Entrepreneurship Ecosystem Overview

Andhra Pradesh

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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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Andhra Pradesh ranks #1 in India on ‘Ease of

Doing Business’ index 2017 of the Department of Industrial Policyand Promotion's (DIPP). Full details of reforms taken can be read inthis link: http://eodb.dipp.gov.in/

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Govt. & Regulatory Support

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Schemes:

• Scheme for 'Entrepreneurship Skill Development Programmes (ESDP)• Andhra Pradesh single desk policy 2015–2020• Designated Technology Park aka DTP Policy 2017-2020

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Scheme for 'Entrepreneurship Skill Development Programmes (ESDP)

MSME-DI Hyderabad regularly organizes training programmes forprospective entrepreneurs, for management personnel of MSEs and fordeveloping skills required for small enterprises.The four kind of trainingprogrammes conducted by MSME-DIs include:

• Motivation Campaigns

• Entrepreneurship Development Programmes

• Entrepreneurship Skill Development Programme

• Management Development Programmes

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http://msmehyd.ap.nic.in/Skill%20Development.htm

ANDHRA PRADESH SINGLE DESK POLICY 2015–2020

This policy seeks to create an investor-friendly climate by ensuring thehighest ease of doing business and would provide all the clearances within21 working days. It tops EODB ranking 2017 among all states & UT’s.

Measures to simplify process & procedures:

• Spot approvals

• Deemed approvals based on self-certification

• Assignment of inspection to private technical expertsParallel processing of clearances

• Streamlined processes.

• To facilitate the same, AP Govt. has started an online platform call the APSingle desk portal wherein applicants can apply online for incentives,approvals, and even watch help videos.https://www.apindustries.gov.in/APIndus/Default.aspx

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http://www.apiic.in/wp-content/uploads/2015/06/AP-Single-Desk-Policy-2015-20.pdf

Designated Technology Park aka DTP Policy 2017-2020

• It is a first of its kind initiative in the country, aimed to solve office spacecrunch for IT companies in the state.

• The main objectives of DTP policy are to roll out incentives on providingoffice spaces for IT companies and give rental guarantee for real-estatedevelopers for building office spaces for IT.

• Andhra Pradesh state government aims to create one lakh IT jobs by 2019and one crore sq. ft. of office space to facilitate the same.

• http://dtp.ap.gov.in/ : Dedicated online portal for the policy.

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http://www.ap.gov.in/state-prepares-designated-technology-park-2017-20-policyvijayawada/

Access to Finance

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Schemes:

• AP Innovation & Start-Up Policy• MSME Schemes• AP IT Policy 2014-2020• INDUSTRIAL DEVELOPMENT POLICY 2015-2020• Biotechnology Policy 2015-2020• Textile & Apparel Policy 2015 – 2020

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AP Innovation & Start-Up Policy

The AP Innovation and Start-up Policy, intends to create an ecosystemwhere every family in the state has an entrepreneur. The targets laidout for the Andhra Pradesh through this Policy are:

• 100 Incubators & Accelerators to be established

• 5,000 Companies & Start Ups to be incubated

• 1 million sq.ft of Incubation Space to be developed

• Venture Capital of Rs 1000 crores to be mobilized for Innovation

12http://apit.ap.gov.in/incentives/ap-innovation-startup-policy/

MSME Schemes

• Credit Guarantee Scheme for collateral free loan

• Credit linked Capital Subsidy scheme for technology upgradation

• ISO 9000/14000 expenses reimbursement scheme

• Participation in International Trade Fairs

• MSE-Cluster Development Scheme

• E - clubs scheme

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http://msmehyd.ap.nic.in/Scheme.htm

AP IT Policy 2014-2020

It aims to develop AP as an innovation society and create employment bypromoting IT and related fields.

Fiscal incentives:

• Capital subsidy: 10% subsidy on new capital equipment for technologyupgradation limited to Rs.25 lakhs (2.5 Million) as one time availmentby the eligible company.

• Registration & stamp duty: IT industry shall be eligible for 100%reimbursement of the Stamp Duty, Transfer Duty and Registration Fee paidon sale / lease deeds on the first transaction and 50% thereof on thesecond transaction.

