Rise of Startup Incubators in India - Its Framework and Policies

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Rise of Startup Incubators in India - Its
Framework and Policies
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• Culture, trade and economy have always blossomed
  in India and entrepreneurship has been built on
  these deep-rooted foundations. The rise in
  startup incubators has been the result of this
  ecosystem. Since the opening up of the Indian
  economy in the 90s, Indias startup economy has
  grown greatly due to favourable government
  response, adequate amount of funding, global
  investments, mergers acquisitions and much
  more.
• This story started in 1995 and it has seen a
  meteoric rise with the number of Startup
  Incubators in India currently reaching
  approximately 500.

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• What are startup incubators?
• Startup incubators are organizations that provide
  support to startup companies by providing them
  with resources such as funding, mentorship and
  workspace. They are called incubators because
  they help foster the growth and development of
  early-stage businesses in the same way an egg
  incubator helps a chicken egg develop into a
  chick.
• Types of incubators in India
• There are three main types of Startup incubators
  in India business incubators, technology
  incubators, and social incubators - designed to
  help different types of businesses and
  entrepreneurs. Business incubators are designed
  to help start-ups and small businesses in the
  early stages of development, while technology
  incubators are designed to help companies develop
  and commercialize new technologies. Social
  incubators are designed to help social
  enterprises and non-profits achieve their goals.

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• Benefits of joining a startup incubator?
• 1. Access to Resources The most important
  benefit of joining a startup incubator is the
  access to resources, such as mentors, funding,
  networks, and shared workspace. Incubators often
  provide workshops, seminars and other events that
  offer valuable advice and knowledge to startups.
• 2. Financial Support Most startup incubators
  provide financial support to startups in the form
  of grants and investments. This helps startups
  get off the ground faster and with less risk.
• 3. Expert Advice Incubators provide expert
  advice from experienced entrepreneurs and
  professionals. This advice can be invaluable in
  helping startups to develop their business plans
  and launch their products.

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• 4. Collaboration Incubators provide a platform
  for collaboration between startups, and can often
  be a source of valuable partnerships and joint
  ventures.
• 5. Networking Joining a startup incubator
  provides an opportunity to network with
  like-minded entrepreneurs and investors. This can
  help startups to find partners, investors and
  customers.
• The evolution of startup incubators in India
• The concept of startup incubators in India
  started gaining popularity in the early 2000s.
  These incubators provided a platform for
  entrepreneurs to develop their ideas, network
  with other entrepreneurs, and access the
  resources they needed to launch their businesses.
  Since then, the incubator ecosystem in India has
  grown significantly. Today, there are over
  approximately 500 incubators collaborating in
  every field such as technology, food beverages,
  pharma, and Healthcare Startups in India.
  Additionally, some incubators also provide
  resources such as access to industry experts,
  technology, and networking events. The growth of
  the startup incubator ecosystem in India has been
  instrumental in catalyzing the growth of the
  startup sector in the country. Some of the best
  known incubators in India are Startup Village,
  GSF India Accelerator, Kyron Accelerator, and
  Mpowering Life sciences.

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• What type of policies have been applied by the
  government of India to encourage incubation
  policy?
• 1. Tax Incentives The Indian government has
  implemented several tax incentives such as tax
  exemptions on profits earned from investments in
  startups and deductions on expenses incurred
  while setting up or running an incubator.
• 2. Finance The government has set up multiple
  funds to provide financial support to startups.
  These include the Technology Development Board,
  the Startup India scheme and the Atal Innovation
  Mission.
• 3. Mentorship and Networking The government has
  established multiple incubator networks including
  the National Science and Technology
  Entrepreneurship Development Board. These
  networks provide mentorship and networking
  opportunities to startups.
• 4. Regulatory Reforms The government has
  undertaken several regulatory reforms to make it
  easier for startups to do business in India.
  These include eliminating the requirement for
  startups to obtain multiple licenses and
  relaxations of various labor laws.
• Startup Village, GSF India Accelerator, Kyron
  Accelerator, and Mpowering Life sciences.

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