TOPIC: Business Incubators AND Start-up India Module 5 MG UNIVERSITY Entrepreneurial support in India By, Bharata Mata College, Thrikkakara

1. TOPIC: Business Incubators AND Start-up India
Bharata Mata College, Thrikkakara
Finance and Taxation (SELF FINANCE)
2nd YEAR( BATCH 2020-2021)
Module 5 MG UNIVERSITY
Entrepreneurial support in India

2. BUSINESS INCUBATORS

3.  Business Incubators are the companies that assist
and empower new-age entrepreneurs and startup
owners with the necessary support.
 From management training to office space to
final assistance, incubators offer the launching
pads to the new businesses.
WHO ARE THEY?

4.  The incubators have been on the business world
for a very long time now.
 However, not many people knew about the entire
concept, and the concept just became a bit popular
in the 1980s.
 Ever since then, the startups have been looking
forward to include the business incubators in their
companies so that they can get some sort of
assistance and support from these.
IT’S HISTORY

6. Startup Village
 Startup Village is a technology business incubator in
Kochi and it is India’s first incubator that is funded
jointly by the public and private sector. The promoters
of Startup Village are Government of India, Technopark
Trivandrum etc.
 Kris Gopalakrishnan, co-founder of Infosys and the
most successful IT entrepreneur from Kerala, is the
chief mentor at Startup Village. It aims to incubate 1,000
product startups over 10 years and it primarily focuses
on student startups from college campuses.
EXAMPLE

7.  Companies don’t really have the networking and
the experience that is required in order to make
sure that the business is able to grow and prosper
in the best way.
HOW DO THEY HELP?
• The business incubators are the
ones that are able to help such
businesses establish their
growth and success.

9.  Physical Facility Support
In this, business incubator assists new businesses and
startups by offering physical support such as office
spaces or technical equipment, etc.
 Support Service
In this, different types of business support are offered,
such as skill development, operational training, etc.
 Networking Facilities
Startups and new businesses will get networking
facilities in this kind of business incubation.
SUPPORT THEY PROVIDE

10. Goal Of Business Incubators
• The main goal of the business
incubators is to make sure that the
startups all over the world can succeed
in the competitive market.
• These incubators tend to receive their
funding from the different lottery grants
and the government funding systems as
well.
• The business incubators are known to
offer some of the most amazing on-site
and virtual tactical support to the
companies as well when they need it.

11.  There are so many different types of business
incubators present, such as the Kitchen Incubators,
virtual incubators, and so much more.
 These incubators want to ensure that the new startups
and businesses can see the light of success without any
hassle and hence they provide all the assistance and
help that they need to succeed in the market.
 With the help of business incubators, many businesses
have reached the ultimate goals of success and
prosperity. So, using it would be the best thing for
businesses.
Conclusion

12. Features of business
incubators

13. A business incubator is a
workspace created to offer
start ups and new ventures
access to the resources they
need, all under one roof. It
always provide expert advisors,
mentors, administrative
support, office equipment ,
training and potential investors
Etc.
BUSINESS INCUBATOR

14.  Business incubators are the
organizations that enhances the
survival rates of innovative start-
up companies and support
entrepreneurial ventures.
 They are one of strategic tools for
assisting entrepreneurs during
there start-up phase.
 The business incubators process
can help to protect incubators from
competitive forces of the external
environment.
FEATURES

15.  Business incubation aims at supporting the
development and scaling of growth-
oriented, early staged enterprises.
 Most incubators are created as temporary
launching pads for new businesses, with the
expectation that participants will eventually
graduate and move out.
 The incubator is really effective if their
start-ups grow faster than average and also
when start-ups fail faster than the average.
 Incubators are not all uniform and should
be categorized based on the objective of the
incubator.
 Business incubators must set a combination
of success metrics which is relevant and in
tandem with their goal.

