CHAPTER 5

1
INSTITUTIONS SUPPORTING
SMALL BUSINESS
ENTERPRISES

LEARNING OUTCOMES
By the end of this chapter, students will be able to:
 Understand the government's support for startups and how startups
benefit the government.
 Identify and distinguish between central and state-level government
institutions aiding small businesses.
 Explore the roles of external associations like ASSOCHAM, FICCI, and
Angel Networks in supporting small businesses.
 Examine India's angel investing ecosystem, including notable players
and trends.
 Analyze the collaboration between government bodies and external
associations in promoting small business entrepreneurship.

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 5.2 ENTREPRENEURSHIP & START-UP ECOSYSTEM

CHAPTER OVERVIEW

Why Govt Supports Startup

Government and Startup
Relationship
How Startups Support Govt

Central Level Institutions

Institutions Supporting Small Business

Government Insitutions

State Level Insitutions

Enterprises

ASSOCHAM

External Associations

FICCI

Indian Ecosystem

Angel Networks
Some Big Names in India
Angel Ecosystem

5.1 GOVERNMENT AND STARTUPS

Government support for startups is imperative for fostering innovation, driving economic growth, and
addressing societal challenges. Startups are often at the forefront of technological advancements,
disruptive ideas, and job creation, making them crucial contributors to a dynamic and thriving
economy. Here's why government support for startups is essential, how it can be facilitated, and
how startups can reciprocate support to the government.

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5.1.1 Why the Government Should Support Startups

Startups are engines of innovation and economic growth. They introduce novel solutions, products,
and services that address emerging market demands and societal needs. By nurturing startups, the
government can stimulate technological progress, enhance productivity, and create new job
opportunities.
Supporting startups fosters entrepreneurship and encourages risk-taking. Entrepreneurial ventures
drive competition, efficiency, and market dynamism, leading to improved consumer choice and lower
prices. Moreover, startups often pioneer disruptive technologies and business models that challenge
incumbent firms, spurring innovation across industries.

Government support for startups is essential for fostering inclusive economic development. Startups
have the potential to address pressing societal challenges, such as healthcare, education,
environmental sustainability, and poverty alleviation. By promoting startups focused on social
impact, the government can achieve both economic prosperity and social welfare objectives.
Startups contribute to the development of a robust ecosystem of innovation and entrepreneurship.
They attract talent, investment, and expertise, creating a virtuous cycle of knowledge spillovers and
collaboration. A thriving startup ecosystem enhances a country's competitiveness in the global
economy and attracts foreign investment and partnerships.

5.1.2 How Government Can Support Startups

Governments play a vital role in setting up the overall entrepreneurship mindset in the economy by
encouraging people to take risks and transform their ideas to scalable business. This happens
through multiple ways, which have been discussed below;
♦ Policy Frameworks: The government can create supportive policy frameworks that reduce
regulatory burdens, streamline bureaucratic processes, and provide incentives for startups.
Initiatives like tax incentives, grants, and subsidies can stimulate investment in startups
and incentivize innovation.
♦ Access to Funding: Facilitating access to finance is critical for startups' survival and
growth. The government can establish dedicated funding programs, venture capital funds,
and angel investor networks to provide capital to early-stage ventures. Moreover, initiatives
like loan guarantees and risk-sharing mechanisms can mitigate the inherent risks of
investing in startups.
♦ Infrastructure and Incubation Facilities: Developing incubators, accelerators, and
research parks can provide startups with essential resources, mentorship, networking

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opportunities, and access to state-of-the-art facilities. These infrastructure investments

create an enabling environment for startups to experiment, iterate, and scale their ventures.

♦ Skill Development and Capacity Building: Investing in human capital is essential for the
success of startups. The government can collaborate with educational institutions, industry
associations, and training providers to offer entrepreneurship education, skill development
programs, and capacity-building initiatives tailored to the needs of startups.
♦ Market Access and Networking: Facilitating market access is crucial for startups to
validate their products, acquire customers, and scale their businesses. The government
can organize networking events, trade fairs, and matchmaking platforms that connect
startups with potential clients, partners, and investors domestically and internationally.
♦ Intellectual Property Rights (IPR) Protection: Ensuring robust intellectual property rights
protection is essential for incentivizing innovation and attracting investment in startups. The
government can establish efficient patent offices, expedite patent examination processes,
and provide legal assistance to startups to protect their intellectual property assets.

5.1.3 How Startups Can Support the Government

Governments support Startups with a long term perspective of growing the consumer economy,
getting foreign funds and increasing the employment rate to fill the income disparity gaps. Startups
thus are an important consideration for any nation for the following reasons;
♦ Job Creation: Startups are significant contributors to job creation, particularly in sectors
such as technology, e-commerce, and services. By hiring skilled workers and generating
employment opportunities, startups alleviate unemployment, boost consumer spending,
and stimulate economic growth.
♦ Innovation and Technology Adoption: Startups drive innovation by developing new
products, services, and business models. By leveraging emerging technologies such as
artificial intelligence, blockchain, and biotechnology, startups can address complex
challenges and improve the efficiency and effectiveness of public services.
♦ Tax Revenue Generation: Successful startups generate tax revenue for the government
through corporate taxes, income taxes, and indirect taxes. As startups grow and expand
their operations, they contribute to the tax base, which can be reinvested in public
infrastructure, social programs, and economic development initiatives.
♦ Social Impact Initiatives: Many startups are committed to creating positive social and
environmental impact alongside financial returns. By addressing issues such as healthcare,

