Entrepreneurship Ecosystem Overview

Meghalaya

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Levers of change – Entrepreneurship

Following are the key levers of change which determinewhether a state’s policy, education, legal framework, financialsystems, business markets, cultural and social ethos areaugmenting Entrepreneurship Growth:

1. The Entrepreneur

2. Govt. & Regulatory Support

3. Access to Finance

4. Educational & Cultural Preparedness

5. Mentoring & Networking

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The Entrepreneur

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Meghalaya ranks #34 in ‘Ease of Doing Business’ index according to theDepartment of Industrial Policy and Promotion's (DIPP). It has slippedfrom 31 in 2016 to 34 in 2017-18.

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Govt. & Regulatory Support

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Schemes:

• Capacity Building and Technical Assistance• Tourism Development & Investment Promotion Scheme• New Industrial & Investment Promotion Policy, 2012 of Meghalaya• Integrated Basin Development and Livelihood Promotion (IBDLP)

Govt. Regulatory Bodies:• North Eastern Industrial Consultants Ltd (NECON)• NEDFI

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Capacity Building and Technical Assistance

• The scheme aims to provide funding for skill development, enhancing ofemployability and competencies and promotion of self-employment andentrepreneurship amongst youth of North-Eastern States.

• Non-profit organizations can avail grant in aid for providing skills,training etc to the local youth for enhancing their employability andencouraging entrepreneurship amongst them.

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TOURISM DEVELOPMENT AND INVESTMENT PROMOTION SCHEME

• Assistance for creation of tourism infrastructure in the form of homestays: Anyprivate house owner/entrepreneur can transform their property into ahomestay with help of financial assistance from the state government.Individuals who want to establish home-stay facilities will be given a maximumamount of Rs 16 lakhs subsidized by 30 percent. His/her contribution will be2% of the project cost. The maximum number of rooms that can beconstructed under this scheme will be limited to 4 rooms and each roomshould consist of a bedroom and an attached toilet with modern fittings and awalk in closet. The entrepreneur should be the owner of the property withbuilt up house.

• Assistance for creation of tourism infrastructure in the form of Resorts: Toencourage the development of region and push local employment along withthe provision of building affordable eco-friendly accommodation for thetourist, the govt. is providing financial assistance of upto 1 Crore to interestedentrepreneurs. The loan subsidy of 30% is provided to the entrepreneur as anincentive. The entrepreneur should own the land for the project in case ofResorts.

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New Industrial & Investment Promotion Policy 2016 of Meghalaya

• It will come into effect from the 21st day of December, 2012 and shall remain inforce upto and inclusive of 20th day of December, 2022 .

• Meghalaya Industrial Development Corporation Ltd. (MIDC Ltd.) shall be thedesignated nodal agency for disbursement of incentives/subsidies under theScheme

Benefits for small and micro units:

• State Capital Investment Subsidy

• Subsidy on the cost incurred for Feasibility Study and Project Reports

• Development Subsidy, Interest subsidy and power subsidy.

• Reimbursement of Stamps Duty & Registration Fees

• Enterprises owned by Women & Physically Challenged persons to get additionalsubsidy

• Enterprises set up by Tribal entrepreneur will get preference in allotment ofland/shed in the industrial area/

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Benefits for Medium/Large/Mega Large/Ultra Large:

• State Capital Investment Subsidy : 30 % subsidy on cost of Factory Building and Plant and Machinery subject to a ceiling of 100.00 lakh

• Subsidy on cost incurred on Quality Control Measures

• Subsidy on Pollution Control

• Subsidy on D.G. Refund of Central Sales Tax (CST)

• Sales Tax/VAT Remission

• Special incentives for Export Oriented Units

• Special Incentives for Food Processing Industries

• Interest Subsidy

• Special incentives for Mega Large

• Special incentives for Ultra Large

• Border Area

10https://static.investindia.gov.in/Industrial%20Policy%202016_0.pdf

Integrated Basin Development and Livelihood Promotion (IBDLP)

• Launched by the Government of Meghalaya in 2012, it aims to developsustainable and inclusive entrepreneurship through an extensive system oftraining and capacity building, credit linkage and supply chain development.The programme has brought about significant process re-engineering,facilitating convergent action and holistic development through inclusivegrowth, livelihood promotion and environmental conservation.

• The key stakeholders of the programme are the Meghalaya BasinDevelopment Council (MBDC), the Meghalaya Basin Development Authority(MBDA), the District Basin Development Unit, the Enterprise FacilitationCentre, entrepreneurs and other supporting and external partners.

• Enterprise Facilitation Centre’s have been set up at every block to act as thecitizen interface units where applications for entrepreneurial assistance areprocessed and forwarded to the district level. Currently the state has 39functioning EFC’s.

http://mbda.gov.in/about/ibdlp.html

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The North Eastern Industrial Consultants Ltd also has been promoted by a hostof All India Financial Institutions, banks and SIDCs including NIDC to provideconsultancy assistance and professional services to all classes ofentrepreneurs. NECON assists entrepreneurs in preparation of Project Reports,conducts and prepares Techno-Economic Feasibility Reports and alsoundertakes studies & surveys to identify suitable industries in the region.

