Entrepreneurship Ecosystem Overview. Bihar
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1 Entrepreneurship Ecosystem Overview Bihar 1
2 Levers of change Entrepreneurship Following are the key levers of change which determine whether a state s policy, education, legal framework, financial systems, business markets, cultural and social ethos are augmenting Entrepreneurship Growth: 1. The Entrepreneur 2. Govt. & Regulatory Support 3. Access to Finance 4. Educational & Cultural Preparedness 5. Mentoring & Networking 2
3 The Entrepreneur 3
4 Bihar ranks #16 in India on World Bank s Ease of Doing Business 2016 index according to the Department of Industrial Policy and Promotion's (DIPP). It was on rank 21 in
5 Govt. & Regulatory Support 5
6 Schemes & Policies: MSME Schemes Govt. Regulatory Bodies: Udyog Samwad, Department of Industries Bihar Udyog Mitra 6
7 MSME Schemes Credit Linked Capital Subsidy Scheme (CLCSS) 15% Upfront Subsidy on Machinery Credit Guarantee Trust for MSE (CGTMSE) Quality Management System/Quality Technology Tools (QMS/QTT Lean Manufacturing Design Clinics Support for Entrepreneurial and Managerial Development of SMEs through Incubator 7
8 Udyog Samwad Udyog Samvad is a platform for direct dialogue between Department of Industries, Govt. of Bihar and the new entrepreneurs and existing entrepreneurs who want to setup or already setup or going to setup an enterprise in Bihar. Department of Industries Bihar has set up this initiative to resolve the issues of the existing entrepreneurs and to answer the queries of all potential entrepreneurs in the state It also features links to the existing schemes and provides information about various licenses and permits required by the entrepreneurs. 8
9 Udyog Mitra Udyog Mitra, a Society under Department of Industries, Government of Bihar is an information repository to the investors and will help them in providing clearances from different government departments. The organization conducts investor presentations, seminars, meets, conferences etc. for showcasing Bihar as a potential investment location. They also provide technical guidance in the form of relevant project profiles and policy information to entrepreneurs setting up all kinds of industries. Entrepreneur Assistance Cell has also been set up by the organization. 9
10 Access to Finance 12
11 Schemes: Bihar Industrial Investment Promotion Policy 2016 Bihar Tourism Policy 2009 BIHAR Start-Up Policy
12 Bihar Industrial Investment Promotion Policy 2016 State shall extend Interest Subvention to all the eligible units on the term loan availed by the unit from a scheduled nationalized bank or financial institution approved by RBI/SEBI. In case of a new unit established by a SC/ ST entrepreneur, the rate of interest for interest subvention will be 11.5% or actual rate of interest on term loan, whichever is lower (except for Micro and Small units). In case of micro and small units being established by a SC/ ST entrepreneur, the rate of interest for interest subvention will be 13.8% or actual rate of interest on term loan, whichever is lower. Reimbursement on Stamp Duty/ Registration fee 100% reimbursement of land conversion fees All new units shall be eligible for 100% reimbursement of the electricity duty 12
13 Bihar Tourism Policy 2009 The policy aims to focus on domestic tourism as a major driver of tourism growth. The following incentives will be available for private entrepreneurs: 1. Full (100%) exemption in Stamp Duty and Registration Fee in lease/sale/transfer of land for setting up a tourism project 2. New Projects shall be exempt from Luxury Tax for seven years from the commencement of commercial operations. 3. Full (100%) exemption in Electricity Duty for seven years. Full (100%) exemption in Conversion Charge. 4. Reimbursement of the cost incurred in the project report preparation by the tourism units at the rate of 50% subject to a maximum of Rs. 75,000/- provided the project report is prepared by any of the firms recognized by the Industry Department. 16
14 Bihar Tourism Policy 2009: Benefits 5. New tourism units will be granted relief from payment of electricity duty under the Bihar Electricity Duty Act, 1948 for the generation and for own consumption of electricity from D.G. Set and Captive Power Units % of the amount spent on plant and machinery in the establishment of Captive Power Generation/Diesel Generating Set will be granted to the unit. 7. If an entrepreneur obtains Technical Know-how from any recognized National Research Centre / laboratory or institution to establish or to expand his industry, he will be reimbursed 30% (maximum Rs lakh) of the fee paid to the institution / organization for the technical knowhow % of cost incurred in obtaining certificate of I.S.O. standard (or equivalent) from reputed national/international level organizations, would be reimbursed by the State Government. 14
15 Bihar Start-Up policy 2017 The policy gives access to resources, mentorship, and incubation centres. Industries that are not more than five years old with a turnover of less than Rs 25 crore are eligible for benefits under this new policy. Bihar will drive its start-up initiatives with the formula YUVA Yes to start-ups (awareness, networking and mentoring campaign), Unleash (regulatory enablers for supporting start-ups), Vibrancy (in education system to encourage and facilitate start-ups) and Access (to finance and incubate). The policy will facilitate development of Entrepreneurship Development Centers in divisional towns and Nagar Nigam(s), and Entrepreneurship Facilitation Centers to increase awareness and promote entrepreneurship. 7
16 Bihar Startup policy: Benefits Under the policy, entrepreneurs belonging to Scheduled Castes, Scheduled Tribes and also physically challenged entrepreneurs would be given 15 percent additional financial support, while women entrepreneurs would get 5 per cent additional financial support. The Bihar Startup Policy will also facilitate the creation of common infrastructure for startups such co-working spaces, shared facilities like R&D labs, software and hardware like high-end printers, computers, common testing labs and tool rooms and shared services like legal, accounting, technology, patents, and investment banking. Bihar Government has set up a Rs.500 Crore ($76 Million) venture fund for the State Startups to promote young entrepreneurship in the state. A Seed Grant upto Rs 10 Lakhs per start-up as interest free loan for 10 years shall be provided to startups. 16
17 Education & Cultural Preparedness 18
18 Educational Institutions Promoting Entrepreneurship NEEDS: Nalanda Educational & Entrepreneurship Development School- Project Management Association Bihar: PMA is responsible for identification of entrepreneurs, assisting them in selection of suitable projects according to their strength, and place them appropriately. 19
19 Mentoring & Networking 20
20 Startup Incubators, Co-Working Spaces Bihar Entrepreneurs Association (BEA): They provide a platform for new enterprises, start ups and potential entrepreneurs from the state to establish a successful business. BEA works under guidance and in collaboration with the Department of Industries, Govt. of Bihar, MSME Dept, many National and International Organizations. Their project Bihar start-up Yatra is biggest Entrepreneurship Campaign in the Country covering almost 200 institutions in all 38 districts and 40,000 interactions with potential entrepreneurs/people with ideas and proposals. 21
21 Enterprising Zone: The EZ Incubation Center has been set up in association with Department of Industries, Govt. of Bihar and Bihar Entrepreneur association. Incubation Centre IIT Patna: The proposed incubator at IIT Patna will have programs designed to support the successful development of entrepreneurial companies through an array of industry support resources and services, developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts. 21
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