Role of Government in promoting Entrepreneurship

1. ROLE OF GOVERNMENT IN
PROMOTING
ENTREPRENEURSHIP
Presented by
Simran Kaur
MBA 2nd year
IGICM

2. Contents
• Entrepreneurial ecosystem
• India’s national innovation system
• India’s innovation ecosystem
• Current challenges
• Recent trending steps taken
• Steps that can be undertaken
• Policies undertaken

3. Entrepreneurial ecosystem

4. India’s national innovation system
• Councils and research structures which cater to different research
areas. Examples:
1. Council of Scientific and Industrial Research (CSIR): established in
1941; 39 laboratories
2. Indian Council of Agricultural Research (ICAR): established in 1929;
99 institutes and 17 research centres
3. Indian Council of Medical Research (ICMR): established in 1911; 30
laboratories
4. Defence Research & Development Organisation (DRDO): established
in 1958; 48 laboratories

5. India’s national innovation system(contd.)
• 280 universities in public sector including IITs, IIMs
• 2500 in-house R&D centres
• Financial institutions such as the Industrial Development Bank of
India (IDBI) and the Small Industries Development Bank of India
(SIDBI)

6. India’s innovation ecosystem
• Knowledge economy, driven by fundamental research, and
Commercial economy, driven by the marketplace.
• According to the Global Innovation Index (WIPO, 2014), India ranks
76th among the 143 countries surveyed.
• The reasons for this poor performance may be related to
fragmentation and a lack of focus.

7. Current Challenges
• Fragmented policy and policy implementation
• Inadequate funding of R&D
• Difficult and lengthy funding process
• Non-conducive education system
• Poor infrastructure facilities in villages
• Risk version among entrepreneurs
• Inadequate protection of intellectual property rights

8. Recent trending steps
• Telangana government wants to start an incubator for startups, is
planning to make Hyderabad a WiFi city as well.
• The central government has announced the formation of MoS for
Entrepreneurship. The BJP had also promised to improve the
technology infrastructure in the country by setting up Wi-Fi zones and
100 Hi tech cities.
• Kerala had setup an angel fund of Rs 10 cr angel fund to invest in
startups. The state government also floated options to allow
students to explore entrepreneurship (with 4% grace marks).

9. Steps that can be undertaken
• Have business-friendly laws and a functional, streamlined court system.
• Avoid regulations that entrench special business interests, e.g. licensing requirements.
• Enforce market-corrective laws
• Protect intellectual property without it becoming a corporate welfare program.
• Make all public records and other non-secret government data available in real time
• Train health, fire, building inspectors, people in charge of any kind of permitting and
enforcement.
• Hire competent people and keep up morale.
• Promote public works, trade.
• Fund public education, keep college affordable, encourage public and private universities
and trade schools.

10. Policies undertaken
• Micro, Small and Medium Enterprises Development Organization
(MSME-DO)
• National Small Industries Corporation Pvt. Ltd. (NSIC)
• Khadi and Village Industries Commission (KVIC)
• Coir Board
• Excise duty
• Foreign Direct Investment approval
• Labour laws

11. THANK YOU!!!