Legal Forms of

Entrepreneurial Organizations
Dr. Sesha Talpa Sai
 Topic 1: Forms of Business
Organization
Essential Question:
How are businesses formed and how
do they grow?
 Types
 Sole Proprietorship
 Partnership
 Limited Liability Partnership
 Private Limited Companies
 Public Limited Companies
 One-Person Companies
 Section 8 Company
 Joint-Venture Company
 Non-Government Organization (NGO)
 Sole Proprietorship

A business owned and managed by one

individual; the business and the owner
are one and the same in the eyes of
the law
 Sole Proprietorship

Advantages
 Easy to start up

 Ease of management

 Owner keeps the profits

 Owner does not have to

pay separate business
income tax
 Psychological satisfaction

 Easy to discontinue
 Sole Proprietorship
Disadvantages
 Unlimited liability

 Limited access to raising

financial capital
 Small size-may have limited
inventory
 Limited managerial
experience
 Difficulty of attracting
qualified employees
 Limited life
 Activity

 Collect latest data

 Create a list of qualities that you think are
most important in forming a successful
business partnership and why
 Be prepared to discuss your list in class
 Partnership
An association of
two or more
people who co-
own a business
for the purpose of
making a profit

A partnership agreement or the Uniform Partnership Act

 Partnership
Advantages
 Ease of start up

 Ease of management

 Lack of special taxes on

partnership’s income
 Larger pool of capital

 Ability to attract limited

partners
 More efficient operations
that come from larger size
 Partnership
Disadvantages

 Unlimited liability
of at least one
partner
 Limited life
 Lack of continuity
 Potential for
personality and
authority conflicts
 Special Partnerships
 Limited partnership-one or more partners are not
active in the running of the business, and whose
liability for the partnership’s debt is restricted to
the amount invested in the business
 General partnership- all partners are jointly
responsible for management and debts(most
common form)
 Articles of Partnership: contract between partners
spelling out the rules of partnership.
Dividing profit
Dividing responsibility
Admitting new partners
Buying out partners
Limited Liability Company (LLC)

 Definition: A hybrid business entity

combining features of corporations and
partnerships/sole proprietorships.
 Advantages: Limited liability for owners,
flexible management structure, pass-
through taxation.
 Disadvantages: More complex than sole
proprietorship/partnership, certain
restrictions on ownership.
 Private Limited Company
 Definition: A privately held business entity
with limited liability for its shareholders.
 Advantages: Limited liability, separate legal
entity, access to capital through private
investment, perpetual existence.
 Disadvantages: More regulatory requirements
than sole proprietorship/partnership,
restrictions on transferability of shares,
increased administrative burden.
 Public Limited Company
 Definition: A company that offers shares to the public
and has limited liability.
 Advantages: Limited liability, access to capital through
public offering of shares, liquidity for shareholders
through stock exchange trading.
 Disadvantages: More regulatory requirements than
private limited companies, including mandatory
disclosures and shareholder reporting, risk of takeover
due to public listing, potential for increased scrutiny and
public pressure.
 Single Person Company

 Single Person Company (SPC) is a

relatively new concept in many
jurisdictions, including India.
 It is a type of private company which can
be formed with just one director and one
shareholder, unlike a traditional private
limited company which requires at least
two directors and two shareholders.
 Section 8 Company
 A Section 8 Company, as per the Companies Act, 2013 (previously
Section 25 Company under the Companies Act, 1956), is a legal
entity primarily formed for promoting charitable activities, social
welfare, arts, science, research, education, sports, and other non-
profit objectives.

 Non-Profit Nature:
 Limited Liability:
 No Minimum Capital Requirement:
 License Requirement:
 Prohibited Distribution of Profits:
 Compliance Requirements:
 Tax Benefits:
 Joint venture company

 Joint ventures are typically formed for a

specific purpose or project, such as
entering new markets, developing new
products, or pursuing large-scale
infrastructure projects.
 Once the objective is achieved or the
project is completed, the joint venture
may be dissolved or renegotiated.
Non-Governmental Organization (NGO)

