Who is an Entrepreneur?

An entrepreneur is an individual that looks for business opportunities and creates ways to
make those businesses become profitable. Entrepreneurs often invest without the major
responsibilities of running the companies as they focus more on earning money from
them. Entrepreneurs try hard to create a viable business, not one that has a vague hope of
succeeding.

Who is a Startup Founder?

A startup founder is different from entrepreneurs as they found a startup company.

They create a business that will someday become successful. While they sound similar to
the entrepreneur, their goal is different. Unlike an entrepreneur, a start up founder doesn’t
have a major financial motive. They create a product or a service to change the world. They
want to become famous or show others that anything is possible. While there can be a major
payday in the future, they do not start off with the goal to make millions.

Entrepreneurship is the ability and readiness to develop, organize and run a business
enterprise, along with any of its uncertainties in order to make a profit.

A startup is a newly established company, usually with a business model and plan to grow
and scale rapidly. An entrepreneur is an individual who takes on financial risk and starts,
manages, and grows a business venture. So, an entrepreneur can start a startup, but not all
entrepreneurs start startups.
 Here is a list of common questions to consider before starting a startup:

• What problem are you solving and why is it important?

• Who is your target customer?
• What is your unique value proposition?
 • Who are your competitors and how are you different?
• What is your business model and revenue streams?
• What is your marketing strategy?
• What is your team's experience and skills?
• How much funding do you need and where will you get it?
• What are the key milestones and goals for the next 6-12 months?
• How will you measure success?

Structure of the Startup India Action Plan

. Action Point Objective
No.
1 Compliance Regime based on To reduce the regulatory burden on Startups thereby
Self-Certification allowing them to focus on their core business and
keep compliance cost low
2 Startup India Hub To create a single point of contact for the entire
Startup ecosystem and enable knowledge exchange
and access to funding
3 Rolling out of Mobile App and To serve as the single platform for Startups for
Portal interacting with Government and Regulatory
Institutions for all business needs and information
exchange among various stakeholders
4 Legal Support and Fast- To promote awareness and adoption of IPRs by
tracking Patent Examination at Startups and facilitate them in protecting and
Lower Costs commercializing the IPRs by providing access to
high quality Intellectual Property services and
resources, including fast-track examination of
patent applications and rebate in fees.
5 Relaxed Norms of Public To provide an equal platform to Startups across
Procurement for Startups sectors vis-à-vis the experienced entrepreneurs/
companies in public procurement
6 Faster Exit for Startups To make it easier for Startups to wind up operations
7 Providing Funding Support To provide funding support for development and
through Fund of Funds with a growth of innovation driven enterprises
Corpus of INR 10,000 crore
8 Credit Guarantee fund for To catalyze entrepreneurship by providing credit to
Startups innovators across all sections of society
9 Tax Exemptions on Capital To promote investments into Startups by mobilizing
Gains the capital gains arising from sale of capital assets
10 Tax Exemptions to startups for To promote the growth of Startups and address
3 Years working capital requirements
11 Tax Exemption on Investments To encourage seed-capital investment in Startups
above Fair Market Value
12 Organizing Startup Fests for To galvanize the Startup ecosystem and to provide
Showcasing Innovation and national and international visibility to the Startup
ecosystem in India
 . Action Point Objective
No.
Providing a Collaboration
Platform
13 Launch of Atal Innovation To serve as a platform for promotion of world-class
Mission (AIM) Innovation Hubs, Grand Challenges, Startup
businesses and other self-employment activities,
particularly in technology driven areas
14 Harnessing Private Sector To ensure professional management of Government
Expertise for Incubator Setup sponsored / funded incubators.

15 Building Innovation Centers at To propel successful innovation through

National Institutes augmentation of incubation and R&D efforts
16 Setting up of New Research To propel successful innovation through incubation
Parks Modeled on the Research and joint R&D efforts between academia and
Park Setup at IIT Madras Industry

17 Promoting Startups in the To foster and facilitate bio-entrepreneurship

Biotechnology Sector
18 Launching of Innovation To foster a culture of innovation in the field of
Focused Programs for Students Science and Technology amongst students
19 Annual Incubator Grand To support creation of successful world class
Challenge incubators in India

