HomeMedia CenterPoll promises good, but startups flag bad delivery

Poll promises good, but startups flag bad delivery

In a nation where unemployment has been brewing for years and everyone aspires to be an entrepreneur, political parties have tried to hit the right note with voters by promising to support the start-up ecosystem if they win. Both the BJP and the Congress have a wide range of initiatives, but startups say the effectiveness will depend on how, and how soon, they are delivered.

In its manifesto, the BJP has a seed startup fund of Rs 20,000 crore to back early-stage companies and a scheme to provide collateral-free credit of up to Rs 50 lakh for entrepreneurs, with  50 per cent for women entrepreneurs. Besides this, it also promises to help setting up at least 50,000 new startups and 500 new incubators and accelerators by 2024, besides the creation of 100 innovation zones. On the other hand, the Congress plans to create an Enterprise Support Agency and remove angel tax.

Welcoming the announcements, Bhavin Patel, co-founder of LenDenClub, says “over the past few years, the government has been showing interest in fostering startups… The establishment of 500 new incubators and accelerators across 100 innovation zones would help startups with adequate resources, while allocation of funds will also aid companies with risk capital, which is lacking in India right now.”

However, abolition of angel tax is an important ask from the community. “We have had great plans on paper but implementations have been lousy. Angel tax is one which the community still grapples with. We have enough plans, but what is required is a holistic implementation of these plans.”

Founder of startup accelerator The Startup Centre, Vijay Anand, says that they still not got the funds from the StartUp India mission incentives under which included a `10,000 crore fund of funds. However, only Rs 4,100 crore had been allocated as of March 2019, according to the Startup India portal, to around 182 startups.

Start-ups’ success rates also remain a concern, at ten per cent, besides a time lag between commitments and disbursements. “These are investments not grants and take time. For instance, China took four decades to build out their startup ecosystem while India promises to build a world class ecosystem in three to four years,” Anand rues.

 

Credit: http://www.newindianexpress.com/business/2019/apr/13/poll-promises-good-but-startups-flag-bad-delivery-1963756.html

 

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.

About

Investment

Best Blogs: Best Short Term Investment Plans With High Returns

The Reserve Bank of India does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed by Innofin Solutions Private Limited, and does not provide any assurance for repayment of the loans lent through its platform.

LenDenClub is an Intermediary under the provisions of the Information Technology Act, 2000 and virtually connects lenders and borrowers through its electronic platform via the website and/or mobile app.

The lending transaction is purely between lenders and borrowers at their own discretion, and LenDenClub does not assure loan fulfilment and/or investment returns. Also, the information provided on the platform is verified or checked on the best efforts basis without guaranteeing any accuracy of the data/information verification. Any investment decision taken by a lender on the basis of this information is at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower, fully or partially. The risk is entirely on the lender. LenDenClub will not be responsible for the full or partial loss of the principal and/or interest of lenders’ investment amounts.

*This is an annualized yield and is subject to the maximum FMPP tenure, which is 5 years. P2P investment is subject to high risk and may cause an entire loss of principal.
 

*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

** Average value mentioned is the weighted average of returns received by investors

© 2024 LenDenClub by Innofin Solutions Private Limited | CIN: U74999MH2015PTC266499