 An NGO, or Non-Governmental Organization, is a non-profit,

voluntary organization that operates independently of government
control.
 NGOs are typically formed to address social, environmental,
humanitarian, or developmental issues and work towards the
betterment of society.
 They can engage in various activities such as advocacy, service
delivery, research, and community development.
 NGOs rely on donations, grants, and volunteer efforts to carry out
their missions and are often involved in areas such as education,
healthcare, environmental conservation, human rights, and poverty
alleviation.
 Corporations
A separate legal entity apart from its
owners which receives the right to
exist from the state in which in which
it is incorporated
 Domestic
 Foreign
 Alien
 Publicly held
 Closely held
Corporations- 20% of Business
74%-profits
 Corporations
Certificate of Incorporation
 Name
 Statement of purpose
 Time horizon
 Names and addresses of incorporators
 Place of business
 Capital stock authorization’
 Capital required at time of incorporation
 Provisions for preemptive rights
 Restrictions on transferring shares
 Names and addresses of officers
 By-laws
Corporate Structure
 Stock
Common stock – (owners are voters) gives a voice in
how the corporation is run and a share in variable
dividends – high dividends if profits are high. The Board
of Directors may wish to withhold all dividends if the
money is needed for plant expansion or payment on
debts. Because they can vote, they determine how a
corporation is managed. They get one vote for every
share they own.
In a good year, they will receive a higher dividend than
preferred stockholders. (Preferred stock dividends are
fixed, common stock is not, so they are taking more risk.)
 Stock (cont)
 Preferred Stock – (non-voters) guaranteed
dividends that are paid from profits before
the company pays any dividends on
common stock. If the company is unable to
pay this fixed dividend in full, it makes up
the difference when the company’s profits
increase. They are like a silent partner
because they can not vote and have no say
in how the business is run.
 Corporations
Advantages
 Ease of raising financial
capital
 Limited liability for its
owners
 Board of directors can hire
professional managers to run
the firm
 Unlimited life
 Ease of transferring
ownership of the corporation
 Corporations
Disadvantages
 Double taxation of corporate
profits
 Difficulty and expense of
getting a charter
 Shareholders (owners)
have little voice in how the
business is run
 Subject to more government
regulations than others forms
of business
 Comparison
Aspect Sole Partnership Limited Private Public Corporation
Proprietorship Liability Limited Limited
Company Company Company
(LLC)

Liability Unlimited Unlimited Limited Limited Limited Limited

personal liability personal liability for liability for liability for liability for
liability (for owners shareholders shareholders shareholders
general
partners)

Taxation Personal income Personal Pass- Personal Corporate Double

tax income tax through income tax tax taxation (C-
taxation Corp)
Ownershi Owned and Owned and Owned by Owned by Owned by Owned by
p operated by one operated by members, shareholders, shareholders shareholders,
Structure person two or more managed by managed by , managed managed by
individuals members or directors by directors directors
managers
 Comparison
Aspect Sole Partnersh Limited Private Public Corporation
Proprietors ip Liability Limited Limited
hip Company Company Company
(LLC)
Access to Limited Access to Access to Access to Access to Access to
Capital access to capital capital capital capital through capital
capital through through through public offering through sale
contributio private private of shares of stock
ns and investment investment
loans from
partners
Complexity Simple to set Moderate Moderate Moderate Moderate to Complex to
up and complexity complexity complexity high complexity set up and
operate operate
Regulatory Minimal Moderate Compliance Compliance Compliance Compliance
Requireme regulatory regulatory with state with state with state and with state and
nts requirements requiremen regulations regulations federal federal
ts regulations regulations
Transferabil Not Depends May be May be Shares can be Shares can be
ity of applicable on restricted restricted freely bought freely bought
Ownership partnership and sold and sold
agreement
Comparison between a Corporation, Section 8
and PLC
Public Limited
Aspect Corporation Section 8 Company Company
Promoting charitable,
Primarily profit social, or non-profit Profit generation,
Purpose generation objectives business activities
Ownership
Structure Owned by shareholders Owned by members Owned by shareholders
Subject to extensive
Subject to corporate Subject to regulatory regulatory
Regulation and governance and tax requirements for non- requirements for public
Compliance laws profit organizations listing
Distribution of Profits distributed to No distribution of Profits distributed to
Profits shareholders profits to members shareholders
Relies on donations,
grants, and Raises capital through
Can raise capital contributions for public offering of
Capital Formation through stock issuance funding shares
Oversight by members;
board of directors Board of directors
Management Board of directors appointed as per appointed by
Structure elected by shareholders regulations shareholders
 508 points
10-19-87
24% drop
in one day

