Entrepreneurship is a path which cannot be explored and walked on by all. It has its own set of pros and cons. Most of the people tend to get attracted instantly due to unlimited profit probability but there are people who drop it sooner than a blink of an eye as it has its uncertainties. Everything about Entrepreneurship is unexpected, what happens next you can never estimate. But at the same time from a nation’s point of view creating and giving boost to budding entrepreneur is of prime importance. Because only a venture can create employment opportunities, add to GDP and National Income and can be ascertain as a parameter to judge a nation’s economy .So giving all the required support in policies is very well exercised by governments.
One of the major concerns faced by startup is finance. The need capital while starting their venture and they need to keep pumping cash in throughout whenever the need is felt. Earlier to raise funds for a startup was like climbing a mountain but with changing times entrepreneur and their startup have proved again and again that given the due support they can touch the sky and can be proved as an asset to national economy. Keeping in mind all the scenarios government focused on financial troubles faced by startups and all the banks and financial institution considered this to be a very promising investment. They all included entrepreneur startup loan in the products offering which is a type of loan specialized for budding entrepreneurs.
Since a business has not even started its operation, the criteria to grant loans were unconventional and innovative as compared to loans granted to usual ventures which have to furnish its tax and financial documents. The project proposal, detailed project report, details of promoters and management, core team and expected rate of return were certain factors which are kept in mind while approving projects. This paved the way for more and more ‘wanna be’ entrepreneur who was earlier really hesitant to start something because of no support policies in this regard. In this phase we saw immense growth as far as unconventional start up and new ideas are concerned.
This gave boost to a healthy competition in market. Consumer has more options than ever; they have a lot of choices now. Fair pricing and quality standards have been established by all competitors. A step in direction of entrepreneur loan has brought significant growth to overall economic development and much more is yet to be seen. Keeping in mind the changes in this regards policies and rules should be made to keep boosting the budding entrepreneurs.
By Amit Sharma
who is working with a finance company.