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Startup

IESC Signs Pact With FLO to Provide Guidance to Startups and Women Entrepreneurs in Becoming Job Creators

Women Entrepreneurship (Photo Credits: Pexels)

New Delhi, November 23: In a bid to provide guidance and to mentor startups and entrepreneurs to grow, the Incubation and Enterprise Support Centre (IESC) of IIM Shillong has signed an MoU with FICCI Ladies Organisation (FLO). Reports inform that the IESC chairperson Sanjeeb Kakoty and FLO national president Jahnabi Phookan signed the deal for their respective organisations on Saturday. The pact is signed with the mission to generate and disseminate knowledge in all aspects of management for sustainable development and to develop innovative leaders with strong ethical values.

Under the pact, entrepreneurs who are a critical stages of starting up a new business will get nurturing, instructive and supportive environment which would increase the chance for a startups to succeed. The mentorship would shorten the time and reduce the cost of establishing and growing its business, the IIM said in a statement issued here. The new pact between two very influential organizations is just the right boost at the right time particularly for women entrepreneurs of the region.

Talking about the importance of women, particularly those in the northeastern part of India, in safeguarding the rich culture and traditions of the people, Prof Sanjeeb Kakoty felt that women were also very much responsible for keeping alive the entrepreneurial nature and spirit emanating from the region. Speaking about the work of FLO, Phookan elaborated that FLO’s vision under her presidency is to focus on ensuring sustainable practices and creating sustainable livelihoods for the economic empowerment of women towards becoming sufficient job creators than just mere job seekers.

IIM Shillong chairman Shishir Bajoria expressed confidence that this initiative could be a defining moment in impacting firstly the region and then beyond, in line with the responsibility bestowed on this premier institute of national importance in the region.

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Legal

5 Indian Legal Provisions that Every Startup Needs to Know and Follow

Legal Laws For Startups (Photo Credits: Pixabay)

India has been witnessing the emergence of many new-age entrepreneurs, these are the people who have the urge to set-up and run their own businesses. They have idea, aim and objective, with a clear plan to enter in the business of their own. For a start-up to survive a sound flow of funds, adequate knowledge of market condition and proper resource management skills are of utmost skills. Apart from these, one of the most important aspects of the business field which young entrepreneurs often overlook is the understanding of the legal framework on the country where the start-up is operated.

All the countries have a set of legislations to govern the business environment. In India, as well, there are various laws and legislation that deal with the establishment and functioning of a business enterprise. They supervise the internal management as well as the external relations of the business. It is important for any entrepreneur to know and comply with these legislations, in order to ensure that the business does not land in any legal troubles.

Here are Five Legal Frameworks that Every Startup Owner Should Know –

Incorporation Laws

The first step to bring a start-up idea to reality is incorporation; every firm needs to be duly incorporated under relevant laws before it could start its business. The founders are free to register their firm in any category they want. There are different legislations for different types of venture. A Limited Liability Company has to be registered with the Ministry of Corporate Affairs under the LLP Act, 2008. A Private Limited Company needs to be incorporated under the Companies Act, 2013. Partnerships can be registered under the Indian Partnership Act, 1932; though their registration is optional. For a sole-proprietor firm there is no registration required.

Labour Laws

Another important set of rules is the labour laws. It is morally and legally important to comply with the various labour laws including the laws on payment of wages, provident fund and gratuity, workplace sexual harassment, maternity benefits, etc. However if the start-up is registered under the ‘Start-Up India Initiative’, it can avail exemption from nine labour laws by signing a self-declaration, for a period of one-year from date of incorporation.  These laws are-

  • The Industrial Disputes Act, 1947
  • The Contract Labour (Regulation and Abolition) Act, 1970
  • 1The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
  • The Employees’ State Insurance Act, 1948
  • The Industrial Employment (Standing Orders) Act 1946
  • The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
  • The Payment of Gratuity Act, 1972
  • The Trade Union Act, 1926
  • Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, 1996

Laws Relating to Intellectual Property Rights –

One of the most important regulations for start-ups who are dealing in new inventions or discoveries is the Intellectual Property Rights or IPR. It is important for start-ups to safeguard the novelty and uniqueness of their product or venture. Therefore, they should be very careful in registering various intellectual property including, products, service, venture, brand name, trade mark, discoveries, data algorithms under relevant laws.  Some of the Indian laws guarding the IPR are –

