV. ROLE IN THIS SCHEME
SUCCESS STORIES OF STARTUPS
STATUS REPORT OF START-UP INDIA SCHEME
CHALLENGES AHEAD
The economy of any country depends on its countrymen. Larger the number of employed or
working people, better be the economy. The Indian government realized that Indian people
have the potential to work hardly, all they need is a promising start up. Many people dream of
starting up their own business, but due to financial or other similar issues are unable to do so.
So Indian govt. in the leadership of Narendra Modi has decided to offer a gift as a nation wise
program known as - Start Up India.
Narendra Modi in his speech recognized that Indians have thoughts and ability, all the need is
a little push "Start Up India" is a progressive plan that has been begun to help the general
population who wish to begin their own particular business. These individuals have thoughts
and capacity, so the legislature will give them support to ensure they can execute their
thoughts and develop. Achievement of this plan will in the long run make India, a superior
economy, and a solid country. According to the most recent NASSCOM Start-up Report
2015, new companies made 65,000 new employments in 2014 and by 2020, the number is
relied upon to touch 2,50,000.
Start Up India Scheme From Job Seekers to Job Creators
On account of start-up plan the government is attempting to make the youthful employment
makers instead of occupation searchers .Technology is developing with the pace quicker than
any time in recent memory. This has brought forth different new organizations like E-trade,
web promoting. Along these lines, there is an incredible breadth of improvement in such
territories. The individuals who plan to begin new business are qualified to apply in start-up
India conspire.
Defining a start-up
The expression "start-up" has been bandied around with expanding recurrence in the course
of recent years to portray crude youthful endeavours. Be that as it may, what is a start-up,
truly?
A Start up is an organization attempting to take care of an issue where the arrangement is not
clear and achievement is not ensured. "A new business is an entrepreneurial wander which is
commonly a recently risen, quickly developing business that means to meet a commercial
centre need by creating or offering an imaginative item, process or administration. A start up
is normally an organization, for example, an independent venture, an association or an
association intended to quickly build up an adaptable plan of action.
ACCORDING TO GOVERNMENT OF INDIA
Start-up means an entity, incorporated or registered in India :
Not prior to five years,
With annual turnover not exceeding INR 25 crore in any preceding financial year, and
Working towards innovation, development, deployment or commercialization of new
products, processes or services driven by technology or intellectual property
Given that such substance is not framed by part up, or recreation, of a business as of now in
presence. Given additionally that a substance should stop to be a Start-up if its turnover for
the past monetary years has surpassed INR 25 crore or it has finished 5 years from the date of
fuse/enrolment.
Start-up India battle depends on an activity arrange went for advancing bank financing for
start-up dares to lift enterprise and energize new businesses with occupations creation. It is
centred around to confine part of States in strategy space and to dispose of "permit raj" and
blocks like in land authorizations, remote venture proposition, natural clearances. It was
sorted out by Department of Industrial Policy and Promotion (DIPP) The Stand-up India
activity is additionally gone for advancing enterprise among SCs/STs, ladies groups.

On January 16, Prime Minister Narendra Modi disclosed a 19-point activity get ready for
start-up undertakings in India. Modi has reported a comprehensive activity plan to lift such
ventures that would help work era and riches creation.

19 PLANS UNDER START-UP INDIA :

1. Self-accreditation
The new companies will receive self-affirmation to decrease the administrative liabilities.
The self-affirmation will apply to laws including installment of tip, work contract, provident
store administration, water and air contamination acts.

2. Start-up India center point

An all-India center will be made as a solitary contact point for start-up establishments in
India, which will help the business visionaries to trade learning and get to money related
guide.

3. Enlist through application

An online entry, in the state of a portable application, will be propelled to help start-up
originators to effortlessly enlist. The application is booked to be propelled on April 1. This
will facilitate the procedure of enrollment .

4. Patent insurance
A most optimized plan of attack framework for patent examination at lower expenses is being
conceptualized by the focal government. The framework will advance mindfulness and
selection of the Intellectual Property Rights (IPRs) by the start-up establishments.

5. Rs 10,000 crore support

The legislature will build up a store with an underlying corpus of Rs 2,500 crore and an
aggregate corpus of Rs 10,000 crore more than four years, to bolster up and coming start-up
undertakings. The Life Insurance Corporation of India will assume a noteworthy part in
building up this corpus. A board of trustees of private experts chose from the start-up industry
will deal with the reserve.

