The elections are around the corner and everyone is ready with their agenda. While the political parties are doing their utmost to sound convincing to the masses and even to themselves, the Indian start-up community is also ready with their requirements and the list of things they want for the advancement of their sector.
The last few years have seen government policies bend in favour of Indian start-ups. Angel tax, for example, has made things more conducive for upcoming entrepreneurs. The beginning of the year also saw the largest ecosystem getting launched in Kochi.
Here is what further is expected from the person who is ready to indulge in some action in the Indian start-up ecosystem.
The Tax Game
To spell the word tax means to invite some trouble, according to the common man. It was considered the same for start-ups as well but things are changing now. Shubh Bansal, Co-Founder, Truebil,says “Even today, start-ups in India find it quite a challenge to source local capital since domestic venture capitalists have struggled to raise rupee funds in the country. As a startup, we expect that the new Central Government abolishes the start-up tax in all forms from the budget.”
Tax is the major point of action that all entrepreneurs are urging the government to plunge into. Bansal further adds that the recent e-commerce policy will help in plugging the numerous loopholes that existed in FDI regulations governing the sector as well as tackling the anti-competitive behaviour of e-commerce entities.
The start-up community also needs to have a stronger backing of the investors.
Bhavin Patel, Co-founder and CEO of LenDenClub, says that startups need some tax sops to flourish their business faster. “A solution for Angel Tax will help new upcoming founders to attract angel investments easily without any tax implications.”
Temporary amendments in tax, henceforth, are clearly not enough.
Establishing Infrastructure for Start-ups
The second step would be to provide start-ups with space where they can grow, learn, make mistakes and ultimately achieve the business size they aspire for. Incubation centers are a good way to provide start-ups a platform where they can grow and flourish. Patel says that boosting the establishment of incubators and accelerators will help startups with adequate capital and right business strategy.
These centers will act as nourishment grounds wherein start-ups will get all ingredients of entrepreneurship required to succeed. Anand Subra, Chief Knowledge Officer of PurpleTeal, says that these centers will enable entrepreneurs to focus on building their businesses rather than getting bogged down in the day-to-day operations. He says, “The new government can nurture entrepreneurship by funding ‘incubation centers’ that would do things like providing access to experts in business, technology and commercialization, as well as providing shared facilities, infrastructure and staffing services on a rental basis.”
Supporting the Community at Large
India is on its way to becoming the start-up nation of the world. They require to support the most. Srinivasa Raghavan, CEO and Founder of Animaker, says, “The ecosystem must come together in support of new initiatives by start-up entrepreneurs and the youth of this nation so as to give them the much-needed confidence in taking risks that are free from fear of failures and constantly innovate to build a healthy business climate aimed towards impacting lives globally in a positive way.” The onus of creating such an environment for start-ups is on the government.
There is potential, undoubtedly, within the start-up community. It all boils down to how much room they get to manifest their potential.