Entrepreneurship Ecosystem Overview

Uttar 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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Uttar Pradesh ranks #14 in India on World Bank’s

‘Ease of Doing Business’ index according to the Department ofIndustrial Policy and Promotion's (DIPP).

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Govt. & Regulatory Support

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Schemes:

• Nivesh Mitra• Baba Saheb Dr. B.R. Ambedkar Award for Small Enterprises• MSME Development Institutes

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Nivesh Mitra

• Government of Uttar Pradesh, Department of Industries has launched‘Nivesh Mitra’, a web based online facility for entrepreneurs desirous ofsetting up an enterprise in UP. It takes care of a multitude of issuesfaced by entrepreneurs from grievance redressal to approvals.

• Nivesh Mitra provides the facility of online submission and updating ofall forms required for various approvals by the entrepreneurs.

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http://nm.udyogbandhu.com/

Baba Saheb Dr. B.R. Ambedkar Award for Small Enterprises

• To encourage the small enterprises in state, Uttar Pradesh has come upwith an award scheme for the owners of the small scale enterprises.

• Awards will be given on the basis of turnover, successful andperformance

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MSME Development Institutes

• There are three MSME Development Institutes in the state of UttarPradesh at Allahabad, Agra and Kanpur

• They cater to the promotional and developmental needs of MSMESector

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http://tari.co.in/wp-content/uploads/2016/04/UP-MSME_Eng.pdf

Uttar Pradesh Industrial development Corporation

• They work for the development of industrial infrastructure in State sincethe last 56 years Pioneer in development of industrial areas, we havedelivered iconic industrial Areas.

• To cater to the modern demands of High-tech quality infrastructure, theCorporation has ventured into many new areas by developing High-techintegrated industrial townships like Trans Ganga and Saraswati High-techcities and also sector specific industrial areas like Plastic City, Agro Parks,Apparel Park, Leather Park , among others.

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http://onlineupsidc.com/AboutUPSIDC.aspx

Access to Finance

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Schemes:

• Uttar Pradesh IT & Startup Policy 2016• Investment Promotion Scheme 2003• Industrial Investment and Employment Promotion Policy of UP 2017• Industrial Investment and Employment Promotion Policy of UP 2017• UP Food Processing Policy 2012• MSME Schemes

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Uttar Pradesh IT & Startup Policy 2016

The objective of the policy is to make UP an attractive investmentdestination for IT/ITeS companies, up the ICT infrastructure, createemployment. Various incentives provided are:

• Startups shall be provided sustenance allowance of INR 15,000 permonth for a period of 1 year whose project is recommended by Nodalagency & approved by the committee

• Marketing/publicity assistance of up to Rs. 10.00 lakh will be providedfor the introduction of innovated product in the market.

• The state government shall match 25% of the money invested by theVC

• Registered Incubator shall be responsible to support startups byproviding Office space and shared administrative services.

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• The state government shall promote the startup culture using INFUSEmodel (Incubators –Fund of Funds – Startup Entrepreneurs). TheFinancial support from the government shall be provided to Incubators,Startups & Venture Capitalist funding the startups.

• The Government of Uttar Pradesh shall establish an initial Corpus (Seedfund) of INR 100 Cr in phases to promote Incubators and mobilizestartups in the state of Uttar Pradesh. The additional funding by theGovernment shall be done based on the requirement & scalability asdecided by the empowered committee.

14http://upite.gov.in/MediaGallery/UPIT2016R.pdf

Investment Promotion Scheme 2003

• All new Food processing units, units in eastern UP and Bundelkhand

• All units making fixed capital investment of Rs.5 Cr or more, Rs.10 Cr ormore and Rs. 25 Cr or more respectively, shall be eligible for interestfree loan equivalent to the sum of VAT and Central Sales Tax paid or10% of the total sale in the year, whichever is less, for 10 years fromthe date of first sale repayable after 7 years from date of disbursement

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http://udyogbandhu.com/topics.aspx?mid=Investment%20Promotion%20Scheme

Industrial Investment and Employment Promotion Policy of UP 2017

The Uttar Pradesh industrial policy promises electricity subsidy, industrialparks and fiscal incentives, among other development goals. Incentivesprovided under the policy are:

• Units in Bundelkhand and Purvanchal shall fet 100% stamp dutyexemption. Madhyanchal & Pashyanchal to get 75% and units inGhaziabadh and Gautam Budh Districts to get 50% exemption.

• Units creating 100 or more unskilled jobs to get EPF reimbursement on50% of employers contribution

• Small, Medium & Large, Mega & Super Mega Industries to get GSTreimbursement of 90%, 60% and 70% for 5 years.

• 5% capital interest subsidy for purchase of plant & machinery for aperiod of 5 years

• Infrastructure interest subsidy, electricity duty exemption.

16http://udyogbandhu.com/DataFiles/CMS/file/UP_Industrial_Policy_2017_Engish_Ver.pdf

UP Food Processing Policy 2012

Availability of primary raw products throughout the year makes UP anattractive destination to invest. FPI provides a number of capitalinvestment subsidies and financial grants to entrepreneurs and investorsas under:

• Exemption from Stamp Duty

• Exemption from Mandi Fees and Development Cess

• Electricity at Concessional rate

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http://udyogbandhu.com/DataFiles/CMS/file/Food_processing_policy_english.pdf

MSME Schemes

• Freight Rationalisation Scheme: Under this Scheme, financial assistance@ 25% of the total inland Freight charges with maximum ceiling of 5000/-per TEU is given for containers booked from ICD's/CFS located in U.P.

