Raj K Pathak

Connecting Entrepreneurs with Information,Knowledge & Networking

Finally a startup definition from the government to ensure that deserving startups get benifits

February 23rd, 2016

The government has finally come out with a Startup definition to ensure that only deserving companies get the benefits of the ‘Startup India Action Plan’ and to create a conducive environment for startups in India.

The government notification states the following as a startup definition:

  1. To have at least 20% equity funding by any incubation, angel or private equity fund, an accelerator or angel network duly registered with the Securities and Exchange Board of India endorsing the innovative nature of the business.
  2. All such companies would fall under the category of startups up to five years from the date of incorporation as long as their turnover does not exceeded Rs 25 crore
  3. In order to boost innovation, such companies should be engaged in development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.

The process of recognizing a startup would be done through a mobile application/portal. However, till the time, the mobile application becomes operational, alternative arrangement will be made by the Department of Industrial Policy and Promotion (DIPP).


Prime Minister Narendra Modi launched the ‘Startup India’ initiative in January this year, announcing a string of incentives for startups to get greater access to capital, incubation and talent. Modi announced

  • Compliance regime based on self certification
  • No inspection till 3 years
  • Startup India Hub
  • Starting a startup in 1 day using Startup app portal
  • Fast track mechanism of startup patent application
  • 80% rebate on filing startups patents by startups
  • Relaxed norms for Public procurement for Startups
  • Faster exit for startups, introduction of Bankruptcy Bill,2015
  • Funding support through Fund of Funds with a corpus of Rs10,000 crore in 4 years
  • Credit Guarantee fund for startups
  • Tax Exemption on Capital Gains
  • Tax exemptions to startups for 3 years
  • Launch of Atal Innovation mission( AIM)
  • Creation of Pre- Incubation and Incubation labs, providing seed capital to startups
  • Setting up of 35 incubators, 7 new research parks
  • Innovation focused programmes in schools
  • Startup fests should be set up

( Copied from KNOW STARTUP dated  Feb 23.2.2016)

#Startup India Top 19 takeaways

February 8th, 2016

India is one of the fastest growing entrepreneurial eco-system in the world and 3rd largest after USA & UK.

Indian Govt led by Shri Narendra Modi has understood that in a country like India, only option remains to solve the un-employment problem is to catalyse youth entrepreneurship and focus on innovative startups which have the capability to create jobs as well as wealth.


The much awaited unveiling of #StartupIndia by Prime Minister of India has brought lots of positivity  among the entrepreneurs in India. With the Government’s support, a startup can be built in a day which will definitely motivate many young entrepreneurs to turn ideas into action thereby increasing the jobs in India as well.


Prime Minister Narendra Modi had announced the ‘Startup India, Standup India’ initiative in his Independence Day address last year. Jan 16th, 2016 PM Modi unveiled the action plan for startups in the country. He announced a self-certification scheme in respect of nine labour and environment laws and said there will be no inspection during the first three years of launch of the venture.


Here are the top takeaways announced for Startups.

1. Compliance regime based on self certification

The objective of compliance regime based on self certification is to reduce the regulatory burden on startups. This self-certification will apply to laws like payment of gratuity, contract labour, employees provident fund, water and air pollution acts.

2. Startup India hub

A startup India hub will be created as a single point of contact for the entire startup ecosystem to enable knowledge exchange and access to funding.

3. Simplifying the startup process

A startup will be to able to set up by just filling up a short form through a mobile app and online portal.  A mobile app will be launched on April 1 through which startups can be registered in a day. There will also be a portal for clearances, approvals and registrations

4. Patent protection

The government is also working on a legal support for fast-tracking patent examination at lower costs. It will promote awareness and adoption of Intellectual Property Rights (IPRs) by startups and help them protect and commercialise IPRs.

5. Funds of funds with a corpus of Rs 10,000 crore

In order to provide funding support to startups, the government will set up a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over four years. The fund would be managed by private professionals drawn from the industry while LIC will be a co-investor in the fund. The credit guarantee fund for start-ups would help flow of venture debt from the banking system to start-ups by standing guarantee against risks.

6. Credit Guarantee Fund

A National Credit Guarantee Trust Company is being envisaged with a budgetary allocation of Rs 500 crore per year for the next four years.

7. Exemption from Capital Gains Tax

Currently, investments by venture capital funds in startups are exempt from this law. Now, the same is being extended to investments made by incubators in startups.