  • Trade Mark Act, 1999
  • The Patents Act, 1970
  • The Copyright Act, 1957
  • The Design Act, 2000
  • The IT Act, 2000
  • The GI of Goods (Registration and Protection) Act, 1999
  • The Protection of Plant Varieties and Farmers’ Right Act, 2001

Contract Laws-

For any business to function and operate, it is essential to make deals with other firms, government or individuals. All such deals should be governed by proper legal provisions. Every contract with employees, suppliers, stakeholders, debtors, investors, creditor or customers should be binding following the provisions of various laws including the Contracts Act 1872, Sales of Goods Act 1930 among others. As per the Indian Contract Act, 1872, all agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration with a lawful object, and are not expressly declared to be void.

Laws Relating to Winding-Up of the Firm

No start-up owner would ever wish their firm to liquidate or wind up. However, under certain circumstances it becomes absolute necessary to close down the business. In such situation as well, the company owner should follow proper legal route to wind up the start-up. From the legal point of view, there are three ways to close a start-up. These are –

  • Fast Track Exit Mode
  • Court or Tribunal Route
  • Voluntary Closure

Of all the three ways, the Fast Track Exit Mode is the best suited for start-ups as it allows companies to speed-up the closing process at a lower cost and within a short time period. In order to apply for a fast track exit, a company should not have any assets and liabilities and not have had any business operation for the past year. If these two conditions are met, the company can be struck off the registrar of the Registrar of Companies (RoC).

For a venture to get properly established in the market, grow, diversify and succeed it is important that it does not land into any legal troubles. The consequences of not complying with the laws do not only affect the operations and productivity of the business, but also hurt the delicate goodwill of the firm. It is hence, necessary for any start-up to know, understand and comply with the legal framework and provisions.

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Startup

LPG Distribution Business: Here’s Why You Can Start a Gas Dealership Business For a Regular & Profitable Source of Income

Gas dealership agency
Gas dealership agency (Photo Credits: Wikimedia Commons)

Mumbai, November 23: If you have some money in hand and have been thinking of starting a new business then there is one idea which is extremely profitable. You can think of getting a dealership of a gas agency.

Gas companies run dealership programs from time to time. You can do this business by taking a dealership. Gas companies need dealers in every city and village to expand the distribution network.

These three companies issue advertisements and notifications from time to time to find dealers. You have to apply for them. To apply, it is necessary to be a class 10th pass.

Starting a gas agency is not a difficult task, one just needs some money to start it. The price may vary according to your city, village. In addition to this, there should be enough space for the gas agency.

Indane is the biggest LPG cylinder provider in the country followed by HP and BP. It is a highly lucrative business because there is a huge demand for it and also, there is no need to market.

However, it is very important to remember that since it is a service industry, it is very difficult to please the customers, who keep on complaining about the long waiting hours and other problems.

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Business motivation Startup

Catering Business in India: 6 Quick Tips to Boost Sales, Attract New Customers & Stay on Top of Customer’s Mind

Catering Business
Catering Business (Photo Credits: Pxfuel)

Mumbai, November 23: If you have a knack for cooking, experimenting with different ingredients and a taste bud which appreciates different cuisine, a catering business can be a very profitable idea for you. However, this business is more about just food and ingredients. It requires great business skills, organisation planning and creativity.

We have curated 6 quick tips which you can use in your every day catering business to improve sales.

Have a business plan: Finalise on a business plan, where you need to decide your catering business will specialise into which kind of cuisine and what would be the highlight.

Stick to quality food: It is very important to feed your customers not only good but tasty food, this will make them come back to you again. Use good ingredients, where the health of the customers are not compromised. Innovate on the menu as people love to experiment and try out different things.

Make Your customer happy: Catering business till today works on the basis of word of mouth. If customer A is happy with your food and service, he will surely spread the word to two other people and therefore, it is very important to make your customers happy. Not only the food, but the service should also stand out.

Take care of hygiene: Keeping the COVID-19 crisis in mind, it will be a big challenge for caterers to present themselves in such a manner so that people can have their food without any tension. Look after the hygiene and sanitise all the food items and utensils frequently.