• The cost of filing patents will be reimbursed to the companies havingtheir headquarters in Andhra Pradesh, subject to a limit of 5 lakh (0.5 mil)per domestic patent awarded and 10 lakh (1 Mil) per internationalpatent awarded.

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• Quality certification subsidy and power subsidy.

• A rebate on the cost of the land will be provided @ 60,000 per employeeto the Mega IT Projects (defined below) and 40,000 per employee forother IT projects, subject to a maximum of 80% of the land costas determined by the allotment agency. Prescribed guarantees would betaken from the sponsors of the project for the rebate.

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http://apit.ap.gov.in/incentives/ap-it-policy-2014-2020/

INDUSTRIAL DEVELOPMENT POLICY 2015-2020

It aims to make Andhra Pradesh most preferred destination for investorsby providing favorable business climate, excellent infrastructure, good lawand order and peaceful industrial relations.

• Reimbursement of 100 per cent VAT/GST for micro and small units for fiveyears, 75 per cent for medium and 50 per cent for large industries forseven years or up to the realization of 100 per cent fixed capitalinvestment, whichever is earlier.

• 100 per cent stamp duty and transfer duty on purchase of land, mortgagesand hypothecation and 24/7 power supply with a power costreimbursement at Re 1 per unit for five years.

• Special package of incentives for SC/ST/BC and women entrepreneurs.

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• 25% subsidy of total fixed capital investment of the project for specificgreen measures with a ceiling of USD 8.02 million.

• 35% subsidy on specific cleaner production measures limited to USD56000 for MSME and upto 10% subsidy on specific cleaner productionmeasures limited to USD 56000 for large enterprises

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https://www.apindustries.gov.in/APIndus/Data/Industry1/Andhra%20Pradesh%20Industrial%20Development%20Policy%202015-20.pdf

Biotechnology Policy 2015-2020

It aims to attract New Investment worth - USD 1 billionand create 5,000 new jobs.

Fiscal incentives

• Fixed power cost reimbursement of ₹1.50 per unit for 5 years from date ofcommercial production

• Technology acquisition fund of USD 1.6 Million to be set up. Additionalinterest subsidy @ 3% per annum on term loans towards purchase ofcapital equipment necessary for technology upgradation for a period of 5years, subject to maximum of USD 4800 per year to MSME units

• Financial Assistance towards expenses incurred for patent registrationlimited to 75% of the cost, subject to maximum of USD 40,000

• Promotion of innovation and applied R&D in research and academicinstitutions to be done by co-financing industry sponsored research,collaborative research grant and scholarships

18http://www.apiic.in/wp-content/uploads/2015/06/Biotechnology-Policy-2015-2020.pdf

Textile & Apparel Policy 2015 – 2020

Aims to create 3 lakh new jobs and attract new investments worth - USD956 million.

• 12.5 per cent interest subsidy and a power subsidy of Re 1 per unit forspinning and Rs 1.50 per unit for ginning units.

• Refund of VAT on purchase of intermediate products, and reimbursementof tax to the extent of 100 per cent of the eligible fixed capital investmentin plant and machinery for a period of five years.

• Capital subsidy on the investment to the extent of Rs 10 crore tostandalone garmenting and apparel units, financial assistance of up to 50per cent of expenditure on common facilities in the case of textile/apparelparks are among the other facilities.

• For the employees working in these units, the government would extendtraining fee and the transport subsidies.

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http://www.apindustries.gov.in/APIndus/Data/Industry/Textile%20Policy_April_2_2015.pdf

VC’s & Angel Investors

• Sashi Reddi is a technology entrepreneur and an active angel investor. Heruns a seed stage venture fund, SRI Capital.

• Sridhar Muppidi is an angel investor who co-founded Yesgnome whichbuilds social mobile games.

• Ravi Trivedi is the founder of Srijan Capital, which is focused on angelinvestments and hands-on incubation.

• Murali Bukkapatnam is a committed entrepreneur, mentor, orator, angelinvestor and start-up evangelist.

• Lax Gopisetty is a senior business leader and a serial entrepreneur with ablend of strategy, sales management, business operations and peopleleadership. He has invested in Hyderabad-based photography startupFlattpebble and is an active member of Hyderabad Angels.