16. 1. Selection:- attracting, selecting, and admitting most
promising entrepreneurs and their business ideas.
2. Infrastructure:- A managed working space with
shared facilities providing logistics support.
3. Business support and monitoring:- Coaching.,
mentoring, training, financial and innovation
services.
4. Mediation and networking:- Connecting
entreprenuers to tangible and intangible resources,
which can be internally or externally available.
4 MAIN ROLES

17.  Business incubator as an economic
development tool primarily designed
to help create and new businesses
in a community.
 It help emerging businesses by
providing various support services,
such as assistance in developing
business and marketing plans,
building management teams,
obtaining capital, and access to a
range of more specialized
professional services.
 It enhance the success and growth
rates of new enterprises thus
maximizing their impact on
economic development”.

18. TYPES OF BUSINESS
INCUBATORS
There are multiple incubators in the
market ready to support be
entrepreneurs. However, the
requirements and support they
pride are different. They may be
broadly classified as shown below:

19. Academic incubators
• Academic incubators establish new
forums for idea exchange on campus.
Designed to spark strategic
partnerships between academia and
industry, incubators connect students
to startups, investors and other
collaborators they might not otherwise
encounter.
• Academic business incubators can be
an important element of supporting
student entrepreneurship, e.g. in terms
of assistance in establishing and
organizing a company run by students

20. • Academic incubators are important in
the first stage of life of any business.
These institutions can help in
enhancing the quality of management
and strengthen the leadership of
managers.
• Academic incubator can also be a
platform for providing training to
students in their interest area of doing
business which will help them in
continue learning while doing real
work in a dynamic environment.

21. Private Incubators
These are privately funded
incubators which charge for
theirservices.
Free starting
Incubators
These are incubators which provide
initial services free.Every business
incubator serves its purpose with
their predefined terms and
conditions.

22. Virtual business incubator
• online business incubator
• Since the 1950s, an older incubator model required
startups to set up at the incubator's site.
• The virtual business incubator allowing companies to
receive advice on incubators without physically being
at the shop.
• This new virtual business incubator model has been a
major step forward for entrepreneurs, and are
especially ideal for those who need the advice that an
incubator office provides but who want to maintain
their own offices, warehouses, etc

23. Medical Incubator
• A business incubator focused on medical
devices and biomaterials
• Medical technologies are always
changing and improving, and therefore
this type of incubator is ideal for
encouraging innovation and
entrepreneurship within the medical field

24. FUNCTIONS OF BUSINESS
INCUBATOR

25. 1. Providing Infrastructure: The business incubators provide office
workspaces, and workshops for startups to get the initial running.
2. Financial and Legal Advice: They lend their financial and legal advisors
to the entrepreneurs so that they can make well informed decisions.
3. Contacts with Potential Investors: Business incubators have multiple
contacts with previous and potential investors. They help the entrepreneurs
in developing a perfect sale strategy

26. 4. Initial Financial Support: In certain cases, they provide the entrepreneurs
with a minimum fund to set things into motion and begin with the initial
phase of developing the concept.
5. Training and Guidance: Business incubators provide the new
entrepreneurs with training from market experts on how to begin, develop
and implement ideas. They follow the progress closely and guide the
entrepreneurs to improve their performance and get to the target market.
6. Employment opportunities: Incubators create employment opportunities
in the local economy and try to commercialise technologies.

27. 7. Economic Growth: They create long lasting jobs for new graduates,
experienced personnel and executives. This will help in economic growth
8. Cost of operation: They help to reduce operating costs. They share
common facilities and share overhead expenses with the new concerns.

28. 1. Help in project report preparation
2. Provide additional information and access to various type of financial
and technical assistance.
3. Provide the following business advice:
 a) Developing business idea
 b) Business and strategic planning
 c) Proactive support
 d) Financial and legal advice
 e) Management
 f) Marketing and sales.
services

29. 4. Provide the following business services:
 a) Book keeping and word processing
 b) Photocopier, fax and postage services.
 c) Conference and meeting rooms.
 d) Reception and telephone answering
 e) Secretarial services.

