Entrepreneurship Ecosystem Overview

Haryana

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Levers of change – Entrepreneurship

Following are the key levers of change which determinewhether a state’s policy, education, legal framework, financialsystems, business markets, cultural and social ethos areaugmenting Entrepreneurship Growth:

1. The Entrepreneur

2. Govt. & Regulatory Support

3. Access to Finance

4. Educational & Cultural Preparedness

5. Mentoring & Networking

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The Entrepreneur

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Haryana ranks #3 in‘Ease of Doing Business’ 2017-18 index

according to the Department of Industrial Policy and Promotion's (DIPP).It has improved from being on rank 6 in 2016.

The State ranks first in North India in EoDB like previous year.

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Govt. & Regulatory Support

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Schemes & Policies:

• Development of Special Economic Zones• Haryana Skill Development Mission

Facilitating Organizations

• Haryana Enterprise Promotion Board (HEPB)• Haryana State Industrial & Infrastructure Development Corporation Ltd.• MSME - Development Institute, Karnal

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Development of Special Economic Zones

• Department of Industries and Commerce of Haryana encourages theestablishment of Special Economic Zones, Technology Cities, IndustrialModel Cities and Industrial Parks. This is done by encouraging publicprivate partnership in infrastructure projects.

• The developer can approach HSIDC for development of SEZ, Industrial Parkor Technology City in public private partnership. State Government shallassist in the acquisition of land for all such joint venture projects.

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http://www.haryana.gov.in/portalapp/citizens/policies/SEZPolicy.pdf

HARYANA SKILL DEVELOPMENT MISSION

• The policy was formulated to address the challenges of unemploymentand to ensure gainful employment. Schemes under Haryana SkillDevelopment Mission:

• Seekho-Sikhaao (Training of Trainers)

• SMart (Skill Mart)

• DAKSHA (Dissemination of Applied Knowledge and Skill in Haryana)

• SURYA (Skilling, Up-skilling, Re-skilling of Youth and Assessment)

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http://www.hsdm.org.in/new-admission/hsdm-schemes

Haryana Enterprise Promotion Center

• They offer Single Roof Clearance System for the benefit of the new units orunits under expansion. They facilitate time-bound clearances, sanctioningspecial packages for mega projects and clearing further policy initiatives.

• 63 industrial services of 12 Government Departments are offered underHEPC. All State Level Industrial clearances /services would be granted in amaximum of 30 days, with an additional provision of 15 days for seekinginformation from the investor.

• Overall mission of the organization is to increase the GDP of the state,increase employment, uplift secondary sector and reduce cost of doingbusiness in the state.

9https://investharyana.in/#/AboutUs

Haryana State Industrial & Infrastructure Development Corporation Ltd. (HSIIDC)

HSIIDC is the nodal agency for development of Industrial Infrastructure inthe State of Haryana. Important activities of the organization include:-

• Infrastructure Development

• Estate Management

• Financial Assistance

• Skill Development Initiatives

http://hsiidc.org.in/infra_structure 10

MSME - Development Institute, Karnal

• It is an apex body for formulating, coordinating and monitoring thepolicies and programmes for promotion and development of MSMEs inthe country. MSME-Development Institute provides a wide range ofextension / support services to the micro, small & medium enterprises inthe State of Haryana.

• They provide assistance to entrepreneurs to select suitable productshaving potential in the area.

• They also provides common workshop facilities to micro, small & mediumenterprises. The workshop is equipped with Grinding Machine, Tool &Cutter Grinder, Milling Machine, Lathe Machine etc.

• MSME-DI, Karnal renders consultancy/support services to interested unitsin obtaining BIS/ISO certification.

11http://www.msmedikarnal.gov.in/index.html

Access to Finance

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Schemes:

• Enterprise Promotion policy 2015• Haryana Startup Policy 2017• Freight Assistance Scheme• Haryana IT and ESDM Policy • Patent Registration Scheme

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Enterprise Promotion Policy 2015Enterprise Promotion Policy 2015: The focus of the policy is on enhancingthe ease of doing business in Haryana and makes it an investment hub. Italso lays emphasis on nurturing entrepreneurship and creating selfemployment opportunities for all. State has been divided into 4 zones, A,B, C, D by giving various incentives in back-word regions, the Govt. will tryto bring economic balance in different regions. The objective of thisindustrial policy is to create 4 lakh jobs and attract investments of over 1lakh crore in the state. Various incentives under the policy are:-

• SGST 50% - 75% will be reimbursed on GST levied on investments netpaid for 8 - 10 years

• 5% - 6% interest subsidy will be provided on term loan for 3 - 5 years

• Support to Startups: Refund of 100% SGST up-to turnover of Rs. 3 crore.

