In a feat to achieve self-reliance and to fuel the burgeoning growth of startups, Finance Minister Nirmala Sitharaman has announced to expand the scope of CSR (Corporate Social Responsibility) for the corporates to increase funds for the incubators not just limiting to technology incubators located within academic institutions approved by the central government. 

The new provision of Schedule VII of the Companies Act entails CSR of 2 percent fund to be spent on incubators that are funded by the central or state government or any agency or public sector undertaking of state or central government and to those incubators making contributions to IITs, national laboratories, public-funded universities and several autonomous bodies such as ICAR, CSIR, ICMR, DST and DRDO, DBT and Ministry of Electronics and Information Technology engaged in conducting research in science, engineering, technology and medicine aimed at promoting sustainable development goals. 

How will this expansion of CSR funds be beneficial to the incubators? 

The incubators receive funds from government corpus and sometimes through philanthropic donations that are not sufficient for working capital. The incubators are constantly hunting for donations or investment. The situation is even grimmer for incubators housed within academic institutions, as the Institute directors are concerned with the bureaucracy that is blind to the understanding of an incubator. The investors show reluctance in providing funds to incubators by asking them to show results and maintain a healthy financial statement. Lack of monetary strength in incubators discourages students to enter into entrepreneurship, where they finally end up taking jobs from the campus placements. 

Another hurdle for lacking funds in the incubator is the industrialist’s perception of startups. They believe that funding the incubators might result in mushrooming of competitors. Whereas startups work in a different way than traditional businesses, the startups leverage new-age technology and ideas that can solve the existing or future challenges. 

The expansion of CSR funds to incubators will aid in developing better research facilities and will encourage more students to take up a career in startups. 

100 percent electrification of rural India became the topmost priority of PM Narendra Modi after assuming office when the World Bank announced that India has the world’s largest un-electrified population. Though we boast of achieving 100 percent electrification of rural areas, the official data says something else. According to a report from Alliance for Rural Electrification, only 1,417 of India’s 18,452 villages, or 7.3% of the total, have 100% household connectivity.

Cut to 2021, where the country’s healthcare infrastructure has shaken in the pandemic and we are aware of rural India’s healthcare infrastructure and electricity connectivity already. Having access to electricity is a critical enabler for building robust and inclusive healthcare infrastructure. With access to electricity being sparse in rural India, several life-saving interventions cannot be undertaken. In rural India, the public health centers (PHCs) provide the last-mile delivery of healthcare services which largely remain devoid of electricity or suffer from the irregular power supply. 

According to a joint study by District Level Household and Facility Survey, one out of every two public health centres (PHCs) of rural India is unelectrified or suffers from an irregular power supply. Such gaps press the need for an uninterrupted power supply in rural India for access to reliable power in providing essential healthcare services to people. Leveraging India’s bright minds and technology, the government is bridging the energy gaps in rural healthcare by launching the Rise Innovation Challenge.

What is the Rise Challenge?

The Rise Challenge – Rural India Solutions for Energy aims to help rural parts of India get access to a consistent source of power, the government of India has launched this initiative to support and encourage start-ups to develop energy solutions in healthcare centres of rural India. This programme will provide start-ups complete mentorship, resources, network, funding and support for turning their idea into an actual innovation and for prototyping. 

 What Rise Challenge is looking for in start-ups? 

 The Rise Challenge is looking for the below qualities in start-ups to be eligible: 

• The solutions provided by them should be technically viable. 
• The solution should be quick to test and create.
• Can be implemented faster in rural India.
• Cost-effective

Every dream, passion or an innovative idea to start a business initially needs a little support and faith. Incubation programmes are designed to support early stage startups and business ideas. It provides startups, which are in their nascent stage, with mentoring and management. Along with this, these programmes also provide entrepreneurs an access to market resources, giving them networking opportunities and work on their business skill training.

What is Rural Entrepreneurship Incubation Programme?

Nadathur S. Raghavan Centre for Entrepreneurial Learning (NSRCEL), the innovation and entrepreneurship hub of the Indian Institute of Management (IIM) Bangalore in collaboration with Buddha Fellowship Program (BFP) launched an incubation programme, Rural entrepreneurship Incubation Programme. The idea behind this incubation programme is to enhance the entrepreneurship and startup ecosystem of rural India.