6. National Credit Guarantee Trust Company

A National Credit Guarantee Trust Company (NCGTC) is being conceptualized with a
financial plan of Rs 500 crore for every year for the following four years to bolster the stream
of assets to new companies.

7. No Capital Gains Tax

At present, speculations by investment assets are absolved from the Capital Gains Tax. A
similar strategy is being executed on essential level interests in new companies.

8. No Income Tax for a long time

New companies would not pay Income Tax for a long time. This arrangement would reform
the pace with which new businesses would develop later on.

9. Charge exclusion for speculations of higher esteem

If there should arise an occurrence of a venture of higher incentive than the market value, it
will be excluded from paying assessment

10. Building business people

Development related review gets ready for understudies in more than 5 lakh schools.
Additionally, there will likewise be a yearly hatchery stupendous test to create world class
hatcheries.

11. Atal Innovation Mission

The Atal Innovation Mission will be propelled to lift advancement and empower capable
adolescents.

12. Setting up hatcheries

A private-open organization model is being considered for 35 new hatcheries and 31
development focuses at national foundations.

13. Look into parks

The administration arrangements to set up seven new research parks, incorporating six in the
Indian Institute of Technology grounds and one in the Indian Institute of Science grounds,
with a speculation of Rs 100 crore each.
14. Enterprise in biotechnology
The administration will additionally build up five new biotech bunches, 50 new bio
hatcheries, 150 innovation exchange workplaces and 20 bio-interface workplaces in the
nation.

15. Devoted projects in schools

The administration will present advancement related projects for understudies in more than 5
lakh schools.

16. Lawful support

A board of facilitators will give legitimate support and help with submitting patent
applications and other authority records.

17. Discount
A discount measure of 80 percent of the aggregate esteem will be given to the business
people on documenting patent applications.

18. Simple guidelines

Standards of open obtainment and guidelines of exchanging have been disentangled for the
new companies.

19. Quicker exit

In the event that a start-up falls flat, the legislature will likewise help the business people to
discover reasonable answers for their issues. On the off chance that they bomb once more, the
legislature will give a simple way out.

HOW A START UP IS BORN

There are two major milestones every start up much reach before they can scale up into a
large company. They are Problem-solution fit and product-market fit. Problem solution fit is
identifying a pain point or a problem that people face and finding a solution to that. It doesn't
matter how great a product you build, if people don't want it you won't succeed in growing
your business. And if you do manage to identify a problem, you need to find a solution to it
that is economically feasible and also practical. The next milestone is achieving product-
market fit. Once you identify a problem and have a solution, you need to build a product that
solves the problem. This product must be acceptable to the customers and meet their
expectations. They must be willing to use and also pay for the product. Once you build a
product that people are willing to pay for, you have reached the sweet spot called Product-
Market fit.

Start-up companies can come in all forms and sizes.The size and maturity of the start-up
ecosystem where the start-up is launched and where it grows have an effect on the volume
and success of the start-ups. The start-up ecosystem consists of the entrepreneurs, venture
capitalists, institutions and organizations and government.
Successful start-ups are typically more scalable than an established business, in the sense that
the start-up has the potential to grow rapidly with a limited investment of capital, labor or
land. Start-ups have several options for funding. Venture capital firms and angel investors
may help start-up companies begin operations, exchanging seed money for an equity stake in
the firm. start-up seeks funding from a large number of individuals, typically by pitching their
idea on the Internet.