On this day, Sam Walton,

the richest man in the world,
had a paper loss of $1.5 billion.
 Franchises

 Franchising is a form of business organization in

which a firm that already has a successful product
or service (franchisor) licenses its trademark and
method of doing business to another business or
individual (franchisee) in exchange for a franchise
fee and an ongoing royalty payment.
 Some franchisors are established firms (like
McDonald’s) while others are first-time enterprises
being launched by entrepreneurs.
Franchisor- actual owner of the business that
lets other investors rent or lease its name,
business profile, and way of doing business
Franchisee- investor who rents or leases the
business model from the franchisor and then
hope to recoup his/her investments by selling
the franchisor’s goods or service
Advantages and Disadvantages of
Buying a Franchising
Advantages
•A proven product or service
• within an established market.
• An established trademark or
business system.
• Franchisor’s training, technical support, and
managerial expertise.
• An established marketing
network.
• Availability of financing (varies).
• Potential for business growth.
Disadvantages
•Cost of the franchise.
• Restrictions on creativity.
• Duration and nature of commitment.
• Risk of fraud, misunderstandings, or
of franchisor commitment.
• Poor performance on the part of other
franchisees.
• Potential for failure.
 Stop and Think
 If you started your own business what
would it be?
 What are some of the 4 Factors of
production you would need.
2 examples for each
 Questions
1. Name at least 3 advantages and
disadvantages of a sole proprietorships,
partnership, corporation, and Franchise.

2. Name and describe the two types of

partnerships

3. Name and describe the two types of

stock.
 Topic 2: Understanding Startup Financing
and Growth Strategies

 Debt vs. Equity Financing

 Debt Financing: Borrowing money that
must be repaid over time with interest.
 Examples: Bank loans, lines of credit.
 Equity Financing: Raising funds by selling
shares of ownership in the company.
 Examples: Venture capital, angel investors.
 Advantages and disadvantages of each
option.
 Angel Investors and Venture Capitalists

 Angel Investors: Individuals who provide capital to

startups in exchange for equity.
 Criteria for investment: High growth potential, strong
team, unique value proposition.
 Venture Capitalists: Professional investors who provide
capital to startups in exchange for equity.
 Investment process: Due diligence, term sheet
negotiation, investment rounds.
 Role in funding early-stage startups.
 Startup Growth Strategies

 Product Development: Iterative

development, MVP approach.
 Market Expansion: Targeting new
customer segments, geographic
expansion.
 Customer Acquisition: Digital marketing,
growth hacking, partnerships.
 Scaling Operations: Process optimization,
automation, hiring.
 New Venture Finance

 Financial Planning: Budgeting, forecasting,

financial modeling.
 Managing Cash Flow: Monitoring burn
rate, optimizing working capital.
 Sources of Financing: Bootstrapping,
crowdfunding, grants, accelerators.
 Case Studies

 Airbnb: Initial seed funding from Y

Combinator, followed by multiple funding
rounds from VCs.
 Uber: Raised significant capital from angel
investors and VCs to fuel rapid expansion.
 Dropbox: Leveraged a combination of
debt and equity financing to scale
operations globally.
 Growth through
Reinvestments
 Business revenue can be used for
 Investment in factories
 Machinery
 Technologies
 Before reinvestments:
 Must estimate its cash flow.
 First records its total sales and then subtracts
all expenses, taxes, and depreciation = net
income
 Net income + depreciation = cash flow (or the
bottom line) real measure of business profit.
 Decide to reinvest part of cash flow or
additional sales and more profits
Figure 3.4
 Growth Through Mergers
(cont)

 Horizontal mergers: joining of firms that

make the same product (Nextel and Sprint)

 Vertical Merger: joining of firms involved in

different stages of manufacturing or
marketing
 Growth Through Mergers
 Firms merge, one gives up it separate
legal identity
 Company may merge with another to
 Grow faster
 Become more efficient (synergy)
 Economies of scale (larger size)
 Acquire or deliver a better product
(diversification)
 Eliminate a rival
 Change or lose its corporate identify
 Growth Through Mergers
(cont)
• Conglomerate: composed of
four or more businesses
• Marketing unrelated
products
• None are responsible for a
majority of sales
• Multinational: corporation with
manufacturing and service
operations in several countries
-Subject to each nation’s
business regulations
 Entrepreneurial Startup:
Incubators
 Incubator: Program designed to support
successful development of startups by providing
business resources.
 business, marketing, and networking advice

 computing resources (computers, net access,

servers)
 financial advisors

 management teams

 access to loans and banks

 access to angel investors and/or venture

capitalists
 legal advisors (such as for intellectual property
rights)
 Venture Capitalists

 venture capital ("VC"): Financial

resources given to early-stage companies.
 given to startups by VC firms (groups)

