Coordinators Jointly Organized by NPIU and AICTE TEQIP III, Zone - - PowerPoint PPT Presentation

Welcome to Orientation Session for Startup Cell Coordinators Jointly Organized by NPIU and AICTE TEQIP –III, Zone – Uttar Pradesh 26th & 27th Dec 2017 AKTU, Lucknow

Objectives

To sensitize and orient Start-up Cell Coordinators on Entrepreneurial Thinking and Start-up Approaches and Practices To Build the Vision to Act Entrepreneurially in Implementing a Result Oriented Micro Action Plan for the Start-up Cell and To Play an Active Role on Policy Advocacy and Policy Making Process.

Session Outline

1. Importance of Entrepreneurship and Innovation in Economic Development 2. Start-up Landscape at Global and National Level 3. Start-up Ecosystem Components and Development Models 4. Policy and Programs Provisions and Mandates to Build Start-up Ecosystem in Technical Institutions 5. Policy Logics and Vision Building for Start-up Cell: Problem Tree & Objective Tree and Key Performance Indicators 6. Development of Result Based M&E and Micro Action Plan for Start- up Cell

• 1. Role of government in promoting entrepreneurship?
• 2. Rationale for entrepreneurship policy?
• 3. Main instruments of entrepreneurship policy?
• 4. What is the impact of entrepreneurship policy and how

should it be assessed?

Session Focus

Session Focus

• 1. Unleashing Entrepreneurship through Private Sector

Development

• 2. Constraints on the private sector in developing countries
• 3. Unleashing the potential of the private sector and Engaging

the private sector in development

Benefits for You

• Able to understand various key entrepreneurial concepts,

approaches and practices at National and Global Level.

• Able to know Enterprising Ability and Potential of Start-up Cell

Coordinators

• Get oriented about various components in building Start-up

Ecosystem development and Frameworks in Formulating Entrepreneurship Policy at National and Institutional Level.

• Get to know about Start-up Policy Programs and Start-up

Policy Mandates for Technical Institutions

• Able to Develop Vision Plan and a Result Oriented Micro Action

Plan for Start-up Cell.

Introduction and Expectations

• Who are you?
• Your core skills?
• Your experience?
• One key expectation of workshop:

– “A question I would like answered is…” – “I would like to know more about…” – “My major interest is in…”

Ground Rules of the Pool…

Session Flow Management

Exit

Housekeeping:

• Schedule and Breaks
• Smoking
• Exits
• Restrooms
• Other?

Session-I: Entrepreneurship & Innovation

• Concepts & Theories
• Typology
• Characteristics
• Exercise/Activity

Entrepreneurship – Theories & Concepts

• The word entrepreneur itself derives from the French

verb entreprendre, meaning “to undertake”.

• In 1723, Irish–French economist Richard Contillon

coined the term Entrepreneur (self-employment and Risk takers)

• in 1890, Alfred Marshall & Frank Knight have added

Leadership and recognized the need

• f

entrepreneurship through organization, as a fourth factor of production.

Goods & Services = f ( Land, labour, Capital, Entrepreneur)

Mainstreaming Entrepreneurship

• In 1934, Joseph Schumpeter’s modern definition of an

entrepreneur; added Innovation; less on Risk Takers

“Entrepreneurs as innovators who implement entrepreneurial change within markets by identifying market opportunities and using innovative approaches to exploit them”

• 5 manifestations of Entrepreneurial Changes

– Introduction of a new (or improved) Good & Services – Introduction of a new method of production – Opening of a new market – Exploitation of a new source of supply – Re-engineering/organization of business management processes.

• In 1985, Peter Drucker refined the definition of

entrepreneurship “Not merely the creation of a new organization, also include any individual who starts a new business venture is an entrepreneur; even those that fail to make a profit”

• Entrepreneurs Vs Businessmen

Mainstreaming Entrepreneurship

Specify components and functions associated with above figure on Economic Development and Factors of Production

Activity - I

Entrepreneurship - Terminology

• Entrepreneurs are those persons (business owners)

who seek to generate value, through the creation or expansion

• f

economic activity, by identifying and exploiting new products, processes or markets.

• Entrepreneurial activity is the enterprising human action

in pursuit of the generation of value, through the creation or expansion of economic activity, by identifying and exploiting new products, processes or markets.

• Entrepreneurship is the phenomenon associated with

entrepreneurial activity.

Typology

Gambler Entrepreneur Bureaucrat Dreamer Risk-taking Risk-averse Not Innovative Innovative

Innovation and Risk

Source: J.Timmons, New Venture Creation

Entrepreneur ( Marketing Innovation) Inventor Manager Administrator Promoter

Creativity and Innovation General Management Skills, Know-How, Networks High Low High

Who is the Entrepreneur ?

Source: Wennekers and Thurik (1999)

Self-employed Employee Entrepreneurial Schumpeterian entrepreneurs Intrapreneurs Managerial Managerial business

• wners

Executive managers

Types of Entrepreneurship

Formal Informal Legal Registered firm that is engaged in legal activities Unregistered firm that is engaged in legal activities Illegal

• 1. Formal vs. informal
• 2. Legal vs. illegal
• 3. Necessity vs. opportunity
• 4. Productive vs. unproductive
• 5. Innovative vs. replicative

Unregistered firm that is engaged in illegal activities Registered firm that is engaged in illegal activities

Types of Entrepreneurship

Entrepreneurship

as defined by World Bank

Entrepreneurial Activity The activities of an individual or a group of individuals aimed at initiating economic activities in the formal sector under a legal form of business. Unit: Business Any economic unit of the formal sector incorporated as a legal entity and registered in a public registry, which is capable, in its own right,

• f incurring liabilities and of engaging in

economic activities and transactions with other entities.

