As the state of Andhra Pradesh gets ready to position itself as an attractive destination for startups under the leadership of the state’s young and dynamic IT minister, Mr Nara Lokesh the startup community in Andhra Pradesh is optimistic on what can be achieved if the right things are in place.
Overall entrepreneurs are looking for a government that supports innovation, eases regulatory barriers, and promotes a skilled workforce while ensuring financial and infrastructural support.
Among startups most pressing needs is access to capital which includes initiatives to boost startup funding, including government grants, seed funds, and venture capital support.
Startups are also hoping for better tax incentives which can propel them to their next level of growth. Similarly, development of innovation hubs, startup parks, and technology incubation centers in key cities like Visakhapatnam, Vijayawada, and Tirupati is also high on their list of priorities.
Speaking to Vizag Industrial Scan, Mr Alok Soni, Co-founder of the well-known Vizag Startups group highlighted that often startups are bogged down due to unnecessary and tedious administrative work.
“Due to the government criteria like years of incorporation, turnover, project works executed etc, startups find it difficult to sustain.
If these criteria are made flexible, a lot of startups can get access to government works and PMA. Also, to improve cash flow generation, a revolving fund can be created or a fund of funds which can be managed by a VC professional firm.”
He therefore advocated the government to streamline some of their monotonous criteria for startups so they can focus on innovation and creativity.
‘Single-window clearance mechanisms, easier access to startup permits, and faster processes for obtaining land or office space are all factors that could help entrepreneurs focus on innovation rather than navigating administrative hurdles’ opined Mr Soni.
While startups across all sectors are looking for government backing, certain industries expect targeted support. Agritech startups, for example, are seeking greater access to rural markets, subsidies for agri-technological equipment, and more significant government procurement of their products.
Similarly, healthtech startups are hoping for more incentives to collaborate with public healthcare initiatives and integrate technology into government hospitals and clinics.
Mr Sagar Koteswararao, Founder and CEO of Joora Drones Pvt Ltd, said, “Startups expect that the new government to promote public-private partnerships (PPP) and allow startups to contribute to large-scale projects could help these young businesses gain exposure and scale their operations.” Skills is another domain that needs to be ramped up.
‘The new government needs to invest in industry-relevant skill development programs. Collaborations with educational institutions, online platforms, and industry experts to provide technical, managerial, and entrepreneurial training are among the key expectations’ shared Dr C Chandra Mouli, CEO of Atal Incubation Centre, Sri Krishnadevaraya University, Anantapur.
Utilizing Corporate Social Responsibility (CSR) funds have also been advocated for getting in much needed funding to the startup ecosystem.
‘Since incubators are non-profit entities, they align well with the CSR mandate of companies in fostering sustainable development.
The government can incentivize companies to invest CSR funds in incubators by offering tax breaks and recognizing such contributions as impactful social initiatives’ said Mr Sandeep Satheesan, CEO, Vignan Technology Business Incubator, Guntur.
And with the increased mandate on use of sustainable and green technologies Mr Tarun K Karanam, Founder of HydroTribe Pvt Ltd, said, ‘We are expecting the government to introduce policies that encourage environmental conservation, such as tax benefits for green startups, grants for renewable energy projects, and support for businesses focused on conservation’.
With the right alignment, Andhra Pradesh has the potential to become a powerhouse of entrepreneurship in India.