LaNV

Deepa Kumari
deepa.kumari@sharda.ac.in
What Is There For Me?
 1. Introduction
• Indian start-up industry is on the up-swing since last few years, with multiple
global investors eyeing the India start-up space; it is slated to grow larger
than before. The government of India is leaving no stone unturned to
provide start-ups with the best of opportunities to grow and shine in the
market. However, in spite of the numerous opportunities provided by the
government, the road blocks are not few for the companies.
 2. Challenges of Doing Business in India
• Government Policies
• If entrepreneurs are the planets in the solar system, then the government is
the sun, the single largest facilitator. The government policies are slowly and
steadily increasing, although, it must be noted that India still maintains a
dismal ease of doing business raking as per the World Bank report. Due to a
maze of laws and regulations, it takes more of an effort for an entrepreneur
to start a business in India than most of the other places in the world.
 2. Challenges of Doing Business in India
• After he /she succeeds in setting up a business, it takes even a greater effort
to comply with sector, department, state and centre laws. The government
has taken proactive measures for funding and developing the eco-system,
however, we witnessed a slowdown in the start-up space, as there was a dip
of almost 50% in the registration of new start-ups in 2016 as compared to
2015; this trend has proved that the policy change has not really given a push
to aspirants.
 2. Challenges of Doing Business in India
• Talent
• In start-ups employment is uncertain due to companies reaching scale and
then downsizing for better efficiencies, the industry is saturated with such
examples. However, this is a small problem as compared to finding the right
skilled talent, and retaining the talent. Skilled talent is hesitant to join start-
ups, as they have witnessed in the past mass firing and downsizing. Also,
early stage or pre series-start-ups have lesser pay than their corporate peers.
Most start-ups in a bid to outgrow, hire inadequate talent without processes,
and finally end up on the losing side.
 2. Challenges of Doing Business in India
• Funding
• Raising the capital has been a long drawn challenge for start-ups. Angel
investment and seed investment is easier to find, as the amounts are smaller,
it has gotten much tougher to go for later stage rounds, as companies burn
too fast and do not look at unit economics. Raising funds has become more
of a celebration; rather it should be of an entrepreneur making it to the start
line of the race.
 2. Challenges of Doing Business in India
• Very limited funding is available in forms of larger cheques in India. In our
eco system (India) we patronise the founder, and not the company, and
sometimes the founder can be caught up in glamour of funding.
Entrepreneurs should set the goals for the next 5 years and should not be
obsessed with raising the funds.
 2. Challenges of Doing Business in India
• Culture
• Entrepreneurship and start-ups are only a recent phenomenon in the
country. It is only in the last decade and half that people in the country have
moved from being job seekers to job creators. Doing a start-up is tough and
every country sees more failures than success. More often than not an
entrepreneur needs to be prepared to face failures and unprecedented
hardship.
 Entrepreneurial Support
• Progressive Policies which help entrepreneurial ventures
• Incubators which set up to provide support to new firms in early stages
• Business Clusters, which are made up of firms in the same industry in close
proximity to one another
 Types of Policies
• Entrepreneurial education
• Entrepreneurial Skill
• Access to debt
• Access to equity
• Simplifying Administrative Burden
• Access to markets
• Encouragement to weaker sections
 Business Incubators
• Business incubators nurture entrepreneurial companies by providing them
guidance and support during their start-up period, when they are most
vulnerable. They offer a range of business development services to meet the
needs of new venture. The rationale for setting up incubator lies in its
capacity to increase the initiation, survival and the growth of the new
venture.
 Incubation benefits
• Offering space on flexible terms
• Providing shared office services
• Presenting a business consulting network
• Providing opportunities to develop business relations
• Facilitating access to capital
 Business Clusters
• A cluster is made up of core group of highly specialized firms from the
same industry. There will be many supporting firms that supply goods and
services to the core industries of the cluster. The government support is
usually in the form of setting up infrastructure for use by the core industries.
• Once the cluster is identified, there is a lot of scope to develop the cluster by
giving the right impetus.
 Business Clusters
• Supplier-buyer relationships can be forged by collecting and distributing
information about potential industry linkages. Also there could be formal
interactions in fairs and exhibiting.
• Common infrastructure can be supported by external agencies.
• Providing skills training especially in case of clusters heavily dependent on
skill based labour
• Providing marketing channels for procurement or establishing links with
buyer.
3. Intellectual Property Rights
• India has the world’s third largest and the fastest-growing start-up ecosystem.
The country has 3,100 start-ups and nearly 800 get added every year. The
number of start-ups in India is likely to grow to 11,500 by 2020, according to
the report.
• “It’s a huge untapped opportunities for IP R law firms as the start-ups are
seeking protection from big fish in the market.”
3. Intellectual Property Rights
• Among the companies that recognise the importance of IPR law is
Greenway Grameen, an IIM-A incubated start-up, which is fighting an IP
infringement case against Hotpoint Technologies in Delhi High Court.
Greenway Grameen has set up Indian’s largest manufacturing unit for
biomass cook stoves in Vadodara, Gujarat that makes produces bio cooking
stove which burns biomass fuels like wood, cow dung, etc more efficiently,
reducing fuel consumptions and smoke emissions and targets 160 million
households ..
3. Intellectual Property Rights
IP can support innovation by the following means:
• Creating incentives for inventions
• Facilitating access to knowledge and inventions.
• Facilitating participation in international competition and trade
• Helping address societal challenges
3. Intellectual Property Rights
• Patents- Patents grant exclusive rights on inventions (whether products or
processes) that are new, involve an inventive step (are “nonobvious”) and are
susceptible to industrial application.
• Utility models- Sometimes called “petty patents”, utility models offer
protection on technical inventions with lower requirements than patents—
notably a lower inventive step. The registration process is often significantly
simpler, cheaper and faster than for patents. The term and scope of
protection for utility models are lower than for patents.
3. Intellectual Property Rights
• Trademarks. Trademarks provide exclusive rights to use a visually perceptible
sign (e.g. words, letters, numerals, figurative elements or logos) or any
combination of signs, that enables people to distinguish the goods or
services of one undertaking from those of other undertakings (TRIPS,
Article 15). The criterion to register a new trademark is the novelty of the
sign.
3. Intellectual Property Rights
• Copyrights (see Copyright). Copyrights give exclusive rights to creators for
their literary and artistic works. The types of works that can be protected by
copyright include books, dramatic and choreographic works, musical
compositions, cinematographic works, drawings and photographic works. In
many countries software can also receive copyright protection. Copyright
protection usually exists independently of any registration or prior
examination.
3. Intellectual Property Rights
• Trade secrets (see Trade secrets). A trade secret designation protects any
piece of knowledge (e.g. formula, pattern, device or compilation of
information) which is not known to the public, provides the owner with an
opportunity to obtain certain competitive advantages and is subject to
reasonable efforts to keep it secret (TRIPS, Article 39(2), WTO, 1994).
• Industrial designs (see Industrial design). Industrial design registration
protects the ornamental or aesthetic aspect of an article. An industrial design
must be new or original in order to be protected.
 For More Information on the same…
• https://www.innovationpolicyplatform.org/content/types-ipr
• As for innovative businesses in general, access to knowledge is essential for
innovative entrepreneurship; it is a key source of innovation-driven
opportunities. It helps businesses recognize the value of new knowledge,
assimilate it and apply it to commercial ends.
 Forms of
Business Organization
• Sole Proprietorship
• Partnership Firm
• Partnership
• Company