Productive Vs Unproductive Entrepreneurship

• productive entrepreneurship refers to Schumpeter’s five types of innovation

– introducing new products, new processes, new markets, new supplies and new organizations (William Baumol).

• Unproductive entrepreneurship refers to rent seeking activity such as

lobbying government for favors, taking legal actions to harm competitors or conducting military activity

• Countries with cultures and institutions that reward unproductive

entrepreneurship will channel more of their entrepreneurial efforts to rent- seeking activities, and consequently the economies will perform poorly

• How the entrepreneur acts at a given time and place depends heavily on the

rules of the game or the reward structure in the economy

• Thus, the allocation of entrepreneurship between productive and

unproductive activities can have a profound effect on the innovativeness and subsequent performance of the economy

Key Entrepreneurial Characteristics

• Motivation: The enterprising person is highly motivated, energetic, and

has a capacity for hard work.

• Creative tendency: The enterprising person is restless with ideas, has an

imaginative approach to solving problems, and tends to see life in a different way to others.

• Calculated risk-taking: The enterprising person is opportunistic and

seeks information and expertise to evaluate if it is worth pursuing the

• pportunity which will usually involve some risk.
• Locus of control: The enterprising person has an internal rather than

external locus of control which means that they believe they have control

• ver their own destiny and make their own 'luck'.

Sally Caird and Mr Cliff Johnson, 1987

• 1. Opportunity obsession
• 2. Creativity
• 3. Commitment and determination
• 4. Motivation to excel
• 5. Self-reliance
• 6. Adaptability
• 7. Tolerance of risk, ambiguity, and uncertainty
• 8. Courage
• 9. Leadership

Source: Timmons and Spinelli (2006)

Nine Attributes of Successful Entrepreneurs

Activity -II

Explain whether each of the following is type of Production Functions: Labor, Capital, Natural Resource or Entrepreneur.

• An unemployed factory worker
• A college professor
• Shop Floor Manager
• The library building on your campus
• Design Lab Manager
• The Kajiranga National Park
• An untapped deposit of natural gas
• The Parliament of India
• The local power plant
• Chief Executive Officer
• Chief Product Designer
• Shareholder of an Public Enterprise
• In-charge of Incubation/ Start-up Cell

Activity-III General measure of Enterprising Tendency (GET) Test

• The General measure of Enterprising Tendency (GET) test was first

developed in 1987-1988 by Sally Caird and Mr Cliff Johnson at Durham University Business School.

• The basic premise of the test is that the enterprising person shares

entrepreneurial characteristics, and that these characteristics may be nurtured via educational and training, and assessed.

• The approach to developing the measure of enterprising tendency involved

identifying key characteristics of entrepreneurial people which are associated with entrepreneurial behaviour, and the entrepreneurial act itself.

• The GET2 test offers a self-assessment test that takes about

ten minutes to complete and will give you an idea of your enterprising potential, defined as the tendency to start up and manage projects.

• The test was developed as a paper-based tool for research

and educational use in the classroom.

• This test does not assess personal strengths other than

enterprising characteristics. The test, however, is not definitive and should be used as an educational aid for stimulating personal reflection.

Score Card

High GET2 score 44-54

• Your GET2 score suggests that your enterprising tendency is high.
• This means that you have a tendency to start up and manage projects;

this could be your own business venture, within your employing

• rganisation or your community. You may recognise the following

qualities in yourself: – You like to be in charge; – You will seek opportunities and use resources to achieve your plans; – You believe that you possess or can gain the qualities to be successful; – You are innovative and willing to take a calculated risk to achieve your goals successfully.

• The most enterprising people set up projects more frequently, set up

more innovative projects and are more growth-oriented which means that they are opportunistic and good at utilising resources, including human, technological, physical and organisational resources.

Medium GET2 score 27-43 You are likely to have strengths in some of the enterprising characteristics and may be enterprising in some contexts. At this time you probably are unlikely to set up an innovative growth-oriented global business, and may be able to express your enterprise either within employment as an entrepreneur, or in your leisure time through voluntary community projects.

Low GET2 score 0-26

• The GET2 results suggest that you are not highly enterprising

in your present activities.

• This suggests that you would probably prefer to work in
• employment. Perhaps you prefer to support enterprise rather

than take a lead.

• Enterprises need people to support and work on the

implementation of plans so that goals

• Personal transformation is an open door! If you want to

be enterprising you are half-way there!

