Entrepreneurship Ecosystem Overview

Maharashtra

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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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Maharashtra ranks #13 on ‘Ease of Doing Business’ index 2017-18according to the Department of Industrial Policy and Promotion's (DIPP). Itfeatures among ‘achievers category’ in the index.

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Govt. & Regulatory Support

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Schemes:

• Maharashtra MSME Policy 2013-2015

Govt. Regulatory Bodies:

• Mahasvayam

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Maharashtra MSME Poicy 2013-15

• The Maharashtra Industrial Policy 2013 has given a special attention toencourage small scale industries. For financial stability of MSMEs (MicroSmall and Medium Enterprises) the state government will provide fiscalincentives and support to less developed areas.

• Under the PSI 2013 scheme specific number of industries operating inMaharashtra has been chosen such as information technology, bio-technology, cold storage, and food processing industries.

• The policy has a three-tier incentive structure -– industrial promotionsubsidy linked to all taxes paid, interest subsidy on interest paid on termloans and incentives for quality enhancing, quality competitiveness,credit rating and technology up gradation.

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Benefits

• Financial incentives are available in the form of Industrial PromotionSubsidy (IPS), Interest Subsidy, Electricity duty exemption, Waiver ofStamp Duty, Power Tariff Subsidy, etc. The most beneficial among all isIndustrial Promotion Subsidy, which is receivable in cash as a specificpercentage of net VAT and CST.

• Existing units can also be benefited under this scheme provided that theymake minimum investment in capital assets of 25%; increase in productioncapacity; and minimum 10% increase in employment. For example, in acase of INR 1 crore capital investment, an existing unit will get INR 52 lacsas financial incentive. 75% reimbursement of cost of water and energy isadmissible under the scheme.

• Power Tariff Subsidy of INR 1/- per unit consumed to eligible new unitslocated in Gondia, Kinvat, Chandrapur, etc.

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Mahasvayam

• The self-employment web portal has been developed to make it easierand faster for the self financed and effective implementation of self-employment loan schemes.

• To reduce the intensity of unemployment in the state, the Maharashtragovernment has started various self-employment schemes. In this context,the self-employment web portal has been developed to make it easier andfaster for the self financed and effective implementation of self-employment loan schemes.

https://udyog.mahaswayam.in/#/home

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Access to Finance

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Schemes:

• Seed money scheme-Maharashtra•DIC Loan Scheme•Maharashtra State Innovative startup policy 2018• Maharashtra Fin-Tech Policy 2018

VC’s and Angels:

• Mumbai Angels• Lead Angels• Seedfund• Zishan Hayat• Anand Ladsariya

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Seed Money Scheme- Maharashtra• The objective of the scheme is to encourage unemployed person to take

up self-employment ventures through industry, service and business, byproviding soft loans to meet part of the margin money to availinstitutional finance.

• Equity or seed money is provided in the form of a loan to entrepreneursunemployed and interested to start business or service sector withproject cost up to ₹25 lakh. Soft loan assistance is available at 15% of theproject cost upto a maximum of 3.75 lakhs.

• For projects costing ₹10 lakh the assistance is available at 15% (forGeneral category) and at 20% (forSC/ST/OBC/Minorities/Women/Differently abled). The rate of interest onseed money is 6% and if the borrower pays the repayment of installmentregularly and within scheduled time, then the borrower will get rebate of3% in interest.

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DIC-Loan Scheme

• The District Industries Center Loan Scheme provides financial assistance inthe form of margin/seed money for the promotion of tiny industries insemi-urban and rural areas with a view to generate employmentopportunities including self employment.

• Under this scheme, margin money is provided for those units whereinvestment in plant and machinery does not exceed Rs.2 lakhs. All townsand rural areas having population of less than 1 lac are covered under theScheme.

• Assistance of upto 20% of the total investment or a maximum of Rs.40,000is provided to Entrepreneurs belonging to the general category. In case ofentrepreneur belonging to scheduled caste & scheduled tribe, assistanceof upto 30 % of total fixed capital investment or a maximum of Rs. 60000/-is provided. The assistance provided in the form of loan must be repaidback to the State Government with a 4% interest rate within 7 years.

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Maharashtra State Innovative Start-up Policy 2018

• The policy targets to develop 15 incubators, attract Rs. 5000 croresinvestment, facilitate 10,000 startups and create 500,000 direct andindirect jobs

• The objectives of the policy include attracting $782 Mn (INR 5,000 Cr)investment in development of startups, developing at least 2,000 startupsin the next five years, and at least 10 lakh sq ft incubation space.

• As per the policy, preference will be given to establish incubators inproduction and manufacturing, textile, automotive, pharmaceutical andchemicals, Information technology and enabled services, agro-processingand biotechnology sectors. Each incubator must have the capacity to hostat least 10 startups and must have an incubation space of at least 10,000sq ft.

• It also has provisions for a single window system for permissions andlicenses.

http://ciba.org.in/mumbai/maharashtra-state-innovative-startup-policy-2018/

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Maharashtra Fin-Tech Policy 2018

• Under the policy, the government would facilitate establishment of 300 start-ups and a venture capital fund of Rs200 crore for the fintech sector.

• Fin-Tech Startups will be provided 10,000 sq. ft of ‘co-working space’ at a central business location in Mumbai at subsidised rates.

• A fintech start-up with a turnover of at least Rs25 crore will be entitled to an annual assistance of Rs10 lakh for three years as reimbursement of internet and electricity expenses, goods and services tax, and expenses for participating in global exhibitions or similar events.