The programme aims to engage, enrich and foster young emerging entrepreneurial minds to help in the upliftment of rural India and real time gaps in supply chain management of corporates using an enterprise approach. This will help create a sustainable livelihood and will also create self-employment opportunities.

Who Does It Benefit?

The programme is for young graduates from leading universities who have a passion to work for the country’s upliftment. It is also for those who are wishing to work in the development sector, even if they’re from corporate backgrounds, or early stage entrepreneurs, all are welcome for this programme. The programme will be focusing on three sectors

• Rural Livelihoods (Farm, non-farm, off-farm)
• Health and Nutrition
• Education

With the mission to back entrepreneurs to build ‘Atmanirbhar Bharat’, the programme will benefit the rural and home-grown entrepreneurs. It will transform the development sector by providing knowledge and awareness on scaling, branding, marketing and will support rural professionals to pursue their aspirations to become development entrepreneurs.

What is ARTPARK Innovation Program?

ARTPARK Innovation Program is launched by Bangalore-based non-profit organisation, AI & Robotics Technology Park (ARTPARK), offering technological solutions to social problems in India.

Top notch universities usually fail in converting their academic research into market-ready products and services. ARTPARK aims to bridge this transitional gap between innovations developed in top and renowned universities and deploy those technological innovations to tackle issues in India.

The programme also has a mission to support innovative ideas, help to productize innovation, get external benefactors for the organisations who expertise in product designing, selling and marketing. It will also provide the startups with investors for seed funding to get them started.

What Does it Plan to do?

The programme is planning to grow the AI & Robotics innovation ecosystem in India by creating or working with existing startups. The programme has aligned with the $100 million venture fund for supporting startups in the artificial intelligence and robotics sector.

It also plans to uplift the healthcare, education, mobility, infrastructure, agriculture, retail and cyber-security problems in India and globally. The programme will also facilitate students and professionals with a proper training in advancing their skills and knowledge regarding this sector. It will also develop products like:

• DataSetu– Creating a data sharing ecosystem and marketplace that will boost the AI applications and solutions.
• BhashaSetu– Enabling Indic language translation to expand the participation level in the economic growth of the country, regardless of languages.
• Avtaar Robotics– Allowing emotive robotic nurses to transport healthcare professionals’ skills across the globe.
• Akashmarg– Roads in the sky, like Drone Skyways, for autonomous drones.

Along with the technology-led economic growth and innovation in the startup ecosystem in India, the programme plans to aid the vision of Atmanirbhar Bharat.

We are no stranger to the fact that the pandemic has impacted small businesses and startups, creating a negative environment for aspiring entrepreneurs. To help India retain the title of world’s third-largest startup ecosystem, several states are launching their incubator programmes to encourage startup ideas from tier-2 and tier-3 cities right from their infancy to maturity. 

Recently, The Department for Promotion of Industry and Internal Trade ( DPIIT) under the Ministry of Commerce and Industry has selected the Margao-based Forum for Innovation Incubation Research and Entrepreneurship ( FiiRE) as one of the two incubators for Startup India Seed Fund Scheme (SISF), the other incubator being IIM Kozhikode.  

Here in this story, we are going to have a detailed understanding of how this Goa-based incubator will work for startups. 

What is Forum for Innovation Incubation Research and Entrepreneurship (FiiRE)? 

FiiRE (Forum for Innovation Incubation Research & Entrepreneurship) is an incubator with the support of the Department of Science & Technology, Government of India under the National Initiative for Developing and Harnessing Innovations. It is currently operating from Don Bosco College of Engineering, Fatorda, Goa. 

How was FiiRE qualified to be an Incubator? 

The Department for Promotion of Industry and Internal Trade (DPIIT) under Startup India Mission held a meeting in Delhi, to select incubators, after which FiiRE was selected as an incubator to disburse seed funds to startups. 

The Indian Government is encouraging start-up innovation but most importantly, state governments are investing on fostering entrepreneurship by enabling collaboration between start-ups and key stakeholders of the business fraternity. T-Hub or Technology Hub is one such initiative by the Telangana Government which has grown from being a business incubator into a full-fledged innovation hub. 