• Entrepreneurship &

Economic Development

• Entrepreneurship In

Developing Country

• Private Sector

Development

Session-II: Importance of Entrepreneurship

Entrepreneurship Economic Development Global Economy

Entrepreneurship and Economic Development

Factors of Production & Economic Growth (GDP)

Goods & Services = f ( Land, labour, Capital, Entrepreneur)

Differentiating Labour into “Human Rights” & “Human Spirits”. Combine Use of Knowledge*Technology Example: Colonization Era & Now

Attitudes, Skills, Actions Start-ups, Entry into New Markets, Innovations Variety, Competition, Selection

Conceptual Framework Linking Entrepreneurship to Economic Growth

Source: Carree and Thurik (2002) Individual Level Firm Level Macro Level Psychological Endowments Competitiveness Economic Growth Level of Analysis Conditions for Entrepreneurship Crucial elements of Entrepreneurship Impact of Entrepreneurship Culture and Institutions Business Environment Macroeconomic Conditions Firm Performance Self-realization Personal Wealth

Role of Entrepreneur & Entrepreneurship in Economic Development

– Promotes Capital Formation: – Creates Large-Scale Employment Opportunities: – Promotes Balanced Regional Development: – Reduces Concentration of Economic Power: – Wealth Creation and Distribution: – Increasing Gross National Product and Per Capita Income: – Improvement in the Standard of Living: – Promotes Country's Export Trade: – Induces Backward and Forward Linkages: – Facilitates Overall Development:

Types of Entrepreneurship and Economic Growth

• Not all types of entrepreneurship are good for economic

development

• Small and micro firms are not necessarily synonymous with

entrepreneurship: many of them do not focus innovation and contribute significantly to economic growth and development

• Low quality and informal entrepreneurship may have negative

externalities

• The presence of growth-oriented entrepreneurs seems to be

more important than general entrepreneurship

• Unleashing Productive Entrepreneurship: Private Sector

Development is Necessary

• Development of Entrepreneurship is not always spontaneous.
• The entrepreneurship is motivated and affected by the following factors

– Economic environment – Social environment – Type of Skill and technical knowledge – Family background – Religious and cultural affiliation – Financial condition – Availability of supporting facilities – Psychological – Government policy and Political environment

• In most of the developed countries, the educational system is designed in

such a way that it creates more jobs creators.

• Type of education prevailing in the country is also an important factor for

entrepreneurship development.

Unleashing Entrepreneurship: Private Sector Development

Foundations for the Private Sector and Pillars

• f Entrepreneurship

Source: UNDP (2004)

Enterprise Development Private Sector Growth Business Environment: Fair rules, Fairly Enforced Access to Financing and Resources Access to Skills and Knowledge Rule of law Physical and social infrastructure Domestic and global macro environment Pillars of Entrepreneurship Foundations for the private sector

Constraints on the Private Sector in Developing Countries

• 1. Microenterprises and many small and medium enterprises
• perate informally
• 2. Weak foundation in the global and macro environments and

the consistent rule of law for Ease of Doing Business.

• 3. Absences of requisite physical and social infrastructure
• 4. A lack of competitive pressure shield firms from market

forces and the need to innovate and become more productive

• 5. Three pillars of entrepreneurship – too often missing

1) A level playing field – with Fair rules, Fairly Enforced 2) Access to financing & Resources 3) Access to skills and knowledge

Source: UNDP (2004)

Why Firms Do Not Formalize?

• The most important factor is the burden of state regulation,

such as complex tax and administrative regimes, restrictive labor laws, and high social security burdens

• Many entrepreneurs decide to stay informal because the costs
• f entry, operation and exit associated with the formal sector

are greater than the potential benefits Policy Research Questions for you to find Answer !!

• Is informality a stepping stone to becoming formal or a low-

productivity, poverty trap?

• Would productivity significantly increase if informal firms

became formal?

• How to make work in the informal economy less attractive than

work in the formal economy?

Session-III: Measurement of Entrepreneurship

• Global Entrepreneurship

Monitor (GEM)

• Ease of Doing Business

Indicators (DB)

• Entrepreneurship

Indicators Project (EIP)

• Global Innovation Index

(GII) and India

• Exercise/Activity

Measuring Entrepreneurship

• In 1999, the Global Entrepreneurship Monitor (GEM), a global study

started by a consortium

• f

universities to analyze the level

• f

entrepreneurship occurring in a wide basket of countries.

• In 2002, the Doing Business (DB) report of the World Bank Group first

published as “The Regulation of Entry” and later developed into the Ease of Doing Business index.

• In September 2006, the OECD launched a new Entrepreneurship

Indicators Programme (EIP)

• In 2007, The Global Innovation Index (GII) ranks the innovation

performance of 143 countries and economies around the world, based on 81 indicators. The GII is co-published by WIPO, Cornell University and INSEAD.

• In Feb 2017, The National Institution for Transforming India (NITI) Aayog

and Confederation

• f

Indian Industry (CII) jointly launched India Innovation Index (III).

The GEM Conceptual Model

Source: Reynolds et al.(2002) Social, Cultural and Political Context

General National Framework Conditions

• Openness (external trade)
• Government (extent, role)
• Financial Markets (efficiency)
• Technology and R&D

(level, intensity)

• Infrastructure (physical)
• Management (skills)
• Labour Markets (flexible)
• Institutions (unbiased, rule of law)

Entrepreneurial Framework Condition

• Financial
• Government Policies
• Government Programmes
• Education and Training
• R&D Transfer
• Commercial and Legal

Infrastructure

• Internal Market Openness
• Access to Physical Infrastructure
• Cultural and Social Norms

Entrepreneurial Capacity

• Skills
• Motivation

Major Established Firms Micro, Small and Medium Firms Entrepreneurial Opportunities National Economic Growth (GDP, Jobs) Creation and Closure of Enterprises

Discontinuation of Business Owner-Manager of an Established Business (more than 3.5 years old) Potential Entrepreneur: Opportunities, Knowledge and Skills

Total Early-Stage Entrepreneurial Activity (TEA)

Conception Firm Birth Persistence

Nascent Entrepreneur: Involved in Setting Up a Business Owner-Manager of a new Business (up to 3.5 years old)

