While everyone is claiming that India is changing with its newfound love for entrepreneurship; it is entrepreneurs who are feeling the heat with funds drying up and rising operational costs. But it is also true that starting a business was never this easy like it is now. As the Ministry of Corporate Affairs has rolled out SPICe or form INC 32 from January 2017 where in with a single application, a company can reserve its name, incorporate the organization and can apply for allotment of DIN. Such initiatives are like a whiff of fresh air in the startup ecosystem of Indian business landscape, yet the pertinent question is and will always be about capital and funds.
Money begets money. With more funds, a business is able to pull more funds. But for a newbie in the business scene, it’s a vicious cycle. Lack of funds means cutting down on operational cost and resources which ultimately tones down the final product or service.
India is thriving destination for angel investors worldwide. Indian startup community boasts of $20 billion worth of venture capital and private equity money. On the other hand, if we see Indian Angel Network – with its odd 450 members; the investment is just around 100 crores and that’s about in 30 -40 enterprise. Which is why, Initiatives from Government of India like SIDBI India Aspiration Fund which is a fund of funds that invests in venture capital funds viz. those which invests at least 50 % of the fund corpus in MSMEs including early stage enterprises. Out of these funding exercises, SIDBI contributes around 10 to 15% of the venture capital fund corpus.
Apart from it, there are so many options that a budding entrepreneur can consider:
To know more about funding and other government benefits for your business, visit www.filingenie.com