8. Tax exemption for startups

Income tax exemption to startups announced for three years

9. Tax exemption on investments above Fair Market Value

10. Startup fests

Innovation core programs for students in 5 lakh schools. There will also be an annual incubator grand challenge to create world class incubators

11. Launch of Atal Innovation Mission

Atal Innovation Mission started to give an impetus to innovation and encourage the talent among the people

12. Setting up of 35 new incubators in institutions

PPP model being considered for 35 new incubators, 31 innovation centres at national institutes

13. Setting up of 7 new research parks

Government shall set up seven new research parks – six in IITs, one in IISc with an initial investment of Rs 100 crore each.

14. Promote entrepreneurship in biotechnology

Five new bio clusters, 50 new bio incubators, 150 technology transfer offices and 20 bio connect offices will be established.

15. Innovation focused programmes for students

There will be innovation core programs for students in 5 lakh schools.

16. Panel of facilitators to provide legal support and assist in filing of patent application

17. 80 per cent rebate on filing patent applications by startups

18. Relaxed norms of public procurement for startups

19. Faster exits for startups




PM Modi’s boost to startups in India: Ten points

January 16th, 2016

PM Narendra Modi addressed the ‘Startup India’ scheme and spelt out the key features of government’s action plan to encourage entrepreneurship in the country. Here are the key announcements made by PM Modi:


A dedicated fund of Rs 10,000 crore will be created for funding of startups.



Startups will be exempted from paying income tax on their income for the first 3 years.



Capital gains tax to be exempted for venture capital investments.



Startups can now exit within 90 days.



Eighty per cent reduction in patent fee announced for startup businesses.



Startups in manufacturing sector shall be exempted from criteria of ‘prior experience and turnover’.



Self-certification based compliance system in respect of 9 labour and environment laws introduced for startup business



Sector-specific incubators, 500 tinkering labs will be set up under Atal Innovation Scheme.



Atal Innovation Mission will be founded to give impetus to innovation and encourage talent among the youth.



Credit guarantee scheme will be introduced for startups. Funds worth Rs 500 crores will be given every year.



Reproduced from http://timesofindia.indiatimes.com/PM-Modis-boost-to-startups-in-India-points/listshow/50606030.cms

PM Modi

PM Modi


Welcome new year 2016 with challenging arms!

January 4th, 2016

“Once upon a time in a faraway land, there lived a Chinese wise man and his disciple.

One day in their travels, they saw a hut in the distance. As they approached they realized that it was occupied in spite of its extremely poor appearance. In that desolate place where there were no crops and no trees, a man lived with his wife, three young children and a thin, tired cow. Since they were hungry and thirsty, the wise man and his disciple stopped for a few hours and were well received. At one point, the wise man asked: “This is a very poor place, far away from anything. How do you survive?” “You see that cow? That’s what keeps us going,” said the head of the family. “She gives us milk, some of it we drink and some were make into cheese. When there is extra, we go into the city and exchange the milk and cheese for other types of food. That’s how we survive.” The wise man thanked them for their hospitality and left.

When he reached the first bend in the road, he said to his disciple: “Go back, get the cow, take her to the cliff in front of us, and push her off.”

The disciple could not believe what he was hearing. “I cannot do that, master! How can you be so ungrateful? The cow is all they have. If I throw it on the cliff, they’ll have no way to survive. Without the cow, they’ll all die!” The wise man, an elderly Chinese man, took a deep breath and repeated the order: “Go ahead. Push the cow off the cliff.” Though outraged at what he was being asked to do, the student was resigned to obey his master. He returned to the hut and quietly led the animal to the edge of the cliff and pushed. The cow fell down the cliff and died. As the years passed by, remorse for what he had done never left the disciple.

One spring day, the guilt became too much to bear and he left the wise man and returned to that little shack. He wanted to find out what had happened to that family, to help them out, apologize, or somehow make amends. Upon rounding a turn in the road, he could not believe what his eyes were showing him. In place of the poor shack there was a beautiful house with trees all around, a swimming pool, several cars in the garage, a satellite dish, and on and on. Three good-looking teenagers and their parents were celebrating their first million dollars. The heart of the disciple froze. What could have happened to the family? Without a doubt, they must have been starving to death and forced to sell their land and leave.