The Entrepreneurship Process and GEM Operational Definitions

Total Early-Stage Entrepreneurial Activity Rates and Per Capita GDP 2010

Source: GEM GDP Per Capita in Purchasing Power Parities ($), in Thousands Percentage of 18-64 Population Involved in Early-Stage Entrepreneurial Activity 25 20 10

GH UG ZM PE

15 10 5 30 40 20

AO

R2 = 0.51

◆ ◆ ◆ ◆ ◆

PK

60 50 30 35

◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆

EC CO BR CL ME AR TT SA KR IL GT CN JM CR IR UY LV EG TN BA ZA MK TR MY RO RU HR HU PT IT SI GR ES TW IS AU NL IE US SW NO BE SE DK FR UK

Findings from GEM Report

• The best available cross-country data from GEM shows that there

exists a U-shape relationship between entrepreneurship and economic development

• At low levels of development, self-employment is high due to lack of

sufficient wage employment

• Most new businesses in low income countries are started out of

necessity, in contrast to high income countries, where entrepreneurship is most often opportunity driven

• With economic development over time, the opportunity costs for self-

employment will rise and the ratio of self-employed to wage-employed will decline, corresponding to the downward sloping part of the U- shaped curve.

• In developed countries, the growth of the service sector and adoption
• f new technologies will lead to a rise in self-employment,

corresponding to the upward-sloping portion of the U-shaped curve.

World Bank Doing Business Index

❖ The World Bank Doing Business indicators measure the extent of regulations affecting business and the protection of property rights in TEN areas:

• 1. Starting a business
• 2. Dealing with construction permits
• 3. Getting Electricity
• 4. Registering property
• 5. Getting credit
• 6. Protecting Minority investors
• 7. Paying taxes
• 8. Trading across borders
• 9. Enforcing contracts
• 10. Resolving Insolvency/Closing a business

❖ Country rankings in the survey are used as an indicator of the business- friendliness of country environments

Ease of Doing Business Ranking

Source: Doing Business, 2017, World Bank

The Impact of the Business Environment on the Business Creation Process

• The World Bank Group Entrepreneurship Survey indicates a

very strong and statistically significant relationship between entrepreneurship and a better business environment

• Good governance and political stability are the first

prerequisites

• Greater ease in starting a business and red-tape reduction are

associated with increased entrepreneurial activities

• After controlling for economic development, more efficient

business registration procedures and business registry modernization has a positive impact on entrepreneurship

• Overall, the data show that a quick, efficient, and cost-effective

business registration process is critical for fostering formal sector entrepreneurship

Entrepreneurship Indicators Programme (EIP) – OECD Findings

• Services have been an important driver of firm creation:
• Wage gaps in manufacturing are increasing in many

countries

• Digital tools have provided new pathways and unlocked

new markets for micro entrepreneurs: ‘Just Me’ entrepreneurs with no employees.

• The emergence of “gig workers”: Part time Entrepreneurs

Global Innovation Index

• The Global Innovation Index provides detailed

metrics about the innovation performance of 127 countries and economies around the world.

• GII measures using 81 indicators explore a broad

vision of innovation, including political environment, education, infrastructure and business sophistication.

Activity - IV

• Cross Country Comparison and Group

Presentation GEM and GII

• Start-up Ecosystem &

Components

• Start-up Ecosystem at

Institution Level

Session-IV: Start-up Ecosystem

Transition of Ecosystem

Composition of the Start-up ecosystem

Source: Start-up Commons

Key Start-up Development Phases

Key Start-up Support Phases

Business Model / Market Fit Product / Market Fit Vision / Founders Fit Problem / Solution Fit Minimum Viable Product Validate / Iterate (or pivot) Ideating Entrepreneurial ambition and/or potential scalable product or service idea for a big enough target

• market. Initial

idea on how it would create

• value. One

person or a vague team; no confirmed commitment or no right balance

• f skills in the

team structure yet. Concepting Defining mission and vision with initial strategy and key milestones for next few years on how to get there. Two or three entrepreneurial core co-founders with complementary skills and

• wnership plan.

Maybe additional team members for specific roles also with ownership. Committing Committed, skills balanced co-founding team with shared vision, values and

• attitude. Able to

develop the initial product or service version, with committed resources,

• r already have initial

product or service in

• place. Co-founders

shareholder agreement (SHA) signed, including milestones, with shareholders time & money commitments, for next three years with proper vesting terms. Validating Iterating and testing assumptions for validated solution to demonstrate initial user growth and/or

• revenue. Initial Key

Performance Indicators (KPI’s)

• identified. Can start

to attract additional resources (money or work equity) via investments or loans for equity, interest or revenue share from future revenues. Scaling Focus on KPI based measurable growth in users, customers and revenues and/or market traction & market share in a big or fast growing target

• market. Can and

want to grow fast. Consider or have attracted significant funding or would be able to do so if

• wanted. Hiring,

improving quality and implementing processes Establishing Achieved great growth, that can be expected to

• continue. Easily

attract financial and people resources. Depending on vision, mission and commitments, will continue to grow and often tries to culturally continue “like a startup". Founders and/or investors make exit(s) or continue with the company.

VALIDATION

Lean Startup

Startup Development Phases - From Idea to Business and Team to Organization.

FORMATION

Mission > Vision > Strategy

GROWTH

Scale Up

• Co-founder team formation
• What, to whom? & Why and how?

