Entrepreneurship Ecosystem Overview Gujarat 1
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 1
The Entrepreneur 2
Gujarat ranks #5 in Ease of Doing Business index 2017-2018 according to the Department of Industrial Policy and Promotion's (DIPP). Ahmedabad has been titled EMERGING CITY for startups (NASSCOM 2015) 3
Govt. & Regulatory Support 4
Schemes: Cottage & Rural Industries Policy 2016 Student Startup & Innovation Policy -2017 to 2021 Govt. Regulatory Bodies: Investor Facilitation Portal Gujarat Industrial Development Corporation indextb 5
Cottage & Rural Industries Policy 2016 The policy is valid upto 2021. The Cottage and Rural Industries Policy 2016 aims at preserving, strengthening and promoting the traditional and ecofriendly cottage and rural industries of Gujarat for the socio-economic upliftment of the people associated with the sector and for inclusive economic growth and development. It will broadly provide access to credit, help infrastructure development and entrepreneurship. Benefits The state government will provide assistance for diagnostic research, raw material supply and design development support to the villages. The new policy will provide support for machinery or equipment and production assistance. This scheme provides each individual weaver new handloom of Rs. 21,622 in which the weaver s contribution is 35% and Government s assistance is 65%. Artisans will get 75 per cent financial assistance on purchase of electronics machineries. It will also provide venture capital fund for new entrepreneurs. For encouraging start-ups in the sector, subsidy for purchasing tools, e- commerce websites to sell the products, a crafts museum and a raw material bank for selected craft products. 6
Student Startup & Innovation Policy - 2017 t0 2021 The Innovation and Pre-incubation Ecosystem Support (IPIES) Policy of Gujarat shall cater to student startups and innovation ecosystem, and create baselevel interventions to support the Gujarat startup ecosystem at all stages. It aims to develop an innovation ecosystem for the students and provide them with pre-incubation support.the goal is to convert atleast 1% graduates to job creators and harness 500 student startups in the next 5 years. The policy will provide Rs. 200 crore in the form of grants to ideas developed by the students and support over 1,000 innovation per year and create preincubation support in all universities of the state. Of the Rs 200 crore SIF, Rs 100 crore will be allocated by the state government and the remaining amount will be created by internal sources, like university funds and CSR funds. Under the pre-incubation support, it would help convert ideas of students from proof of concept (PoC) upto minimum viable proto type (MVP), besides providing support for patent filing. http://www.gksgujarat.org/uploads/ssip_education_policy.pdf 8
Gujarat Industrial Development Corporation The Gujarat Industrial Development Corporation has been created for securing the orderly establishment and organization of industries in industrial areas and industrial estates in the state. Main role of the GIDC is to identify locations suitable for industrial development and create industrial estates with infrastructure such as roads, drainage, electricity, water supply, street lights, and ready-to-occupy factory sheds. GIDC has developed SEZs for Apparels, Chemicals and Petrochemicals, Electronics, IT, BT, Handicrafts etc. GIDC is Setting up an Industrial park for Women s entrepreneurs within Bol (Sanand) industrial estate for 18.31 Hect.Having 200 Industrial plot ranging from 375 Sq.m to 3000 Sq.m https://gidc.gujarat.gov.in/index.html 9
Investor Facilitation Portal An 'Investor Facilitation Portal' is a single window online platform which acts as the first point of contact for any probable investor in the State of Gujarat. A comprehensive list of Pre-Establishment as well as Pre-Operation approvals required for setting up a business availble on the portal. Online facility for filling of all required forms and payments Online availability of certificates and licenses to view as well as download Incentives under various policies provided under the single window online portal http://ifpgujarat.gov.in/portal/index.jsp# 7
indextb It aims to provide information to the entrepreneurs in particular, regarding the opportunities available in the State of Gujarat for industry, commerce, trade, business openings and participation therein. To search, encourage and identify the prospective entrepreneurs, technicians, artisans and investors and to motivate them in establishing industrial unit in the State of Gujarat. To assist and help the entrepreneurs and investors in setting up industries providing necessary information and knowledge regarding form of organisation obtaining letter of intent, preparation of project report, loan applications to the financial institutions, technical know-how, procurement of land, indigenous and imported plant and machineries and raw materials, market survey, publicity, management services and other allied services. http://www.indextb.com/about-us/aims-and-objectives.aspx 8
Access to Finance 9
Schemes: Scheme for Assistance to Startup/Innovation 2015 Comprehensive Agro Business Policy (2016-21) VC s and Angels: Gujarat Angels GVFL Lead Angels Infuse Ventures GAIN Incube Ventures Angel Investors Sunil Parekh, Chirag Patel, Rohit Kilam, Rajiv Sharma 10