 VC firm gets % of profits or equity (stock)

 different from bank loans; does not need to be

paid back
 Venture Capitalists (cont)
 Stages of VC financing:
 seed funding: initial minimal funds; often given
by angels
 start-up: early funds from VC firm for
marketing/dev
 growth ("series A"): large investment ($1-2M) for
preferred stock
 second round: company is successful, but not
profiting
 expansion ("mezzanine"): $ given to a newly
profitable company
 exit/bridge: VC firm sells stock once company
matures
 Angel Investors
 Angel investor: An affluent individual who
provides initial capital for a business start-up.
 amount is generally smallish (~$10-30k)

 gets company off the ground to prototype stage

 often decided quickly and on a fairly informal

proposal
 angels are accredited investors to comply with
SEC regulations
 in US, many angels (≥40%) are in Silicon Valley

 other sources: NYC, Seattle, Austin, Boston, NC

Research Triangle
 Angel Investors (cont)

 angels are compensated with:

 ownership equity (a percentage of
ownership of the company)
 implies company's value (e.g. $10k for
5% stock => $200k value)
 convertible debt (options to buy stock in
the company later)
 Crowdfunding?
Crowdfunding is a method for obtaining
project funding, by soliciting contributions
from a large group of people, and especially
from an online community.
 Why Does it Work?
Small donations from many people can
raise a lot of money.

By tapping into your online social

connections, you can reach a much
broader audience in less time than
traditional fundraising processes.
 Be a Thinker
 Give 2 examples of each type of
merger
 Vertical

 Horizontal

 Conglomerate

 Whywould companies ever want to

merge????
Questions
1. What does cash flow represent?
2. What can business owners do with cash flow to further
help their business?
3. What can happen when cash flows are reinvested in the
business?
4. What happens when two firms merge?
5. What are five possible reasons for mergers?
6. What is the difference between a horizontal merger and a
vertical merger?
7. What is the main reason for a conglomerate to want
diversification?
8. What are advantages and disadvantages of
multinationals?
 Nonprofit Organizations

Essential Question:
How does a market economy support
nonprofit organizations?
 Community and Civic
Organizations
 Nonprofit Organization: business to
promote its members’ collective
interest, not seek financial gain (Bill
Gates foundations)
 Incorporate to take advantage of a
corporation’s unlimited life and limited
liability
 If money remains after expenses are
paid, the B.O.D. may apply to other
projects
 Cooperatives
 Voluntary association of people who carry on an
economic activity that benefits its members
 Consumer Cooperatives: buy food and other
necessities in bulk
 Members donate time to the co-op

 Members pay lower prices for goods

 Service Co-ops: credit unions, offer services to its

members at lower rates
 Producer Co-ops: help members, farmers,
promote or sell their products
 Labor, Professional, and
Business Organizations
 Labor unions: represent workers’ interest
and negotiate with management through
collective bargaining
 Professional association: set standards
for those in the profession and influence
government policies on issues concern
members’ interest (NCSS)
 Business Associations: industries or trade
associations that represent specific
businesses (BBB)
 Startup terminologies:

Define the key terms of startup shown

below
 Startup terminologies:
 Bootstrapping:
 MVP:
 Pitch Deck:
 Burn Rate:
 Runway:
 Pivot:
 Unicorn:
 Exit Strategy:
 Startup terminologies:
 Angel Investor:
 Venture Capital (VC):
 Accelerator:
 Scale-Up:
 Incubator
 B2B/B2C:
 Exit Multiple:
 Startup terminologies:
 Bootstrapping: Starting and growing a company with little or no
external capital or investment, relying on personal savings or
revenue generated by the business.
 MVP (Minimum Viable Product): The simplest version of a
product that allows a startup to collect the maximum amount of
validated learning about customers with the least effort.
 Pitch Deck: A presentation used by startup founders to pitch their
business idea or investment opportunity to potential investors,
typically consisting of slides that highlight the problem, solution,
market, team, and financial projections.
 Burn Rate: The rate at which a startup is spending its capital or
cash reserves to finance its operations before generating positive
cash flow from operations.
 Runway: The amount of time a startup has before it runs out of
money, based on its current burn rate and available cash reserves.
 Pivot: A significant change in a startup's business model, product,
or strategy in response to market feedback or changing conditions.
 Unicorn: A startup company with a valuation of over $1 billion,
typically achieved through rapid growth and substantial funding
rounds.
 Exit Strategy: A plan for how founders and investors will exit or
cash out of a startup, often through an acquisition, IPO (Initial
Public Offering), or other liquidity event.
 Angel Investor: A high-net-worth individual who provides capital
to early-stage startups in exchange for equity ownership, often
offering mentorship and guidance to founders.
 Venture Capital (VC): Professional investors who provide capital to
startups in exchange for equity ownership, typically investing larger sums of
money than angel investors and seeking high returns through successful
exits.
 Accelerator: A program that provides mentorship, resources, and funding
to early-stage startups in exchange for equity, typically lasting for a fixed
period (e.g., three to six months).
 Scale-Up: The phase of growth in which a startup expands its operations,
customer base, and revenue streams rapidly, often after achieving product-
market fit.
 Incubator: A program or organization that helps startups in the early
stages of development by providing resources, mentorship, and support
services, typically without taking equity.
 B2B/B2C: Abbreviations for business-to-business (B2B) and business-to-
consumer (B2C), referring to the target market of a startup's products or
services.
 Exit Multiple: A measure used to evaluate the potential return on
investment for venture capitalists, calculated as the ratio of exit valuation to
initial investment.
Initial Public Offering (IPO)
 Initial Public Offering (IPO)
Definition: A company’s first equity issue made available to the public.
• This issue occurs when a privately held company decides to go public
• Also called an “unseasoned new issue.”
 Why do companies go Public?
• New capital
• Almost all companies go public primarily because they need money to
expand the business
• Future capital
• Once public, firms have greater and easier access to capital in the
future
• Mergers and acquisitions
• Its easier for other companies to notice and evaluate a public firm for
potential synergies
• IPOs are often used to finance acquisitions
 Disadvantages of IPO
• Expensive
• A typical firm may spend about 15-25% of the money raised on direct
expenses
• Reporting responsibilities
• Public companies must continuously file reports with the SEC and the
stock exchange they list on
• Loss of control
• Ownership is transferred to outsiders who can take control and even
fire the entrepreneur
 Is it a good time to do an IPO?
• There are clear “windows of opportunity” that open and
close for IPO issuers
• Determinants of suitability:
• The general stock market condition
• The industry market condition
• The frequency and size of all IPO’s in the financial cycle.
 Outline of IPO Process
1. Select an underwriter
2. Register IPO with the Securities and Exchange
Commission(SEC)
3. Print prospectus
4. Present roadshow
5. Price the securities
6. Sell the securities.
1. Selct an under writer
• An underwriter is an investment firm that acts as an intermediary
between a company selling securities and the investing public.
• The underwriter is the principal player in the IPO.
• Typically, the underwriter buys the securities for less than the
offering price and accepts the risk of not being able to sell them.
 Types of underwriting
• Firm commitment underwriting:
• The underwriter buys the entire issue, assuming full financial
responsibility for any unsold shares.
• Most prevalent type of underwriting in the U. S.
• Best efforts underwriting:
• The underwriter sells as much of the issue as possible, but can return
any unsold shares to the issuer without financial responsibility.
 Leading IPO underwriters
1. Goldman Sachs.
2. Morgan Stanley.
3. Merrill Lynch.
 2.Register IPO with SEC
• The firm must prepare a registration statement and file it with the
Security and Exchange Commission(SEC)
• The registration statement discloses all material information concerning
the corporation making a public offering.
 3.Print Prospectus
• The prospectus is a legal document describing details of the issuing
corporation and the proposed offering to potential investors
• Contains much of the information in the registration statement
• The preliminary prospectus is sometimes called a “red herring”
 4.Present Road-Show
• The road-show is presented to institutional investors around
the country
• The road-show allows firms to raise interest in the company
and thus the price
• Allows the firm and its underwriters to gather information from
potential purchasers
 5.Price the Securities
• How much to charge for giving away a part of the firm is very
important to the issuers
• The securities are priced based on the value of the company
and expected demand for the securities
• Examples of valuation methods:
• Net Present Value
• Earnings/Price ratios
 6. Sell the Securities

• A full-fledged selling effort gets under way on the effective

date of the registration statement
• A final prospectus must accompany the delivery of
securities
SEBI: Securities and Exchange Board of India

RoC-Register of Companies
 Governmental initiatives to encourage startups

•Startup Ecosystem facilitated through various government departments & programs

•4000+ Startups have benefitted in the last year through various programs of the
Central Govt.