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• Pradeep Mittal is the founder of Magna Infotech.Early in 2014, heacquired controlling stake in Goose Technologies Pvt Ltd, a softwareproduct company and currently serves as Executive Chairman atHyderabad Angels

• Srini Koppollu served as Corporate Vice President of MicrosoftCorporation. He has invested in OnlinePrasad, Zify and CustomFurnish.

• Prasad Vanga is an entrepreneur, angel investor who has over 17 years ofextensive experience in consulting services, building new product offeringsand scaling startup companies.

• Suresh Babu, established Suresh Productions, one of India’s largestintegrated production powerhouses as producers, distributors, exhibitors,digital post facilities, animation and gaming studios. He also has a keeninterest in other industries and has expanded into ventures such asinfrastructure & real estate development, materials and food processingand now currently serves as Vice Chairman at Hyderabad Angels.

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• Venkat Vallabhaneni is an entrepreneur and technology evangelist with24 years of experience in Technology and Management verticals. Hecontinues to be part of entrepreneurial ecosystem by investing in earlystage startup such as Energy Leader, Zify, eVaidya, VioletStreet to name afew.

• Salman Babukhan of the renowned Babukhan family of Hyderabad,completed his schooling and graduation from Hyderabad and then wenton to acquire a Management degree from the Loyola University ofChicago, Illinois, USA. Currently, he is on Board of Directors of HyderabadAngels.

• Andhra Angels: It sis a group of VC’s operating in Andhra Pradesh.

• Utthishta helps in raising seed fund for startups in software, web, mobileand the cloud computing space. They provide a combination of seedfunding along with focused mentoring to early stage startups for a smallpiece of equity.

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• 50K Ventures: The sector agnostic fund is looking to fund idea and earlystage startups. It aims at investing in at-least 1 startup a month.http://50kventures.com/

• Hyderabad Angels is a network of Angel investors keen to invest in earlystage businesses which have potential to create disproportionatevalue. http://www.hyderabadangels.in/

• Parampara Funds is an initiative to encourage entrepreneurs withIngenious Ideas, handhold them in evolving the Ideas to successfulBusinesses, it is a Platform for disruptive ideas to meetSuccess. http://paramparas.com/

• Unitus Seed Fund is a seed stage venture fund which invests in developingmarkets with primary aim on rural startups focusing on low incomegroups. https://usf.vc/

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• BitChemy Ventures is a seed stage venture capital fund and a technologyincubator. The firm invests primarily in technology startups that buildinnovative and disruptive products. http://www.bitchemy.com/

• Lead Angels Network is a platform for angel investing and supportingearly stage companies. http://leadangels.in/

• Ineda venture group are a venture group who focus on early stageentrepreneurial ideas, individuals, teams andbusinesses. http://www.inedagroup.com/

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Education & Cultural Preparedness

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Educational Institutions Promoting Entrepreneurship

• Centre for Entrepreneurship development: Centre forEntrepreneurship Development (CED) is an innovative and creativeventure of ALEAP in the direction of promoting entrepreneurship. TheCourses organized by the CED may be broadly divided into skillinculcation and skill up gradation while some others can be termed astraining courses and trainers trainingcourses. http://www.cedhyderabad.org/about-ced.php

• ISB Hyderabad-Centre for entrepreneurship: ISB Centre forEntrepreneurship (ICE) has been constituted with the goal of fosteringthe entrepreneurial ecosystem at ISB. All programs at ISB which arerelated to entrepreneurship are consolidated under theICE.http://www.isb.edu/centre-for-entrepreneurship

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• Andhra Pradesh Bankers Institute of Rural and EntrepreneurshipDevelopment: It has been set up jointly by Government of AndhraPradesh, National Bank for Agriculture and Rural Development (NABARD)and five leading Public Sector Banks working in the state to strengthen theentrepreneurship among rural youth, capacity building of farmers,members of SHGs and rural artisans through capacity building trainingand exposure and other inputs that facilitate policy initiatives andinnovations in design and delivery systems for providing the poor withsustainable access to quality financial services.http://www.apbired.org/aboutUs.php?id=4

• E-Cell IIT Hyderabad: It aims to Promote and nurture theentrepreneurship spirit and culture at IITH and beyond, network withother aspiring students and entrepreneurs in India and abroad.