Offer competitive pricing. Remember one thing that your pricing should be such that it matches with your competition. If your price is higher than your competition, then your food and service should offer something more than what others are not giving.  Profitability is important in any business, so it doesn’t make sense to drop your prices to the point of losing money.

Market your business: In order to reach out to your prospective customers, it is very important that your market using both the online and the offline mediums. Make an attempt to always stay on top of the mind of the customers.

We hope these simple steps will help you focus and will reap success in your everyday business.

 

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Business motivation

Aspiring to Become a Successful Entrepreneur? PM Narendra Modi Shares This Basic Mantra

बिजनेस सफल उद्यमी
सफल उद्यमी

Every entrepreneur aspires to become successful. Being successful often means learning from those who have already achieved their goals. For any entrepreneur, having a mentor is an amazing blessing. However, not everyone can find one! As the country is battling the coronavirus pandemic, many businesses across the country have suffered greatly during the crisis. Many entrepreneurs, who have strived hard to fulfil their dreams, have suffered hardships during the ongoing pandemic. Several business are now limping back to normalcy during this challenging time. Many startups are now managing to survive in the market as entrepreneurs have found ways and means to get their businesses going.

On Saturday, Prime Minister Narendra Modi shared a few noteworthy tips for aspiring entrepreneurs. During the 8th Convocation of Pandit Deendayal Petroleum University, Gandhinagar in Gujarat on Saturday, the Prime Minister addressed the students and told them to consider this pandemic a new opportunity to move forward and aspire of doing great things in life. He asked the students to have purpose in life and stressed that it’s not that successful people don’t have problems, but the one who accepts challenges, confronts them, defeats them, solves problems, only succeeds.

The Prime Minister added those who take on challenges, later succeed in life and cited an example of the youth of the 1922-47 period, who sacrificed everything for freedom. He urged the students to live for the country and join the movement of Atmanirbhar Bharat and develop a sense of responsibility. The Prime Minister remarked that the seed of success lies in a sense of responsibility and a sense of responsibility should be turned to the purpose of life. He pointed out that the same people are successful in life, do something by which there is a sense of responsibility in their lives. Those who fail are the ones who live in the Sense of Burden.

The Prime Minister added a sense of responsibility also gives rise to a sense of opportunity in a person’s life. He said India is progressing ahead in many sectors and young graduates must march ahead with commitment and stressed on protecting nature and the environment.

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Startup

5 Schemes Focused on Development of Women Entrepreneurs in India

Women Entrepreneurs in India (Photo Credits: Pixabay)

The Indian startup ecosystem is thriving successfully. For the past few years many entrepreneurs have emerged and established their business across the industries with much success, giving tough competition to the existing stalwarts. Not only men, Indian women are progressively moving the bandwagon on entrepreneurship forward. Women have been fraying well in the start-up community, starting, sustaining and succeeding in various businesses ranging from food to clothing, entertainment to event planning, tech to handicrafts. They have been proving their worth in the business sphere.

Keeping in view the enthusiasm and determination of the women entrepreneurs, the government has launched various schemes to support and encourage them. The aim is to motivate more and more women to enter the business sector, have their start-ups and fulfil their dreams. Quick finance, loans and other facilities are provided to women at easy and flexible terms and conditions, so that they can start and sustain their businesses.

Here are five schemes that are offered for the development of women entrepreneurs in India-

  1. Stree Shakti Package For Women Entrepreneurs

The scheme is offered by the State Bank of India and its branches. Under this loans up to Rs 50 Lakh are sanctioned to women entrepreneurs who have at least 50 per cent share in the ownership of a firm0020vvvv0072 or business and have taken part in the state agencies run Entrepreneurship Development Programmes (EDP). If the loan exceeds Rs 2 Lakh, a 0.50 per cent concession is granted on the rate of interest.

  1. Annapurna Scheme

Offered by the State bank of Mysore, this scheme is available to women entrepreneurs who have started or plan to start a food catering business. The loan can be utilised for buying various goods required in the business including kitchen equipments. A loan up to Rs 50,000 is sanctioned under the scheme. The loan can be paid back in 36 instalments. The interested charged as per prevailing rates. To secure the loan the candidate needs guarantor and has to offer some asset as collateral.

