What India can take away from UK’s startup-friendly policies
There’s a reason why Indians prefer to start their businesses in foreign countries like the UK and
. Owing to some of the most flexible policies they have in place, these countries offer just the perfect start—up the friendly environment to budding entrepreneurs from around the world.
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It’s no surprise then to see how these regions have become start-up hotbeds in a matter of few years. This is not to say that India lags far behind.
2015 report defines us as the country with the third biggest start-up ecosystem. We certainly have got some things right, but there’s a reason why US and UK remain ahead of us and it’s a lot to do with the kind of government framework they have for start-ups.
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To put things in perspective, we are comparing India’s startup policies with the U.K in this article to see what are the areas we lack in, and how we can make up to become the country with the biggest startup ecosystem:
Launch: Jan, 2016
The Government of India had announced 'Startup India' initiative for creating a conductive environment for startups in India. The initiative was launched by the Prime Minister on January 16 2016, which is exactly a year back.
There are different components of the policy:
1) There is a clear cut definition of startup.
2) There is an Action Plan for startup which provides different institutional arrangements for support of startups. Procedure for obtaining startup license is elaborately mentioned.
3) The role of incubators, angel funds and venture capital funds are also illustrated under the Action Plan.
4) There is the tax incentives for startups and the government has established several funds with its own money for extending financial support to start-ups. Startup Britain
Launch: March, 2011
StartUp Britain is a national campaign by entrepreneurs for entrepreneurs, harnessing the expertise of Britain’s leading businesspeople to encourage enterprise in the UK.
The campaign was founded by eight entrepreneurs and launched by Prime Minister David Cameron, with the support of the Chancellor and HM Government, although it is completely funded by private-sector sponsors.
In the long-term, issues like regulation, net neutrality, and data protection are top of the agenda to encourage innovation for U.K.
There are different components of their startup policy:
1. £400m injection to help start-ups become scale-ups
2. Supporting management skills for businesses
3. National Productivity Investment Fund
4. Doubling UK export finance capacity Funds allocated.
The U.K. gov is launching a £23bn National Productivity Investment Fund (NPIF) to provide major additional spending to specific areas to boost productivity: transport, digital communications, research and development (R&D), and housing.
Rs. 10,000 Cr. Worth of fund of funds.
Impact: Startup Britain
Impact: Startup Britain
1) The National Living Wage will increase to £7.50 an hour.
2) The Higher Education and Research Bill, a piece of legislation currently floating before Parliament, could grant providers “the same powers from the day they launch for a three-year probationary period,” compared to a process that previously took up to six years.
3)Entrepreneurs are starting new companies at a record pace of 80 an hour, according to data collected this year. Impact: Startup India
Impact: Startup India
According to the Start up India statistics:
1) 84 start ups benefitted in terms of patent filing and IPR protection with 80 per cent rebate given in filing.
2) According to reports, last month, Ramesh Abhishek, Secretary DIPP said Short-listing of first set of incubators in the 100 new incubators proposed had been done, he said these would be outcome based incubators.
3) He also said there had been progress on tinkering labs. “500 is the target, 50 are already approved,” he said pointing out that the government had earmarked ₹50 lakh over three years for same.