Scheme for Assistance to Startups / Innovation 2015 The scheme was launched on 1.1.2015 and will remain in operation for a period of five years. Assistance to Startups/Innovation scheme s operative period is 01 January, 2015 to 31 December, 2019. Any individual/group of individuals having innovative idea/concept will be eligible to benefit from the scheme. Under the scheme, Industries Department approves Nodal Institutions (NIs) based on proposals submitted by them. It aims to develop entrepreneurial skills in youth by providing them mentoring services and range of facilities. Creating a favourable ecosystem for Start-ups, Innovation and Technology Transfer Benefits Rs. 10,000/- per month will be provided to the innovator as sustenance allowance for one year whose project is recommended and approved by institution s Screening Committee. Innovator also gets free access to library,govt. Laboratories, Center of Excellence. 14
Scheme for Assistance for Startups / Innovation - Benefits Up to Rs. 5 Lakhs assistance will be provided to the institution for mentoring service annually.up to Rs. 10.00 Lakhs assistance will be provided for Cost of Raw Material/Components & other related equipment required for the innovative process for the new product development based on approval of the Screening Committee. When an innovators idea gets commercialized, they get marketing/ publicity assistance up to Rs. 10 Lakh for introduction of innovated product, VAT reimbursement upto 80% of Net VAT paid for 5 years upto 70% of fixed capital investment and other benefits under MSME schemes. http://www.startupgujarat.in/about-scheme.htm 15
IT/ITeS startups will get lease rental reimbursement at the rate of Rs.15 per sq. ft. per month for 2 years, Interest subsidy at 9% per annum subject to a ceiling of Rs. 2 lakhs per year for 2 years, Additional support of 25% of equity capital raised without scrutiny up to Rs 5 crore, 100% reimbursement of Stamp Duty and Registration Fee, Reimbursement of the cost of obtaining Patents up to Rs 2 lakh per patent & Marketing assistance and Subsidy on Bandwidth charges. Startup Gujarat is an online portal for the implementation for the policy. They have step by step information on how to access help through a process of online application. They provide information on incubators, accelerators, and other key players of the entrepreneurial ecosystem. http://www.startupgujarat.in/institutes.htm 16
Comprehensive Agro-Business Policy (2016-21) The agro business policy aims to prioritize food security and increase farmers income. It will enhance the farm productivity, reduce wastage and provide employment in rural areas that are heavily dependent on agriculture. Agribusiness will also play a role in environmental conservation. Benefits Subsidy on investment to agro and food processing industries Assistance of Back Ended Interest Subsidy on the Term Loan for Agro and Food Processing Units Assistance of Back Ended Interest Subsidy on the Term Loan for Agro and Food Processing Units Freight Subsidy will be available to Micro, Small and Medium Enterprises (MSME) Sea-Freight Subsidy Reimbursement of VAT and Sales Tax Sample Testing https://gaic.gujarat.gov.in/writereaddata/images/pdf/comprehensive-agro-business-policy-gr-2016-2021.pdf 17
VC s and Angels Gujarat Angels is a not-for-profit organization dedicated to assisting earlystage, high-growth potential business ideas and entrepreneurs in Gujarat. In addition to money, GAFN brings connections, market knowledge, mentoring and operational excellence to early-stage entrepreneurs with disruptive technologies. GVFL-Gujarat Venture Finance Ltd GVFL is an independent, autonomous board managed venture finance company that aims at providing knowledge and expertise to guide entrepreneurs. It is backed by National and International Institutions like CDC UK, HDFC, ICICI and various State Corporations. It is one of the few Venture Capitalists (VC) to witness complete life-cycle of VC investment. Lead Angels Their aim is to assist investment into early stage ideas and companies founded by students and alumni of premier institutions. Lead Angels connects promising startups to experienced individuals who wish to invest time and money for developing entrepreneurship. 18
Infuse Ventures is a venture catalyst. Housed at IIM Ahmedabad's Centre for Innovation Incubation and Entrepreneurship (CIIE), they partner with exceptional entrepreneurial teams in India to help create, build and scale new clean-tech business. GAIN Focuses exclusively on start-ups and early-stage companies by creating a network of investors who would invest in businesses with ability to generate free cash flows and scale-up without constant need for additional capital. Incube Ventures - India's first Social Venture Fund registered with SEBI as Category I Alternate Investment Fund for investing into socially impacting, scalable and profitable enterprises/technologies. Incube Connect Fund (ICF) is aimed at entrepreneurs typically at the bottom of the pyramid in terms of their ability to raise capital, partner them & take them into an ecosystem which nurtures them to be investor-ready. http://in3ventures.org/ 19
Sunil Parekh-an IIT-D alumnus & founder of Gujarat Angels is currently Strategic Advisor to prominent Industrial groups Zydus Cadila Group & Jubilant, Monitor Consulting (Michael Porter s consulting arm), NDBI, CIIE, Lead Angels since their inception. Sunil, quoted as Father of startup ecosystem of Gujarat is very much active in helping and guiding startups. He is an investor and mentor to numerous startups in the state. Chirag Patel is the founder and CEO of Net4Nuts and is a veteran of the IT industry with over 20 years of experience working with Information Systems, internet and mobile technologies. He is a founding charter member of TiE Ahmedabad, and is on the advisory board of a couple of incubators and is a regular guest speaker at IIM-A, Nirma and other business schools. Rohit Kilam is an IT transformation leader at Adani Enterprises Ltd. Besides, he has worked on different roles across the world in managing industry professionals and providing leadership for large, hyper-growth companies in developing markets. Rajiv Sharma is the CEO of Sterling Addlife India Limited. He has a diverse work experience in industries such as oil & gas, consumer durables and in healthcare in Indian and international markets. Rajiv is a member of healthcare committee of FICCI, Gujarat. 20