  1. Dena Shakti Scheme

The scheme is offered by Dena Bank. Under this, women who plan to start businesses in various sectors including agriculture, manufacturing, micro-credit, retail are provided loans. A loan up to Rs 20 Lakh can be sanctioned under this scheme There is a concession of 0.25 percent on rate of interest. Under the scheme, loans up to Rs 50,000 are offered under the microcredit category.

  1. Udyogini Scheme

This scheme is offered by Punjab and Sind Bank to the women entrepreneurs involved in Agriculture, retail and small business enterprises to get loans for business at flexible terms and concessional interest rates. The maximum amount of loan under this scheme for women between the age brackets of 18-45 years is Rs 1 Lakh but the candidate’s family income is also taken into consideration and is set at Rs 45,000 per annum for SC/ST women. For widowed, destitute or disabled women from SC/ST categories, a subsidy of 30 per cent of the loan, up to Rs 10,000, is provided.

  1. Mudra Yojana Scheme for Women

This scheme is offered by the Government of India for women who want to start small new enterprises and businesses including beauty parlours, tailoring units, tuition centres, among others. There are three schemes under it each with different criteria for loan sanction. Firstly, Shishu Scheme, where loan up to Rs 50,000 is sanctioned to women to fund the initial stages of the business. Secondly, Kishor Scheme, here the loan amount ranges from Rs 50,000 to Rs 5 Lakh and is offered to well-established women enterprise. Lastly, Tarun Scheme here loan amount is Rs 10 Lakh and is offered to established business looking for expansion and diversification.

Apart from them, various other schemes for the development of women entrepreneurs are being offered by several organisations in the markets. The main aim of such schemes is to ensure financial support to women entrepreneurs to help establish the business and keep it afloat in later stages.

Categories
Startup

Startup Registrations at GeM Portal Doubles in Past 1 Year Giving a Major Boost to Make in India Initiative

Startup (Representational Image Only, Photo Credits: NeedPix.com)

New Delhi, November 21: The startup registration at the Government e-Marketplace (GeM), the public procurement portal, has more than doubled in the past one year, reports said. The registration of the startups have witnessed a spike and has doubled to 7,438 in just one year as they are receiving many orders from government departments and public sector units, a senior official said. The Government e-Marketplace (GeM) was launched in August 2016 for online purchase of goods and services by all the central government ministries and departments.

GeM CEO Talleen Kumar was quoted by PTI saying that providing increased market access to seller groups like startups, and MSEs has reinforced Prime Minister Narendra Modi’s Make in India initiative. “We now have 48,038 buyers, 7.42 lakh sellers with 2.42 lakh MSEs (micro and small enterprises), 7,438 startups, 10,252 product categories, and 173 service categories. One year ago, we had 40,275 buyers, 2.98 lakh sellers, 59,536 MSMEs, and 3,509 startups”.

The official further added saying that the startups have fulfilled orders worth over Rs 1,800 crore through the marketplace. He added saying that the GeM is taking a number of steps so that more and more startups, MSMEs, artisans and weavers can register their goods and services on this platform. “Presently, over 20,000 artisans and 1.2 lakh weavers have registered so far as sellers and are uploading products in their relevant categories,” Kumar added.

Talking about the steps taken for startups across India, the officials said that the GeM portal started a ‘Startup Runway’ so that these entrepreneurs can showcase their innovative products and solutions, and they can also list multiple products with minimal technical specifications. The official said , he said a new and advanced version of the platform will be launched soon which will have powerful features and availability of big ticket items to attract large buyers like PSUs, Railways and Defence.

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Startup

Women Entrepreneurship in India: Wadhwani Foundation Emphasises on Adopting Ways to Tap the Untapped Potential of New Women-Led Businesses in the Country

Bengaluru, November 20: Lauding the importance of a vibrant entrepreneurial ecosystem and the women entrepreneurs in India, Wadhwani Foundation said that by adopting several new measures will tap into the enormous untapped potential of new woman-led businesses. The Wadhwani Foundation is a global not-for-profit championing the development of entrepreneurial ecosystem across the country. According to reports, only a quarter of India’s workforce is female as against a global average of 49 percent, and it is clear that India’s growing entrepreneurial landscape has left behind a key demographic- the women.