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education, clean energy, and poverty alleviation, startups can complement the
government's efforts to achieve sustainable development goals and improve societal
welfare.
♦ Partnership and Collaboration: Startups can collaborate with the government on various
initiatives, including public-private partnerships, innovation challenges, and technology
pilots. By leveraging the government's resources, expertise, and networks, startups can
accelerate their growth and scale their impact.
Compared to China's 94 million working-age population, India has 112 million individuals between
the ages of 20 and 24. The country's startup culture is accelerating due to the demographic dividend
and the lack of government jobs. India now boasts the third-largest startup ecosystem in the world
as of August 29, 2022, with over 77,000 DPIIT-recognized firms dispersed throughout 656 districts.
More jobs are being enabled by these startups than by larger businesses or corporations in the same
industry. Consequently, reducing the issues with unemployment in emerging countries like India

5.2 CENTRAL LEVEL INSTITUTIONS

Startup India Website Snapshot

Image Source : https://www.startupindia.gov.in/content/sih/en/about-startup-india-initiative.html

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I. Department for Promotion of Industry and Internal Trade (DPIIT)

The Department for Promotion of Industry and Internal Trade (DPIIT) is a crucial government agency
under the Ministry of Commerce and Industry, responsible for formulating and implementing policies
to promote industrial development, foreign trade, and internal trade in India. Established in 1995,
DPIIT plays a pivotal role in fostering a conducive environment for economic growth,
entrepreneurship, and innovation in the country.
DPIIT administers several schemes and initiatives aimed at supporting startups, promoting industrial
growth, and enhancing the ease of doing business in India. One of its flagship programs is the
Startup India initiative, launched in 2016 to nurture and accelerate the growth of startups across
various sectors. Under Startup India, DPIIT offers a range of benefits and incentives to startups,
including:
♦ Recognition and Certification: Startups can avail themselves of recognition under the
Startup India program, which provides various benefits, including eligibility for tax
exemptions, self-certification compliance, and access to government procurement
opportunities. DPIIT registered and recognized start ups also get credibility from entire
ecosystem as its now vetted and recognized by Government themselves.
♦ Startup India Hub: DPIIT operates the Startup India Hub, a single-point contact platform
for startups to access information, resources, and support services. The hub assists with
aspects such as business registration, funding opportunities, mentorship, and networking.
Start up India hub also nurtures incubators and accelerators for supporting start ups
♦ Funding Support: DPIIT facilitates access to funding for startups through various
channels, including the Fund of Funds for Startups (FFS) and credit guarantee schemes.
Startups can also benefit from venture capital funding, angel investment networks, and
financial incentives provided by the government. Government has various schemes where
they give grant upto 30 & 50 lacs INR depending on sector and once other conditions are
met. Cheaper loans as well as national banks, also banks like SIDBI support start ups by
providing cheaper credit
♦ Regulatory Reforms: DPIIT works towards simplifying regulatory processes and reducing
bureaucratic hurdles for startups and businesses. It aims to enhance the ease of doing
business in India by streamlining procedures related to company registration, intellectual
property rights (IPR) protection, environmental clearances, and labor laws compliance.
♦ International Collaboration: DPIIT promotes international collaboration and partnerships
to facilitate technology transfer, investment, and market access for startups. It fosters

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cooperation with foreign governments, organizations, and industry stakeholders to promote

innovation, entrepreneurship, and trade. Very recently Atal Mission did a joint project with
Australian based start ups for climate change innovation and technology. This is a cross
country initiative which not only solves climate change issue or helps in addressing it but
foster international collaboration and open doors for various such other initiatives between
two countries and nurtures international cooperation and relationship between international
communities
According to DPIIT, many startups have been recognized under the Startup India program, benefiting
from various incentives and support measures. Additionally, DPIIT's efforts have contributed to
India's rise in global rankings for ease of doing business, reflecting improvements in the regulatory
environment and business climate conducive to entrepreneurship and investment.
II. NITI Aayog
NITI Aayog, or the National Institution for Transforming India, serves as the premier policy think tank
of the Government of India, tasked with providing strategic and directional inputs across sectors to
facilitate sustainable development and economic growth. Established in 2015, NITI Aayog replaced
the erstwhile Planning Commission and has since played a crucial role in shaping India's
development agenda through evidence-based policymaking and innovative initiatives.
NITI Aayog houses several schemes and programs aimed at fostering innovation, entrepreneurship,
and inclusive growth, with a particular focus on supporting startups. One of its key initiatives in this
regard is the Atal Innovation Mission (AIM), launched to promote innovation and entrepreneurship
across the country. Under AIM, several schemes and programs are implemented to support startups:
♦ Atal Incubation Centers (AICs): AIM supports the establishment of Atal Incubation
Centers in academic institutions, research organizations, and industry clusters across
India. These incubators provide startups with infrastructure, mentorship, networking
opportunities, and access to funding to accelerate their growth and scale their ventures.
♦ Atal Tinkering Labs (ATLs): ATLs are innovation labs set up in schools across India to
foster creativity, problem-solving skills, and hands-on learning among students. These labs
provide students with access to tools, equipment, and mentorship to ideate, prototype, and
develop innovative solutions to real-world problems, nurturing the spirit of entrepreneurship
from a young age. These are launched at about 10,000 schools across the country to foster
and nurture innovation at a very young age
♦ Atal Community Innovation Centers (ACICs): ACICs are community-centric innovation
hubs established at the district level to promote grassroots innovation and

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entrepreneurship. These centers provide support to innovators, artisans, and

entrepreneurs from rural and semi-urban areas, enabling them to develop and
commercialize their ideas and products. Some of the community initiatives are to promote
authentic handicraft, helping sewing learning in villages & helping remote tribal to perofrm
art by supporting through tourism initatives
Startups participating in NITI Aayog's initiatives stand to benefit from various support measures and
incentives, including:
♦ Access to incubation facilities, mentorship, and technical assistance.