• Air Freight Subsidy Scheme MSME units registered with EPB andconcerned DIC can take benefit of this scheme for exporting theirproducts. An MSME unit may avail a financial assistance up to Rs. 2 lakhon their Export Cargo sent by Air Cargo Complex in U.P. (Amausi, Lucknowand Babatpur, Varanasi). Benefit can be availed on 20% of freight chargesor Rs 50/- per kg, whichever is less.

• Marketing Development Assistance Programme for Export Growth: Thescheme introduced in 2006-07 aims at promoting Marketing by IndustrialUnits by providing assistance to benefit units specially those operating inthe small scale, handicrafts, Khadi & Village Industries and Handloomsectors of Uttar Pradesh covered under MSME Act, 2006.

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http://udyogbandhu.com/topics.aspx?mid=State%20Government%20Support

VCs & Angel Investors

• Vaibhav S is an angel investor from UP .https://www.investmentnetwork.in/angel-investors/i-am-handling-finance-age-agra-uttar-pradesh-1-386970

• Uttar Pradesh Angel Investors: https://angel.co/uttar-pradesh/investors

• Samridhi Fund: The Department for International Development, UnitedKingdom, in association with Small Industries Development Bank ofIndia , has envisaged the creation of the Samridhi Fund to provide capitalto social enterprises which can deliver both financial and social returns,in Bihar, Uttar Pradesh, Madhya Pradesh, Odisha , Chattisgarh,Jharkhand, Rajasthan and West Bengal.http://www.sidbiventure.co.in/samridhi_fund.html

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• advantEdge is an early stage venture capital fund and a startupincubator; who back entrepreneurs that are passionate and supportearly stage companies. http://advantedge.vc/

• ReCapital: REV is an investment management firm which invests inproprietary capital to achieve income from investments in real estateand capital appreciation by investing in technology leveraged start-ups. http://recapital.in/real/index.html

• UP Govt also announced 1000 Cr fund for startups this year.

• List of AIFs operating in the state and approved by the government:http://itpolicyup.gov.in/investors/

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Education & Cultural Preparedness

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Educational Institutions Promoting Entrepreneurship

• Aligarh Muslim University: The institute offers MBA inentrepreneurship and promotes other entrepreneurship developmentactivities. http://www.amu.ac.in/tashow.jsp?did=44

• Uttar Pradesh Technical University: The institute offers a course onentrepreneurship.http://www.uptu.ac.in/pdf/syllabus/mba_3april2014.pdf

• IIT Kanpur-E-Cell: E-Cell helps networking student enterprises fromcampus to incubators, seeding funds and angel investors to transformthe newly proposed ideas into successful start-ups. Workshops inassociation with national professionals and national levelcompetitions are organized with a host of speaker series of eminentpersonalities. http://ecelliitk.com/vision.php

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• IIM Lucknow-E-Cell: It gives a platform in terms of seed-funding,incubation, mentoring, training, knowledge dissemination and bestpractice research to convert path breaking business ideas into self-sustaining business ventures. http://www.ecelliiml.com/index.html

• The Institute of Entrepreneurship Development, U.P.: Instituteorganizes series of Skill Development and Capacity Building programmesfor officials concerned with Industrial Development.http://www.iedup.in/

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Mentoring & Networking

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Startup Incubators, Co-Working Spaces

• 91 Springboard: It’s a coworking place in Noida, currently at 2locations in the city. http://www.91springboard.com/coworking-space/noida/

• Collab Cowork is Lucknow’s most active and engaging communityspace for entrepreneurs/individuals looking for a space to work.http://www.collabcowork.com/

• Unboxed Coworking: Provides an office space , holistic work cultureand a thriving community - ideal for freelancers , startups , Smallteams and professionals. https://unboxedcoworking.com/

• B Cogent: Shared Office Space Rental providers in Noida forentrepreneurs, startups or even designers, coders, freelancers whowork part time while doing their studies.http://www.bcogent.com/about.php

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• Startup Café is a co-working place in Gorakhpur with modern facilities,fully Air-Conditioned, Cafeteria with Coffee/Tea Machine, Free Wifi.http://startupcafe.business.site/

• Malaviya Centre for Innovation, Incubation and Entrepreneurship: is aNot for Profit Society at IIT (BHU), dedicated to promote innovation andEntrepreneurship. http://www.mciieiitbhu.org/

• Entrepreneurship Cell, KNIT Sultanpur: It's key purpose is to enhance thelatest academic research, bringing about the new innovative ideastechnologically, socially and economically and to promote the startupecosystem in the college. http://ecellknit.com/

• IIM Lucknow Enterprise Incubation Center is a not for profit organization,registered as a section 25 company with its trademark L-Incubator. It wasestablished with an objective to nurture high performance startups,especially in the fields of Big Data Analytics, Smart City Design, IndustrialIoT, HealthTech, EduTech, and Social Venture for Profit.http://www.iimlincubator.com/about-us

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• iB Group is an ideation and mentoring group that aims to accelerate theprogress of society through building startups. http://ibhubs.co/ibgroup/

• IT UPVAN: ‘Plug-n-Play model’ for faster entrepreneurial activities in ITrelated areas. It provides a platform to the start-ups and prospectiveentrepreneurs to convert their innovative ideas into commercially viableproducts to enhance software exports from Utter Pradesh.http://shreetronindia.in/it-upvan.html

• Venture Catalysts Uttar Pradesh: is an incubation platform in Lucknowfor startups. http://venturecatalysts.in/our-presence/

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