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A startup is a newly established business focused on innovation and scalability, typically initiated by entrepreneurs. Startups can be categorized into various types, including small businesses, scalable startups, lifestyle startups, and unicorns, each with distinct characteristics. The Indian government supports startups through initiatives like Startup India, Stand-Up India, and various funding schemes aimed at fostering entrepreneurship and innovation.

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13 views2 pages

1 Class

A startup is a newly established business focused on innovation and scalability, typically initiated by entrepreneurs. Startups can be categorized into various types, including small businesses, scalable startups, lifestyle startups, and unicorns, each with distinct characteristics. The Indian government supports startups through initiatives like Startup India, Stand-Up India, and various funding schemes aimed at fostering entrepreneurship and innovation.

Uploaded by

dwima1583
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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1.

Definition of Startup:
A Startup is a newly established business that is usually small and initiated by one or
more entrepreneurs to develop a unique product or service. Startups focus on
innovation, technology, and scalability with the potential to grow rapidly.

Key Characteristics:

• Innovation: Startups aim to offer innovative solutions or disrupt existing


markets.

• Scalability: They have the potential to grow quickly.

• Risk and Uncertainty: High risk due to uncertain market response.

• Technology-driven: Often rely on modern technologies.

Definition as per Startup India Initiative:

A company is considered a startup if:

• It is not older than 10 years.

• Its turnover does not exceed INR 100 crore in any financial year.

• It is working towards innovation, development, or improvement of


products/processes/services or is a scalable business model with high
employment generation potential.

2. Types of Startups:
Type Description

Small Business Local businesses like grocery stores, salons, or retail shops;
Startups focus on steady income rather than growth.

Scalable Startups with potential for rapid growth; usually technology-


Startups based (e.g., Flipkart, Zomato).

Lifestyle Startups Businesses built around passion and personal interests (e.g.,
travel blogs, photography).

Buyable Startups Created with the aim of being acquired by larger companies
(e.g., small tech startups).

Social Startups Focused on solving social issues like education, healthcare, or


environmental problems.
Offshoot Formed by larger companies as separate divisions to focus on
Startups new products or markets.

Unicorn Startups Valued at over $1 billion (e.g., Byju’s, Paytm, OYO).

3. Government Schemes for Startups in India:


Scheme Objective

Startup India To promote entrepreneurship, innovation, and create a


Initiative (2016) startup-friendly ecosystem. Offers tax benefits, funding, and
easier compliance.

Stand-Up India Supports SC/ST and women entrepreneurs to set up


greenfield enterprises. Provides loans between ₹10 lakh to
₹1 crore.

MUDRA Yojana Provides loans to small and micro businesses under three
categories: Shishu, Kishor, and Tarun (up to ₹10 lakh).

Atal Innovation Encourages innovation and entrepreneurship through Atal


Mission (AIM) Tinkering Labs (ATL) and Atal Incubation Centers (AIC).

Credit Guarantee Offers collateral-free loans to startups with a credit


Fund for Startups guarantee cover up to ₹5 crore.

E-Biz Portal Facilitates business registration and compliance processes


online to promote ease of doing business.

Digital India Supports technology startups and promotes digital


Initiative transformation in various sectors.

Support for Financial assistance to startups for filing patents and


International Patents protecting intellectual property rights (IPRs).

Seed Fund Scheme Provides financial assistance up to ₹50 lakh to early-stage


(2021) startups for proof of concept and market entry.

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