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Mentoring & Networking

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Startup Incubators, Co-Working Spaces

• NASSCOM 10K Warehouse Vizag will provide co-working space forstartups to be housed for 6 month incubation period, Co-working spacefor entrepreneurs to use on a daily/weekly basis and a well-equippedcommunity events space available for meet-ups & workshops.

• T-Hub NASSCOM Startup Warehouse is an incubator and co-workingspace for technology startups and early stage product companies at areasonable cost. NASSCOM’s 10K Startups Program is supported byGoogle, Microsoft, IBM, AWS and Kotak.

• The Agri-Business Incubation (ABI) program - ABI-ICRISAT is a pioneeringinitiative for Agri-Business Incubation in India that maximizes the successquotient of start-up enterprises by offering them best opportunities withminimum risk. http://www.aipicrisat.org/agri-business-incubation-abi-program/about/

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• IKP Knowledge Park Life Science Incubator (LSI) is set up within IKPKnowledge Park as a division with a key objective of nurturing start-upcompanies and entrepreneurs working in the areas of healthcare,agriculture, food/nutrition, bio-energy, industrial & environmentalbiotechnology,etc. http://www.ikpknowledgepark.com/content_page.php?id=15

• Progress Software: The programme aims to help early-stage startups thatare building business applications. Startups that are at the prototype stageof an idea can leverage the Progress Pacific and Progress Rollbasesolutions to gain productivity benefits and faster time-to-market for theirbusiness applications. https://www.progress.com/incubator

• IIT Hyderabad Incubator: The college has a vision to bring in innovationthrough its various initiatives and has established a technology businessincubator in the campus. http://i-tic.iith.ac.in/

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• BITS Pilani – The TBI was set up in 2013 and has incubated over 12startups, maximum startups incubated by TBI are founded by its facultymembers or students. It also offers virtual incubator program for thosewho are based outside this particular campus. http://www.bits-pilani.ac.in/pilani/TechnologyBusiness/TechnologyBusinessIncubator

• The IIIT-H Foundation manages over 30,000 sft of space that consists of acoworking space and Incubator known as the Centre for Innovation andEntrepreneurship (CIE) on the IIIT-H campus. CIE is one of the largestIncubators in India, with over 50 startups under its roof.https://cie.iiit.ac.in/

• DLabs incubator has been set up by Indian School of Business (ISB) withthe objective of strengthening entrepreneurship and fostering innovation.http://www.isb.edu/cie/Incubator/d-labs

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• UnLtd Hyderabad is an incubator for Social Entrepreneurs and largest networkof social change makers in AP and Telangana. It funds and support individualswhose ideas, passion, and entrepreneurial skills can bring long-term solutionsto social problems. https://india.ideagist.com/company/unltd-hyderabad

• Wadhwani Centre For Entrepreneurship Development At ISB:http://www.isb.edu/support-isb/donors/research-support

• CoworkZone provides private cabins with seating space for an officer and 2assistants / partners. http://www.coworkzone.in/

• The Valley co-working space is all about promoting community andcollaboration. They believe in building a community of like-minded doersvisionaries, change makers and problem solvers. http://www.thevalley.in/

• Jack Your StartUp is all a startup needs, right from co-working spaces toMentoring.https://www.facebook.com/JackYourStartUp/photos/a.849364271758762.1073741827.849363161758873/849364251758764/?type=1&theater

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• HatchStation is an ecosystem for startups to co-work, live and prosperfrom ideation to profitable ventures. http://hatchstation.com/

• Rent A Desk offers solutions and networking opportunities with the rightinfrastructure to think about better ideas and work it out without payingmuch expence. http://rentadesk.in/

• iKeva is a workspace provider with community and member benefits. Theyprovide various facilities such as high quality office infrastructure,members access to a high energy environment, multiple options tonetwork and learn. http://www.ikeva.in/

• Collab House is a space where individuals and organizations make things,grow their skills, business, in a collaborative, community backedenvironment. http://collab.house/

• 91springboard is a startup growth hub who are committed to making thestartup journey easier and more fun through coworking, community andcapital. http://www.91springboard.com/

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