While the government has definitely skewed towards favourable laws and policies for start-ups and entrepreneurs, there is still a need for a few amendments in order for them to flourish and expand their footprint in the market. Most start-ups rely on financial help from external sources or from availing loans on high-interest rates, which further cause them to incur debts and high-interest rates. It takes a lot of courage to work to achieve your dreams. Many people give up even before starting due to the lack of financial bandwidth, but this has to change and the government could take active measures and initiatives to minimize the interest rates on loans for start-ups, hence making it easier for start-ups and entrepreneurs to invest, expand and succeed.- Anika Parashar, CEO - River Rock Ventures
The current challenges faced by budding entrepreneurs include the lack of flexibility and easiness to avail loans by the start-ups. The complexities of the lending processes and the amount of paperwork needed for the same often stand in the way of start-ups making progress or surviving at all for that matter.
In fact, the last few years has seen many start-ups shut shop owing to lack of loans, which is not only sad but also worrisome for the whole community. Easing the lending process by the government and allowing the mortgage of Intellectual Property as well (for instance that could either be the technology used by them or the idea of running the business), will boost the confidence of start-ups.- Kranthi Lammatha, founder and CEO, Jay Chatur International Academy
In the past decade, the start-up ecosystem has evolved drastically. There was a time when running a start-up was considered a risky venture but with the support of the government, various hurdles faced by the entrepreneurs have been resolved to a certain extent. The Indian government has been promoting the start-ups, understanding their unique challenges and needs which have led to a lot of financial institutions welcoming the startups with the open arms. At present, anyone with a proven business idea and strong credentials can easily get access to the loan and funding for their start-up. Thus, applying for debt/equity financing for start-ups and getting a hassle-free approval is now a reality! - Sankalp Goel, Co-Founder – DJUBO
While there is a lot of buzz about start-ups these days, financing them is not easy as banks and NBFCs look for a three-year run before they consider providing the loans or finance to a start-up. It has to be eased out from this perspective. In the case of a start-up like Zypp, there is no specific scheme or supports from the government for the purchasing of electric vehicles. Even if the government support indirectly by giving rebate or asset financing or via taxes or lowering the GST it would be a great relief for the EV start-ups.
- Akash Gupta, co-founder and CEO,Zypp Electric Mobility