At that moment, the student thought they must all be begging on the street corners of some city. He approached the house and asked a man that was passing by about the whereabouts of the family that had lived there several years before. “You’re looking at it,” said the man, pointing to the people gathered around the barbecue. Unable to believe what he was hearing, the disciple walked through the gate and took a few steps closer to the pool where he recognized the man from several years before, only now he was strong and confident, the woman was happy, and the children were now nice-looking teenagers. He was dumbfounded, and went over to the man and asked: “What happened? I was here with my teacher a few years ago and this was a miserable place. There was nothing. What did you do to improve your lives in such a short time?” The man looked at the disciple, and replied with a smile: “We had a cow that kept us alive. She was all we had. But one day she fell down the cliff and died. To survive, we had to start doing other things, develop skills we didn’t even know we had. And so, because we were forced to come up with new ways of doing things, we are now much better off than before.

” Moral of the story: Sometimes our dependency on something small and limited is the biggest obstacle to our growth. Perhaps the best thing that could happen to you is to push your “cow” down the cliff.

Once you free yourself of the thought “it’s little but it’s certain,” or of that idea “I am not doing great but there are people who are much worse than me” — then your life will really change. Is there a cow ( idea, mental block or mind set ) in your life that is keeping you miserable?. Think about it very seriously

Welcome new year 2016 with challenging arms.


(Copied from Sanjay Kher’s linkedin post)

Is your business really a startup?

March 8th, 2015

Who actually is a ‘startup’?

India is certainly bubbling with lot of entrepreneurial activity. I am not surprised to learn that India  now boasts of second largest entrepreneurial eco-system on the world just behind USA. One just needs to look up at platforms like facebook, meetup etc and there are hundreds of startup groups, regularly having meetings, lectures and conferences. I am in startup space for almost 18 years now and therefore can say it from my own experience that a decade back, there would be just one startup activity a month in city like Delhi where as there are now 10 startup events happening every day.

But who is a startup? Is every newly founded business  a startup?

Large number of young entrepreneurs, I come across have idea and want to start. They think or assume that as a startup, it is necessary to work on technology, or take venture funding, or have some sort of “exit.”

Ninety percent of small businesses today are family businesses, which can be very successful, satisfying, and small by design. It’s a strategic decision to start a startup. If your passion is to change the world, or even dominate an industry, scalability is the only way to multiply and that is start of  a startup.

Startup is a company which is designed to grow and grow very fast. The only essential thing is growth. Everything else we associate with startups follows from growth.

For a company to grow really big, it must (a) make something lots of people want, and (b) reach and serve all those people.

If you write software to teach Tibetan to Hungarian speakers, you’ll be able to reach most of the people who want it, but there won’t be many of them. If you make software to teach English to Chinese speakers, however, you’re in startup territory.


Any other venture which is not scalable doesn’t fall in the definition of a startup though it may be a newly founded company.

Lacs of companies are being started in India annually. However only fraction of them meet the definition of a startup.

A startup has to make something it can deliver to a large market and idea is scalable fast. A venture that is labour intensive and staff intensive is certainly not scalable and this would be called a newly found company and not a startup.

A scalable idea is the one which can be automated to the maximum. Scalable idea means “hockey stick ” growth curve which attracts investors.

So, hope now you know if your business is a startup or just any other newly founded company.

Happy starting!!




Pre Revenue Valuation- Science or Art

January 29th, 2015

I was recently invited by “Indore Entrepreneur Network (IEN) ” to address startups. The boardroom was house full, a reflection of startup revolution going across cities and towns of India.

I was happy to see 3 women out of 20 startups present in the room though I hope to see more percentage of women at such startup events in time to come.

Major concern raised by budding entrepreneurs was “how do investors value a startup?”.

Let me confess, this is the most frequently asked question at any startup event or investor panel. So, I was not surprised if it was raised by this bubbling with ideas and enthusiasm group, too.

However, the unfortunate answer to the question is: it depends.

Startup valuation, as frustrating as this may be for anyone looking for a definitive answer, is, in fact, for some, a relative science and for others, it is more of an art than a science.

So,  the practice of valuing a startup business is squarely in the domain of little confusion.

Nevertheless, entrepreneurs need to put a value on their startups in order to raise money, and investors need to put a value on their investments to generate liquidity.

Most important for any startup is need to constantly think of how early he/she can make the start-up project attractive enough for investor to invest.