GOVT ROLE IN START-UP INDIA

PM Modi rightly recognizes the fact that this is the right time to bring in the government to
define a conducive policy framework, backed by necessary financial and tax incentives, and
nurture the creative and innovative potential of the youth.
Start-up India is intended to build a strong eco-system for nurturing innovation and Start-ups
in the country that will drive sustainable economic growth and generate large scale
employment opportunities. The Government through this initiative aims to empower Start-
ups to grow through innovation and design. Furthermore, the government plans to connect
the youth, through IT access, with knowledge base and mentorship from scholars who will
extend help to these potential entrepreneurs across India. The panel will act as a guide to
ensure that the potential entrepreneur is able to set-up his business .
The Action Plan is divided across the following areas:
Simplification and Handholding
Funding Support and Incentives
Industry-Academia Partnership and Incubation
As a step ahead the government have provided advertisement space for Start-ups on the Start-
up India portal. The Reserve Bank of India said it will take steps to help improve the ease of
doing business in the country and contribute to an ecosystem that is conducive for the growth
of start-up businesses. Softbank, which is headquartered in Japan, has invested US$2 billion
into Indian start-ups.The Ministry of Human Resource Development and the Department of
Science and Technology have agreed to partner in an initiative to set up over 75 such start-up
support hubs in the National Institutes of Technology (NITs), the Indian Institutes of
Information Technology (IIITs).
STEPS TAKEN BY THE GOVERNMENT:
Single Window Clearance even with the help of a mobile application
10,000 crore fund of funds
80% reduction in patent registration fee
Modified and more friendly Bankruptcy Code to ensure 90-day exit window
Freedom from mystifying inspections for 3 years
Freedom from Capital Gain Tax for 3 years
Freedom from tax in profits for 3 years
Eliminating red tape
Self-certification compliance
Innovation hub under Atal Innovation Mission
Starting with 5 lakh schools to target 10 lakh children for innovation programme
new schemes to provide IPR protection to start-ups and new firms
encourage entrepreneurship.
Credit Guarantee Fund for SC/ST and Women Entrepreneurs
Stand India across the world as a start-up hub.
Government has also announced initiatives like allocation of Rs 500 crore for SC/ST and
women entrepreneurs, aimed at facilitating growth for these new businesses. The scheme,
which has been launched under the Stand Up India, has been designed to address the needs of
the SC/ST categories along with women entrepreneurs. Loans and credit guarantee protection
will be offered to at least two entrepreneurs under the scheme by every branch of each bank.
For SC/ST and women entrepreneurs, loan facilities between Rs 10 lakh and up to Rs 1 crore
will be made available for non-farm greenfield ventures. The maximum period for loan
repayment will be seven years.
States are also leaving no stone unturned to attract start-ups, like Bangalore which is
considered to be the hub of start-ups in India. Maharashtra and Punjab and other states are
identifying low-risk businesses where many of the permissions requirement are redundant,
hence these businesses are no more required to take those approvals.
SUCCESS STORIES OF START-UPS :

AIRBNB
Two guys (Joe) and (Brain) in San Francisco can't pay rent . So they choose to rent out 3 bed
on floor to individuals and serve breakfast. In 2007 They make a website
airbedandbreakfast.com .2 men, 1 lady appeared, paying $80 each. After visitor left they
thought this could be a major idea. They Invited their friend to build the webpage. After
sometime they were making $200 for a week for a considerable length of time but were not
growing .They Realized photographs of places were not pretty . They went to listed places in
NYC and took photographs. One week later they started Making $400 a week began to
develop. Raised $7.2 million then $112 million from numerous financial specialists .Today
Airbnb are esteemed at $10billion .
Why is Airbnb Successful ?
Taken a toll: Many Airbnb rentals are a great deal more moderate than tantamount
visitor housing at inns.
Area: Travelers have more alternatives when making a trip to far-flung places than the
one inn around the local area.
kind of Accommodations: Airbnb has made a place where individuals can discover
remarkable travel encounters
Social experience: It's much less demanding to figure out nearby life and culture on
the off chance that you are staying/living with a neighbourhood!
Usability: The website is unimaginably simple to utilize.
$1 Million Host Guarantee: The organization offers some really genuine protection to
hosts, which helps us stomach the nervousness about every one of the things that
could possibly turn out badly.

OlaCab
One day Bhavish (the founder) had to travel from Bangalore to bandipur, for which he rented
out a car, which ended in a very bad experience. The driver stopped the car in the middle of
the journey and demanded a renegotiation of what Bhavish was paying. After being refused,
he proceeded to abandon him enroute his destination. This is when he realized how his plight
was probably similar to a lot of customers across the country who were looking for a quality
cab service, but ended up with a one that stood them up, arrived and dropped them off late,
didnt stick to their promises, and came with drivers that were nightmares behind wheels.
Interestingly, he saw the measure of potential that an unprecedented taxi booking
administration could have, and subsequently, he changed his business from his prior start-up
to the one we today know as OlaCabs. This was in December 2010, where he was joined by
his friend Ankit Bhati in his start-up. Rather than purchasing and leasing their own particular
autos, OlaCabs joined forces with various Taxi Drivers, and included a touch of present day
innovation to the entire set up, where individuals could book autos at short notice through
their call focuses and from their application. The appointments permitted half/entire day
rental and even outstation taxis. They now have very nearly 4,000,000 taxis the nation over,
offering assortment of auto choices Mini, Prime, Luxury which can be paid for through
on of the distinctive modes accessible.

