Entrepreneurship Ecosystem Overview Rajasthan

Entrepreneurship Ecosystem Overview Rajasthan

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

Rajasthan ranks #6 in India on World Bank s Ease of Doing Business index according to the Department of Industrial Policy and Promotion's (DIPP). Other ranks bagged by the state: Complying with Environment Procedures Registering & Complying with Tax Allotment of Land and Obtaining Construction Permits Setting up a business Carrying out inspections 1

Govt. & Regulatory Support 3

Schemes: Rajasthan SEZ policy Rajasthan Start-up policy 2015 Rajasthan MSME policy 2015 Govt. Regulatory Bodies Rajasthan State Industrial Development and Investment Corporation (RIICO) Economic Policy and Reforms Council Project Development Corporation Ltd (PDCOR) 4

Rajasthan SEZ Policy The objective of this policy is to initiate infrastructural development with a primary focus in the fields of gems and jewelry, woolen carpets, handicrafts, and so on. The primary aim is to formulate an absolutely tax-free operation the in industrial, service, and trade sectors. Benefits Exemption from stamp duty and registration fees. Exemption of all state and local taxes and levies for transactions with the Special Economic Zone (SEZ) and for supply from domestic tariff areas to the SEZ. Expediting process for land acquisition to set up SEZs. Grant of labour and environment-related permits and approvals through a dedicated single window mechanism. Permission to generate electricity for own consumption. 5

Rajasthan Start-Up Policy 2015 It aims to strengthen the start-up eco-system in the state by setting up 50 incubators/accelerators, and mobilizing Rs 500-crore angel/venture capital funding in the next five years. The focus will be on areas like Social and Clean-tech Rural Infrastructure & Services, Crafts, Water, Sanitation, Renewable Energy and Healthcare, including asset light models of healthcare delivery and medical device, Internet of Things etc. The government aims to support and incubate 500 start-ups from state and create a 10,000 sq feet incubation centre by 2020. The policy aims to encourage an ecosystem of innovation and problem solving in the state. 6

Rajasthan Start-up Policy : Benefits Under the policy, sustenance allowance of INR 10,000/- per month for one year will be paid to the Startups at Idea/Prototype Stage, post approval by the Committee and Nodal Institution. Selected startups to get free access to state infrastructure like University/Libraries/ Govt. Laboratories etc. Marketing assistance for startups at the product launch stage, will be provided up to a maximum of INR10 lakh. https://swcs.rajasthan.gov.in/upload/058120be-ad24-4be5-90a9-6bc385f235a7rajasthan-startup-policy-2015.pdf 7

Rajasthan MSME Policy 2015 The policy focuses on: provision of loans, rehabilitation of sick units, support in quality improvement, ease of doing business, fiscal benefits and incentives, development of MSME clusters marketing support. support for startup business. 8

Rajasthan MSME Policy 2015 : Benefits Credit up to a maximum of Rs. 5.0 crore can be availed by young entrepreneurs (up to age 45 years) for setting up a new enterprise, with interest subsidy of 6% applicable up to a maximum credit limit of Rs. 90 lakh, under the Yuva Udyamita Protsahan Yojna of RFC. Support For Start-Up Business and Budding Entrepreneurs :Plug and play facilities will be encouraged to be set, especially in the sectors of IT, Garment-making, Electronics and ESDM so that the new entrants in these fields may have access to easy entry and exit facilities for immediate starting their business venture. Interest subsidy would be provided to unemployed youth, women, educated and unemployed women and S.C., S.T. and differently-abled persons for setting up micro-enterprises, as per the provisions contained in the Bhamashah Employment Generation Scheme, 2015, as notified by the State Government With a view to encourage SMEs to raise funds through this route, assistance will be provided to the extent of 10% of the expenditure incurred, subject to a maximum of Rs.2.5 lakh one time after successful raising of equity. http://resurgent.rajasthan.gov.in/uploads/media-centre/publication/rajasthan-msme-policy-2015.pdf 9

Economic Policy and Reforms Council The Council provides strategic inputs to the state government for increasing private sector participation, creating resources, capabilities, infrastructure and systems so that economic activities could flourish in the state. The Council comprises members from the fields of business and economics with CEO of Shell India, Vice Chairman of HSBC in India and Chairmen of ITC, HDFC, NIIT Ltd and Gujarat Ambuja Cement. 10

