Entrepreneurship Ecosystem Overview Assam 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 2
The Entrepreneur 3
Assam ranks #24 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 22 in 2015. 4
Govt. & Regulatory Support 5
Schemes & Policies: The Industrial and Investment Policy of Assam 2014 Govt. Regulatory Bodies: Assam Industrial Development Corporation 6
The Industrial and Investment Policy of Assam 2014 The Industrial and Investment Policy of Assam, 2014 lays emphasis on employment and economy especially in the rural areas with sustainable Investment in the MSME sector in the State. It also aims to build a vast pool of skilled personnel especially in the services and manufacturing sector. New Micro units will be granted State Capital Investment subsidy @ 30% on the amount spent on workshop shed (only required for production activities), plant & machinery, cost of land, installation & internal electrification subject to a maximum ofrs.10lakh. All eligible units will be entitled for exemption of tax payable under the Assam Value Added Tax Act 2005, the Central Sales Tax Act 1956, Assam Luxury Tax Act 1989 7
The fee payable for obtaining BIS/ISO/FPO/AGMARK certification and fees payable for getting technical knowhow from recognized research laboratory/institutions like CFTRI, CIPET, etc. by eligible unit will be subsidized to the extent of 75%, subject to a ceiling of Rs.2.00 lakh per unit. It also lays provisions for incentives on mega projects in the state. Entrepreneurs get free training and guidance under the policy. Udyog Sahayak Department of AIDC is an Implementing Agency for the Industrial Policy of Govt. of Assam for Medium and Large Industrial units. https://easeofdoingbusinessinassam.in/industrial%20and%20investment%20policy%20of%20assam%202014.pd f 8
Assam Industrial Infrastructure Development Corporation Assam Industrial Infrastructure Development Corporation is established for the purpose of securing and assisting in the rapid and orderly establishment and organization of industries in industrial areas, industrial estates, growth centres, IIDC centres and in establishment of commercial estate for growth of industries in the state of Assam. http://www.aiidcassam.in/ 9
Access to Finance 10
Schemes: North East Industrial and Investment Promotion Policy (NEIIPP), 2007 Schemes by NEDFi Angel Fund Scheme 2014 NE Venture Fund Sarothi-The Start Up Assam VC s and Angels: Assam Financial Corporation 11
North East Industrial and Investment Promotion Policy (NEIIPP) 2007 Some of the benefits under this policy are: Excise Duty Exemption Income Tax Exemption Capital Investment Subsidy Interest Subsidy Comprehensive Insurance http://www.aidcltd.com/pdf/neipp_2007.pdf 12
Schemes by NEDFi NEDFi has a special focus on development of entrepreneurs in the region. Entrepreneurship in the real sense is still at its nascent stage in the NE. NEDFi has started Business Facilitation Centre (BFC) for providing consultancy and supports in setting up a business enterprise. http://www.nedfi.com/?q=industry-policies-of-north-eastern-states-archive Rupee Term Loan (RTL) Scheme: To provide medium to long term financial assistance for setting up of new, expansion, diversification or modernization projects in various manufacturing or services sector. The assistance shall be in the form of Rupee Term Loan. Equipment Finance Scheme: For financially sound companies, loans are provided for the purchase of equipment. 13
Corporate Finance Scheme: For providing finance such as normal capital expenditure, working capital margin, shortfall in working capital, repayment of high cost debt and general corporate purpose like funding of business acquisition or for brand building etc. where no tangible asset creation may be envisaged. Working Capital Term Loan Scheme (WCTL): Upto a Maximum of 75% of the working capital requirement of business for one cycle of operation is provided to deserving units in the form of working capital term loan. NEDFI Equity Fund Scheme: To invest in projects promoted by entrepreneurs in North-Eastern Region having sound business ideas with potential for high growth and more than normal returns on investment. NEDFi Opportunity Scheme For Small Enterprises : To provide long term financial assistance for setting up a new industrial and infrastructure projects as well as for expansion, diversification or modernization of existing industrial enterprises excluding Commercial Real Estates. 14