♦ Funding support through grants, seed capital, and venture debt.

♦ Exposure to potential investors, industry partners, and market opportunities.
♦ Networking events, workshops, and capacity-building programs.

♦ Recognition and visibility through national and international platforms.

III. Small Industries Development Bank of India (SIDBI)
The Small Industries Development Bank of India (SIDBI) is a principal financial institution wholly
owned by the Government of India, focused on promoting and financing small and medium
enterprises (SMEs) in the country. Established in 1990, SIDBI plays a crucial role in providing
financial assistance, support services, and developmental initiatives to startups, MSMEs (Micro,
Small, and Medium Enterprises), and other small-scale industries across various sectors.
SIDBI administers several schemes and programs specifically designed to cater to the funding needs
of startups and early-stage ventures. Some of the key schemes for startups include:
♦ SIDBI Startup Mitra Portal: The SIDBI Startup Mitra Portal is an online platform launched
to facilitate collaboration between startups and investors, mentors, incubators, and other
stakeholders. The portal serves as a one-stop destination for startups to showcase their
business ideas, connect with potential investors, access mentorship and advisory services,
and explore funding opportunities.
♦ SIDBI Make in India Soft Loan Fund for Micro, Small, and Medium Enterprises
(SMILE): SMILE is a dedicated scheme launched by SIDBI to provide soft loans to MSMEs,
including startups, for financing their project costs and capital expenditure requirements.
Under this scheme, eligible startups can avail of collateral-free term loans at concessional
interest rates, thereby easing their financial burden and facilitating business expansion.

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♦ SIDBI Venture Capital Fund for Startups (SVCF): SVCF is a venture capital fund
managed by SIDBI, aimed at providing equity and quasi-equity financing to startups across
various sectors. The fund supports startups at different stages of their lifecycle, from seed
stage to growth stage, by investing in promising ventures with high growth potential. SVCF
focuses on sectors such as technology, healthcare, renewable energy, and social
enterprises, contributing to innovation and entrepreneurship in India.
Startups availing of SIDBI's schemes and programs stand to benefit from various advantages and
support measures, including:

♦ Access to customized financial products and services tailored to their specific needs and
requirements.
♦ Flexible repayment terms, grace periods, and moratorium periods to ease financial
constraints and improve cash flow management.
♦ Mentoring, capacity-building, and skill development programs to enhance entrepreneurial
capabilities and business acumen.

♦ Networking opportunities, industry linkages, and market access support to facilitate

business growth and expansion.
IV. National Research Development Corporation (NRDC)
The National Research Development Corporation (NRDC) is a premier public sector enterprise
under the Ministry of Science and Technology, Government of India. Established in 1953, NRDC is
mandated to promote, develop, and commercialize indigenous technologies and innovations
originating from research institutions, universities, and laboratories across India. NRDC plays a
pivotal role in facilitating technology transfer, intellectual property management, and
commercialization of innovations to foster entrepreneurship and economic growth in the country.
NRDC administers several schemes and programs to support startups and entrepreneurs in
accessing and commercializing technologies. Some of the key schemes for startups include:
♦ Technology Business Incubator (TBI) Scheme: The Technology Business Incubator
(TBI) Scheme supports the establishment and operation of technology business incubators
in academic institutions, research organizations, and industry clusters. TBIs provide
startups with infrastructure, mentorship, funding, and networking opportunities to nurture
innovative ideas and transform them into commercially viable products and services.
♦ Entrepreneurship Development Program (EDP): NRDC conducts Entrepreneurship
Development Programs (EDPs) to impart training, skills, and knowledge to aspiring

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entrepreneurs and startup founders. These programs cover various aspects of

entrepreneurship, including business planning, market research, financial management,
and legal compliance, to equip startups with the necessary tools and capabilities to succeed
in the competitive business environment.
♦ Technology Transfer and Licensing: NRDC facilitates technology transfer and licensing
agreements between research institutions, inventors, and startups interested in
commercializing patented technologies and innovations. Startups can access a wide range
of technologies across sectors such as healthcare, agriculture, renewable energy, and
information technology, enabling them to develop innovative products and solutions for the
market.
Startups availing NRDC's schemes and programs stand to benefit from various advantages and
support measures, including:
♦ Access to cutting-edge technologies, intellectual property assets, and research expertise
to drive innovation and competitiveness.

♦ Assistance in technology evaluation, validation, and commercialization through

collaborative partnerships and licensing agreements.
♦ Funding support, grants, and venture capital investment opportunities to accelerate
business growth and scale operations.
♦ Mentoring, advisory services, and business development support to navigate the
challenges of entrepreneurship and build sustainable enterprises.
V. Indian Patent Office (IPO)
The Indian Patent Office (IPO) is the primary government agency responsible for granting patents
and trademarks in India. Administered by the Office of the Controller General of Patents, Designs,
and Trademarks (CGPDTM), under the Department for Promotion of Industry and Internal Trade
(DPIIT), the IPO plays a critical role in promoting innovation, protecting intellectual property rights
(IPR), and fostering economic growth in the country. DPIT has facilitated start ups by reducing cost
of filing a patent as well as ensuring even personnel support if required to file for a patent. This helps
nurturing start ups and helping them to get recognized by coming out and filing for their different
forms of patents