Establish & Strengthen

• 2
• 1

3 2 1

Source - www.startupcommons.org

Start-up Development Phases: Key Requirement

Start-up Development Phases: Key Stakeholders

Start-up Cell/Pre-Incubator/Incubator

Start-up Development Phases: Key Services

Design Thinking: Identification of Problem to Alternative Solution Lean User experience (UX) design - Deliverables-based practice Agile: Division of tasks into short phases of work and frequent reassessment and adaptation of plans.

Lean Start-up

• Entrepreneurship

Policy Framework

• Policy Logic – Problem

Tree & Objective Tree

• Key Performance

Indicators

• Presentation by

Mentor Institutions

Session-V: Policy Logic and Vision Building

UNCTAD’s Entrepreneurship Policy Framework

• 1. Formulating National Entrepreneurship Strategy
• 2. Optimizing the Regulatory Environment
• 3. Enhancing Entrepreneurship Education and Skills Development
• 4. Facilitating Technology Exchange and Innovation
• 5. Improving Access to Finance
• 6. Promoting Awareness and Networking

Source: UNCTAD

The Entrepreneurship Policy Framework

• 1. Entrepreneurship

Promotion

• 4. Start-up Financing
• 2. Entrepreneurship

Education

• 3. Reduction of

Barriers to Entry

• 6. Supporting Target

Groups

• 5. Business Start-up

Support

Source: Lunstrom and Stevenson (2010)

The Institutional Framework

• Entrepreneurship will only unlock economic development if a

proper institutional setting is in place

• The most important policy for improving productive

entrepreneurship is to get the institutional framework in a country right

• An appropriate institutional framework is one that ensures

entrepreneurs can capture the profits or rewards of their activities

• This requires secure property rights, the rule of law, reasonable

levels of taxes on profits, contract enforcement and financial stability, as well as the fostering of opportunities for new entrepreneurs through competition policy

Start-up Ecosystem Framework; Piloting a Micro Ecosystem at Institution Level

Technical and Management Institutions & Universities

Student Innovation

Student Start-up Entrepreneurial Scientist/faculty + Entrepreneurial Student Base Coherent Policy Guidance & Resource Support; NPIU, AICTE, Central & State Govt. Real market Challenges & Problems through Industry Support; Corporate & Private Partnership & Linkage Real Societal Challenges & problems of Local Society/Economy: Innovation Development Innovative Student Enterprises Technology Commercialization Entrepreneurship Exposure & Skill Development Start-up Service Support Facility Inter-Institutional Partnership & Network with Regional and National Startup Eco-System Ecosystem Enablers interconnected through an Integrated Web Platform

Causes Sub- Problems Effects

Inconsistent and Weak en the Process Pipeline of Innovation & Entrepreneurship Predominance of Job Seeking Attitude

• Lack of Awareness
• Lack of Motivation
• Lack of Experiential

Learning Tracks

• Lack of relevant Skill

High Unemployment Rate Among Technical Graduates

Problem Tree – Start-up Ecosystem Development at Institution Level

Lack of Entrepreneurship Culture and Practices among Students and Faculties in Technical Institutions Core Problem

Absence of Support Facilities and Resource Access for the Potential and Early Stage Innovators and Entrepreneurs Lack of In-House Expert Capacity of Institutions on Advisory Support Services to Potential and Early Stage Innovators & Entrepreneurs Thinly connected and (or ) Absence of Intra and Inter- Institutional linkage with Ecosystem Enablers at Regional, National Level

• Lack of Dedicated

Infrastructure & Facilities

• Weak Delivery

System & Access to Resources

• Absence Repository

& Recognition Process

• Absence of In-house

Trained Professionals for Advisory Services

• Lack of Incentives
• Lack of In-House

Research in Entrepreneurship

• Weak Inter-

Department linkages

• Weak Inter-

institutional Linkages

• Absence of Referral

Support System Low Level Existence

• f Critical Mass of

Motivated Students & Faculties with Entrepreneurial Orientation and Skill Set Very Low Self- Employable Rate Prolong the Cognitive Phase to Choose Entrepreneurship as Career Alternative

Vision/ National Development Goal Outcomes/ Specific Objectives Activities/ Actions Output/ Deliverables

Building Innovation & Early Stage Enterprises by supporting & enabling Access to Resource & Facilities at Institute In-House Competency Development to Serve Potential and Early Stage Entrepreneurs Strengthen the Intra and Inter- Institutional linkage with Ecosystem Enablers at Different Level Developing a Critical Mass of Motivated Students & Faculties with Entrepreneurial Orientation & Skill

Objective Tree/Policy Logic – Start-up Ecosystem Development at Institution Level

Increase Employment Rate through Self Employment Vibrant and Dynamic Startup Ecosystem in Technical Institutions

Impact/Goal/ Long term Objective Inputs/ Resources

• Aware and Motivated

Student and faculties

• Deliver Education on

Innovation and Entrepreneurship

• Dedicated Facilities

and Infrastructures

• Enterprise Support
• Access to Resources
• In-house Trained

Professionals

• Active Advisory

Services

• Research & Advocacy
• Inter-Department

linkages

• Inter-institutional

Linkages

• Organize Workshops

/Lectures/Seminars/e- Talk/BooTCamp etc

• Conduct Online and

Class Room Education &Training & Mentoring

• Integration of

Experiential Learning

• Establishment of

Startup Cell

• Scout, Recognize

Support Ideas, Innovation & Startups

• Innovation & Startup

Repository Buildup

• Setup Advisory

Service Expert Pool

• Training-FDPs, EDPs
• Incentives for

Experts

• Research Studies &

Advocacy Programs

• Mentor, Startup Cell

Network, Business & Referral Service

• Convergence and

Leverage Govt. Schemes & Programs

• Organize National &

Regional Events Resource Allocation, Financial/Budget. Human Resource, Material, Equipments etc.