• Zero Defect and Zero Effect: Financial assistance and support for qualitycertification, technology acquisition and up gradation and establishmentof effluent treatment plant

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• Service Sector: CSGT net paid 50%, 50% - 75% Electricity Duty Exemption &30% - 50% Refund of Stamp Duty

• Increase FAR Higher FAR of 150% has been provided with approval of HEPB

• Land Related Incentive Reduced EDC charges 50% . 50% - 100% Refund onStamp Duty.

• Power tariff subsidy of Rs.2/- Per unit will be given to new SME units in C andD category blocks.

• Assistant for Technology Acquisition: The financial support of 50% as subsidyor maximum of Rs.5 lakh for the purchase of testing equipments shall beprovided to Micro and Small Enterprises

• Special provisions for Start-Ups/First Generation Entrepreneurs:

• In order to encourage Start-ups for setting up of Micro & Small enterprise,100% investment subsidy of VAT/SGST net paid upto turnover of Rs.3.00 crorefor three years whichever is earlier, in ‘B’, ‘C’,’D’, category blocks. Suchenterprise shall be exempted from inspection of the concerned departments.Criteria for start-ups shall be defined in the scheme. (Professionals such asengineers, MBA, CA with 5 years experience without having any businessbackground.

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Haryana Start-Up Policy 2017

The policy focuses on providing mentoring and other assistance toentrepreneurs. Incentives and funds are as under:-

• Interest Subsidy: Eligible startups shall be provided interest subsidy of 8%per annum for a period of 5 years on the rate of interest paid on loansobtained from scheduled banks/financial institutions subject to themaximum limit of INR 5 lakhs per annum.

• Lease rental subsidy: Reimbursement of 25% of lease rental subsidy toeligible startup units established in the state, operating from Incubators/ITParks/Industrial Clusters or any other notified location shall be eligible fora period of 1 year subject to the ceiling of INR 3 lakhs per annum.

• Innovation promotion Subsidy: Cost reimbursement for max 3Patent/Quality certification per Unit up to a limit of INR 2 lakhs fordomestic & INR 5 lakhs for International Patent/Quality certification uponsuccessfully receiving them

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• EPP 2015 MSMEs Incentives: Incentives/ provisions under EnterprisePromotion Policy 2015 in force will be available to startups. However theincentive for the same component cannot be claimed from more than onescheme.

• Assistance for Program/App development: Government to empanelsoftware/mobile app development agencies for programming/appdevelopment support to eligible startups within incubators and toreimburse development cost to the tune of 60% for applicationdevelopment undertaken through empanelled agencies.

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Startup Policy 2017-Fund of Funds

• The State Government will set up a INR 1000 Cr fund for industries,focusing upon small- and medium-scale enterprises (MSMEs). The statewill also provide collateral free loans upto 1 crore to startups.

• Seed Funding: A Seed Grant up to INR 3 Lakhs per start-up shall beprovided for validation of idea, prototype development, assistancetowards travelling costs and carrying out field/ market research/ skillHaryana Startup Policy 2017 14 training/ marketing and initial activities tosetup a startup etc. Seed funding to startups would be routed throughState/Centre recognized Incubators.

• Scale Up Funding: The State Government shall set up a fund with an initialcorpus of INR 100 cr to be invested over a period of 5 years as theAlternative Investment Fund (AIF) identifies investment opportunities.

• Under the policy, all the clearances shall be approved under SingleWindow System of Haryana i.e. Haryana Enterprise Promotion Centre intime bound manner.

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• Eligible Startup shall be exempted from inspections by GovernmentRegulatory Agencies for a period of five years unless there is threat to lifeand safety.

• Academic Interventions Student Entrepreneurship:

1. Update University Syllabus

2. Update State School Syllabus

3. Faculty Up-gradation

4. Mandatory apprenticeship

• Centre of Innovation & Entrepreneurship will be built for the purpose ofreinforcing the state's startup ecosystem in association with academicinstitutions and industry leaders. Other than the CIE, the draft startuppolicy 2017 also mentions a start-up warehouse and a mobile applicationdevelopment & IoT centre in Gurgaon.

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https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwiYqf_vssDWAhXFrY8KHTuLAQUQFggnMAA&url=https%3A%2F%2Fshramsuvidha.gov.in%2FdownloadDippStartUpPdf%3FstCode%3D16&usg=AFQjCNF7p0g2eIAnJo32Lgj36KWgPMFmDw

Freight Assistance Scheme 2015

The MSME’s in exporting business will be eligible for the freight assistanceto the extent of 1% of Free on Board (FOB) value or actual freightexcluding government fee and taxes on transportation of goods from placeof manufacture to the sea port from where they are shipped, whichever isless and maximum upto Rs. 20 lakh per annum will be provided for exportof goods, manufactured by the exporting MSME set-up anywhere in theState.