The IPO offers several schemes and initiatives specifically designed to support startups and
encourage innovation. Some of the key schemes for startups include:

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♦ Patent Facilitation Cell (PFC): It was established by the IPO to provide assistance and
guidance to startups and small entities in the patenting process. The PFC offers support in
patent filing, examination, prosecution, and maintenance, helping startups navigate the
complexities of the patent system and protect their inventions.
♦ Scheme for Facilitating Startups Intellectual Property Protection (SIPP): It aims to
promote innovation and entrepreneurship among startups by providing financial support for
filing and prosecuting patents, trademarks, and designs. Under this scheme, eligible
startups can avail of reimbursement of up to 80% of the patent filing fees and other
associated costs, reducing the financial burden of IP protection.
♦ Fast-Track Examination of Patents for Startups: The IPO offers a fast-track examination
process for patent applications filed by startups, allowing them to expedite the patent
granting process and obtain protection for their inventions more quickly. This initiative helps
startups accelerate their product development, enter the market faster, and secure a
competitive advantage.
Startups availing of IPO's schemes and initiatives stand to benefit from various advantages and
support measures, including:
♦ Enhanced protection of their intellectual property assets, enabling them to safeguard their
innovations, inventions, and brands from infringement and unauthorized use.
♦ Access to expedited examination and prosecution processes, reducing the time and
resources required to obtain patents and trademarks.

♦ Eligibility for government grants, funding opportunities, and tax incentives available
exclusively to startups with patented technologies and registered trademarks.
♦ Increased credibility and market visibility, as patents and trademarks signal innovation,
quality, and reliability to customers, investors, and business partners.
For further exploration, visit the official website links of the five institutions mentioned:
♦ Department for Promotion of Industry and Internal Trade (DPIIT): https://dipp.gov.in/
♦ NITI Aayog: https://niti.gov.in/
♦ Start up India (startupindia.gov.in)
♦ Small Industries Development Bank of India (SIDBI): https://www.sidbi.in/

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♦ National Research Development Corporation (NRDC): https://www.nrdcindia.com/

♦ Indian Patent Office (IPO): http://www.ipindia.nic.in/

5.3 STATE LEVEL INSTITUTIONS

Several state governments in India are actively supporting startups and entrepreneurship by
implementing policies, initiatives, and programs aimed at fostering a conducive ecosystem for
innovation and business growth. States like Karnataka, Maharashtra, Telangana, and Gujarat have
emerged as frontrunners in promoting entrepreneurship through dedicated startup policies,
incubation centers, funding schemes, and regulatory reforms. These states offer various incentives
such as financial assistance, tax exemptions, infrastructure support, and access to mentorship and
networking opportunities to startups.
Additionally, they facilitate collaboration between startups, academia, industry, and government
agencies to drive innovation and accelerate economic growth. Through proactive measures and
strategic interventions, these states are paving the way for the emergence and success of startups,
thereby contributing to job creation, wealth generation, and socio-economic development in their
respective regions.
Let us explore a comprehensive list of state level institutions and initiatives across India that are
promoting and supporting startups and entrepreneurs.
Andhra Pradesh Innovation Society (APIS) - Andhra Pradesh
APIS is a government initiative aimed at fostering innovation and entrepreneurship in Andhra
Pradesh. It provides support to startups through incubation, funding, mentorship, and networking
programs, contributing to the state's economic growth and development.

Website: https://www.startup.ap.gov.in/

Bihar Entrepreneurship Development Agency (BEDA) - Bihar

BEDA promotes entrepreneurship and facilitates the establishment and growth of startups in Bihar.
It offers various schemes, training programs, and financial assistance to aspiring entrepreneurs,
encouraging innovation and job creation in the state.

Website: https://www.beda.in/

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Chhattisgarh Innovation and Entrepreneurship Development Centre (CIEDC) - Chhattisgarh

CIEDC is a platform established to nurture innovation and entrepreneurship in Chhattisgarh. It
provides startups with incubation support, mentorship, access to funding, and market linkages,
fostering a conducive ecosystem for business growth and innovation.

Website: https://www.ciedc.in/

Goa Startup Promotion Cell (SPC) - Goa

SPC is dedicated to promoting startup culture and supporting entrepreneurship in Goa. It offers
assistance in business registration, access to funding, networking opportunities, and capacity-
building programs to empower startups and drive economic diversification in the state.

Website: https://www.goa.gov.in/goa-startup-promotion-cell/

Haryana Enterprise Promotion Board (HEPB) - Haryana

HEPB aims to facilitate the growth of startups and MSMEs in Haryana through policy support,
infrastructure development, and investment promotion. It provides a conducive environment for
business establishment and expansion, fostering innovation, employment generation, and industrial
development.

Website: https://www.investharyana.in/

Himachal Pradesh Startup Accelerator (HPSA) - Himachal Pradesh

HPSA is a government initiative to promote entrepreneurship and innovation in Himachal Pradesh.
It offers incubation, mentorship, funding, and networking support to startups, leveraging the state's
strengths in sectors such as tourism, agriculture, and renewable energy.

Website: https://hpsa.hp.gov.in/

Jammu and Kashmir Entrepreneurship Development Institute (JKEDI) - Jammu and Kashmir
JKEDI fosters entrepreneurship and economic development in Jammu and Kashmir through training,
skill development, and financial assistance programs. It empowers aspiring entrepreneurs,
especially youth and women, to start and scale their ventures, contributing to the state's socio-
economic progress.

Website: https://www.jkedi.org/

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Jharkhand Innovation Lab (JIL) - Jharkhand

JIL is an initiative to promote innovation and startup ecosystem in Jharkhand. It provides support to
startups through incubation, mentorship, funding, and market access, driving economic growth, and
job creation in the state.

