Government grants a way to fund innovative ideas and projects, to provide public service and stimulate the economy. There are numerous benefits of government grants, these grants cover almost every important element of the economy that needs to be funded or has a potential for it. To get the government grant is no less than any achievement, as only worthy people or organizations are able to grab it. It is a no-strig financial award that a person or an organization receives for their meaningful contribution to society.
Government grants turned out to be highly beneficial for Indian startup industry, as startups are getting a huge boost by government grants. We know that in a vibrant economy it is tough to find fundings or investors for startups, it is a challenge that new enterprises face in the beginning of their project. There is a necessity of funds in the early stage of any business, to fulfill contractual obligations and to procure inputs. Thus, no business is sufficient to fund these expenditures on their own, and so they look for outside funding. With this reference, the government has come up with various schemes or grants for funding the new potential startups. Let us know some of the important grants initiated by the government.
- SISF– SISF stands for Startup India Seed Fund this federal grant, aims at providing assistance and funding to new startups for concept, prototype and application. The motive of this grant is to make the startups strong enough to stand equal to other big and Multicap companies in the market. The process of assistance includes development and commercialization of a product in the market. The experts help the startups to gain a significant stand in the market and make a customer base for their business. Hence, this grant focuses on encouraging new startups so that they don’t find it difficult to survive and stand out in the market. A full-proof potential growth plan is being given to the startups for their ultimate establishment. The scheme promotes and gives emphasis on the development of entrepreneurship in the country. As per the Union Budget of 2022 the, the reserved fund for SISF grant for startups is 283.5 crores higher than the revised estimate of 100 crore rupees.
- Technopreneur promotion program– It is a program initiated by the government in the year 1998-1999, it is a grant that funds innovative and exceptional ideas in the field of technology to transform them into an enterprise. It encourages independent innovators to become technology-based entrepreneurs. It was started with a motive to tap brilliant minds, in the field of data sciences and technology. The grant takes place in various stages, starting from conceptualization, fabrication, development, trial and application. In order to be eligible for this you need to go through several tests that mark you as a worthy candidate for it and need to clear a lot of paperwork for authentication. After which you receive the grant and this tends to be a perfect kick start to grow your technology entrepreneur career.
- NASSCOM– The federal grants were started in 2013, to fund the new startup in the country. The aim of this is to fund 10,000 startups in 10 years. This grant focuses on providing growth-oriented projects and training to startups along with funding. The procedure helps the startups to raise funds from government grants, VCs, and angel investors. Potential startups are selected and relevant training is given to foster their growth. Sectors like healthcare, education, infrastructure,etc. are covered in this scheme.
- Zone startups– Zone startup was started in the year 2014 as a joint venture with BSE, it helps the startups in a full spectrum to grow as a company. It covers various aspects of growth that are important to accelerate the process of expanding. Proper advisory, mentorship, networking opportunities are given under this scheme to make smooth entry in the global market. The zone startup scheme is easy to proceed with as you can find everything online, from filling out form to finalizing the grant. Moreover, the applications are open for 12 months so you can apply any time. So, if your long-term plan is to enter the global market then this grant will help you to make it true.
- Unlimited India– This scheme focuses on funding early-stage social entrepreneurs to grow their startup. Startups are selected across the country and personalized training is offered by the experts of the field. It focuses on providing startups with training, networking, coaching, funding and other required support for growth. Getting proper training in your initial years of startup helps you to make a strong foundation, as startups are mostly judged by the investors in the early stage. Thus, with this grant you get an appropriate full package of training and development facilities.
- Multiplier grant scheme– The department of electronics and information offers the multiplier grant scheme. The grant is offered to companies working in the field of IT, analytics, Internet of Things, artificial intelligence and technology hardware. This is to strengthen the technology and digitalization in the economy, the focus is given to develop this sector for fostering economic growth. The startups are selected to build an innovative product and encourage their development in the long-run. This scheme is especially for those working in electricals and technology and doesn’t cover other sectors of the economy.
Conclusion
For startups grants are of great help, as they are capable of accelerating their growth in the economy. The best thing is we have grants and schemes for distinctive startups working in diverse fields. This ensures a collective growth of each sector in the economy, and this is the main motive of these government grants. Moreover, these grants provide startups with meaningful training, mentorship and development programs along with funding. So, you receive funding as well as guidance to grow appropriately. As money alone is not enough to make you grow, with money you require proper knowledge and training, so you invest your funds wisely in this manner they ensure a long-term growth of the startups.