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North Eastern Industrial Consultants Ltd (NECON)

NEDFi

NEDFi has a special focus on development of entrepreneurs in the region.Entrepreneurship in the real sense is still at its nascent stage in the NE. NEDFihas started Business Facilitation Centre (BFC) for providing consultancy andsupports in setting up a business enterprise. BFC helps in preparing projectreport and provides information about various incentives available in theregion. http://www.nedfi.com/?q=industry-policies-of-north-eastern-states-archive

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Access to Finance

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Schemes:

• NEDFi Schemes•North-East Venture Fund (NEDFi-DONER)

VC’s and Angels:

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NEDFi Schemes• Rupee Term Loan (RTL) Scheme: To provide medium to long term

financial assistance for setting up of new, expansion, diversificationor modernization projects in various manufacturing or servicessector. The assistance shall be in the form of Rupee Term Loan.

• Equipment Finance Scheme: For financially sound companies, loansare provided for the purchase of equipment.

• Corporate Finance Scheme: For providing finance such as normalcapital expenditure, working capital margin, shortfall in workingcapital, repayment of high cost debt and general corporate purposelike funding of business acquisition or for brand building etc. whereno tangible asset creation may be envisaged.

• Working Capital Term Loan Scheme (WCTL): Upto a Maximum of75% of the working capital requirement of business for one cycle ofoperation is provided to deserving units in the form of workingcapital term loan.

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• NEDFI Equity Fund Scheme: To invest in projects promoted byentrepreneurs in North-Eastern Region having sound business ideaswith potential for high growth and more than normal returns oninvestment.

• NEDFi Opportunity Scheme For Small Enterprises : To provide longterm financial assistance for setting up a new industrial andinfrastructure projects as well as for expansion, diversification ormodernization of existing industrial enterprises excluding CommercialReal Estates.

• North East Entrepreneur's Development Scheme [NEEDS]: Theobjective of the scheme is to help first generation entrepreneurs whoare short of equity.Benefits can be extended to Proprietorship &Partnership Concerns and Companies. Technical qualification of thepromoter in the relevant field is a pre-requisite.

• Women Enterprises Development Scheme: It aims to providefinancial assistance in the form of Term Loan to womenentrepreneurs for taking up business ventures

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North East Venture Fund

• North East Venture Fund is a dedicated venture capital fund for the NorthEastern Region with a corpus of 100 Crores.

• The primary objective of North East Venture Fund (NEVF) would be toinvest in enterprises focused on and not limited to Food Processing,Healthcare, Tourism, Aggregation of Services and IT&ITES located in theNER and to provide resources for entrepreneurs from the region to expandthroughout the country.

• Investments will typically be in startups, early stage and growth stagecompanies with new products and technologies or innovative businessmodels.

http://www.nedfi.com/node/1207

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VCs And Angels

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Education & Cultural Preparedness

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Educational Institutions Promoting Entrepreneurship

• i- Cube – Entrepreneurship Cell of IIM Shillong: The cell conductsseminars, has created a vibrant community of entrepreneurs andnetworks to support local entrepreneurs.

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MIE

• Meghalaya Institute of Entrepreneurship (MIE)-Under IBDLP, theMeghalaya Institute of Entrepreneurship (MIE) has been set up tofacilitate rapid economic transformation, by imparting entrepreneurshipeducation and promoting micro and small enterprises involving the youth,women and other critical target groups in the State. It aims to facilitaterapid economic transformation, by imparting entrepreneurship educationand promoting micro and small enterprises involving the youth, womenand other critical target groups in the State.

• Apart from developing its own resource base, the institute will alsoactively leverage upon the infrastructure and institutional supportavailable with local and national institutes like the Indian Institute ofEntrepreneurship (IIE), State Polytechnics/Industrial Training Institutes,SIRD, NIRD, IIMs, Entrepreneurship Development Institute of India (EDI),National Research Institutes etc for conducting its activities

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Mentoring & Networking

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Startup Incubators, Co-Working Spaces

• NE8x- The objective behind starting the platform lies in addressingstart-ups and entrepreneurship at the grassroots level inNortheast India across the eight states. StartupNE is NortheastIndia's first exclusive initiative undertaken by NE8x to promoteentrepreneurship at grassroots level with public-privatepartnership campaigns that aims to reach the eight Northeasternstates of India. http://ne8x.in/

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Sources:-

1. http://megtourism.gov.in/pdf/Incentives_without_wayside.pdf

2. http://pib.nic.in/newsite/PrintRelease.aspx?relid=153134

3. http://ne8x.in/

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Thank You.

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