30. 5. Provide the following business support:
 a) Hard service (savings in capital)
 b) Synergies with other client businesses
 c) Mentoring
 d) Networking (providing helpful information. contacts, or business
relationships)
6. Provide an environment where small businesses are not alone, thereby
reducing the anxiety of starting a new venture etc.

34. Start-ups
• A start-up is a newly formed company that
offers a product or service which is quite new
in the market.
• It should be based on the felt demand for its
product or service.
• A company with unlimited growth potential
and a particular work culture can be called a
startup.
• It is always innovative, committed, and willing
to take risks and make quick decisions.

37.  Start-up India is a flagship initiative of the
Government of India, intended to catalyse
startup culture and build a strong and inclusive
ecosystem for innovation and
entrepreneurship in India.
 Since the launch of the initiative on 16th
January, 2016, Startup India has rolled out
several programs with the objective of
supporting entrepreneurs, and transforming
India into a country of job creators instead of
job seekers.
Start-up India

38.  These programs are managed by a dedicated
Startup India Team, which reports to the
Department for Industrial Policy and Promotion
(DPIIT).
 The initiative has started growing into a wider
range of sectors covering agriculture,
manufacturing, education and health, along
with technology sector.

39. "A start up is defined as an entity that is headquartered in
India, which was opened less than seven years ago, has an
annual turnover less than Rs. 25 crore". (Department of
Industrial Policy and Promotion (DIPP, Government of India)
Definition

41. Thank
THANK YOU

42. PILLARS OF
STARTUP INDIA
BY
GAYATHRI R VENU

43.  Startup India is a flagship initiative of the Government
of India, intended to catalyze startup culture and build a
strong and inclusive ecosystem for innovation and
entrepreneurship in India.
STARTUP INDIA

44.  Simplification and Handholding,
 Funding Support and Incentives,
 Industry – Academia Partnership and
Incubation.
THREE PILLERS OF START UP
INDIA

45. Simplification and Handholding
 Compliance Regime based on Self-Certification
 Startup India Hub.
 Rolling-out of Mobile App and Portal.
 Legal Support and Fast-tracking Patent
Examination at Lower Costs.
 Relaxed Norms of Public Procurement for
Startups.
 Faster Exit for Startups.

46. Funding Support and Incentives
• Providing Funding Support through a Fund of Funds with a
Corpus of INR 10,000 crore
•Credit Guarantee Fund for Startups.
• Tax Exemption on Capital Gains
• Tax Exemption to Startups for 3 years.
• Tax Exemption on Investments above Fair Market Value

47. Industry – Academia Partnership
and Incubation.
•Organizing Startup Fests for Showcasing
Innovation and Providing a Collaboration Platform
•Launch of Atal Innovation Mission(AIM) with Self-
Employment and Talent Utilization (SETU) Program
•Harnessing Private Sector Expertise for Incubator
Setup

48. •Building Innovation Centers at National Institutes
•Setting up of 7 New Research Parks Modeled on
the Research Park Setup at IIT Madras
•Promoting Startups in the Biotechnology Sector
•Launching of Innovation Focused Programs for
Students
•Annual Incubator Grand Challenge

49.  Startup India is a flagship initiative of the
Government of India, intended to catalyse
startup culture and build a strong and
inclusive ecosystem for innovation and
entrepreneurship in India.
 Simplification and Handholding: Easier
compliance, easier exit process for failed
startups, legal support, fast tracking of
patent applications and a website to reduce
information asymmetry.
CONCLUSION

50.  Funding & Incentives: Exemptions on
Income Tax and Capital Gains Tax for
eligible startups; a fund of funds to infuse
more capital into the startup ecosystem
and a credit guarantee scheme.
 Incubation & Industry: Academia
Partnerships: Creation of numerous
incubators and innovation labs, events,
competitions and grants.