Ministry of Skill Development and Entrepreneurship

The Ministry of Skill Development and Entrepreneurship is a Ministry of Government of
India set up on 9 November 2014 to coordinate all skill development efforts across the
country. Industrial training, apprenticeship and other skill development responsibilities were
transferred from the Ministry of Labour and Employment to this newly made ministry on
16 April 2015.
The Ministry is responsible for co-ordination of all Skill Development efforts across the
country, removal of disconnect between demand and supply of skilled manpower, building the
vocational and technical training framework, skill up-gradation, building of new skills and
innovative thinking not only for existing jobs but also jobs that are to be created.
The Ministry aims to skill on a large scale with speed and high standards in order to achieve
it's vision of a 'Skilled India'.
 Classification Micro Small Medium

Investment in Plant Investment in Plant Investment in Plant

and Machinery or and Machinery or and Machinery or
Equipment: Equipment: Equipment:
Manufacturing Not more than Rs.1 Not more than Rs.10 Not more than Rs.50
Enterprises and crore and Annual crore and Annual crore and Annual
Enterprises Turnover ; not more Turnover ; not more Turnover ; not more
rendering Services than Rs. 5 crore than Rs. 50 crore than Rs. 250 crore

Government schemes launched to develop and encourage entrepreneurship in India.

Pradhan Mantri Mudra Yojana

PM Modi launched Pradhan Mantri Mudra Yojana, wherein Micro Units Development and
Refinance Agency Bank or MUDRA Banks provide loans at low rates to micro-finance
institutions and non-banking financial institutions, who in turn provide low-interest loans to
startups and MSMEs. Hence, Pradhan Mantri Mudra Yojana is one of its kind fund of funds,
devised and conceptualized to empower Indian entrepreneurs. Loans up to Rs 10 lakh can be
availed under the MUDRA scheme. It was launched in 2015. There are three categories of
businesses, which can avail loans under MUDRA loan for startups:

• Category 1: Shishu, which is for new businesses. Loans up to Rs 50,000 can be

availed.
• Category 2: Kishor, which is a mid-aged business. Loans up to Rs 5 lakh can be
availed.
• Category 3: Tarun, which is an existing, experienced business. Loans up to Rs 10 lakh
can be availed.
Mudra scheme covers MSMEs such as Small Manufacturing Units, Retailers, Wholesalers,
Artisans, and more.

Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTSME)

CGTSME is one of the biggest Startup Loan Schemes launched by the Ministry of MSME in
India.

Under this Government scheme, a collateral-free loan of up to Rs 1 crore is provided to

eligible startups and MSMEs. The loan is dispersed via a trust named Credit Guarantee Fund
Trust for Micro and Small Enterprises (CGTMSE), which is powered by the Ministry of
MSME and Small Industries Development Bank of India (SIDBI).

Financial Support to MSMEs in ZED Certification Scheme

Focussed on existing and new manufacturing units, ZED or Zero Defect and Zero Effect
mission is to encourage manufacturers to create better products, with high quality and zero
defects. The focus is to enable manufacturers to embrace world-class manufacturing
processes, and use technology to ensure that their products are the best in the class.

The government scheme will provide both financial support, and technology and tools to
ensure zero defects in their products.

Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)

Govt is clearly aware that technology is the tool that can propel Indian startups and MSMEs
to compete with global competitors.

This is the reason for the creation of the Credit Linked Capital Subsidy for Technology
Upgradation (CLCSS) Government scheme, wherein Govt provides financial help to MSMEs
to upgrade their technology and implement state of an art technological platforms for their
business.

Under CLCSS, Govt provides a 15% subsidy for investment up to Rs 1 crore for upgrading
technology for startups and MSMEs in India.
Corporate Governance
Components of Corporate Governance:
Regulatory framework on corporate governance
1. The Companies Act, 2013

2. Securities and Exchange Board of India (SEBI) Guidelines

3. Standard Listing Agreement of Stock Exchanges

4. Accounting Standards issued by the Institute of Chartered Accountants of India

(ICAI)

5. Secretarial Standards issued by the Institute of Company Secretaries of India

(ICSI)- The ICSI has issued Secretarial Standard on "Meetings of the Board of Directors"
(SS-1) and Secretarial Standards on "General Meetings" (SS-2).
 Models of Corporate Governance

Anglo-US Model of Governance

There is clear separation of ownership and management.

German-model of Corporate Governance (Two-tier board model)
Japanese-model of Corporate Governance

In this model, along with the shareholders, the interest of lenders is recognised.
Raising Investment
Institutional finance
Foreign Direct Investment and Regulatory issues
Arbitration For Start-up
The disputes related to the funding of the start-ups: the arbitration may offer a fast
way to solve them
Disputes related to the conduction of the start-ups by the founders: arbitration may
offer for confidential proceedings
Disputes related to the complex environment where the innovative start-ups operate:
the possibility offered by arbitration to select arbitrators knowledgeable of what the
disputes are about