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Govt reiterates its commitment to promote startups; entrepreneurs say lot more needs to be done

Updated: Apr 07, 2018 05:36:49am

Govt reiterates its commitment to promote startups; entrepreneurs say lot more needs to be done

New Delhi, Apr 7 (KNN) The government time and again have reiterated that it is committed to support and handhold the startups and micro, small and medium enterprises (MSMEs) in the country, responding to this the entrepreneurs have raised that a lot more needs to be done for the sector.

Ministry of Commerce and Industry in a press release on Friday said a 19-point action plan is in place that covers areas including simplification and handholding, funding support, incentives and incubation.

This plan is being implemented by the Department of Industrial Policy and Promotion under the Commerce and Industry Ministry.

The government also informed that over 596 crores have been invested in 120 startups that has helped generate 6515 jobs in the country.

It further said that there are steps taken to reduce the time taken for different procedures and the government has also set up GeM to help the startups be a part of procurement process.

Talking to KNN, Sunil Vaish, a Kanpur based entrepreneur and President of MSME body Indian Industries Association said that while the overall plan of the government look is a very comprehensive one, still the results on ground are not very desirable.

Vaish informed that the Startup ecosystem in the country is in a very preliminary stage and not very appealing.

“Procedural issues continue to haunt the entrepreneurs who aspire to register under the Startup program of the government, it is not that easy to get in”, Vaish said.

He further informed that one of the main bottlenecks when it comes to building a friendly startup ecosystem in the country is access to credit.

“Banks ask for collateral in form of land etc., which is not in the capacity of the startup entrepreneur to furnish, hence he/she is not granted loan, how does he set his startup then”, Vaish said.

While the aim of the government looks good, a lot more needs to be done when it comes to handholding and strengthening the unit, he added. (With PIB Inputs) (KNN/DA)


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