51. Essentials conditions
for a start-up

52.  Start-up India is an initiative of the Government of India. The
objective of the Start-up India Scheme is to build a strong
ecosystemfor promotinginnovation and start-upsin the country.
Further, such a drivewould encourage sustainableeconomic growth
and createlarge scale employment opportunities.
INTRODUCTION

53. CONDITIONS
THERE ARE CERTAIN IMPORTAND CONDITIONS TO BE FULFILLED
FOR A START-UP. THEY ARE ;

54. 1. The start-up must be registeredas a PrivateCompany, LLP or
Partnership Firm:
To be eligible under this scheme, a start-up must be incorporated
as a Private Limited Company under Indian Companies Act, 2013, a
Limited Liability Partnership (LLP) under Indian Limited Liability
Partnership Act, 2008 or a partnership firm under the Indian
Partnership Act, 1932.

55. 2. The start-up must not be a product of restructuring:
The start-up should not be formed out of splitting or reconstructing of a
subsisting business. A business formed out of splitting an organisation into
two or more businesses, won’t be eligible under this scheme.

56. 3. Annual turnover of thestart-up must not be more THANRs. 25 crores:
To be eligible under this scheme, the start-up's annual turnover should
not exceed Rs. 25 crores in any of the past 5 years since its incorporation.

57. 4. The business must be involved in a newproduct or service:
Only start-ups developing a new product or service or process are
eligible under this scheme. This criterion has three conditions:
a) The start-up must be working towards innovation, development,
deployment or commercialisation of a new product, process or service
driven by technology or intellectual property.

58. b) The start-up must aim to develop and commercialize a new product
or service or a significantly improved existing product or service that
will create or add value to customers or workflow.
c) The start-up must not be merely engaged in developing products or
services which do not have the potential for commercialization,
undifferentiated product or service with no or limited incremental
value for customers or workflow.

59. 5. It must obtain certification from theInter-Ministerial Board SETUp for
such a purpose.
6. A BUSINESS CAN BE CALLED A START-UP ONLY IF IT IS WITHIN
A PERIOD OF 7 YEARS FROM THE DATE OF REGISTRATIONOR
WITHIN A PERIOD OF 10 YEARS IN THECASEOF BIOTECHNOLOGY
SECTOR.

60.  AS A CONCLUsIONWE CANSAYTHAT,
The mainfocus of the event was simplification , hand-holdingand to
fund the support andincentives and maintainan industry-academic
partnership . FORTHAT THEABOVEESSENTIALSCONDITIONSFOR
A START-UP SHOULDBE FULFILLED.
CONCLUsION

61. GOVERNMENT OF INDIAFUNDINGAND
SUPPORT FOR START-UP

62.  They provides lists of facilitators
of parents and trademarks and
bears the facilitator fees.
 The government has set up Rs
10000 crore as venture capital in
order to provide funds to the
start-up.
• Government has launched a
mobile app and a website for
easy registration for start-up.

63.  An exemption of Income Tax for
3 years will be granted.
 Start-up can apply for
government tenders With
exemption.
 Research and Development
facilities have been provided.

64.  There is no time consuming
compliances for start-up.
 Provides tax saving facility for
investors.
 Start-up can choose their investors.

65.  They are provided with a huge
networking opportunities.
 Easy exit – Start-up can close its
business with in 90 days from
the date of application of
winding up.
 Government provide initiative
for creating a credit guarantee
fund for Start-up.

66.  Introduced a scheme called
“start-up India Seed Fund”.
 Aspire – It’s a scheme for
promoting innovation and Rural
entrepreneurship.

67.  Credit Guarantee Fund Trust for
Micro and Small Enterprises
(CGTMSE)

68. THANK YOU
done by,
Jyothi Dayanand Gayathri r venu
Sajana mol Akshara babu
Abhirami gangadharan varsha cj Aleena benny
anupriya kp