•960 crore of funding has been enabled to Startups through various schemes

•828 Cr sanctioned funds for infrastructure

With the objective to build a strong eco-system for nurturing innovation and Startups
in the country the Government launched a Startup India Action Plan that offers the
following support to recognized supports through:
Governmental initiatives to encourage startups
 Governmental initiatives to encourage startups
Tax Exemptions
•IT exemptions for 3 years
•Capital gains exemption to people investing such capital gains in the Govt. recognized
Fund of Funds
•Tax exemption on investments above Fair Market Value
Legal Support in Patent Filing
•Fast track of Startup Patent applications
•Panel of facilitators to assist in filing applications, govt. bears facilitation
costs:423 facilitators for patent & design,596 for trademark applications
•80% rebate in filing of patents:377 startups benefitted
Easy Compliance: Self-certification and compliance of 9 environments and labour laws
through Startup India web portal/mobile app. Online self-certification for Labour.
Laws enabled through ‘Shram Suvidha’ portal
Relaxed Norms for Public Procurement : By easing the requirement of prior experience
and prior turnover in tenders for application by startups
Although various government schemes have been introduced to support startups in India but
following are the top 10 most popular schemes. They have gained significant recognition
within the entrepreneurial landscape.
Startup India Initiative

In 2016, the Indian government launched the ‘Startup India Initiative’ with the aim of
strengthening the startup ecosystem of the country. This program extends a range of
incentives and advantages to eligible startups.
Startup India Seed Fund Scheme

Seed funding is the second stage of startup funding in which it is ready with
the prototype and needs to test the product or service in the market.
At this stage, startups require huge funding, and the inadequacy of capital
might result in the failure of the startup.
Credit Guarantee Scheme for Startups

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a
collaborative effort of the Ministry of Micro, Small & Medium Enterprises (MSME), the
Government of India, and the Small Industries Development Bank of India (SIDBI) to
mobilize domestic capital for Indian startups.
Atal Innovation Mission (AIM)

(AIM) is set up under the guidance of NITI Aayog. It is a premier effort taken by the
Government of India to foster a culture of innovation and entrepreneurship within the nation.
It aims to innovate, create, and design market-ready products with the help of cutting-edge
technologies in 17 pre-defined focus areas.
Atal Incubation Centers
AIM has established Atal Incubation Centres (AICs) across universities, institutions, and
business entities as part of its objective to cultivate a culture of innovation and
entrepreneurship in India. These AICs provide vital support to incubated businesses such
as cutting-edge facilities, resource access, mentorship, finance, collaborations,
networking opportunities, co-working spaces, and laboratory facilities.

ARISE ANIC Challenges

AIM has launched 15 ARISE-ANIC challenges in collaboration with various partner
Ministries, including the Ministry of Housing and Urban Affairs, the Ministry of Health
and Family Welfare, the ISRO, etc. to systematically foster innovation in the MSME and
startup sectors.
Software Technology Parks of India (STPI)

(STPI) operates as a prominent scientific and technological organization under the Ministry
of Electronics and Information Technology (MeitY).
It’s dedicated to promoting the IT industry, fostering innovation, driving R&D, nurturing
startups, and stimulating product development in the realm of emerging technologies like
IoT, Blockchain, Artificial Intelligence (AI), Machine Learning (ML), Computer Vision, and
Robotics, among others.
With a collaborative approach, STPI is establishing Centers of Excellence (CoEs) and
technology incubators across India to establish the nation’s leadership in these technology
domains. Presently, STPI has launched 22 Centers of Entrepreneurship (CoEs).
Pradhan Mantri Mudra Yojana (PMMY)