My part experience with IAN and discussions with VC friends tells me that startup need  to focus on the following to attract funding at Pre Revenue start-up phase.

Today, fortunately, VC’s & Seedfunds and angel investors are in abundance and looking for attractive investments. However for them to take a decision on valuation of Pre Revenue startup ,they look for the following things:

Founding Team :

Is founding Team committed to work on finding solution and filling identified gap for next 5 to 7 years. If founder team has ample experience, networking ,knowledge on key factors of business, all the better. Additionally, founders with success in past tend to get higher valuation.

Traction & Expected Near Term Revenues :

If start-up has 100 plus pilot customers with 50% of them near becoming paying customers, the valuation is much higher.

Growth & Engagement :

If there is existing good amount of user database and same is growing at 30% pm plus good percentage of them spend 20 mins of more daily, valuation is certainly higher.

Market Size :

VC always wishes to know the market size in terms of potential users.If 10 Million potential users is possible, higher the valuation. If 100 Million potential user can be projected, valuation can go through the roof.

Competition :

More the existing competitors or else easy for entry, lessor the valuation.

Quality of Early Investors :

If startup is able to attract organisational funding  or reputed/respected angel investor/seed fund for startup/pre-startup phase, it becomes easier to raise second round of funding at later stage.





VC Image

Startup need to forsee the cash crunch

December 19th, 2014

Startup need to forsee the cash crunch

I happened to visit young entrepreneur friend of mine yesterday. Last time I had met him few months back, he was bubbling with lot of ideas and had plans to expand at the speed of light.

His fitness franchise model was doing good and centres were being opened in major cities at the rate of one per month. He sure seemed to be expanding at fast speed. However, when I met him again, yesterday after a gap of 6 month, he seemed to be depressed. In his expansion drive, he lost track of cash flow and now is facing major cash crunch. What is worse, nor has he approached any bank or investor and neither he has any business plan ready.

Cash is the fuel that drives business, and many financial analysts consider the condition of a company’s cash flow to be one of the most important indicators of that business’s financial health. After all, a well-managed flow of cash–like a strong heart–is usually indicative of a healthy business, while poorly managed cash flow, or a weak heart, can cause problems that affect the entire business.

Cash flow management requires more than just a financial fix. It requires a holistic approach that focuses on making a company’s entire supply chain operate more efficiently. After all, the faster goods move from seller to buyer, the faster sellers can be paid. And while working with a bank to open a line of credit or amending an existing financial instrument can certainly help, the only real way to address a cash flow problem is to take a holistic, long-term view of the issue.

Fixing a cash flow problem requires companies to examine and improve the three key flows of commerce: goods, information and funds.

Though my young entrepreneur friend has financial statements of last 2 years that too audited, however, both years, business is shown to run in loss. And the reason for the same is that though actually the business made reasonable profit from first year itself, however loss was shown on advice of his CA to help avoid paying taxes. Unfortunately, Banks or any lender wants to lend the money only to profit making business and not a loss making enterprise.

My advise to young startups:
1- Please show profit in your business as it helps attract funding from Bank and investors as and when you may need it. Don’t avoid showing profit just to minimize your tax liability. That is foolish idea in the long run.

2- If your business is growing, even if you may not need money in present times, however it is advisable to keep dialogue open with potential investor and bankers. Also keep updating your financial and business plan. You don’t know when you may need cash for short term, mid-term or long terms.

3- Don’t blindly depend upon your CA rather learn a little bit about balance sheet, best practices in cash flow management and about legal compliances and taxation etc.
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3 mistakes worth avoiding by a start-up

November 16th, 2014

 3 mistakes worth avoiding by a start-up


Years ago while I was Advisor with CyberMedia,I had the opportunity to hear one of the most admired entrepreneurs of current times namely Azim Premji, Chairman Wipro Technologies. He had accepted prestigious “Lifetime achievement Award” by DATAQUEST, the star publication of CyberMedia and had come to receive it in person at my favorite venue Hotel Maurya Sheraton, New Delhi.

According to Forbes, Azim Premiji was the richest Indian during 1999-2005 and is currently the fourth wealthiest Indian, and the 61st richest in the world, with a personal wealth of $16.4 billion in 2014. In 2010, he was voted among the 20 most powerful men in the world by Asiaweek. In December 2010, he pledged to donate $2 billion (approx Rs 8000 Crore at 2010 rates) for improving school education in India. This donation is the largest of its kind in India till date.

