Mega state plan to create 25,000 more innovative companies
View(s):The Government, in a joint Ministry of National Policies and Economic Affairs and Central Bank initiative, on Thursday announced a massive programme to fund start-ups with the potential of creating 25,000 new innovative companies.
As part of the ‘One Million Jobs Programme, an official announcement said potential start-up companies will be offered grants and cheap loans upto Rs. 250,000.
The scheme titled “SWASHAKTHI; has been designed to develop start-ups and targeting “people with entrepreneurial ideas and talent, who have the courage and strength to see their dreams and ideas transform into reality”.
Under this scheme, a new start-up will receive a grant of up to Rs. 10,000 in lieu of initial expenses while the entrepreneur is expected to match this with an equal contribution. Thereafter a maximum loan of Rs. 200,000 at an interest rate of 5.5 per cent per annum is available in addition to a further amount of up to Rs. 40,000 to be disbursed as a grant upon evaluation of the project after the initial six months.
Existing businesses will receive a maximum loan of Rs. 250,000 at an interest rate of 5.5 per cent, the announcement said, adding that the scheme is targeted to prospective micro, small and medium scale entrepreneurs at village level who want to commence new businesses or expand existing businesses. It also includes entrepreneurs with new ideas that use local area resources, IT based products and eco-friendly economic activities; youth, women, young graduates, and skilled and differently abled people.
The selection criteria is based on novel business ideas, entrepreneurial and technical skills of the loan applicant, market demand for the proposed product, marketing and packaging strategies, potential for employment generation, appropriateness of technology, etc. The notice said: “Do you have an innovative idea for a start-up? Do you want to get started without any delays? Are you willing to work tirelessly towards it in order to make it grow into something big? If all that is holding you back are finances, think no further, we are there for you; to finance your start-up and watch it grow as you grow with it.”
| STBC discussion on “Start-ups” | |
| To lift the debate and discussion on start-ups, considered the new age entrepreneurs driven by mobile technology, the Sunday Times Business Club (STBC) is organising a panel discussion on this topic on February 22 at the Kingsbury Colombo hotel. The panellists include Ajit Gunewardena, deputy chairman of John Keells Holdings and chairman of Pickme. The discussion, planned much earlier, comes alongside a national programme announced on Thursday by the government offering cheap loans to the start-up community. The Business Times has been in the forefront of promoting the start-up eco system through a monthly page dedicated to start-ups and other columns focusing on this new breed of entrepreneurs, who unlike traditional SME businesses, often ploughed in their own capital or were funded by ‘angel’ investors. |