The government of Bihar is making consistent and concentrated efforts to enhance the state’s economy. As part of this initiative, the Bihar government has introduced the Bihar Startup Policy 2022. This new policy is specifically designed to stimulate and boost entrepreneurship across the state. The main goal of the Bihar Startup Policy is to significantly accelerate the development and expansion of the Micro, Small, and Medium Enterprises (MSMEs) sector within Bihar, fostering a more healthy and dynamic economic environment.
While there are many factors that are responsible for the success or failure of a startup, the most important factor is funding. Finances play a crucial role in the success or failure of a Startup. Bihar Startup Policy 2022 has provisions for providing financial assistance to startup founders by the State Government.
The following are the major components of Bihar Startup Policy 2022:
- Seed Funding: Emerging entrepreneurs in Bihar will be eligible for an interest-free loan of 10 lakh rupees for a period of 10 years. Female entrepreneurs will receive 10.50 lakh rupees, while individuals from SC, ST, and those with physical disabilities will be granted 11.50 lakh rupees.
- Incentives for Women: Female entrepreneurs will benefit from a 5% incentive, and businesses engaging in product enhancement and financial training will be awarded a grant of 3 lakh rupees.
- Matching Funds: The government will provide matching funds on a 1:1 basis for investments raised by incubators from the Government of India and multilateral donor agencies.
- Shared Office Space: The policy includes provisions for shared office space and additional amenities along with the development of co-working spaces.
- Valuation: Startups will be offered complimentary valuation services.
- Access to Angel Investors: The policy will facilitate connections between startups and angel investors across the country.
- Success Fee: Startups will earn a 2% success fee on investments made by state-registered angel investors.
- Acceleration Program Support: The policy will assist startups in enrolling and participating in acceleration programs.
The Department of Industries has also established a Start-up Support Unit (SSU) to ensure the effective implementation of this Policy. The SSU is tasked with fostering a supportive policy environment to promote the sustained growth of the state’s start-up ecosystem. It is the primary contact point for engaging with ecosystem stakeholders, including mentors, incubators, angel investors, and venture capitalists. To oversee the SSU’s operations, the Department of Industries may assign personnel from within the department or collaborate with a Project Management Agency (PMA).
Bihar Startup Policy 2022 has brought up a bright opportunity for all the startup founders in Bihar. Innovation and new ideas can be easily channeled to get the desired output. Furthermore, this policy will promote more innovation in the state.
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