About T-Hub

T-Hub is a facility established in the year 2015 which was  launched as a place for innovation and new ideas in the start-up ecosystem for the State of Telangana. The first phase of T-Hub was launched as an innovation intermediary and business incubator by the Government of Telangana in conjunction with several academic and private institutions. It was aimed at helping the start-up ecosystem and its arrival was eagerly anticipated by innovators, corporates and investors. 

Start-up Incubator to Innovation Hub

T-Hub eventually transformed into a ‘centre for innovation’. The transformation of T-Hub from being a start-up incubator to an innovation hub has transpired over a period of 6 years. T-Hub is now a world-class facility for entrepreneurship and more. 

How is an Innovation Hub different from a Start-up Incubator?

An innovation hub is a mediator between a start-up and large enterprises that facilitates transaction of business between them in exchange for innovation. An innovation hub is an initiative whereas a start-up incubator is solely aimed at helping start-ups grow and succeed. They are usually non-profit organisations that provide early-stage start-ups with workspace, mentorship and resources that will be useful for their growth. 

The difference

In its new avatar as an innovation hub, T-Hub aims to partner with start-ups along their growth. The differentiator of T-Hub from what it used to be is that it is now a start-up ecosystem builder. It also operates independently without intervention from any state government. 

Beneficiaries of the T-Hub Innovation Hub

Hyderabad based start-ups are the main beneficiaries of the T-Hub Innovation Hub. However, the facility also helps international start-ups and especially pan-India start-ups from remote geographical locales. The state government of Telangana, mentors, venture capitalists, incubators and accelerators have much to gain from helping the start-ups that are a part of T-Hub.  

Key benefits for start-ups

• T-Hub incubates start-ups and gives them the much-needed leg up to scale and grow.

• It fosters a spirit of entrepreneurship among first-time founders and aspiring entrepreneurs. 

• It supports start-ups throughout their lifecycle, right from the product-market fit discovery to exit.

• Start-ups gain access to the global market through T-Hub. They also gain exposure to the international community of start-ups for collaboration.

• T-Hub has created a network of mentors, venture capitalists, incubators and accelerators which start-ups can benefit from. 

In yet another move to encourage defence based innovations within the start-up and small business community in India, a budgetary support package worth INR 499 Cr has been approved. 

As per this move, the Government will procure a marginally higher amount of defence-related goods and services from micro and small enterprises in the current financial year. This move comes under the Make in India purview to foster domestic manufacturing. 

The Innovations for Defence Excellence (iDEX) scheme

iDEX is a scheme by the Defence Innovation Organisation (DIO) which will extend financial support for 300 SMEs, start-ups, individual innovators and 20 partner incubators under DIO. Aerospace start-ups who want to provide defence related products and services are eligible to avail the funding. Grants will be provided for R&D development. The funds will be released to the DIO through the Department of Defence Production (DDP). 

Eligibility Criteria for start-ups and partner incubators

• Products and services with good potential for future adoption by Indian Defence and Aerospace are eligible for support.

• Partner Incubators that come under the Department of Science and Technology are eligible for funds.

• Technologies and products with relevant utility and impact on Defence and Aerospace in India stand a chance at getting shortlisted.

How start-ups will benefit

The Government is keen on supporting self-reliance and indigenisation in the defence and aerospace sector. This is a big push for small businesses in this sector. Start-ups and SMEs will be able to rapidly scale up and shorten their timelines. They can also cater to the needs of Indian Defence and Aerospace. 

Start-ups with innovative solutions will benefit from increased engagement and encouragement from the Government. It is also a golden opportunity for start-ups to actively partake in the Indian defence needs and to work alongside the Government. 

The Start-Up India Seed Fund Scheme (SISFS) is an initiative by the Government of India to spur entrepreneurship across India via an extensive network of home-bred start-ups. With the devastation that the COVID-19 pandemic continues to cause, the need for Start-up India Seed Fund Scheme is more important today than ever.

India’s entrepreneurial community is formed by a large mix of MSMEs, emerging tech-driven businesses that are easing the traditional ways of doing companies and catalysts for start-ups that guide and aid entrepreneurs – the start-up incubators.