We take a look at how can the new government encourage entrepreneurship in India and hence, help the business index of the country rise.
The new government is all set to bring about a change in India.
A change in every sector is expected as these expectations led to the formation of the new government. Is the Modi government all ready to meet the expectations of the budding entrepreneurs in India?
The young mass who quit the usual means of earning, to start something of their own is looking up to the new government to change things, when it comes to setting up your own business. As no concrete step was taken to eliminate unnecessary delays in starting one’s own business or reducing the hurdles faced while reporting and taking permission from various authorities, the new gen businessmen show great hope and faith in the new government.
We take a look at how can the Modi government encourage entrepreneurship in India and hence, help the business index of the country rise.
Reduce compliance requirement time and replace paperwork hurdles
The current system involves going through a difficult compliance requirement process for starting a business, which includes time taken for approval, permit from other states (in case of multiple openings in cities), permit from various state and central government entities, environment approval, taxation details and a number of other procedures.
Measures should be taken to reduce time taken to register a business in India, which is more than forty days on an average, even higher in a few cases. To deal with challenges like these, the government could start an auto approval process or a separate platform for start ups, so that it’s easy for either of them to register and get end to end information about the business, respectively. There are times when the businesses are expected to take permit from state and also from the central government. This alone could take a long time to get approved. Which is why the platform is very much required.
Provide time bound funding and tax relaxation to new businesses
Because start ups are new in the field, they definitely will not have too many or at least a satisfactory number of investors in the business. They require a financial system which is supportive and provides some amount of capital, which allows them to take a necessary risk a few months or years after, until the business starts to take off on its own. So, the new government could start a funding program that should focus on small and initial stage start-ups, to target promotion of new innovations.
Start ups today, mostly have to depend on investors from India or abroad, for funding. And in a number of cases the ideas are unable to achieve pace because of inappropriate funding. So some relaxation in this aspect could prove a boon for initial stage start ups.
Making more of young population employable
I came across an article somewhere, which said that India has an employable population of about 300 million, but has just 100 million jobs available. Special training course, enhancing skill sets, development of programs that enrols the capable employable population are some of the things the government could introduce. In spite of more than five thousand training institutes in India, that reaches out to more than five lakh of the unemployed population, only three out of ten people are actually employable when it comes to skill sets. Reason being lack of infrastructure and proper training. So, while the businesses take time to train their employees accordingly, the government could back them up with providing some amount of subsidy as wages during the training period.
India is still a developing country.
The world economy is rising every single hour and in every way is affecting the Indian economy. In this hour, the downturn of entrepreneurship could be a threat to our economy.
We hope the new government stands by their approach of economic development of the country.