Website: https://jharkhandinnovationlab.org/

Karnataka Innovation and Technology Society (KITS) - Karnataka

KITS promotes innovation and technology development in Karnataka through various initiatives and
programs. It supports startups with funding, infrastructure, mentorship, and policy advocacy,
positioning Karnataka as a leading destination for startups and innovation-driven enterprises.

Website: https://www.kits.karnataka.gov.in/

Madhya Pradesh Laghu Udyog Nigam Limited (MPLUN) - Madhya Pradesh

MPLUN facilitates the growth of startups and MSMEs in Madhya Pradesh through infrastructure
development, financial assistance, and policy support. It promotes entrepreneurship and
industrialization in the state, contributing to job creation and economic prosperity.

Website: https://www.mplun.mp.gov.in/

Meghalaya Institute of Entrepreneurship (MIE) - Meghalaya

MIE is dedicated to promoting entrepreneurship and skill development in Meghalaya. It offers
training programs, workshops, and financial assistance to aspiring entrepreneurs, facilitating the
establishment and growth of startups in the state.

Website: http://megipr.gov.in/

Manipur Startups - Manipur

Manipur Startups is an initiative aimed at nurturing the startup ecosystem in Manipur. It provides
incubation support, mentorship, networking opportunities, and access to funding to promote
innovation and entrepreneurship in the state.

Website: https://manipurstartups.in/

Nagaland Startup Policy - Nagaland

Nagaland Startup Policy aims to create a conducive environment for startups and entrepreneurs in
Nagaland. It offers incentives, support services, and infrastructure development initiatives to foster
a vibrant startup ecosystem and drive economic growth.

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Website: https://www.nagaland.gov.in/portal/

Punjab Bureau of Investment Promotion (PBIP) - Punjab

PBIP promotes investment and entrepreneurship in Punjab through policy advocacy, infrastructure
development, and investor facilitation services. It supports startups with financial incentives,
regulatory assistance, and access to markets, contributing to industrial development and job creation
in the state.

Website: https://investpunjab.gov.in/

Sikkim Organic Mission Agency (SOMA) - Sikkim

SOMA promotes organic farming and agribusiness entrepreneurship in Sikkim. It offers support to
startups and farmers engaged in organic agriculture through training, certification, marketing
assistance, and financial incentives, driving sustainable development in the state.

Website: https://sikkimorganicmission.gov.in/

Tripura Industrial Development Corporation Limited (TIDC) - Tripura

TIDC facilitates industrial development and entrepreneurship in Tripura through infrastructure
development, financial assistance, and policy support. It promotes startups and MSMEs by providing
incentives, skill development programs, and market linkages, fostering economic growth and
employment generation.

Website: https://tidc.in/

Uttarakhand Startup Policy - Uttarakhand

Uttarakhand Startup Policy aims to promote innovation and entrepreneurship in Uttarakhand. It
offers incentives, infrastructure support, and capacity-building programs to startups and
entrepreneurs, encouraging investment and job creation in the state.

Website: https://www.startuputtarakhand.com/

West Bengal Industrial Development Corporation (WBIDC) - West Bengal

WBIDC facilitates industrial development and investment promotion in West Bengal. It supports
startups and MSMEs with infrastructure, financing, and business facilitation services, driving
economic growth and industrialization in the state.

Website: https://www.wbidc.com/

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Arunachal Pradesh Industrial Development and Financial Corporation (APIDFC) - Arunachal

Pradesh

APIDFC promotes industrial development and entrepreneurship in Arunachal Pradesh. It provides

financial assistance, infrastructure support, and advisory services to startups and MSMEs, fostering
economic diversification and employment opportunities in the state.

Website: https://arunachalpradesh.gov.in/

Mizoram Kailawn (MK) - Mizoram

Mizoram Kailawn (MK) is an initiative to promote entrepreneurship and sustainable development in
Mizoram. It offers support to startups and small businesses through training, financial assistance,
and market linkages, contributing to socio-economic empowerment and growth in the state.

Website: https://www.mizoram.gov.in/

Uttar Pradesh Startup Policy

Description: The Uttar Pradesh Startup Policy aims to create a conducive ecosystem for startups
and entrepreneurship in the state. It provides various incentives, support services, and infrastructure
development initiatives to promote innovation, job creation, and economic growth. The policy
focuses on sectors such as IT/ITES, biotechnology, electronics, agriculture, and renewable energy.
It offers benefits such as financial incentives, tax exemptions, subsidized land and office space,
regulatory support, and access to funding and mentorship programs. Additionally, the policy
facilitates collaboration between startups, academia, industry, and government agencies to drive
innovation and foster a vibrant startup ecosystem in Uttar Pradesh.

Website: https://www.startup.up.gov.in/

Madhya Pradesh Laghu Udyog Nigam Limited (MPLUN)

Description: Madhya Pradesh Laghu Udyog Nigam Limited (MPLUN) is a state-level institution that
facilitates the growth of startups and MSMEs in Madhya Pradesh. It provides various support
services, financial assistance, and infrastructure facilities to entrepreneurs and small businesses.
MPLUN helps in project identification, preparation of project reports, obtaining approvals and
clearances, and access to finance through banks and financial institutions. It also provides
incubation support, marketing assistance, and skill development programs to startups and MSMEs.
MPLUN plays a crucial role in promoting entrepreneurship, industrialization, and job creation in
Madhya Pradesh, contributing to the state's socio-economic development.