• The government would also provide assistance to establish fintech accelerators and incubators. To help develop the global fintech hub in Mumbai, the policy enables the government to create an industrial sandbox.

https://di.maharashtra.gov.in/_layouts/15/doistaticsite/English/pdf/FintechPolicy.pdf

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VCs And Angels

• Mumbai Angels - Mumbai Angels Venture is set-up as a non-profitorganisation to cater to investment needs of Angels andEntrepreneurs. They connect investors with entrepreneurs and havebeen doing so since 2006.

• Lead Angels - Lead Angels is India’s first privately owned angelnetwork founded by a team of three originally from IIT Bombay in2014 with the aim of improving early stage investment outcomes.http://leadangels.in/about-us-lead-angels/

• Seedfund – Started in 2006, seedfund invested in early-stagecompanies across sectors. With a little money and a lot of attention,Seedfund started plugging the gap in the ecosystem, by providingguidance, perspectives, ideas, and connections.http://seedfund.in/about.html

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• Zishaan Hayath - Zishaan is an angel investor in few of the well knownIndian startups including Olacabs, Housing.comand also runs an angelinvestment group called Powai Lake Ventures, based out of Mumbai.

• Anand Ladsariya - Mr. Anand Ladsariya, a first generation entrepreneur, isthe CEO and promoter director of Everest Flavours Ltd., manufacturer andexporter of Menthol, Peppermint Oil, flavours and fragrances. He is anactive Angel Investor with Mumbai Angels, Indian Angel Network, VentureNursery, Morpheus and many such platforms.. He has been activelyinvesting since 2008 and has invested in over 95 start-ups till date andactively mentors and guides the promoters to reach the next level. Manyof his start-ups have been extremely successful.

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Education & Cultural Preparedness

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Educational Institutions Promoting Entrepreneurship

• Maharashtra Centre for Entrepreneurship Development (MCED):

• An autonomous body under the Department of Industries,which has 8 different offices across the state.

• It offers entrepreneurship training programs and otherscheduled sessions focused on banking, agritech, foodprocessing and others across different districts throughout theyear.

• Among other incentives offered are exemptions from stampduty on the purchase of land, partial reimbursement ofequipment purchased for power and water conservation,rebate on expenditure on energy and water audit.

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• IIT-Bombay e-cell is one of the largest business incubators of the country set up in an educational institute. http://www.ecell.in/

• Federation of Indian Young Entrepreneurs: A private organisation that is a division of India International Trade Centre (IITC India).Supports young entrepreneurs to promote their business nationally &internationally, while concentrating on skill development, grooming and incubation process to provide useful information and organise activities to guide them in different aspects of business development and management.

• Nurture Talent Academy: A training venture for aspiring and existing entrepreneurs, students and professionals.

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Mentoring & Networking

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Startup Incubators, Co-Working Spaces

• Venture Center : The Venture Center is a technology businessincubator specializing in technology startups offering products andservices exploiting scientific expertise in the areas of materials,chemicals and biological sciences & engineering. Venture Centerstrives to nucleate and nurture technology and knowledge-basedenterprises by leveraging the scientific and engineering competenciesof the institutions in the "Pune region" in India.http://www.venturecenter.co.in/

• NASSCOM 10000 Start Ups Warehouse – Navi Mumbai & Pune : TheNASSCOM 10,000 Startups Warehouse is a one-of-its-kind incubationand co-working space program in the world that helps early stagetechnology startups from India. The key benefits of the programinclude high quality mentoring/coaching, workshops, investorconnects, early customer acquisition channels, and not to mention PRand Media outreach. http://10000startups.com/startup-warehouse-form/

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• MITCON – TBI rated as one of the finest Technology Business Incubator in thefield of Agriculture Biotechnology, Food technology, EnvironmentalBiotechnology. TBI provides various services and training programs to developroots of rural entrepreneurship in all over India where young Indians arecoming to furnish their techniques in the field of Biotechnology andagriculture which will results in employment generation which leads ineconomic boost of society.

• Science And Technology Park is one of the Science and TechnologyEntrepreneurs Park (STEPs) set up in the year 1986, by National Science andTechnology Entrepreneurship Development Board (NSTEDB) of Department ofScience and Technology (DST). The Scitech Park facilitates IPR and Technologymanagement, Industry sponsored research, providing technology inputs forvarious governmental and industrial developmental projects. Development ofnew technologies and its commercialization and provides need based high endtraining. https://scitechpark.org.in/about-us/

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• SINE (Society for Innovation & Entrepreneurship)- SINE, Society forInnovation and Entrepreneurship, hosted by Indian Institute of Technology,Bombay is an umbrella for promotion of entrepreneurship at IIT Bombay.SINE administers a business incubator that provides support fortechnology – based entrepreneurship.

• WeWork: It’s a co-working place located in Mumbai spread over 16 floorswith shared workspaces, private offices, conference rooms, terracelounge, sky court, wellness room etc. www.wework.co.in

• Regus: Regus co-working offers flexible options like reserved and open co-working spaces at 23 locations in Mumbai. http://bit.ly/2fkptmn

• Camelot Co-Works: They provide customization of office space,community building, other than basic infrastructural features.http://www.camelotcoworks.com/why-ccw.html

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• AccessWork: They provide serviced office spaces at 10 locations inMaharashtra. Serviced offices are ready to move-in office spaces with plugand play facilities. http://bit.ly/2jqjLUA

• Mumbai CoWorking: It is one of the first co-working spaces in India tooffer Night Coworking – a feature highly essential to conduct businessdeals with international clients. They have 4 to 16 seat rooms.http://mumbaicoworking.com/

• Bombay Connect: They provide collaborative and affordable forfreelancers and entrepreneurs. https://www.bombay-connect.com/

• The Playce: It is an affordable 5,500 sq. ft. campus co-working spaceproviding flexible options. The Playce can also be used as a venue forawesome events, training, workshops & fun meet-ups.http://theplayce.in/

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• Catalyst Lab – Venture Catalysts:

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Thank You.

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