Dr. Varadraj Bapat 26

Advantages:
• Ease of formation
• Better Control
• Prompt Decision Making
• Retention of Business Secrets
• Personal Attention to Consumer Needs
Disadvantages:
• Limited life
• Unlimited liability
• Limited Financial Resources
• Limited Capacity of Individual
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 Partnership
• A partnership is a relationship between the persons who have agreed to share
the profits. It is a business owned and carried on by a group of people.
• Each member of such a group is individually known as partner and collectively
the members are known as a partnership firm. The liability is unlimited.
• Two or more people can come together to form a partnership firm. It is
required to draft a partnership deed, which is signed by all the partners
indicating the formation of the partnership.
• The deed must clearly specify the name of the firm, the names of the partner,
capital contributed by each partner, the ratio of profit sharing and loss between
partners, the business of the partnership, the duties, the rights, powers and
obligations of each partner, and other relevant details.
• The regulatory and the disclosure norms are relatively easy.

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These firms are governed by
the Indian Partnership Act,
1932. Registration of
partnership is not
compulsory. But since
registration entitles the firm
to several benefits, it is
considered desirable.

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Advantages:
• Ease of formation
• Less regulations
• Sharing of Risk
• No corporate income tax

Disadvantages:
• Unlimited liability
• Difficult to raise capital
• Lack of Harmony
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 Company
• The legal status of a company is different from that of it’s members. The
risk that any person takes by investing personal money in a company is
restricted to only amount of his or her own investment.
• The creditors cannot force the members to pay their dues.
• A company may be either private limited or public limited. The members of
the company appoints directors who are responsible for the management of
the company. The directors are collectively known as the Board of Directors.

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 Company
• A private limited company can be formed with a minimum of two members
and a public limited company may be formed with a minimum of seven
members.
• A private limited company can have maximum of 50 members excluding
employee members ; whereas there is no maximum limit on the number of
members in a public company.
• The MoA and AoA have to filed with the registrar of the company.

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 Company
• The MoA is the charter of the company and specifies the name of the
company, the business and activities that it can carry, its’ address , the capital
of the company and the details of the persons who have formed the
company.
• The AoA of the company specifies the rules and the regulations, the rights,
duties and liabilities of members and directors.

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 One Person Company
• It has one member and one director and is registered as a private company/
The suffix OPC is used to differentiate it from other firms.

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 What is a Project?
• A project is “a temporary endeavor undertaken to accomplish a unique product or
service”
• Attributes of projects
• unique purpose
• temporary
• require resources, often from various areas
• should have a primary sponsor and/or customer
• involve uncertainty