Government to set up startup network to support young entrepreneurs

NEW DELHI: The Modi government is creating an ecosystem for supporting young entrepreneurs through a formal network of incubators, accelerators and mentors that would help set up, grow and stabilise new businesses, with an emphasis on social enterprises and commercial adaptation of grass-root level innovations.

The network that would include institutions like the IIMs, IITs, Indian Institute of Science, research parks and industry bodies, is being steered by the Ministry of Skill Development and Entrepreneurship as a ‘high-impact scheme’ to spur job creation.

"We will have a workforce of billion persons by 2030 with a million persons entering the job market every month. While skill development is critical, it won’t translate into enough employment unless existing firms grow and many new enterprises come up," a senior government official told ET.

The Indian economy is currently creating only 5.5 million organised sector jobs a year, resulting in a burgeoning demand for jobs that are non-existent, he pointed out.

The ministry is exploring tie-ups with Ahmedabad-based Entrepreneurship Development Institute of India (EDII) and US-based non-profit, Wadhwani Foundation, both of which have extensive expertise on the subject.

The National Skills Development Corporation and industry chambers like CII and FICCI are also likely to partner the startup network.

The new startup network would also bring on board existing entrepreneurship promotion initiatives such as the National Science & Technology Entrepreneurship Development Board (set up in 1982 under the Ministry of Science and Technology) and the National Institute for Entrepreneurship and Small Business Development under the aegis of the Ministry of Micro, Small & Medium Enterprises.

While social enterprises (read forprofit, but socially responsible businesses) would also be encouraged by the proposed startup network, a partnership is also being put in place for commercialising grass-root level innovations.

"We will work with the National Innovation Foundation to support and scale-up grass-root innovations and idea. New technologydriven startups will get a platform of incubation, mentoring and assistance," the official said, adding that they are consulting state governments on these plans to boost entrepreneurship.

According to the ministry, the Wadhwani Foundation trains and backs over 100,000 aspiring student entrepreneurs at 500 colleges in India and has over 7,300 mentors and trainers. The EDII, which is an autonomous not-for-profit institute, has developed over 20,000 entrepreneurs and has 3,000 trainers in its institutional network.