International Journal of Research in Management & ISSN : 2348-6503 (Online) Vol. 4 Issue 2 Apr. - Jun. 2017 ISSN : 2348-893X (Print) Business Studies (IJRMBS 2017) Entrepreneurship Development and the Prospects of Startups in Kerala’s Industrial Economy: An Overview IP. Noufal, IIDr. K.V. Ramachandran IAssistant Professor, Dept. of Economics, Sree Neelakanta Government Sanskrit College, Pattambi, Kerala, India. IIAssociate Professor, Dept. of Economics, University of Calicut Dr. John Matthai Centre, Trissur, Kerala, India. Abstract Skills, knowledge, and entrepreneurship are the driving forces of economic growth and social development for any country. One of the greatest challenge before the Government is to convert the State into a promising ‘entrepreneurial society’ so as to inculcate the positive aspects of industrial development, economic growth, and societal welfare. The State is making rapid strides on its manufacturing front and the micro, small, and medium industrial enterprises operating in the State have acquired global competence in quality and in the ability to deliver its best. Given the realities of the rapidly changing economic landscape, entrepreneurship opportunities have emerged as an important source of meeting the aspirations of the youth. Accelerating entrepreneurship, especially based on novelties and innovations is crucial for the large scale employment generation in the domestic economy of Kerala. It is in the context, the paper attempts to evaluate the prospects of entrepreneurship development and business startups in the regional industrial economy of Kerala. Keywords Kerala Industry, Entrepreneurship Development, Start-up Mission, WE Mission Kerala, Technology Innovation Zones. I. Introduction citizens of the country.1 The ‘Young Entrepreneurship Summit Entrepreneurs are the essence of economic growth – they provide 2014’ organised by the Government of Kerala had thrown up a source of income and employment for themselves, create an array of radical ideas with the potential to change the world employment for others, produce new and innovative products and signaled the transformation of the new generation from ‘job or services, and drive greater upstream and downstream value seekers’ to ‘job creators.’ chain activities. The Government of Kerala encourages and supports all the pillars that are essential for an ideal entrepreneurial 1. Entrepreneurship Development – Basic Objectives environment in the State such as: (i) Entrepreneurial culture, (ii) The growth and prosperity of all economies remain highly Supportive regulatory and tax regimes, (iii) Educational systems dependent on its entrepreneurial activity. The core objective of that support entrepreneurial mindsets, (iv) Better access to funding, the entrepreneurship framework is to coordinate and strengthen and (v) A coordinated approach that links the public, private, the factors essential for the growth of entrepreneurship across voluntary sectors. A business-friendly environment with easy the country. In Kerala, many government and non-government entry and exit procedures that exists in Kerala encourages the organisations are playing the enabling roles across the various entrepreneurial activity of the State to a large extent. The Industrial crucial supporting elements of its vibrant entrepreneurship. The and Commercial Policy of the Government attempts to transform major objectives of the framework as stipulated by the National the State into a vibrant entrepreneurial society with innovative Policy for Skill Development and Entrepreneurship, 2015 is listed strategies and practices needed for its inclusive, environment- below: friendly, and sustainable economic growth. 1. Promote entrepreneurship culture and make it aspirational. 2. Encourage entrepreneurship as a viable career option through II. Imperative of Entrepreneurship Development in advocacy. Kerala 3. Enhance support for potential entrepreneurs through Entrepreneurship, based on innovations has immense growth mentorship and networks. potential for the regional economy of Kerala. The Government 4. Integrate entrepreneurship education in the formal education envisages a paradigm shift from being an entrepreneur supply side to system. an entrepreneur demand side. As the economy moves progressively 5. Foster innovation-driven and social entrepreneurship to towards becoming a ‘global knowledge economy’, it addresses address the needs of the population at the bottom of the the rising aspirations of its youth. It encourages ‘entrepreneurship pyramid. and innovation’ among the youngsters through numerous flagship 6. Ensure ease of doing business by reducing entry and exit programmes in line with the National Policy for Skill Development barriers. and Entrepreneurship, 2015 initiated by the Government of India. 