In his acceptance speech, Azim Premji told the audience that while he was on his way to the conference hall, a young journalist wanted to know the secret of his success. Premji further said he wondered why media only talks about success and never about failures. Talking about failure is equally important as it is impossible to taste success without experiencing few failures. He went on to share failures he experienced before he tasted success.

Yes, failure is a stepping stone to success. Unfortunately in India, a failure is not taken kindly by anyone therefore it makes sense to avoid a failure as much as possible.

Many startups fail just because of mistakes they make which could have been avoided. Due to a lack of experience, many startups face the misfortune of failure.

I have shortlisted 3 of such avoidable mistakes.

1- Having an idea but no business plan. Having an innovative idea is wonderful. But unless it is put on paper, it is of no much use.

Many startups think writing a business plan is necessary only if one wants to raise finance. Wrong. A business plan plays a vital role in determining future success. A business plan, after all, serves to guide the startup in the right direction by answering many questions such as:

  • What is the gap your startup is going to fulfill?
  • Who are the potential customers?
  • Who are the company’s competitors and what are they doing?
  • How can the company measure success?

In other words, a sound business plan determines every aspect of the startup. And whenever the company is stuck or a new venture is to be launched, refer to the business plan.

And yes, a ready business plan always helps in raising money quickly.I have come across many startup entrepreneurs with great ideas, having invested their own money too at initial stages of business but couldn’t raise finance from banks or VC’s as they didn’t have business plan ready at right time.

2-Want to go alone. It is a proven fact that startup driven by single person have usually not tasted much success. Moreover, a startup anchored by one founder rarely gets VC funding.

Establishing a company is hard work and it often takes more than a single individual to launch a business. There are highs and lows, not to mention some tasks that few can undertake alone. Crushing blows and setbacks sometimes make it hard to continue on without another person’s encouragement mention some tasks that few can undertake alone. Then there’s a need to market the plan and build the product or service. Money has to be raised to launch the startup.

In most situations, it’s an incredibly daunting to tackle all this alone. A little help from friends and professional colleagues can help in launching the startup.

If your connections do not work, you have no choice but to find a stranger as a co-founder.  You can find them on startup networking websites or else you can  find them at startup networking events  or at  shared startup co-working facilities.

3. Low on Financial LiteracyWeak financial literacy may be the single biggest reason why startups don’t succeed. Many business owners, who start with an idea or a problem that they want to solve, seem to have difficulty with financial management tasks.

A study  shows 97 % of entrepreneurs make their debut with less than Rs 2 lac, mostly funded out of their own pocket in the form of personal savings, credit cards and lines of credit. As they build their businesses, entrepreneurs find themselves navigating through obstacles that include filing taxes and managing payroll.

To finance growth, entrepreneurs need to speak the same language as banks, venture capitalists, governments, etc. Financial literacy is more than just hiring an accountant. It includes building a knowledge base which enables an entrepreneur to make important decisions about company finances.

A startup needs to understand the importance of preparing financial statements from a long term perspective. The purpose of financial statements is to communicate the state of affairs of your business. The three most common and important financial statements for a startup or for that matter any businesses are balance sheet, an income statement (profit & loss account) and a cash flow statement.

Additionally, Financial literacy helps a startup know about his rights and obligation under Business Rules & Regulation, Taxation and various Central & state Govt Acts .

How many startups would  actually know if and when they come under the compliance of Service Tax, VAT, TDS etc. Large number of the startups don’t know when tier enterprise would have to comply with Employee Provident Fund or ESI Scheme.

Having financial literacy, the knowledge that enables an individual to make critical and practical decisions with regards to finances, is extremely important for entrepreneurs and critical to successfully growing a business.


Tips on Working from Home

October 1st, 2014

I have been working from home for quite a while now. I hear a lot of people say things like, “I could never work from home.”, “I need to go into an office.”, or “I’d get distracted.” This can happen, but only if you let yourself. Here are the tips I’ve learned about working from home and staying productive:

Setup an office for yourself:  Reach your “office” everyday at a fixed time, and leave your “office” at a fixed time. Set up a routine as it helps remain devoted.Office means office ie should have if required printer cum photocopier,notepads, pens, and other office materials.I have a decdicated room for my office,with my working table,printer,landphone,pads etc.