North East Entrepreneur's Development Scheme [NEEDS]: The objective of the scheme is to help first generation entrepreneurs who are short of equity. Benefits can be extended to Proprietorship & Partnership Concerns and Companies. Technical qualification of the promoter in the relevant field is a pre-requisite. NEDFi Haat: In its endeavor to give a boost to the local industries and products of the region, the Corporation has set up NEDFi Haat, a permanent exhibition cum selling platform to display, sell and develop marketing network of the produce of local artisans and small entrepreneurs. It is located at Gauhati. http://assamagribusiness.nic.in/nedfi/map34.pdf 15
Angel Fund Scheme 2014 This scheme aims to provide financial assistance to micro and small enterprises as well as to reduce unemployment problem. This scheme focus on skill development and training of entrepreneurs. Loans are provided at low interest rates under the scheme. Financial assistance @80% of the project cost for existing units and @85% of the project cost for new units. http://industries.assam.gov.in/frontimpotentdata/angel-fund-scheme 16
North East Venture Fund The fund is offered by the Ministry for Development of North-Eastern Region (DoNER) and set up by the NEDFi. Northeast Venture Fund is the first dedicated venture capital fund for North-Eastern region. It is focussed to encourage entrepreneurship in the region with focus on early and growth-stage investments. NEDFi will also perform the role of hand-holding and capacity building. he North East Venture Fund Will Look To Invest In Startups In The Field Of IT & ITES, Food Processing, Healthcare, Tourism, Etc. The size of the fund would be about INR 100 Cr and each investment will be limited to a minimum of INR 25 Lakhs and a maximum of about INR 10 Cr. Ministry of DoNER is offering an additional benefit of initial Venture Capital Fund to any youngster who decides to set up an entrepreneurial venture in the North-Eastern region. http://www.nedfi.com/node/1205 17
Sarothi-The Start Up Assam Fund Chief Minister's Start-up fund Sarothi has been set up by Industries & Commerce Department with an initial amount of Rs.10 Cr during 2016-17. The basic objective of the scheme is to provide financial assistance in the form of loan with Interest subvention through a designated Bank covering whole of Assam. The loan so availed by the beneficiaries will be supported by the State Govt. through Interest Subvention @ 5% P.A. The scheme shall be operational from the financial year 2016-17 and shall be valid for a period of five years. Loan amount not exceeding INR 10 Lakhs shall be provided with the interest subvention to all new MSME and innovative start-ups. http://industries.assam.gov.in/sites/default/files/sarothi_1.pdf 18
VCs And Angels Assam financial Corporation: It s a Govt. VC fund providing financial assistance to Micro, Small & Medium scale industries within its jurisdiction covering the North Eastern States of Assam, Meghalaya, Manipur and Tripura. http://www.afconline.gov.in/about.html 18
Education & Cultural Preparedness 19
Educational Institutions Promoting Entrepreneurship Indian Institute of Entrepreneurship, Guwahati aims to undertake training, research and consultancy activities in small and micro enterprises focusing on entrepreneurship development. http://iie.nic.in/ Entrepreneurship development programme is offered by Krishna Kanta Handiqui State Open University. IIT Guwahati Entrepreneurship Development Cell 20
Mentoring & Networking 21
Startup Incubators, Co-Working Spaces Indian Institute of Entrepreneurship has initiated the exercise for setting up a platform for providing mentoring services to the budding / trained / existing entrepreneurs with the support from a pool of professionals. These professionals will act as Mentors and guide the entrepreneurs in successfully starting and running own enterprises. http://iie.nic.in/pages/display/70-mentoring-service Startup Assam: Its a platform for entrepreneurs to connect to Angels and Venture Capitalists, Mentors, Industry experts, Problem Solving Ecosystems where start-ups can get easy access to resources, evolve and co-exist. https://startupassam.com/#about 22
NE8x is Northeast India s first startup accelerator. StartupNE is Northeast India's first exclusive initiative undertaken by NE8 x to promote entrepreneurship at grassroots level with public-private partnership campaigns that aims to reach the eight Northeastern states of India. http://ne8x.in/ 24