7. Facilitate access to finance through credit and market Its vision is to create an ecosystem of empowerment by skilling on linkages. large scale at speed with high standards and to promote a culture 8. Promote entrepreneurship amongst women. of innovation based entrepreneurship which can generate wealth 9. Broaden the base of entrepreneurial supply by meeting and employment so as to ensure sustainable livelihoods for all the specific needs of both socially and geographically IGovernment of India (2015). National Policy for Skill Development and Entrepreneurship, 2015. New Delhi: Ministry of Skill Development and Entrepreneurship. www.ijrmbs.com 13 © All Rights Reserved, IJRMBS 2014 International Journal of Research in Management & ISSN : 2348-6503 (Online) Business Studies (IJRMBS 2017) Vol. 4 Issue 2 Apr. - Jun. 2017 ISSN : 2348-893X (Print) disadvantaged sections of the society including SCs, STs, year 2015, the T-TBI was rebranded as ‘Kerala Startup Mission’ as OBCs, minorities, and other differently abled persons. the nodal agency for implementing the Technology Startup Policy of the Government with the avowed objective of identifying the 2. The Mission and Strategy of Entrepreneurship entrepreneurial talents among youths and students to promote an Development entrepreneurial culture in the State. Since its launching, it has The mission is to catalyse an ecosystem wherein productive incubated more than 200 of India’s most promising startups. and innovative entrepreneurship germinates, sustains, and Kerala Startup Mission is the pioneer champion in the industrial grows leading to the creation of a more vibrant and dynamic scenario of Kerala with a vision to support and nurture technology entrepreneurial economy. In order to reap its ‘demographic startups in the State. It is designed to provide a springboard to dividend’, Kerala needs to equip its workforce with employable budding entrepreneurs who wish to launch themselves into the skills and knowledge so that they can contribute substantively to world of technology-based business and career. The entrepreneurs’ its faster economic growth. To unlock its entrepreneurial potential, bright and innovative ideas to develop a product or service using the entrepreneurship strategy of the State involves certain explicit advanced technology solutions can find a fertile ground in the elements as provided by the National Policy for Skill Development Kerala Startup Mission.2 The highly innovative and productive and Entrepreneurship, 2015 such as: environment of the Kerala Startup Mission provides prospective 1. Educate and equip the potential and early stage entrepreneurs the right ambiance to build up technology ventures entrepreneurs. at international standards. The mission encourages student 2. Connect entrepreneurs to peers, mentors, and incubators. entrepreneurship as well and has come up with various schemes 3. Support entrepreneurs through entrepreneurship hubs. for its effective implementation. The vision is to promote true 4. Catalyse a culture shift to encourage entrepreneurship. innovators and entrepreneurial talents and to bring excellence 5. Encourage entrepreneurship among the under-represented through value enhancement services of technology and business groups. incubation so as to make them successful technopreneurs. 6. Promote entrepreneurship amongst women. The Kerala Startup Mission is the implementing body for the 7. Improve access to finance. Kerala Technology Startup Policy, 2014 that supports the startup 8. Improve ease of doing business. system by means of nine components 3 such as: 9. Foster social entrepreneurship and grassroots innovations. 1. Infrastructure Incubators. 2. Infrastructure Accelerators. The Government has successfully implemented various schemes 3. Human Capital Development. for better improving the industrial environment of the State 4. Funding. through the development of exemplary industrial infrastructure, 5. State Support. promoting innovations and entrepreneurship, and providing basic 6. Governance. skill development mechanisms. Entrepreneurship is promoted 7. Public Private Partnership. in low knowledge-intensive sectors such as trade, transport, 8. Scaling Existing and Establishing New Incubators. and tourism as well as high knowledge-intensive sectors such 9. Startup and Scale up Model for moving fast from Ideas to as Information Technology (IT), IT Enabled Services (ITES), IPO. Engineering etc. The prominent institutional support mechanisms The Mission offers explicit support to startup entrepreneurs to for the skill and entrepreneurship development in Kerala includes: implement their innovative ideas from the ideation stage and (i) MSME Development Institute in Trissur, (ii) Kerala Institute