Ajay Kela, President and CEO, Wadhwani Foundation said that of the 63 million MSMEs in India, only six percent are women-led, a criminal waste of talent. The Foundation believes that it is the need of the hour to unlock the untapped potential of women entrepreneurs by providing them with a support system comprising of an integrated policy framework with equal focus on rural India, women entrepreneurship programs and skill requirements of women, more gender-responsive financial sector and a conscious integration of the formal and informal networks.

According to a report by IANS, growth driving, business-friendly skills such as relationship building, emotional intelligence, and multitasking are second nature to women. The report said that there is a huge opportunity to empower women in India to choose entrepreneurship by creating networks that promote an ecosystem to motivate and support women entrepreneurs in taking the leap of faith by providing training in the nuances of entrepreneurship.

With women comprising just 14 per cent of the total entrepreneurial base in India, this is India’s big chance to tap into the precious resource of women entrepreneurs so as to realize their true potential. The report said that it is equally important to celebrate the fearless breed of women entrepreneurs who have made it big as role models for inspiring women towards entrepreneurship and facilitating a major mindset shift.

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Business motivation Startup

Earning Optimism is on the Rise Post Sharp Downgrades Amid COVID-19 Pandemic

Currency (Photo Credits: Pixabay) Representational Image

Mumbai, November 20: In a piece of positive news, earning optimism is on the rise post sharp downgrades amid COVID-19 pandemic earlier this year. According to an IANS report, a study done by ICICI Securities noted that coronavirus resulted in the steepest downgrade since the great financial crisis (GFC) of 2018 and now the prospects for earnings going ahead have improved.

The phenomenon was validated as Q2FY21 beats outpaced misses due to low expectations, cost-saving initiatives, rural demand, benign input prices and pockets of pent-up demand which were seen due to the festive season.

The report noted that nominal GDP is broadly expected to be flat or marginally lower in FY22 compared to the FY20 base, which would mean zero to negative GDP growth over FY20-FY22. The report further highlighted that given the high output gap seen in the pre-Covid period (FY20 GDP growth of 4.2 per cent), it is unlikely that FY23 will see a sudden return to potential real GDP growth of eight per cent.

In addition to this, policy measures introduced by the government to bring relief amid the pandemic like attracting investments in agriculture, lower corporate tax rates, digitisation will be beneficial in creating demand over the medium to long term.

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Business motivation Startup

4 Things to Remember If You Are Planning to Start Your Own Business Amid COVID-19 Pandemic

Business growth
Business growth (Photo credits: Needpix.com)

Mumbai, November 20: Starting a business is a paramount task, it is not just an idea that needs to click, but several other things should fall in place. You have been longing to start your own company since long, but the COVID-19 outbreak came as a roadblock. No doubt, starting your own business in the middle of the pandemic is extremely difficult, but it is surely not an impossible task.

We have listed a few important things which you should remember if you are planning to take a leap amid the pandemic.

  1. Study the Market: It is very important to study the market in order to find if there is a demand for your product. There are certain things which need to be considered, for e.g, if you are planning to launch a hi-end product, then keep the current market situation in mind, where there have been job losses, businesses being shut among others. So, if you feel there is no demand, then you can delay the plan for some more time.
  2. Have a strong online presence: Given the current scenario and more months to come, people will feel comfortable to shop online, rather than going out to a physical store and purchasing. The coronavirus outbreak has also changed the dynamics of business. So even if you are planning a store, make sure you are marketing well on social media channels and you have a good responsive website.
  3. Check your finances: In the current market situation, people are not splurging as they are hesitant to spend money. So expect longer than usual time for your business to kick start. Spend wisely and keep a tight budget in the initial few months.
  4. Hire a good team: Don’t go overboard and hire too many people. Recruit the strength which you require. There will always be time to expand.

    We spoke about the challenges, but there are certain positives also on your way. For e.g, if you are planning to rent a shop or an office space, it will be a great time because the property rates have slashed. Also, since people are spending more time at home and with their family, it will also be easier to target them.

    Being an entrepreneur is the most satisfying job, as you can take your own decisions. So if all things are in place and you are confident of starting your own business, go ahead, and take the plunge.