20http://accessconsulting.in/wp-content/uploads/2017/02/Frieght_Scheme_Notification_2015-1.pdf

Haryana IT and ESDM Policy 2017

Haryana IT and ESDM Policy aims to develop IT and ESDM sectors toposition Haryana as a pre-eminent investment destination and facilitatebalanced regional and sustainable development. Fiscal Incentives underthe policy:-

• Capital Subsidy: 50% of Fixed Capital Investment - FCI for units setting upwithin Gurgaon district and 60% of Fixed Capital Investment for unitssetting up outside Gurgaon district with a ceiling of INR 2.5 Cr. per unit.

• Stamp Duty: IT Industry shall be eligible for 100% reimbursement of stampduty paid on sale / lease deeds paid on the first transaction for setting upunits in notified IT Parks, IT cities, Technology Parks / STPIs, IT SEZ or anyland earmarked by the State Government for IT industry.

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• Electricity Duty Exemption: 100% exemption for a period of 7 years fromcommercial operations.

• Power Subsidy: IT industry shall be eligible for getting power @ INR 5.49per unit provided the investor signs Memorandum of Understanding withGovernment of Haryana for investments in the State.

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http://www.haryana.gov.in/pressrelease/DraftHaryanaITESDMPolicy2nd%20Feb2017.pdf

Patent Registration Scheme

• To promote patent registration among enterprises and protect theirinnovation, the state government has introduced the Patent RegistrationScheme for MSMEs.

• Under this, reimbursement of 50 per cent of the actual expenses,including filing, consultancy, search and maintenance fee, would begranted, subject to a maximum of Rs 25 lakh for both domestic andinternational patent registration.

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https://haryanaindustries.gov.in/themes/backend/uploads/Uploads/Patent_Registration_Scheme-2015.PDF

VCs/Angels/Other Institutions

• Haryana Financial Corporation (HFC), is a premier state-levelinstitution that has been extending term loans against fixed assets toindustrial concerns in the State of Haryana. It has also played a role inthe development of industries in the State, development ofbackward area, employment generation etc. HFC has been approvedby SEBI as a category-I merchant banker. It is also ranked as category-A state-level financial institution by IDBI. The corporations activitiesinclude merchant banking, investment banking, trade finance, leasefinance and term lending. https://www.hfcindia.org/

• Your Nest provides Angel Fund, early-stage venture capital fund,finances technology companies in India.http://www.yournest.in/were/

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• Rohit Bansal is the cofounder and COO of e-commerce platform Snapdeal.He has invested in 20+ organizations so far.https://www.linkedin.com/in/rohitkbansal/?ppe=1

• GSF: Founded in 2011, GSF finances mobile startups and is an Indianventure capital firm and accelerator. http://gsfindia.com/

• Alok Mittal: Alok is an entrepreneur and a founding member of IndianAngel Network. Managing Director of Canaan Partners India, Alok focuseson investments in digital media and mobile companies, as well asinnovators in managed software services and other IT enabled businesses.

• Anand Chandresekaran is the Sr.Director, Product Management at Yahooand an angel investor. https://www.linkedin.com/in/anandc/

• GHV Accelerator is a venture capital firm that specializes in fundingtechnology startups. It provides startups with a controlled environment,optimized, and appropriate resources, along with sustainable funding. Ithelps them grow multifold in a shortertimeframe. http://www.ghvaccelerator.com/

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• Maninder Gulati is the Chief Stategy Officer at OYO and an angel investorwith investments in 3 companies. https://www.linkedin.com/in/maninder-gulati-a93b112/

• Prescient Capital is a private equity firm that provides advanced lendingsolutions to companies through conventional bank sources.

• Smile Group is an Asian Internet group with extensive holdings in theconsumer internet and media space and is led by Harish Bahl. It partnerswith local entrepreneurs, venture capitalists, and global companies tobuild digital companies from scratch, expand operations and increase theirfootprint by going out globally. http://smile.co.in/

• The Startup Superfuel Fund is a seed and early stage fund focused ondigital assets. The firm invests up to $500K in selected startups as well asdeeply collaborates as operating partners with the startup teams for aperiod of 6 months to a year. http://www.5ideas.in/

• Jaarvis Accelerator offers mentorship, capital, seed funding, tech,infrastructural support and everything else startups need to build a strongand lasting foundation. http://jaarvisaccelerator.com/

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Education & Cultural Preparedness

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Educational Institutions Promoting Entrepreneurship

