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B.Com 1stYear, Subject: ED – 1stSem, Unit – 4– Evolution of Entrepreneurship in 21 Century, Essential of 21st Century Entrepreneurship, Importance of Entrepreneurship in 21st Century, Start up scheme, start-up India, stand up India, Pradhan Mantri Kaushal Vikas Yojana, Skill India., Essential of 21st Century Entrepreneurship, Here are the essentials we have embraced that apply to everyone starting a new venture:, 1. Get out of the building., “getting out of the building” i.e. talking to customers as the key to building a successful startup. no business plan survives first contact with customers; so getting out of the building is the oxygen of startup survival. The format of getting out of the building changes with the experiment and startup stage., 2. It’s all about experimentation: mastering the pivot and spike., pivot as changing one component of your . These changes are based on forming a hypothesis, testing and validating it—with a customer and/or your product—and making the appropriate changes. Until validation occurs and the organization moves to focus on execution and scaling, the key to success is efficiently and quickly running experiments and making pivots., 3. Iterate early and Often., Running experiments against the business model canvas and running development iterations that are exposed to users to understand the capabilities of the product development team as well as the viability of proposed features. The pace of learning is directly proportional to the rate of iteration. The key element that must be conserved in a new enterprise is cash; and efficient iteration is the best strategy to conserve cash., 4. Develop a compelling value proposition., viability is dependent on determining a viable and differentiated value proposition. Value proposition—that is the benefits offered from the features of products for a specific audience—is the glue that binds together product and customer development teams as well as engineers, designers, and business people. Getting the right “fit”between the value proposition and the customer segments, customer pain points, and solution provides the lubrication for the business to work. Experiments should be designed to refine this from the related business canvas elements. Developing a value proposition that “scales” beyond a set of core early adopters is the key to growth., 5. Even a startup has a business model: Develop it!, One of the most common failings of current web startups—and many other entrepreneurial and social ventures--is the failure to identify proper business model fit—that is to say a sustainable combination of solving an important problem at a reasonable cost and at a reasonable value relative to revenue. Too often, a problem—often not a big enough problem—is solved by a startup; but because the startup fails early on to demand appropriate revenue or value from solving that problem it remains untested and burns through all the firms cash., Importance of Entrepreneurship in 21st Century, 21st century entrepreneurship opens the door to people helping other people understand the new team-based approach to business in a global economy and how to use technology to work from home or in a co-working space. It's akin to teaching someone how to fish, rather than giving them a fish., Start up scheme, Startup India Scheme is an initiative by the Government of India for generation of employment and wealth creation. The goal of Startup India is the development and innovation of products and services and increasing the employment rate in India. Benefits of Startup India Scheme is Simplification of Work, Finance support, Government tenders, Networking opportunities. Startup India was launched by Prime Minister Shri. Narendra Modi on 16th January 2016. Let us learn more about Benefits and Eligibility of Startup India., Action Plan of Startup India Scheme, The action plan of Startup India is based on the following factors:, 1. Simplification of Work, This  simplifies the work for the new entrants in order to motivate them. This includes following steps taken by the government:, Firstly, the government has set-up Startup India hubs where all the works related to incorporation, registration, grievance handling, etc., Secondly, an application and an online portal is set-up by the government to facilitate registration from anywhere and anytime., Thirdly, the patent acquisition and registration is now fast for the startups., Lastly, according to the Insolvency and Bankruptcy Bill, 2015 facilitates fast winding up of the startups. A new startup can wind-up itself within 90 days of the incorporation., Benefits of Startup India, Financial Benefits, Income Tax Benefits, Registration Benefits, Government Tenders, Huge Networking Opportunities, 1. Financial Benefits, Most of the startups are patent based. It means they produce or provide unique goods or services. In order to register their patents, they have to incur a heavy cost which is known as the Patent Cost., Under this scheme, the government provides 80% rebate on the patent costs. Moreover, the process of patent registration and related is faster for them. Also, the government pays the fees of the facilitator to obtain the patent., 2. Income Tax Benefits, Startups enjoy a good amount of benefits under the Income Tax head. The government exempts their 3 years income tax post the incorporation year., But they can avail it only after getting a certificate from the Inter-Ministerial Board. Also, they can claim exemption from tax on Capital Gains if they invest money in specified funds., 3. Registration Benefits, Everyone believes that incorporation and registration of business are far more difficult than running it. It is because of the long and complex steps of registration., Under the Startup India scheme, an application is there to facilitate registration. A single meeting is arranged to at the Start-up India hub. Also, there is a single doubt and problem-solving window for them., 4. Government Tenders, Everyone seeks to acquire Government tenders because of high payments and large projects. But it is not easy to acquire the government tenders., Under this scheme, the startups get priority in getting government tenders. Also, they are not required to have any prior experience., 5. Huge