Website: https://www.mplun.mp.gov.in/

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Start up Gujarat (startup.gujarat.gov.in)

Startups and Innovation play a key role in economic growth. Besides generating jobs, they focus on
smarter, gen-next solutions which bring economic dynamism by bringing in innovation and spurring
competition. Gujarat, owing to its inherent strength of widespread entrepreneurial spirit has gained
a significant spot in the national startup ecosystem. The incentives to Startups under the Gujarat
Industrial Policy 2015 have supported in creating a strong network of nodal institutions and several
startups have expanded their operations/products both at national and international level. The key
objective of the Gujarat Industrial Policy 2020 is to encourage R&D, start innovation and
entrepreneurship. Hence, the new scheme is being introduced in order to support startups and
innovation at different levels of a startup cycle.
Startup JK: Innovation Initiative by J&K
StartupJK is a one of its kind online platform for all stakeholders of the startup ecosystem in J&K,
including startups, investors, mentors, incubators, accelerators, aspiring entrepreneurs, service
providers and government bodies. It not only provides an opportunity to connect with other members
of the ecosystem but also gives access to important resources such as its Learning & Development
program, information about relevant Government Schemes, a Forum to brainstorm and discuss,
News and Blogs among others.

5.4 OTHER AGENCIES AND INDUSTRY ASSOCIATIONS

External agencies and associations play a crucial role in supporting startups and entrepreneurs
throughout their journey by providing various resources, guidance, and networking opportunities.
These entities often offer mentorship programs, where experienced professionals provide valuable
insights and advice to startups, helping them navigate challenges and make informed decisions.
Additionally, external agencies facilitate access to funding through venture capital firms, angel
investors, and government grants, enabling startups to raise capital for business development and
expansion. Associations also provide platforms for networking and collaboration, allowing startups
to connect with potential partners, customers, and mentors within their industry.
Moreover, these entities often advocate for the interests of startups by lobbying for favorable
policies, regulatory reforms, and incentives that promote entrepreneurship and innovation. By
leveraging the support of external agencies and associations, startups and entrepreneurs can
access the resources and opportunities needed to overcome obstacles, grow their businesses, and
achieve success in their ventures.

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Some of the most prominent associations in India are:

♦ Confederation of Indian Industry (CII): CII is one of India's premier business
associations, representing a wide spectrum of industries and sectors. It plays a key role in
advocating policy reforms, promoting economic growth, and facilitating business
networking and collaborations.

♦ Federation of Indian Chambers of Commerce and Industry (FICCI): FICCI is another

leading industry association in India, focusing on policy advocacy, trade promotion, and
fostering entrepreneurship. It works closely with the government and private sector to
address economic issues and enhance business opportunities.
♦ Associated Chambers of Commerce and Industry of India (ASSOCHAM): ASSOCHAM
is a prominent industry body that serves as a catalyst for economic development, trade
promotion, and industrial growth. It provides a platform for networking, advocacy, and
knowledge sharing among businesses and policymakers.
♦ National Association of Software and Service Companies (NASSCOM): NASSCOM is
the premier trade association for the IT and IT-enabled services industry in India. It
represents the interests of software companies, startups, and technology firms, advocating
for policy initiatives and promoting India as a global IT hub.
♦ Indian Angel Network (IAN): IAN is one of the largest angel investor networks in India,
comprising successful entrepreneurs and business leaders who invest in early-stage
startups. It provides funding, mentorship, and strategic support to startups across various
sectors.

5.4.1 Key Initiatives from Indian Associations

ASSOCHAM and FICCI have been extremely active in the Indian Startup Ecosystem, providing
support in all aspects of an entrepreneur's journey from Zero to One.

ASSOCHAM has been actively involved in supporting startups and fostering entrepreneurship
through various initiatives aimed at promoting innovation, providing mentorship, facilitating funding,
and advocating for policy reforms. Some key initiatives include;
♦ Startup Launchpad: ASSOCHAM's Startup Launchpad program provides a platform for
startups to showcase their innovations, products, and services to potential investors,
customers, and collaborators. It offers networking opportunities, pitch sessions, and
mentorship to help startups connect with industry experts and accelerate their growth.

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♦ Startup Acceleration Program: ASSOCHAM's Startup Acceleration Program offers

mentorship, training, and capacity-building workshops to early-stage startups. It focuses
on enhancing entrepreneurial skills, refining business strategies, and preparing startups for
investment readiness, thereby increasing their chances of success in the competitive
market.
♦ Policy Advocacy: ASSOCHAM actively engages with policymakers and government
authorities to advocate for policy reforms that support the growth of startups and ease
regulatory hurdles. It represents the interests of startups in areas such as taxation,
intellectual property rights, ease of doing business, and access to finance, influencing
policy decisions to create a more favorable environment for entrepreneurship.
♦ Incubation and Co-working Spaces: ASSOCHAM collaborates with incubators,
accelerators, and co-working spaces to provide infrastructure support to startups. It
facilitates the establishment of incubation centers, innovation labs, and startup hubs,
offering startups access to workspace, mentorship, funding opportunities, and networking
events.
Through these initiatives, ASSOCHAM aims to nurture a vibrant startup ecosystem in India,
catalyzing innovation, job creation, and economic growth.
FICCI (Federation of Indian Chambers of Commerce and Industry)
FICCI has been at the forefront of supporting startups and fostering entrepreneurship through
various initiatives aimed at capacity-building, mentorship, access to funding, and policy advocacy.
Some key initiatives include;
♦ Startup Accelerator Program: FICCI's Startup Accelerator Program provides intensive
mentoring, training, and networking opportunities to early-stage startups. It focuses on
enhancing entrepreneurial skills, refining business models, and connecting startups with
investors, mentors, and industry experts to accelerate their growth trajectory.
♦ Investor Connect Platform: FICCI's Investor Connect Platform facilitates matchmaking
between startups and investors, enabling startups to pitch their ideas and secure funding.
It provides a platform for startups to showcase their innovations, meet potential investors,
and access capital to scale their ventures.

