Most of the top engineering and management colleges are integrating entrepreneurship within their curriculum and have created on-campus business incubators with an objective to equip the students with the capacity to adapt quickly to technological innovation and invent the future by developing breakthrough technologies that solve global problems and enhance the quality of life. In this blog, we shall discuss:
- What is the role and importance of on-campus business incubators in the rise of entrepreneurs in India?
- What is University Incubator Model?
- How Campus-Based Business Incubators Work and Help Entrepreneurs and Startups Find Funding?
With a goal to make India one of the largest start-up ecosystems across the globe, Prime Minister Narendra Modi launched the ‘Start-Up India’ movement in 2016. The Startup India program took a slew of policy initiatives to build a vital, conducive and growth-oriented environment for Indian startups which will help generate more job opportunities in the country.
With a vision to support new-age entrepreneurs, the ‘Startup India Action Plan‘ envisaged numerous incubation centers, easier patent filing, tax exemptions, ease of setting-up of business, an INR 10,000 Cr ($1.45 Bn) corpus fund and several other facilities.
Let’s have a look at some of the facts related to startup India movement:
- Between 2016-2019, 15,113 startups were recognized under the Startup India program across 492 districts in 29 states and six Union territories
- 55% of the recognized startups are from Tier 1 cities, 27% from Tier 2 cities and 18% are from Tier 3 cities
- 13,176 recognized startups have reportedly created 1,48,897 jobs with an average of 11 employees per startup
However, modern age entrepreneurs have to face several challenges since most of them don’t belong to the business background and lack resources vital for running a business. They need proper guidance and support in order to turn their dreams into reality.
Modern startups are led by young minds with creative ideas and most of them are students. Therefore, educational institutions need to connect these students to the business community, experts, and people who can nurture their ideas and talent.
Campus incubators are the best solution to this challenge. This way, these innovators and entrepreneurs can get full support without leaving their campus. These incubators extend frugal innovation and a creative mindset.
KIET Group of Institutions, one of the best engineering colleges in Delhi NCR, has this facility at the campus. It has one of the top business/startup incubation centers in India. Let’s try to understand the infrastructure and modus operandi of these campus-based business incubators through the TBI based at KIET.
On-Campus Business Incubator at KIET
Technology Business Incubator at KIET (TBI-KIET) has been registered under the Society Registration Act 1860 as Krishna Path Incubation Society-TBI in 2007. TBI-KIET was jointly promoted by NSTEDB, Department of Science & Technology, Govt. of India and KIET Group of Institutions, Ghaziabad. The DST, Govt. of India supported initially for 5 years and further it was expected that TBI-KIET should be self-supportive. Since 2012, Technology Business Incubator at KIET is self-supportive and has shown satisfactory growth in terms of numbers of startup incubated, mentored and graduated. This is the only incubator across the country which promotes only first-generation entrepreneurs.
TBI-KIET has been ranked 8th among all best TBI/STEP by Economic Times on 11/02/2011. To date, 85 incubatees have been promoted and 50 graduated from TBI-KIET. The core strength and thrust area of the TBI-KIET is ICT, Robotics Automation, Solar Energy, Automobile, E-mobility. TBI-KIET has a dedicated multi-storey building with furnished cubicles along with internet and 24×7 power supply. Apart from this, Technology Business Incubator at KIET has specialized lab facilities viz. IoT, Fab Lab, D-Link, IoS Apple, BlockChain, NI-LabView Lab and dedicated Innovation lab with robotics facilities. TBI-KIET has a strong governing body comprising of representatives from Government, Industry, Bank, R&D Institutions and Academia.
The objectives of Technology Business Incubator at KIET are:-
- Enterprise and entrepreneurship development
- Creation of start-up in thrust areas through innovation and support for IPR, licensing, training and other related requirements
- To support and nurture indigenous technology thereby grooming entrepreneurs to run their enterprise successfully
- Dissemination of knowledge and technology through meets, conferences and training for conducive growth.
- Provide R&D for the industry to enable small/medium industries, to take up R&D activities and technology up-gradation.
- Assistance and consultancy to SMEs located in the region through specialized services.
- Technology commercialization.
- Foster institution-institution and industry-institution linkages in the region.
- To train unemployed youth for wage employment.
- NSTEDB, Department of Science & Technology, Govt. of India, New Delhi.
- Department of IT & Electronics, Startup in U.P., Govt. of Uttar Pradesh.
- Ministry of Electronics & Information Technology, Govt. of India.
- Ministry of Micro, Small & Medium Enterprises, Govt. of India.
- Mahindra World City-SEZ, Jaipur.
How Business Incubator at KIET Helps Your Startup Find Financing
- NIDHI-PRAYAS:- It is a DST supported National Initiative for Developing and Harnessing Innovation (NIDHI) programs. The objective of this program is to help innovators for prototyping. A prototype grant up to a maximum Rs. 10, 00,000/- is provided to the innovators to transform their ideas into a prototype. For more details please click on the link: http://www.tbi-kiet.in/home/prayas
- NIDHI-EIR:- The NIDHI-EIR Programme provides subsistence grants up to Rs.30,000 per month to an aspiring or budding entrepreneur of considerable potential for pursuing a promising technology business idea. For more details please click on the link:-http://www.tbi-kiet.in/home/nidhi
- TIDE 2.0:- A flagship program – TIDE 2.0 is an initiative by the Ministry of Electronics & Information Technology, Govt. of India. TIDE 2.0 promotes tech entrepreneurship through financial and technical support to incubators engaged in supporting ICT startups that are primarily engaged in using emerging technologies such as IoT, AI, Block-chain, Robotics, etc..
- Startup In U.P.:- A flagship program promoted by the Government of Uttarpradesh. Govt. of U.P. has recognized, approved & sanctioned Technology Business Incubator to run their program- ‘Startup in U.P.’. This program offers capital support of Rs. 50 Lacs and subsistence allowance of Rs. 15000/- pm to incubatees, Rs. 10.00 Lacs for marketing, Rs. 2.00 lacs reimbursement against IPR, Rs. 2.00 Lacs for mentoring support & Rs. 5.00 lacs for the recurring deficit.
- Entrepreneurial and Managerial Development of SMEs through Incubators:- Office of Development Commissioner-Ministry of Micro, Small & Medium Enterprises, Govt. of India has approved TBI-KIET as a Host Institute to mobilize and motivate 10 ideas every year. These ideas are submitted on the DC-MSME portal to be approved by the Ministry directly. Once approved, a grant of Rs. 15.00 Lacs to each idea can be expected for 10 startups every year along with Rs. 1.00 Crore for Capital and Rs. 1.00 Crore for Seed money.
- Seed Support Scheme:- TBI KIET provides seed support as a soft loan up to Rs. 20.00 lacs for 5 years on 6% reducing interest rate to incubatees for commercializing their products.
- Startup Recognition:- TBI-KIET has been recognized by DIPP, Govt. India to give recognition to innovative startups. After getting a recommendation, a startup can apply for Govt. tenders without prior experience. If these startups apply for a patent, an 80% amount of total expenditure will be reimbursed by the Govt.
- GST exemption up to Rs. 50 Lacs on service-based products.
TBI-KIET boasts of a long story of success. TBI-KIET has been also selected by NITI Ayog under the flagship program of the Hon’ble Prime Minister i.e., Atal Innovation Mission. TBI-KIET has been selected under the scheme for the Established Incubator Centre (EIC).
The success story of TBI KIET brings us to the conclusion that business incubators at the campus can play a crucial role in supporting local innovation and new business creation and can also help in reducing SME failure rates substantially.