Develop a schedule and follow it: It helps to set yourself guidelines and a schedule to follow so you actually accomplish your work. Aim to work atleast 8 hour per day.Have fixed timings for tea break, lunch etc.I am in my homebased office by sharp 9 am and work till 1130 at one go.Than I take a 15 minutes tea break.Later I work till 130 pm and take a 1 hour break for lunch and that includes afternoon nap(one of the luxury of operating from home).From 230 pm to 630 pm I am one my working table with 15 mins tea break in between.Later I go for evening walk and catch up with my friends.The day I have a meeting outside or a conference to attend,I work late night or early monring to cover up the lost time.

Take a real lunch break. There’s a reason companies are required by law to give you a lunch break. You will come back refreshed and working harder than before.So,make sure even if working from home,you should take a lunch break.Eat in front of your favorite TV show,  or meet a friend for lunch.

Set boundaries. Your clients should know not to call you at 9 pm at night. The best way to establish these rules and good behaviors are by setting boundaries for yourself and letting your client know what hours you work. I dont take official calls between 9 pm to 9 am,come what may.

Set goals. Make to-do lists and stay organized, just as you would at any other job. Set realistic goals for yourself to achieve daily, and hold yourself accountable for them. You won’t get anything done if you don’t make goals.

Enjoy working from home.I am enjoying it every day.


Solution to unemployment lies in promoting MSME sector

September 21st, 2014

In India one person out of three persons who is holding a graduation degree and above in the age group 15-29 years is found to be unemployed.(According to Labour Bureau’s Third Annual Employment & Unemployment Survey 2012-13).

Unemployment rate amongst illiterate youth is lower than educated youth. A comparison with the earlier report by labour bureau shows that the unemployment level has increased during 2012-2013 over 2011-2012.

While unemployment rate among illiterate youth is lowest with 3.7 per cent for the age group 15-29 years at all India level in 2012-2013, the unemployment rate in the same category was reported at 1.2 per cent in 2011-2012 report.

As stated in the report, the unemployment amongst the graduate youth that happened to be at 19.4 per cent in 2011-2012 increased to 32 per cent during 2012-2013.

Similarly, the unemployment rate amongst the educated youths reportedly increased with increase in their education level. (Amongst all age groups viz. 15-24 years, 18-29 years and 15-29 years).

As per Planning Commission of India about 10 million new youth are added every year to India’s unemployment population seeking employment.

There are hardly any jobs in Central/State governments.The large corporate has been having employment less growth over last since more than a decade.

So, only hope to absorb 10 million people that enter work force per annum lies with Micro,Small and Medium Enterprisies(MSME).

It  is therefore,imperative that MSME sector is promoted and supported to be able to be job creator for the country.Apart from being job creators for the country,MSME sector also ensures equitable and inclusive growth in the country.

As per MSME Minstry organised All India Census of MSME,2009, there are total of 26100797 MSME units in India, out of which only 1552491 ie 5.95% are registered units and 24548306 units are un-registered ie 94.05%.

These MSME units give employment to about 60 million workforce (45% of total workforce in India)  with 9.5 million in registered and 50.3 million in unregistred units.Out of registred units 28% are in manufacturing and 72% are in service sector.

The survey also came up with the findings that the major concerns of MSME entrepreneurs remain “lack of demand ” and “lack of working capital”.

Govt of India as well as state governments need to focus on strengthening of MSME sector before it’s too late.There are many schemes for development and promotion of MSME’s but due to lack of awareness, large number of MSME untis are unable to take benefits from the Govt.

Few things government need to focus upon are as under:

1-Make it easy for a unit to register  under MSME Act.Every state should make registraion of MSME possible through online registration.This will encourage more and more unregistered units to register and thus take advantage of Govt schemes which presently is available only to registered units.

2-Irresepective of various committees having recommeded “Easy flow of credit and availablity of credit at affordable price”  to MSME sector, it still remains a distant dream for large number of them.Only about 5% of MSME units are able to get funding from financial institutions.RBI has few guidelines but Banks shy away from obeying such guidelines.RBI should make some of its guidelines for MSME sector as “Mandatory” to bring some visible change.

3-MSME BRAND DEVELOPMENT FUND should be initiated to help create demand for thier products and services.

4-Media should be involved to attract youth towards entrepreneurship and self-employment.Youth needs to be job creator instead of job seeker.