Saturday, January 16, 2016

What #Government should do for #StartupIndia : Expert Comments

Government should make the necessary changes in the company laws to make incorporating startups, fund raising, issuing sweat equity etc. a lot more easier so that entrepreneurs can focus on running the business than spending time with consultants and lawyers.

Reliable, fast Internet and ubiquitous mobile connectivity are the basic necessity for our startups to build compelling value propositions for the global audience. It is imperative that government helps & enforces telecom operators and ISPs to provide quality services.
Giving incentive to citizens for using digital means of reaching out to government departments and making payments digitally can go a long way in reducing corruption and increasing the efficiency of the economy. Many advanced countries have in the past offered such discounts to boost digital payments at retailers and these measures have helped them earn great economic dividends later on.

Sony Joy, Founder and CEO of Chillr, a mobile app for peer-to-peer and peer-to-merchant payment.

The new policy, we not only expect the government to ease the regulatory compliance, but also exempt the startups from the taxes imposed by the central and state government. A change in tax regulation can boost further investments into the startup segment. Besides, we are also hopeful about the government announcing some concrete measures to deal the skilled labor crisis that exists in India. This will give a new dimension to employment where more and more jobs will be generated. Energetic, Highly skilled and multi talented youths of the country will be benefitted .The initiative will lead towards new businesses or innovative projects and it will directly prove much helpful in improving the economic growth of the country and career growth of the youths. India being a country of youths, needs a change, this can certainly be the best change one can see. Such campaign suits Indian conditions and will assist at all levels.

Rohit Aggarwal, CEO,Founder, Koenig Solutions,Koenig is an authorized training partner of Microsoft, Cisco, Oracle, VMware, Red Hat and others.

It is encouraging to see the kind of attention the startup community is getting from the central government. It re-instills faith in the path many of us (entrepreneurs) have chosen. I'm confident the government will play a significant role to support the ecosystem, and help us build truly world class 'Made in India' companies. With introduction of self certification compliance and easier patent laws, entrepreneurs will be able to spend more mind-space on innovation. The move to make exits simpler is also encouraging and will encourage more risk taking and hence, disruption.

Rajiv Srivatsa, Founder, Chief Operating Officer, Urban Ladder

Through the 'Start Up India, Stand Up India' initiative, we expect our government to simplify all these processes and make it easier for the start-up community to not only set up but also scale up their business. Our Government should  also encourage micro-entrepreneurship by investing and dedicating an exclusive fund for entrepreneurs apart from the one’s provided by the VCs and angel investors. Furthermore, the government should address the challenges faced by start-up companies and set up proper compliance and redressal forums for addressing these issues. Any start is a good start.
Ms. Ankita Tandon, Chief Operating Officer, CouponDunia

Majority of the startups and e-commerce companies rely heavily on external sources of funding however, such funding’s are only available from key foreign players. Presently investment by Indian players in the startups and e-commerce industry is at a very superficial level and Indian banks and financial institutions need to be encouraged to participate in funding of startups.. This step will facilitate the wealth created by such startups and e-commerce companies to stay in the Indian economy. The Indian laws particularly for listed entities are impossible for any startups to get listed on Stock Exchanges.  It is also impossible for an entrepreneur to take the stock in his Company through Sweat Equity because of the existing tax laws which are taxing Sweat Equity upfront by considering it as “deemed income”.  They must make sure that tax laws are amended for entrepreneurs/technocrats to own substantial percentage of the company by virtue of Sweat Equity and ESOP’s but not taxed upfront.

Ameen Khwaja, Founder & CEO,

Startup ecosystem is at a low with the numerous layoffs and unplanned hiring. Stability and long term planning will be a focus area for startups in 2016. The ecosystem will need to realign talent and work on attracting new talent. Support systems for startups and incubation will increase, average valuations seem set to increase but funding will be far more cautious then in the past year. Product based startups will show growth as will Logistics, utility services, lifestyle.

Ambika Sharma, Founder, Instappy, a startup launched in September, 2015; A Cloud based platform developing Native apps on Android and iOS in less than 60 minutes. 

The government initiative should be to promote all round entrepreneurial development in support to start-up ventures that comes from different diversified fields which is huge in numbers; especially when we talk about agriculture, food and clean energy. Also, banks are not taking position to support early stage projects hence only areas of interest to VCs/ PVT Equity are seeing growth in startup’s. If government ensures a frictionless access to early stage capital to young entrepreneurs, we will see many more startup’s in areas of priority for country's overall development.

In the payment sector we have seen a lot of development and government support. There are lot of other sectors which are open and need entrepreneurial and equity support.

Sanjay Krishna Goyal, CEO & Founder ACL Mobile