KPIs – Start-up Ecosystem Development at Institution Level

Hierarchy of Objectives Key Performance Indicators (KPIs) Means and Verification Vision

• % Increase in Self-Employment Rate
• No of Established Start-ups
• DIPP & NASSCOM
• AICTE Index

Goal/Impact

• Enabling Environment Established with multiple level of support for innovation & Entrepreneurship in Institute
• No/% of Graduate students choose Entrepreneurship as career & # Increment/year
• No/% of Student and Graduates Practicing Entrepreneurship & # Increment/year
• NPIU-AICTE

Biannual Survey

• NIRF Rankings

Outcomes

• Nos/% of student & faculty mass with entrepreneurship Orientation, # Increment/year
• Nos/% of Student & faculty motivated to start any entrepreneurial activity & #Increment
• No of IPR/Innovations developed for commercialization & # Increment/year
• No of Student/Early Stage Start-ups formed & # Increment/year
• No/% of In-house Expert Capacity available for Advisory Services & # Increment/year
• % of Satisfaction over Advisory services offered to Innovators & Early Stage Entrepreneurs
• Network Established with connecting multiple stakeholders & Ecosystem Enablers
• NPIU- AICTE

Biannual Survey

• Quarterly News

Letter of Start-up Cell

Outputs

• No/% of Student & faculty mass exposed to awareness/orientation building programs & #
• No/% of Students covered through entrepreneurship Education; MOOC, Class Room, Experiential Learning

programs etc. & # Increment/year

• No of beneficiaries are accessing the infrastructure & facilities per day, month & # Increment
• No of innovators identified; No of awarded,/recognised; No of Supported, & # Increment
• No of Entrepreneurs identified; No of awarded,/recognised; No of Supported, & # Increment
• No of Student projects turns to (commercialize) Innovations
• No of IPR based product/services generated and registration filed
• No/% of in-house trained professional developed for advisory services & # Increment
• No of Research Studies on Entrepreneurship published
• No of Regional, National and International linkages established for the start-up & innovation
• No/% Representatives of experts & entrepreneurial students across Dept & Disciplines.
• No of Beneficiaries Referred to Incubators/investors for further support through Start-up Cell
• No of Beneficiaries generated under various schemes and programs leveraged and converged at Start-up Cell
• NPIU- AICTE

Biannual Survey

• Monthly progress

report of Start-up Cell

Activities

No and types of Education/Skill certification program on Entrepreneurship, IIPR, Innovation etc. No of workshops, awareness, market out reach events, orientation, advocacy meetings etc. No of networking event (Intra and Inter-institutional, enablers, stakeholders) organized No of skill and competency development training programs/FDPs/EDPs organised No of research studies related to Entrepreneurship conducted No of convergence and leverage with schemes/programs offered by major enablers No of national and regional award and campus Hackathon like events organised Incentivising Entrepreneurship and Innovation; services and facilities; Start-up Manual, policies, tool kits etc. Amount of total budget/year spend against total institution revenue for start-up Budget allocation and Spend ratio for the start-up mandate in institute

• NPIU- AICTE

Biannual Survey

• Quarterly News

Letter of Start-up Cell

• Monthly progress

report of Start-up Cell

• Review Meetings

Sample Micro Action Plan Framework

Objectives Activities/ Actions Benchmarking Development of Key Performance Indicators Set up of Base Line for KPIs Target Indicators Output & Outcome Monitoring & Evaluation

Impact Creation: Vibrant and Dynamic Startup Ecosystem in Technical Institutions Developing a Critical Mass of Motivated Students & Faculties with Entrepreneurial Orientation & Skill Building Innovation & Early Stage Enterprises by supporting & enabling Access to Resource & Facilities at Institute Strengthen the Intra and Inter-Institutional linkage with Ecosystem Enablers at Different Level

Survey

In-House Competency Development to Serve Potential and Early Stage Entrepreneurs

Indicative List of Activities

• 1. Developing Critical Mass of Motivated Students & Faculties with Entrepreneurial Orientation & Skill

Activities Frequency Promotion/ Awareness Generation Events: Workshops, Conference, Symposia , Assessment Camps etc. Experiential Learning Programs: Boot-Camps, Hackathons, Makeathons (Hands on Activities); Problem Solving Efforts, Internship with Start-ups and Incubated Companies, Campus Companies, Games, Simulations, Learn by Doing exercises etc. Competitions: Ideation, Innovation Contest, Prototype Contest, Business Idea Contest, Innovation Exhibition, Pitching Fest, Start-up Exhibition, Award Functions etc. Motivation: Programs- e-Talks, TED Talks, Leader Talks, Alumni Entrepreneur in Campus etc. Short Skill Development ( Certification) Training Programs : Innovation Design, Design Thinking, IPR, Prototyping, Creativity, Immersion Programs in Innovation, Business Modelling, B-Plan Preparatory Workshops/camps , Venture Development etc. Entrepreneurship Education: e-Learning, MOOC, Elective & Major in Entrepreneurship, Diploma program etc. Exposure Visit Program: To Incubators, Industries, Research Parks, Software Technology and Innovation Park, SME Clusters, SME Centres, Innovation Societies, Centres, Fab Labs, Hackers Space, Tinker Labs, Exhibitions, Market, Society etc. Leadership Development Programs: Incentivize the Innovation and Entrepreneurship Activities to promote more participation