• E-Max Group of Institutions: ENTERPRENEURSHIP DEVELOPMENTPROGRAM-The program content includes class room training onessentials of entrepreneurship survey of the prevalent socio - economicscenario, identification of business opportunities, role and function aswell as schemes of assistance offered by various constituents of thesupport system, preparation of a technically feasible and economicallyviable project report.http://emax.edu.in/Placements.aspx?action=development

• Regional Centre of entrepreneurship Development: RCED is arecognized institute of various government departments and stategovernments that aims to provide training and other assistance to theentrepreneurs. http://rcedindia.org/

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• Centre for Entrepreneurship Development: The major activity of thecenter is to organize EDP’s of various durations on regular basis to createnew entrepreneurs by cultivating their latent qualities of entrepreneurshipand in lighting them on various aspects necessary for set up micro andsmall enterprises. http://hipaco.in/cententdev.php

• The Entrepreneurship School: It’s a school for startup founders andentrepreneurs. http://www.entrepreneurship.edu.in/about-us/why-tes/

• iSEED : The school conducts programs for entrepreneurs at differentstages of their journey. Using an innovative methodology of “Horizontallearning” and “learned doing” developed by successful entrepreneurs andexperts from across the globe, learning at iSEED substantially reducescommon and costly mistakes and improves chances of success.http://iseed-edu.in/

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• The National Institute for Entrepreneurship and Small BusinessDevelopment: The major activities of the institute consist of Training ofTrainers (ToT), Management Development Programmes (MDP),Entrepreneurship- cum-Skill Development Programmes (ESDP) andEntrepreneurship Development Programmes (EDP) etc.http://niesbud.nic.in/institute.htm

• National Small Industries Corporation: Entrepreneurship OrientationProgramme-. This program makes participants familiar about role andimportance of MSMEs in Indian Economy, process of setting up ofEnterprise, preparing Project Reports, Identifying marketing possibilities aswell as with the issues regarding various statutory requirements such asIncome Tax, VAT etc.http://www.nsic.co.in/eop1014.asp

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Mentoring & Networking

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• Inhwa Business Centre: They provide services such as High speedInternet, Reception services, Dedicated landline number on requestand company incorporation. http://www.inhwabusinesscentre.com/

• 91Springboard provides all the basic amenities like wifi-internet,photo scanning and conference rooms with projectors.http://www.91springboard.com/coworking-space/gurgaon/

• Investopad : The Investopad Program for Technology Entrepreneurshipaims at helping breed tech-entrepreneurs at the startup stage byproviding training and access to state of the art facilities for learning,research and development in the field of technologyenterprise.http://www.investopad.com/

• Quest Offices offer workspaces for large businesses, independentprofessionals and remote teams. http://questoffices.com/

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• SproutBox :The facility offers 100% Power Backup, a 100 mbps of InternetConnection from two providers to make sure it is available all the time, a10 People Conference Room, a 4 People Conference Room, a Reception towelcome your Guests, and a Roof Top Café. http://sproutbox.in/

• Fortune Workspace: http://www.workspot.in/city/gurgaon/sohna-road/fortune-workspace/469

• InstaOffice: They provide coworking spaces located in prime locations ofGurgaon, and offer flexible workspace solutions including private offices,managerial cabins, open workstations, meeting rooms and flexi seatingoptions.http://www.instaoffice.in/

• AltF Coworking: They are turning under-utilized spaces into coworkingspaces in Delhi at economical prices. http://altfcoworking.com/about-altf

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• Hatch101: They offer 75+ workstations with personal storage space andsoft boards ,Meetings rooms, projector and conference call facilitiesBasic amenities such as high-speed internet, receptionist and office boyand Courier facilities are also provided. http://www.hatch101.com/#About

• Awfis: The startup provides shared workspaces, private cabins, meetingand conference rooms. Desks start at Rs.400 perday. http://bit.ly/2yq5IRp

• Society for Innovation & Entrepreurship in Dairying (SINED) TechnologyBusiness Incubator: TBI promotes the concept of growth throughinnovations and applications of technology, support, economicdevelopment strategies for Small Business Development.http://www.ndritbi.com/

• The Hatch: The platform offers both virtual and physical accelerator andincubator programs. https://angel.co/hatch-incubator

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• Veddis: Veddis is one of those incubators which provides its startups witha ready to move-in office space, complete with technology support and allother critical support services essential for the development of aproduct. www.veddis.com

• NASSCOM 10,000 Startups Warehouse: They aim to nurture hatchlingstartups into full-fledged technology stalwart companies, by giving themsupport via access to startup incubators, accelerators, angel investors,venture capitalists, startup support groups, mentors, and technologycorporations. http://10000startups.com/startup-warehouse/

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Thank You.

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