♦ Startup Policy Advocacy: FICCI actively engages with policymakers, regulators, and
government authorities to advocate for policy reforms that support the startup ecosystem.
It recommends measures to ease regulatory burdens, streamline taxation, improve access

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to finance, and foster innovation, influencing policy decisions to create a more conducive
environment for entrepreneurship.

♦ Startup Conclaves and Summits: FICCI organizes startup conclaves, summits, and
industry events to facilitate knowledge exchange, networking, and collaboration among
startups, investors, corporates, and government agencies. These events provide a platform
for startups to showcase their innovations, learn from industry leaders, and explore
business opportunities.
Through these initiatives, FICCI aims to empower startups, drive innovation, and contribute to India's
economic growth and competitiveness on the global stage.

5.4.2 Angel Networks

Angel networks are groups of individual investors who pool their resources to invest in early-stage
startups. These investors, known as angel investors, typically provide seed funding, mentorship, and
strategic guidance to startups in exchange for equity ownership in the company. Angel networks
play a crucial role in supporting entrepreneurship and innovation by providing capital and expertise
to startups at a critical stage of their development.
Let us learn about how angel networks work and how they support startups;
♦ Membership: Angel networks consist of accredited investors who have the financial means
and expertise to invest in startups. These individuals may include successful
entrepreneurs, business executives, professionals, and high-net-worth individuals
interested in supporting early-stage ventures.
♦ Deal Sourcing: Angel networks actively scout for promising startup opportunities through
various channels, including referrals from members, pitch events, incubators, accelerators,
and industry networks. They evaluate potential investment opportunities based on factors
such as market potential, team strength, innovation, scalability, and revenue potential.

♦ Due Diligence: Once a startup is identified, angel networks conduct thorough due diligence
to assess the viability and investment potential of the opportunity. This process involves
evaluating the startup's business model, market opportunity, competitive landscape,
intellectual property, financials, and team credentials. This is where there is a huge
opportunity lying for professionals. Many starts ups are brilliant in idea but lack professional
skills for execution. Compliance, deal making, due diligence, tax & other compliance,
structuring of deal are some of the areas where as a professional there is a huge scope
and the industry as it grows provides lots of opportunities.

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♦ Investment: If the startup passes the due diligence process and meets the investment
criteria, angel investors from the network collectively invest capital in the startup in
exchange for an equity stake. Angel investments typically range from tens of thousands to
a few hundred thousand dollars, providing startups with the initial funding needed to
develop their products, validate their business models, and scale their operations.
♦ Mentorship and Support: In addition to capital, angel investors provide mentorship,
guidance, and industry connections to startups, leveraging their expertise and networks to
help founders navigate challenges, make strategic decisions, and accelerate growth. They
may offer advice on product development, market strategy, fundraising, team building, and
business development, contributing to the success of the startup.
Some examples of successful startups in India that have benefited from angel investor support
include:
Flipkart: India's leading e-commerce platform, founded by Sachin Bansal and Binny Bansal,
received early-stage funding from angel investors such as Accel Partners and Tiger Global
Management, among others.
Ola Cabs: One of India's largest ride-hailing platforms, founded by Bhavish Aggarwal and Ankit
Bhati, received angel investment from investors including Rehan Yar Khan, Anupam Mittal, and
others.
Paytm: India's leading digital payments and financial services platform, founded by Vijay Shekhar
Sharma, received early-stage funding from angel investors such as SAIF Partners and Silicon Valley
Bank.
These startups have grown into successful unicorns, valued at billions of dollars, with the initial
support and backing of angel investors who believed in their vision and potential.
5.4.2.1 Identifying some active Angel Network
Angel investing networks have witnessed significant growth in India in recent years, fueled by a
thriving startup ecosystem, increased entrepreneurial activity, and rising investor interest in early-
stage ventures. Angel investors play a crucial role in providing seed funding, mentorship, and
strategic support to startups, helping them overcome initial challenges and scale their businesses.
These networks comprise high-net-worth individuals, successful entrepreneurs, and industry experts
who come together to invest in promising startups and share their knowledge and expertise with
founders.

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The growth of angel investing networks in India can be attributed to several factors, including
favorable regulatory reforms, greater access to capital, and the emergence of online platforms
facilitating angel investments. Moreover, the success stories of unicorns and high-growth startups
have attracted more investors to the asset class, driving interest and participation in angel investing.
Additionally, the proliferation of incubators, accelerators, and co-working spaces has created
opportunities for startups to connect with angel investors and access funding, further fueling the
growth of angel investing networks in India. As the startup ecosystem continues to mature and
evolve, angel investing networks are expected to play an increasingly vital role in supporting
innovation, fostering entrepreneurship, and driving economic growth in the country.