Networking Opportunities, Networking Opportunities means the opportunity to meet with various startup stakeholders at a particular place and time. The government provides this opportunity by conducting 2 startups fests annually (both at domestic as well as the international level)., Startup India scheme also provides Intellectual Property awareness workshop and awareness., Registration of the Startup can be done only from following types of companies, Partnership Firm, Limited Liability Partnership Firm, Private Limited Company, Eligibility for Registration under Startup India Scheme, 1. Firstly, the company to be formed must be a private limited company or a limited liability partnership firm., 2. Secondly, the firms should have obtained approval from the Department of Industrial Policy and Promotion., 3. Thirdly, it must have a recommendation letter by an incubation., 4. The firm must provide innovative schemes or products., 5. It should be a new firm or not older than five years., 6. The total turnover of the company should be not exceeding 25 crores., 7. Lastly, it should not be a result of splitting up, or reconstruction, of a business already in existence., Challenges faced by Startup India, 1. People generally believe startups are just about thinking about a new idea or plan. But in reality, execution of such plan is more necessary than just thinking about it., 2. The view or perspective of the government on startup India plan is quite short-term in nature. It does not look at the long-term path of the startups., 3. For the success of any new business, competent workforce is necessary. But in case of startups, skilled workforce is not possible due to the lack of funds at the initial phase., 4. The risk of reaching failure is greater in the startups as compared to other organizations. It is because they tend to take steps quite fast., STAND-UP INDIA, Stand-Up India is a scheme for financing SC/ST and/or Women Entrepreneurs., Objective:, The objective of the Stand-Up India scheme is to facilitate bank loans between  10 lakh and  1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a Greenfield Project. This enterprise may be in manufacturing, services or the trading sector., Eligibility:, SC/ST and/or woman entrepreneurs, above 18 years of age., Loans under the scheme are available for only green field project. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector., In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur., Borrower should not be in default to any bank/financial institution., Nature of Loan:, Composite loan (inclusive of term loan and working capital) between 10 lakh and upto 100 lakh., Purpose of Loan:, For setting up a new enterprise in manufacturing, trading or services sector by SC/ST/Women entrepreneur., Size of Loan:, Composite loan of 75% of the project cost inclusive of term loan and working capital. The stipulation of the loan being expected to cover 75% of the project cost would not apply if the borrower’s contribution along with convergence support from any other schemes exceeds 25% of the project cost., Interest Rate:, The rate of interest would be as per the extant interest rate circular of our Bank., Security:, Besides primary security, the loan may be secured by collateral security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) wherever applicable., Repayment:, The loan is repayable in 7 years with a maximum moratorium period of 18 months., Working Capital:, Working capital limit generally to be sanctioned by way of Cash Credit limit. However working capital upto 10 lakh can be sanctioned by way of overdraft facility subject to the delegation of loaning power. Rupay debit card to be issued for convenience of the borrower., Margin Money:, The Scheme envisages 25% margin money which can be provided in convergence with eligible Central / State schemes. While such schemes can be drawn upon for availing admissible subsidies or for meeting margin money requirements, in all cases, the borrower shall be required to bring in minimum of 10% of the project cost as own contribution., Pradhan Mantri Kaushal Yojana, What is Pradhan Mantri Kaushal Yojana act?, Pradhan Mantri Kaushal Vikas Yojana (PMKVY) was launched in 2015 to encourage and promote skill development in the country by providing free short duration skill training and incentivizing this by providing monetary rewards to youth for skill certification., Objectives of PMKVY 2016-20, Enable and mobilize a large number ofyouths to take up industry designed quality skill training, become employable and earn their livelihood., Increase productivity of the existing workforce,and align skill training with the actual needs of the country., Encourage standardisation of the Certification process and put in place the foundation for creating a registry of skills., Benefit 10 million youth over the period of four years (2016- 2020)., Key Components of the Scheme, Short Term Training (STT) - The Short-Term Training imparted at PMKVY Training Centres (TCs) is aimed towards the candidates who are either school/college dropouts or unemployed. Duration of the training varies according tothe job role, however, majority of courses range between 200-600 hrs (2 – 6 months). The Training is provided according to the National Skills Qualification Framework (NSQF) with Soft Skills, Entrepreneurship, Financial and Digital Literacy curriculum, a part of the curriculum. Upon successful completion of their assessment and certification, candidates are provided placement assistance by Training Partners (TPs)., Recognition of Prior Learning (RPL) - Individuals with prior learning experience or skills are assessed and certified under the Recognition of Prior Learning (RPL) component of the Scheme. RPL aims to align the competencies of the unregulated workforce of the country to the NSQF. The duration of the training/orientation ranges between 12-80 hrs., Special Projects - Special Projects component of PMKVY envisages to encourage trainings in special areas and premises of Government bodies, corporates / industry bodies and trainings in special job roles not defined under the available Qualification Packs (QPs)/National Occupational Standards (NOSs).These are the projects which mayrequire some deviation from the terms and conditions of Short-Term Training under PMKVY.