Bhavish who works 16 hours a day, guarantees straightforwardness in costs, where OlaCabs
gets a commission on each deal that the driver makes, which makes it an organization that
chips away at pay-per-execution display. The cab drivers can likewise choose the entrance to
the innovation stage banquet, by paying an insignificant charge to OlaCabs. Since it's
commencement, OlaCabs has raised assets from Softbank Corp, and different financial
specialists amid two rounds of VC finding. They likewise as of late concocted the
arrangement of 'charging lesser than a normal auto rickshaw' by offering taxicabs at
incredibly shoddy costs of Rs.10/km.
Oyo rooms on your own rooms
In India, the issue of discovering reasonable facilities is huge. The test is not discoverability
but instead it is the absence of consistency in lodging stay encounters. Explorers are very
acquainted with nightmarish experiences in independent lodgings in India. In spite of
guarantees, visitors land to feeble structures, missing signage, flawed washrooms, torn
sleeping pads, unclean floors, sputtering ventilating, renunciation, nonacceptance of credit
cards.
No Indian traveller deserves to stay in those kinds of places, no matter what he pays. This is
what Ritesh Agarwal the founder of Oyo rooms believed. OYO hotels pledge to provide
standardization on 30 measures in each room including free wifi and breakfast, flatscreen
TVs, spotless white bedsheet , branded toiletries, 6-inch shower heads, a beverage tray and so
on. The standards are audited every few days so that every customer is assured a quality
experience. OYOs budget stays range from 999 rupees to 1,500 rupees while its midscale
rooms are priced at 1,600 to 4,000 rupees. OYO provides asset owners with support such as
quality standardized supplies and service training.
Agarwal, a school dropout and the primary Asian to graduate as a Thiel Fellow (the Thiel
Fellowship supported by PayPal originator Peter Thiel requires its Fellows to drop out of
school) says his is a unique plan of action.

"We offer spotless and crisp rooms and a 30-minute administration ensure for any
aggravations," says Gupta whose brand will total 21 inns in four urban areas by this month
end. It is increase quickly. He assesses the lodging market potential at $10 billion. "At the
point when visitors access the honorable convenience they merit without burning an opening
in their pocket, it will open another arrangement of explorers," says Gupta.

India is a vast market, geologically, and in addition a differing market. As Indians' spend
wicker container develops, interest for lodging settlement is surging more than ever. "In littler
towns, individuals register with OYO lodgings when power supply goes down at their home -
our inns ensure aerating and cooling; more youthful Indians register with spending inns since
they would prefer not to go home intoxicated (to their folks)..
With a present valuation of about 360Cr, OYO rooms does nothing out of the container
except for gives voyagers the coolest yet least expensive productive, youthful,
institutionalized rooms with no additional items joined to it!

Flipkart
Flipkart was established by Mr. Sachin Bansal and Binny Bansal, in October 2007. In its
underlying period of operation, Flipkart was enrolled as Flipkart Online Services Pvt. Ltd and
Soon, the organization became greater and wandered into offering different items, for
example, electronic merchandise, ebooks, stationery supplies, design and way of life items
also. Flipkart, an organization which began with a negligible venture of Rs. 4, 00,000 to build
up its site, has without a doubt grown up to be one of the greatest web based business players
in the India. In this quick pacing world, deficiency of time is huge emergency and goes about
as a major push for shoppers to shop on the web.

.As an ever increasing number of purchasers swung to Flipkart for shopping, financial
specialists swung to Flipkart to bolster the organization's future procedure. The organization
brought US$1 million up in 2009 from investment reserves Accel India, and later on US$10
million in 2010 and US$20 million in June 2011 from Tiger Global. However, organization
overwhelmed everybody when it declared that it raised $1 billion from effectively existing
financial specialists including Tiger Global Management LLC, Accel Partners, and Morgan
Stanley Investment Management and another speculator Singapore sovereign-riches support
GIC. Flipkart likewise developed by means of securing. The organization procured many
firms, for example, "WeRead" in 2010, Mime360 and Chakpak.com in 2011, Letsbuy.com in
2012 and after that myntra.com ( India's biggest online attire store) in 2014 Home Business .

