Q: Does the Budget 2015 have something in store for budding entrepreneurs?
Over the years, entrepreneurship has proven to be critical for India’s growth and development, given its increasing significance and visible impact in wealth-creation and employment-generation. Entrepreneurship in India has grown rapidly, visibly so, creating wealth and generating employment in the country, especially in the last two decades. Budget 2015 has given a worthwhile appreciation to the entrepreneurial sector by allotting ` 1,000 crore in the Union Budget 2015 presented by Finance Minister Arun Jaitley in the Lok Sabha. The government is establishing a mechanism – to be known as SETU (Self-Employment and Talent Utilization) – which will support all aspects of startup businesses, and other self-employment activities, particularly in technology-driven areas. By the time a great idea gets approval and the funds arrive, the people behind the ideas move on to accept high-package jobs in multinational companies. Now this big boost from the government will help the budding entrepreneurs in making it big.
Sensing the tempo, some of the top Silicon Valley experts have even said that next decade is going to be the ‘Golden Era of Indian Entrepreneurship’.
Q: What provisions of Budget 2015 would positively impact the industry in general and SME’s in particular?
Impetus on infrastructure spending, commitment to GST rollout by 2016 and reduction in corporate tax to 25 per cent over 4 years are important measures that will boost investment sentiments and aid industrial growth. The small and medium enterprises often face liquidity crunch and the Finance Minister has tried to address the same in the budget. The announcement of establishing and electronic Trade Receivables Discounting System (TReDS) for financing of trade receivables of MSMEs from corporates and other buyers, through multiple financiers would improve the liquidity in the MSME sector significantly and to fund the unfunded, setting up of MUDRA bank with capital infusion of ` 20,000 crore to finance micro units will greatly help this sector. The Finance Minister also addressed one of the key issues of ease of doing business pertaining to closing a business due to bankruptcy by reforming the law.
(This information is compiled by GEMS – Goa Entrepreneurs Mentoring Services Trust. Readers can email queries to firstname.lastname@example.org along with their contact details)