Indicative List of Activities

• 2. Building Innovation and Early Stage Enterprises by Supporting and Enabling Access to Resources &

Facilities at Institute Activities Frequency Establishment of Start-up Cell: Dedicated Space Allocation, IT and non-IT Infrastructure and Resources In place, Micro-Action plan ready with quarterly program calendar announced, Allocation of Fund, Start-up Cell Promotion events etc. Knowledge Documents: Promotion and Communication Material on Start-up Cell and Facilities, Formulation of Service and Facility user Guidelines, Start-up Manual and Knowledge tools, IP process etc. for easy access of facilities. Competitions: Demo Day, Ideation, Innovation Contest, Prototype Contest, Business Idea Contest, Innovation Exhibition, Pitching Fest, Start-up Exhibition, Award Functions etc. Leadership Development : Formation of informal Student bodies – Idea Club; Innovation Club; Start-up Club; and e-Cell lead by Students and promoted by Start-up Cell. Institutional Repository (MIS) Build-up and Track the process of Identify, Scout, Recognise, Promote and Support Student Ideas: Events & Programs Identify, Scout, Recognise, Promote and Support Student Innovations: Events & Programs Identify, Scout, Recognise, Promote and Support Student Start-ups: Events & Programs IP Guidance and Patent Filing Support Access to Digital Library and Research Repository

Indicative List of Activities

• 3. In-house Competency Development to Serve Potential and Early Stage Entrepreneurs

Activities Frequency Setup an Expert Pool for Advisory Services on Innovation & Start-up : Identify, categorise and empanel the experts available in-house under different advisory/mentoring services. Incentivise the Advisory Services for Quality Delivery: Formulation of manual and guidelines for advisory services, experts availability, time accessibility, credit benefits for mentor and mentee etc. Advisory programs: Mentorship Rounds on Idea to Proof of Concept, Proof of Concept to Prototype, Prototype to Market Test, IP Protection, Filing, Commercialization plan development, Business Model and Plan development, Market Potential and Research Design, Early Venture Planning , Seed fund arrangement and Funding opportunities, MVP ( Minimum Viable Product) Development, Lean Start-up, Investment readiness, Govt. Schemes and Programs etc. Build-up Date base and Track the progress and quality of services on regular basis Competency Development of Experts, Facilitators, Coordinators, Club Student Leaders & Members: FDPs, EDPs, Knowledge and Experience Sharing Workshops, Exposures etc. Research Studies and Advocacy Programs: Undertaking more research activities on Entrepreneurship and innovation. Publish finding periodically in journals, reports, blogs, and , share through advocacy programs.

Indicative List of Activities

• 4. Strengthen Intra and Inter – Institutional Linkage and Network with Ecosystem Enablers

Activities Frequency Establish Networks: Network of Start-up Cell, Mentors Network, Network with Incubators and Research Parks, Venture capitals, Regional, State and National Angel Investors, TIE, NEN, Accelerators, Knowledge venture such as 91Springboard, Inc42 etc. Organise Inter department Session and encourage student Start-up team and program coordination team with interdisciplinary, and representative from diverse departments Organise , host and participate in Network events and Linkage programs; Regional, National and International events in partnership with other institutions and ecosystem enablers Convergence and Leverage Govt. Schemes and Programs: Start-up cell will leverage the

• pportunities and channelize the entrepreneurship and innovation support schemes and

programs available with various central and state govt. private and donor agencies through convergence . ( DST, NSTEDB, EDII, DBT, TIFAC, TDB, AICTE, NPIU, MSDE, MSME, MEITY, AIM, NITI AAYOG, NRDC, State Start-up Missions etc.) Referral Support to Early Stage Start-ups and Innovators for further support and investment, funding, acceleration, Start-up Exchange, Incubators etc.

• Start-up Definition
• Global Start-up

Landscape and India

• Indian Start-up

Ecosystem Landscape

• Policies and Programs

Session-VI: Government Initiatives & Support System

Start-ups

• Start-ups:

Intellectual property (IP backed technology product/platform); ecommerce/aggregators using digital platform for customer engagements

Defining Start-up

Up to 7 years and for biotechnology start-ups up to 10 years from its date of incorporation / registration Incorporated as either a Private Limited Company or a Registered Partnership Firm or a Limited Liability Partnership Turnover for any fiscal year has not exceeded INR 25 crore Entity should not have been formed by splitting up or reconstruction a business already in existence Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation

Global Start-up Landscape

• India positioned 3rd and competing with Israel

Start-up Activity Index = f[Landscape (Total Start-ups, Start-ups Per Capita, Acquisitions), Unicorns Analysis, Investors Ecosystem & Funding, Advance d Tech Focus]

• Govt. Focus &

Country Specific Indices = f[Government Initiatives (Govt. Polices, Govt. Funding), Country Specific Indices (Global Innovation Index, Ease of Doing Business)]