Project Development Corporation Ltd (PDCOR) It is a partnership between the Government of Rajasthan and HDFC/ILFS. The mandate of PDCOR is to facilitate private sector investment in infrastructure-related activities in Rajasthan. It provides institutional support to the government in order to successfully structure and implement infrastructure projects on a PPP basis. It also advises the government on policy and institutional changes. 11

Rajasthan State Industrial Development and Investment Corporation (RIICO) It is a state govt. agency providing services to investors and entrepreneurs include: site selection and acquisition of land, financial assistance to small, medium, and large scale projects, equity participation in large projects on merit, technical consultancy for project identification and tie-up escort services, facilitation of government clearances, merchant banking and financial tie-ups, extending incentives and concessions according to the policy of state government and Department of Industries. 12

Access to Finance 13

Schemes: Loan Scheme for First Generation Entrepreneurs Rajasthan egovernance and IT/ITeS Policy 2015 VC s and Angels in Rajasthan: 500 Startups Mahavir Pratap Sharma Yogesh Chaudhary Rajasthan Venture Capital fund Rajasthan Angel Innovators Network 14

Loan Scheme for First Generation Entrepreneurs : 2012 Under the scheme, RIICO (Rajasthan State Industrial Development & Investment Corporation Limited) -Rajasthan is providing loans to young or first generation entrepreneurs for setting up a new project (excluding real estate projects) covering investment in land, buildings, plant and machinery, miscellaneous fixed assets, margin money for working capital etc. Term Loan of up to 10 Cr at existing interest rates is provided to the beneficiary. The repayment period for loan amount is 7-8 years including moratorium period of 1-2 years. Entrepreneurs own contribution has to be 20% of the total cost of the project. 15

Eligibility: The applicant must have technical/professional degree in any field or His/her project/product must be recognized from National Innovation Foundation/ any other similar institution of repute in country or abroad or must have 5 years of experience in the field of his qualification. Application Process: Applicants desirous of availing financial assistance from the Corporation may submit application in prescribed format along with processing / application fee to the Chief General Manager (Investment), RIICO Ltd., Udyog Bhawan, Tilak Marg, Jaipur-302 005 or any of the 27 Unit Offices of the Corporation in the State or the New Delhi Office. The application form is available on RIICO's website i.e. http://industries.rajasthan.gov.in/ 16

Rajasthan e-governance and IT/ITeS Policy 2015 To promote the IT / ITES Industry in the city, this policy attempts to develop a more modern and vibrant ecosystem for Electronics and IT industry to support electronic governance initiatives of the Government of India and attract investment and talent to such industries in Rajasthan. Key focus areas of the policy include pioneering e-governance initiatives, research & development in Electronic System Design and manufacturing, support of the Micro Small & Medium Enterprises and promotion of entrepreneurship that harnesses the huge talent pool of the people of Rajasthan The aim is to have 2000 technology startups in the state by 2025. 17

Total Investment Package of Incentives Interest Subsidy on VAT/CST (7 years) Manufacturing Sector Employment Generation Subsidy (7 yaers) Electricity Duty Exemption (7 yrs) Upto 5 Crore 30% 20% 50% 50% 25 Crore and Above 70% 10% Service Sector Land Tax Exemption (7 yrs) Reimbursement on VAT/CST paid on purchase of Plant & Machinery 50% (except entertainment business) Electricity Duty Exemption(7 yrs) 50% 50% Land Tax Exemption (7 yrs) 18

Electricity duty Exemption (Rural Areas) Exemption on Raw materials Entry Tax MSME Sector Reduction in stamp duty on documents for loan agreements Reduction in stamp duty for simple mortgage 75% 50% Rs100 Rs500 1% CST If the enterprise is owned by Women/SC/ST or the differently abled person then an additional 10% interest subsidy is provided in case of manufacturing sector and service enterprises will get an additional of 10% reimbursement on VAT for 7 years. https://rajasthan.gov.in/connect/usefuldocuments/it%20policy%202015.pdf 19

VCs And Angels In Rajasthan 500 Startups: is an early-stage venture fund and seed accelerator founded by Dave McClure and Christine Tsai in 2010. Mahavir Pratap Sharma is a serial entrepreneur, is the Chairman and Co-founder at RAIN (Rajasthan Angel Innovators Network). He has successfully co-founded startups such as Oscar Expo Design LLP, Swishin Events LLP, Jaipur Kaleen Park Ltd (JKPL) and more. Yogesh Chaudhary: This startup investor is the owner and Director at Jaipur Rugs Company. 20