Education & Cultural Preparedness 21
CED - The Centre for Entrepreneurship Development (CED)-A Government of Gujarat Organization is the 1st of this kind in the country, established in 1979, engaged in promoting skills and entrepreneurship across the state of Gujarat. In order to strike a deep and long lasting impact on the state economy, CED has constantly been on an innovation spree, consistently coming out with imaginative programs aimed at specified target groups. https://ced.gujarat.gov.in/?lang=gujarati EDI - The Entrepreneurship Development Institute of India is an autonomous body and not-for-profit institution. It is an acknowledged national resource organization which is engaged in entrepreneurship education, research, training and institution building. The PGDM BE two-year, full-time, residential programme at EDI has been designed specifically for entrepreneurs and entrepreneurial managers to encourage critical and lateral thinking, nurture their ambitions, and enable new ventures through an academically rigorous, directly relevant and highly practical learning experience. http://www.ediindia.org/ 22
CIIE-IIM Ahmedabad s Centre for Innovation Incubation and Entrepreneurship (CIIE) is an incubator and entrepreneurship promotion centre, which is set-up in collaboration with the Government of India s Department of Science and Technology and the Gujarat Government. CIIE works closely with investors, entrepreneurs, innovators and service providers to foster entrepreneurship. http://www.ciie.co/ Gujarat Technological university (GTU) - GTU offers specialization in Technology Entrepreneurship. http://www.gtu.ac.in/ Indian Institute of Technology-Gandhinagar places significant emphasis on innovation, entrepreneurship and community engagement. Its undergraduate program includes innovative elements, such as an emphasis on the liberal arts, project oriented learning, compulsory courses in design and the life sciences, diversity and globalization. The students get a chance to expose themselves to the importance of community engagement in its 5-week foundation program. The Institute organizes several hands-on design competitions and incorporates several initiatives within its curriculum to cultivate innovation and entrepreneurship skills among students. http://www.iitgn.ac.in/ 23
Mentoring & Networking 24
Startup Incubators, Co-Working Spaces MICA Incubator (Communication Technology Based Business Incubator) is an incubation centre specifically for the strategic marketing and communication sector to commercialise and nurture ideas and innovations. It helps ventures conceptualize, develop and manufacture innovative processes, formats, mediums of communication for reaching out to individuals or masses. It provides them training, mentoring, intellectual support services and the requisite infrastructure. http://incubator.mica.ac.in/ NDBI is part of a commitment of NID, that aims to promote design focused entrepreneurship. NDBI not only supports designers to turn their ideas and concepts into successful competitive businesses but also provides an environment where they can develop the essential business management skills and systems that enable them to grow. NBDI basically wants to create a new class of entrepreneurs, the Designpreneurs. http://www.ndbiindia.org/ 25
International Centre of Entrepreneurship and Technology (icreate) is an autonomous institution that identifies, nurtures, and mentors aspiring individuals/teams (with or without ideas) to pursue their entrepreneurial dreams. It conducts various seminars, reach-out programs, networking events and more for both students and aspiring entrepreneurs. The grooming and incubation program is conducted in a batch of 25 with a duration of 13 weeks. http://www.icreate.org.in/ VentureStudio aims to nucleate an ecosystem of innovation that accelerates regional economic development and create a national and global impact. VentureStudio also offers a product and business creation opportunity through a full-time six-month fellowship program for entrepreneurs, engineers, innovators and designers to learn and practice designing their own companies. https://ahduni.edu.in/vs/ 26
The DA-IICT Centre for Entrepreneurship and Incubation (DCEI) aims to encourage students with an entrepreneurial bent of mind to come up with innovative ideas and channelize their efforts to give births to new ventures based on ICT products. http://ceid.daiict.ac.in/ WorkingCo: It s a co-working place in Ahmedabad. http://workingco.in/ bsquarebc: Business Centre in Ahmedabad, launched with the objective of providing fully serviced, furnished office spaces. http://bsquarebc.com/about.html Daftar is a co-working space located in Ahmedabad, trying to build a community of independent professionals who are looking for networking and growth. https://www.coworker.com/india/ahmedabad/daftar-thecoworking-space Spaceplexx: Co-working place in Surat. https://www.facebook.com/pg/spaceplexx/about/?ref=page_internal 27