Some of the most active and prominent angel networks in India are:

♦ Indian Angel Network (IAN)

Indian Angel Network (IAN) is one of the largest and most active angel investor networks in
India. Founded in 2006, it comprises successful entrepreneurs, industry leaders, and
investors who provide funding, mentorship, and strategic support to early-stage startups. IAN
focuses on investing in high-potential startups across various sectors, including technology,
e-commerce, healthcare, and fintech. It leverages its extensive network, domain expertise,
and operational experience to identify and nurture promising startups, helping them scale and
succeed in the competitive market.
Notable Investments
 Flipkart
 Myntra
 Druva
 Box8
 Stayzilla
♦ LetsVenture
LetsVenture is a leading online platform that connects startups with investors, facilitating
fundraising and angel investments. Founded in 2013, LetsVenture enables startups to raise
capital, manage investor relations, and access mentorship and advisory services. It caters to
startups across diverse sectors, including technology, consumer goods, healthcare, and
finance. LetsVenture focuses on democratizing access to capital for startups and simplifying

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the fundraising process through its digital platform, thereby fostering entrepreneurship and
innovation in India.

Notable Investments
 Innov8
 ShareChat
 DailyNinja
 BharatPe
 Meesho
♦ Venture Catalysts
Venture Catalysts is one of the largest integrated incubators and early-stage investment
networks in India. Established in 2015, it provides funding, mentorship, and infrastructure
support to startups, helping them navigate the challenges of entrepreneurship and accelerate
growth. Venture Catalysts focuses on investing in disruptive startups with scalable business
models across sectors such as technology, consumer internet, healthcare, and fintech. It
aims to catalyze innovation, drive economic growth, and create value for investors and
startups alike.
Notable Investments

 BharatPe
 CoinDCX
 Innov8
 Oyo Rooms
 Purplle
♦ 500 Startups (500 Durians in India)
500 Startups, also known as 500 Durians in India, is a global venture capital firm and startup
accelerator that invests in early-stage startups worldwide. Founded in 2010, it operates a
seed fund and accelerator program focused on investing in promising startups across diverse
sectors, including technology, e-commerce, education, and healthcare. 500 Startups provides
funding, mentorship, and access to a global network of investors, entrepreneurs, and industry
experts, empowering startups to scale and succeed in their markets.

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Notable Investments
 Innov8
 Ziploan
 Little Black Book (LBB)
 HealthifyMe
 Unacademy
♦ Kae Capital

Kae Capital is a leading early-stage venture capital firm based in India. Founded in 2011, it
invests in high-growth startups across sectors such as technology, consumer goods,
healthcare, and financial services. Kae Capital provides seed and pre-series A funding to
startups, along with mentorship, strategic guidance, and access to its extensive network of
investors and industry partners. The firm focuses on backing passionate founders with
innovative ideas and scalable business models, aiming to generate attractive returns for its
investors while supporting the growth of disruptive startups in India.
Notable Investments
 Groww
 Vedantu
 Healthkart
 Blue Tokai Coffee
 NoBroker

SUMMARY
Governments across the developing nations have realized the importance of entrepreneurship and
the benefits it adds to the overall economy. India specifically has been on the forefront of supporting
startups and entrepreneurs irrespective of the size, scalability, and stature of the idea and people,
and thus, central and state institutions in almost all states have been passionately creating avenues
for risk taker and dreamers ro come forward, experiment and get funding and operational support
from the government. Since 2010, even external associations and private investors groups, angel
investors, have been actively and rather competitively promoting and supporting the startup
ecosystem of the country. Last decade has been a rollercoaster of wins and losses for the
ecosystem, and with the support that it has generated the coming decade would be nothing less
than a global playground for entrepreneurs in India.

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TEST YOUR KNOWLEDGE

Multiple Choice Questions (MCQs)

1. Jaymin was searching online for support for his business idea of using the food waste from
restaurants to make natural fertilizers and then sell them to affluent customers who own
kitchen gardens. His friend, Jayati, asked him to read about government initiatives that could
be of help. Jayati also told him about how the government has been actively sponsoring young
individuals. Which of the following options would not align with Jayati’s explanation about
government’s support to Startups?
(a) Government provides Infrastructure and Incubation Facilities
(b) Government provides Skill Development and Capacity Building

(c) Government provides Talent Access to build Technical Teams

(d) Government provides Intellectual Property Rights (IPR) Protection
2. Which of the following is not an Angel Networks active in India?
(a) Esther Ventures
(b) Venture Catalysts
(c) 500 Startups

(d) Kae Capital

3. Srinivasan, a UPSC aspirant was asked in the mock interview about the increasing interest
of angel investors in India. Which of the following statements would not favor this statement
from the interviewer?
(a) Favorable regulatory reforms have increased angel investing avenues
(b) Greater access to high interest rate capital for affluent Indians and RBI regulated NRI
repatriation has lead to looking back to India as the next big bet
(c) The emergence of online platforms has been facilitating angel investments
(d) The success stories of unicorns and high-growth startups have attracted more
investors to this asset class

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4. Pulkita was struggling to find a working space for her 15 member team when she was
consulted about Incubation and co-working spaces that were funded and provided at
subsidized rates, if her startup was to gather interest from the right people. Which of the
following provide such support to promising startups?
(a) State Governments

(b) Central Government

(c) Co-founders of the Startups
(d) External Associations like ASSOCHAM, FICCI, etc

5. Zorbing, a digital gaming company, was seeking some support from the central government
which could help them gain speed in launching in the market, and getting a fair competitive
advantage. They essentially were looking at institutions that could help startups accelerate
their product development, enter the market faster, and secure a competitive advantage.
Which institution would best suit their support needs?
(a) NITI Aayog
(b) Indian Patent Office (IPO)
(c) Small Industries Development Bank of India (SIDBI)
(d) National Research Development Corporation (NRDC)

Answers to Multiple Choice Questions (MCQs)

1. (c) 2. (a) 3. (b) 4. (d) 5. (b)

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