Rajasthan Venture Capital Fund (RVCF) has signed an agreement with Startup Oasis and Centre for Innovation, Incubation & entrepreneurship (CIIE) to dedicate 10% of its INR 500 Cr third fund (SME Tech Fund) for startups. The fund is supported by 15 investors, of which the lead investors are the Small Industries Development Bank of India (SIDBI) and Rajasthan State Industrial Development and Investment Corporation (RIICO). Rain-Rajasthan Angel Innovators Network: RAIN is a group of Angel investors in Jaipur interested in investing in early stage businesses, which have a potential to create scale. 21

Education & Cultural Preparedness 22

Educational Institutions Promoting Entrepreneurship Entrepreneurship Development Division : Department of Science & Technology, Govt. of Rajasthan: Entrepreneurship Development Programme is being organized by the department through various agencies like engineering colleges in the state. Some of the colleges are Rajasthan Technical University & Engineering College, Kota, Centre for Entrepreneurship & Management & Development Centre MDS University, Ajmer MLV Textile Institute, Bhilwara, and College of Technology & Agriculture Engineering etc. 23

Rajasthan Institute of Engineering & Technology: Entrepreneurship Development Cell-to nurture entrepreneurship among student community. http://rietjaipur.com/1570-2/ Maharshi Dayanand Saraswati University Ajmer: The institute offers a BBA in Entrepreneurship & family business. It nests Center for Entrepreneurship and Small Business Management (CESBM) which conducts entrepreneurship development program, entrepreneurship awareness camps, graduate and post graduate programs in entrepreneurship and skill development programs. http://www.mdsuajmer.ac.in/academics/cesbm_dep.htm JK Lakshmipat University: They offer an MBA in Family Business & entrepreneurship. http://www.jklu.edu.in/program_detail.aspx?courseid=15&deptid=0&levelid=2& mpgid=40&pgidtrail=40&schid=4 24

Career Point University Kota: They offer MBA in Entrepreneurship & Family Managed Business (EFMB). http://www.cpur.in/courses/management/fmba.php IIT Jodhpur - Entrepreneurship Cell: Entrepreneurial mind-set creation and conducting entrepreneurship development events. http://iitjecell.in/ IIM Udaipur: The institute has created Management Development Program for Women Entrepreneurs to encourage, empower and educate potential women entrepreneurs. Saksham is the entrepreneurship club of IIM Udaipur which aims to encourage and support entrepreneurial ambitions of students. http://iimu.ac.in/prarambh/events.html 25

Mentoring & Networking 26

Startup Incubators, Co-Working Spaces Start-Up Oasis is a Jaipur based incubation centre that is developing an ecosystem in Rajasthan to inspire and support students, aspiring entrepreneurs and start-ups to solve persistent problems, develop breakthrough innovations and create world class enterprises. Startup Oasis has been set-up at the joint initiative of RIICO (http://www.riico.co.in/), Rajasthan s premier industrial promotion organization, and the Centre for Innovation, Incubation and Entrepreneurship (CIIE) (http://www.ciieindia.org/) at IIM Ahmedabad, India s leading incubation and entrepreneurship centre. 27

TIE Rajasthan: Works for mentoring, incubating and funding entrepreneurs. http://rajasthan.tie.org/ Wired Hub a co-working space, was publicly opened on February 1, 2016, and has organised regular workshops, mentorship sessions, and pitching contests. entripreneur is a platform that aims to change the way entrepreneurs connect with each other. The platform organizes exclusive trips for entrepreneurs where they can relax, interact, connect, and learn with other like-minded and proactive entrepreneurs. 28

Sources:- 1. http://www.industries.rajasthan.gov.in/content/dam/industries/pdf/riico/financialschemes/s chemes/loan%20scheme%20for%20young%20entrepreneurs.pdf 2. http://rainjaipur.co.in/ 3. http://dst.rajasthan.gov.in/index.php/scientificschemes/entrepreneur-development-division 4. http://resurgent.rajasthan.gov.in/investing-in-rajasthan/ease-of-doing-business 29