Source: GEM 2016/17

India Start-up Landscape

Quick Facts Start-up Base 5000-5200 total tech Start-ups in 2017 1000 No of New Start-up addition in 2017 Up by 7% YoY Down by 29% YoY Slow-down in new start- up addition as focus shift too quality Start-up Hotspot Bengaluru, Delhi NCR, Mumbai form 68% of the Overall start-ups Up by 16% YoY Tier 1 cities continue to form the lion share of 80% of the overall start- up base Business Focus B2B Start-ups form 40%

• f the overall start-ups

Up by 16% YoY B2B Start-ups continue to gain prominence Vertical Focus Aggregator/e Commerce: $1.1 Bn funding Fin Tech: $200 Mn funding Up by 22% Up by 135% Investors continue to remain bullish on Aggregator/e commerce and Fin-Tech verticals

Source: NASSCOM, 2017

Quick Facts Advance Tech Focus 700 + Advanced Tech Start-ups 30% + addition since 2012 Key focus on Analytics, Artificial intelligence and Internet of Things Start-up Solving Social Problems 325 Start-ups focused at solving core India problem Up by 18% YoY Rise of new breed of start-ups solving key India Problem. Mortality Analysis 20-25% Overall Mortality rate Further reduction in share of B2B in failed start-ups from 36% in 2016 to 30% in 2017 B2B start-ups more likely to survive vis-a- vis B2C start-ups Incubators/ Accelerators 190+ Active Incubators/Accelerators Up by36% YoY Continued growth of Incubators/ Accelerators

Source: NASSCOM, 2017

• 80% Start-ups are concentrate in tier 1 cities
• Chennai and Hyderabad with maximum proportion of B2B start-ups, led by the

presence of Tech Institutions and R&D centres

National Start-up Landscape

Start-up Base

• Promising start-ups

also emerging from tier 2/3 cities, which account for 20% of start-ups base( up from 16% in 2016)

Business Focus Across Verticals

Business Focus

• Health tech and Enterprise Product are emerged as
• ther key funded verticals

Vertical Focus

Start-ups Solving Social Problems

• 325+ Start-ups Solving Social Problems
• Up by 16% YoY
• 75% Start-ups based out of Tier 1 cities

Start-up Mortality

• Majority of Start-ups dying within 1.6-1.9 years of Inceptions
• 55% of failed start-ups have received funding
• 20% failed start-ups graduated from Incubators/Accelerators

Start-up Mortality

• B2B start-ups show higher stability
• Delhi NCR top for B2C start-up failures ( 40% +)
• Bengaluru top for B2B Start-up failures (33%)

Start-up Mortality

• Funding Amount - Seed Stage < Rs. 5 crore; Early Stage = Rs. 5 to 25 Crore; Growth Stage = Rs. 25 to 100 crore;

Expansion Stage > 100 crore

Government Initiatives for Start-up

(54 %) (35 %) (12 %)

Policy Focus Area

• $1.5 Bn corpus for over 4 years to aid start-up funding
• Credit Guarantee trust to support flow o funds
• No capita; gains Tax while income tax waived off over 3 years
• Tax exemption on investments above market value
• Atal Innovation Mission to boost innovation and encourage youth
• Focus on PPP model ot create 35 new incubators and 31

innovation centres

• Setup 7 new Research Parks with $1.2 Mn investment into each
• 5 Bio Tech clusters to be established
• Self Certification to reduce regulatory liabilities
• Easy registration through mobile app
• Fast tracking patent examination and providing rebates
• Legal support to start-ups
• Simplifying public procurement rules and support faster exits

Government’s Start-Up India” initiatives

• Govt. Initiatives Announced Since 2017

Start-up Benefits

SELF CERTIFICATION and compliance under 9 environmental & labour laws STARTUP PATENT APPLICATION fast track & up to 80% rebate in filling patents PUBLIC PROCUREMENT fast track under the criteria of "prior experience/turnover" for start-ups in all Central Government ministries/departments WINDING UP COMPANY in 90 days under insolvency & Bankruptcy code 2016 INR 10,000 CRORE FUND

• f funds for investment into

start-ups through Alternate Investment Funds INR 2,000 CRORE CREDIT guarantee fund for start-ups through National Credit Guarantee Trust Company / SIDBI over 4 years TAX EXEMPTIONS

• n Income tax for 3

years TAX EXEMPTIONS

• n capital gains & on

Investments above Fair Market Value

State Start-up Policies

Knowledge Repository

• https://drive.google.com/drive/folders/1KBMh9EeDHNh5kr_Flv6ocauGaBXQzT

SV?usp=sharing

• Start-up Knowledge Documents/Directories
• List with detail of 50+ Start-up Schemes By Indian Government For Start-up
• List with Detail of Top 200+ Start-up Incubators in India - Inc42 Media
• List with Detail of Top 60+ Active Start-up Accelerators In India - Inc42 Media
• List with detail of Ecosystem Enablers -Top Maker-spaces & Accelerators Driving

Hardware And IoT Innovation - Inc42 Media

• Directory of DIPP Recognized Incubators/Accelerators/Research Parks – DIPP
• Directory of DIPP Recognized Facilitators for Trademark – DIPP
• Directory of DIPP Recognized Facilitators for Patent – DIPP
• Directory of SEBI Registered VCs – DIPP
• Directory of Central and State Clearance agencies for Start-up Registration,
• btain No Objection Certificates (NOCs), licenses, clearance registrations and
• ther mandatory approvals required for setting up of a business in States

• Micro Action Plan

Presentation

Session-VII: Micro Action Plan Presentation

Thanks

AICTE Start-up Policy Implementation Unit startup@aicte-india.org