The Pradhan Mantri Mudra Yojana (PMMY) was launched on April 8, 2015, with the goal of
granting loans up to Rs. 10 lakhs to non-corporate, non-farming small and micro companies
functioning in areas like manufacturing, processing, trading, or the service industry.
These loans, known as MUDRA loans under PMMY, are available to any Indian citizen who
has a viable business plan. Eligible persons can approach banks, Micro Finance Institutions
(MFIs), or NBFCs for loan disbursement while adhering to the lending agency’s usual terms
and conditions and the RBI’s lending rates.
Ebiz Portal

EBIZ portal, developed by Infosys, is India’s first online Government-to-

Business (G2B) platform. It improves communication and collaboration
between the government and business. Ebiz offers 29 services in five
Indian states (New Delhi, Tamil Nadu, Andhra Pradesh, Haryana, and
Maharashtra) and there are plans for further expansion as well.
Dairy Processing and Infrastructure Development Fund (DIDF)

In 2017, the Government of India, in partnership with the National Bank for Agriculture and
Rural Development (NABARD) established the Dairy Processing & Infrastructure Development
Fund (DIDF) with a total corpus of Rs. 8,004 crores.
This scheme offers subsidized loans at a rate of 6.5% to capital-stressed milk cooperatives.
The primary aim is to facilitate the replacement of outdated chilling and processing facilities,
as well as the establishment of value-added product plants.
 Multiplier Grants Scheme (MGS)

The Multiplier Grants Scheme (MGS) developed by the Department of Electronics and Information
Technology (DeitY) is a scheme to encourage collaborative research and development (R&D)
partnerships between industry and academic R&D institutions.
According to the scheme, if a particular industry supports R&D for the creation of commercially viable
products, the government will contribute twice the amount contributed by the industry. Therefore, the
industry and institutions should submit combined proposals for financial assistance under the
initiative.
For individual industries, the maximum government grant per project is capped at Rs. 2.0 Crores for
projects that have a duration of less than 2 years. In the case of industry consortiums, these limits are
increased to Rs. 4.0 Crores per project with a duration of up to 3 years.
ASPIRE – A Scheme for the Promotion of Innovation, Rural Industries and Entrepreneurship

ASPIRE, which stands for ‘A Scheme for Promotion of Innovation, Rural Industries, and
Entrepreneurship‘ is a scheme that operates under the Ministry of Micro, Small and
Medium Enterprises.
The primary focus of the scheme is to establish a network of technology and incubation
centers, promoting entrepreneurship and fostering innovative startups within the
agriculture industry.
Protection of Intellectual Property.
 Protection of Intellectual Property.

Intellectual property is any product or work that resulted from original thought.
Examples are manuscripts, designs, artwork, your website content, blog posts and
articles, inventions, business names, product names, online programs or courses, or
other original confidential information that benefits your business.
If you come up with a great idea, design or product, you want to make sure that no
one else has the right to use it without your permission.
The good news is that intellectual property is protected by various federal and state
laws.
Steps to Safeguarding Your Intellectual Property
You can protect your business’s important content, products and ideas by following
some essential steps. Following these steps should lower your chances of dealing
with intellectual property theft, and will give you protection if someone does steal
your IP.
 Protection of Intellectual Property.
1. Keep Business Ideas and Trade Secrets a Secret
Until you have adequately secured your intellectual property, avoiding talking about it
with others, unless they have signed a nondisclosure agreement. You must be careful who
you trust with this key information, and don’t promote your idea in any sort of public
forum, such as Kickstarter. Especially if you’re working with partners, you should speak
with an attorney and sign tailored non-disclosure agreements.
2. Document Your Concepts and Original Content in Detail
Have detailed drawings, descriptions, plans and records that can prove you came up with
and have been working on your intellectual property. This type of proof will help in case
someone challenges you as the rightful owner of your trademarks and copyrights. Make
sure you have added dates wherever possible because first date of use is critical in IP
matters.
3. Apply for a Trademark
As soon as you have a business name and logo for your idea, you should register those
trademarks right away.
 Protection of Intellectual Property.

4. Register All Your IP, Trade Secrets, and Creative Works

Along with your trademarks, work with your IP attorney to to register the rest of
your assets. Write down all the details of your intellectual property so you can
register and distinguish it from potentially existing similar ideas. It’s a good idea to
consider doing an IP audit with your attorney so you have a formal IP portfolio
documented.
5. Make the Investment
Remember, before you have officially secured your intellectual property, anyone
can take your idea and create it for themselves, but your odds of beating content
and idea thieves are so much higher if your intellectual property is protected.