As of now with enormous increment in Flipkart's client base, keeping up a decent client
experience is a noteworthy tested postured to organization. Flipkart has received the
methodology to contribute a huge bit of its raised store into inventory network proficiency,
constructing a superior ability pool and innovation development. Besides, taking
coordinations to all territories inside nation including towns and towns, making installment
portal alternatives secure and simple for the shoppers are other real difficulties Currently the
estimation of good sold or gross stock esteem (GMV) on Flipkart is $4 billion. The
organization has set the objective to come to a GVM of $8 billion, include 100,000 dealers its
stage and offer 25 million items for every month before the finish of this year.The
organization is additionally said to have set an objective of offering 1 billion merchandise in a
year before the finish of 2017.In 2014, the organization revealed that it had 15,000
representatives working for them.

STATUS REPORT OF START-UP INDIA

1662 applications have been received for out of which 636 had the
required documents and have been recognised as Start-ups . Rest of the
applicants will be provided guidance and support to submit the relevant
documents by the Startup India Hub
10 Start-ups have been approved for availing tax benefit.
Start-up India hub has mentored 190+ Start-ups for incubation, funding
support, on business plans, pitching support
Start-ups parks at various IITs have been set up and are functional.
 Softbank, which is headquartered in Japan, has invested US$2 billion into
Indian start-ups.

CHALLENGES AHEAD IN START UP INDIA :

Absence of government involvement with the Centre and state level in supporting youths in
start-ups is a big problem. In order for this initiative to become successful thee centre and
state government must go hand in hand . The ultimate goal should be developing an
environment which helps in developing more start-ups in the country.
Lack of coordination between different departments might hamper the success of this
initiative. All departments must work jointly and make this project a success .
The Problem Areas: The nonappearance of start-up laws and absence of leave alternatives.
Extreme consistence laws that were encircled remembering customary organizations must be
discarded because new companies and new laws must be confined remembering new-age
organizations and its quickly advancing innovation.
Start-up subsidizing depends on hazard taking and capacity to comprehend the application
and business capability of the proposed business. Absence of devoted start-up capital
subsidizing without underwriters or insurance is a noteworthy obstacle today. Besides, the
absence of hazard taking capacity by open part banks is basically by virtue of confinements
in light of current laws. These should be changed and banks given the opportunity to
subsidize a proposition once a specialist board has affirmed it, either inside the bank or by a
skilful and endorsed outside organization.
Success of any scheme depends on the government and all the people must support the
government in their initiative. If proper support from people is not given then the scheme
might not be able to go well and its objectives might not get fulfilled.

TILL DATE LESS THAN 1 %(6CR.) OUT OF 10000 CR. FUND OF FUND HAS BEEN
SANCTIONED.

CONCLUSION
I would like to highlight the fact that start up India is a great initiative taken our government.
As it has just been one year since this scheme was launched , so it is quite early to say
whether it is successful or not. I would also like to highlight the fact that the international
business community accepts India as one of the most attractive destinations for investments
and of late, has discovered Indias potential for innovation and creativity. This initiative will
build the necessary ecosystem for building and promotions of start-ups . It will also lead to
job creation in many fields. Larger the number of employed or working people, better be the
economy. So unarguably start up India is a great plan . It is giving the climate that is needed
for growth of start-ups. The 19 point action plan of start-up India is great .It surely is
beneficial to the new start-ups. Success of any scheme depends on the government; all the
people must support the government. With new laws and regulations government is aiming
rank 50 for Ease of doing business survey conducted by World Bank every year. The
government will have to pull up the socks to bring it to reality. That is certainly good news
for entrepreneurs and future entrepreneurs. The Government through this initiative aims to
empower Start-ups to grow through innovation and design. Furthermore, the government
plans to connect the youth, through IT access, with knowledge base and mentorship from
scholars who will extend help to these potential entrepreneurs across India

In the end I would like to say that it is quite early to say whether start up India is a success or
not , but it is certainty the right step in the right direction .

REFERENCES:
Some information and data is taken from these sources.
http://www.startupindia.gov.in/index.php
http://10000startups.com/wp-
content/themes/nasscom/home/http://www.pradhanmantriyojana.co.in/stand-up-india-
http://www.profitbooks.net/startup-india/