This Article is written by Jahnvi Sharma (4th-year law student at Jims engineering management Technical campus Greater Noida)
Table of Contents
Earlier it was only used to be two kinds of job preferred by most of the people i.e., private job or government job. But as with advancements in technology and knowledge people are getting more gravitated toward starting their startups. So, let’s start with understanding the meaning of startup first.
Young companies founded to create or develop something genuine, unique, and out of the box, brought into the market and is made so alluring and irrevocable for the customers are startups.
In a layman’s language, the startup is startups are businesses that want to rattle the industries and reorganize the world by creating products at a scale. The basic agenda of a startup is to produce something that the world needs desperately but hasn’t been created yet.
Entrenched in modification, a startup aims to countermeasure defects of already extant products or builds an entirely new division of goods and services, eliminating entrenched ways of thinking and doing business for entire industries. That’s why bountiful startups are known within their relevant industries as “disruptors.”
LAWS RELATED TO STARTUPS IN INDIA
The procedural steps are taken foreseen to the year 2014 were imperative to give the assertion of India in the global IP regime while the steps were taken after the year 2013 were catalytic in the growth and procreation of the Indian IP system towards glorious India. The major objectives and implementation of some of the IP and Business Laws are enumerated below:
Make in India
The main goal of Make in India is to make India a global accomplishing hub by facilitating and announcing local and global companies to assemble their products in the territory of India. To foster various goals, Make in India is currently promoting foreign direct investment, infrastructure, implementing intellectual property rights, and developing the manufacturing sector. It targets 25 sectors of the economy which range from automobile to aviation and mining to space.
The elementary goal of Startup India is to build a strong eco-system for sustaining innovation, entrepreneurship, and Startup culture in the country that will assimilate long sustainable socio-economic growth opportunities. The Government through this initiative proposes to empower Startups to grow through innovation and design. The feature of this scheme includes clarifying the process of doing business in India along with handholding to startups and entrepreneurs, funding supports and incentives based on their innovations skills and patents, fostering industry-institution partnership, and providing an incubation ecosystem to various technology sectors.
India is a land with the largest population of young minds and to cater to them, Skill India is launched with an aim to train over 500 million Indians in different industry-related jobs. The vision is to create an empowered skill workforce with the help of various schemes and online-offline training courses. The idea is to train young people to fulfil the demand of Indian Industry and to create an empowered result-oriented task force in India. The objective of Pradhan Mantri Kaushal Vikas Yojana is to enable youth to take up short-term or long-term industry-oriented training to secure a better livelihood.
National IPR Policy
National IPR Policy is implemented to provide the country’s vision and mission towards the benefit of Intellectual Property in creativity and innovation. This policy is an amalgamation of true India towards advancement in science and technology, arts and culture, traditional knowledge, and biodiversity resources. The aim is to foster creativity and innovation and thereby, promoting entrepreneurship and enhancing socio-economic and cultural development, and to focus on enhancing access to healthcare, food security, and environmental protection, among other sectors of vital social, economic, and technological importance. The National IPR Policy has seven main objectives:
IPR Awareness: Outreach and Promotion
Generation of IPRs
Legal and Legislative Framework
Administration and Management
Commercialization of IPR
Enforcement and Adjudication
Human Capital Development
India is struggling for decades with inadequate knowledge about IP rights and their protection. To implement the mission objectives of the National IPR Policy, CIPAM has been implemented to work towards creating public awareness about IPRs in the country, promoting the filing of IPRs through facilitation, providing inventors with a platform to commercialize their IP assets, and coordinating the implementation of the National IPR Policy in collaboration with Government Ministries/Departments and other stakeholders.
National Innovation and Startup Policy
The National Innovation and Startup Policy 2019 is implemented for students and faculty of Higher Education Institutions (HEIs). This is a guiding framework to enable the Indian institutes to actively engage students, faculty, and staff in innovation and entrepreneurship-related activities. This Policy came at the right time to reboot and revitalize the Indian R&D Institutions. The Policy framework is somehow similar to the Bayh-Dole Act of the USA and was long-awaited.
COUNTRIES WITH THE BEST LAWS FOR STARTUPS.
Silicon Valley and New York City are the world’s two best regions for startups, according to a new ranking from accelerator and research group Startup Genome. The 2019 Global Startup Ecosystem Report (GSER) also identified London, Beijing, and Boston as the remaining top five startup regions.
The rankings are based on a survey of more than 10,000 global startup executives, as well as data from more than a million companies and 150 cities and regions.
Between 2016 and 2018, 46 “ecosystems” created more than $4 billion in value worldwide thanks to startups, up from 29 between 2014 and 2016.
Singapore is a very affluent economy with a free and open trade-driven economy. The country is playing a major role as a global leader in doing business and is very advantageous for start-ups. The balanced government and proper regulatory framework led to marking Singapore as the easiest place to start, run and maintain a business. The government’s pro-business policies continue to advertise business start-ups in the country. It is possible to start a business within hours in the country. While doing business in some countries is restricted by the laws and regulations, in Singapore the only restriction is the size of the country which is considered smaller for the many potentials and willing start-ups, especially from Europe.
New Zealand is categorized as one of the obvious places to do business and the 2ndaccessiblecountry to do business in the world after Singapore according to World Bank.
The country is notable for very few constraints when building and running a business. Using online government service portals, it is possible to finish official business paperwork within hours. Sole traders do not need to stick to formal processes while establishing a business.
Denmark is marked as one of the best countries for starting and doing business. World Bank graded Denmark 3rdeasily accessible place to do business after Singapore and New Zealand.
The continuing business reforms in the country are some of the confirmations that have led to the ease of doing business. The amendment includes a decline in capital desired to start a business. Denmark was also rated first in dealing with the construction permit.
Lack of market demand
No Market is directly equal to no cash. A study by CB Insight highlights that more than 40 per cent of the 101 shutdown companies inspected failed because they had planned their product or service absolutely out of the market. In some scenarios, the market was not mature enough or features were developed that were not admissible from the point of view of the target group and which the market, therefore, did not want.
2. Insufficient financial resources
Another addition to the failure of start-ups is the shortcoming of capital resources. In the growth phase, follow-up expenditure is often flawed. The CB Insight study puts the dimension of companies that failed due to liquidity problems at just under one third (29 per cent).
3. The wrong team
Another reliable killer for startups is problems and inconsistencies within the team (23 per cent according to the CB Insight study). If the cooperation between the team members does not work, the startup doesn’t stand a chance either. However, an unbalanced composition of the teams of the competencies of the individual members often hampers the success of the company. Sometimes there is a lack of important skills for the technical implementation of the business idea, sometimes there is a lack of a CTO who acts as an interface between management and the technical departments.
5. Pricing and costs
Another problem alive with many startups rises from hardships in calculating a price that is high enough to cover costs but low enough to attract customers. After all, 18 per cent of the companies in the CB Insight study cited profitability issues as the main reason for failure.
Pricing models based on the combined continuation of recordings would have made much more sense and expanded the number of contributions.
The difference in outline in the last 5-6 years pinpoints that we are at some point trying to find ways to reclaim the long-lost glory. Over the past 70+ years, India has had admittance to many opportunities and provided resources. However, we have not fully utilized these as yet. We believe these steps taken by the country can lead the way ahead undoubtedly and help us to attain our full potential in terms of adequate utilization of our homegrown ability. Nations like China and Singapore have shown the way. Somewhere, India obliterates to sow the seeds on its highly fertile land, knowingly or otherwise. To obtain the best harvest, a path of innovation and restructuring must be identified and pursued.