A Start up is a project or an establishment created by a person to obtain, develop and authenticate a realistic business model. A business model is an establishment that captivates a strong business ethics dealing with the social cultural and other aspects.
Most of the business models deals with various business-like self-employment, and business that will encourage the business to grow more powerful than the founders.The start-ups also face the highest level of instability due to the highest failure rates, and unfortunately the failure rate is 94%, where in out of 300 companies only 50 percent will see the next 3 years of operations.
There are variable types of start-ups like the:
Now the million-dollar question arises who will fund these start-ups as most of us in India are not having broad mind to offer financial assistance to the start-ups in India. At this juncture the role of the State Bank of India must be complemented as they have come forward to assist the new generation of entrepreneurs to nurture and establish the start-ups in the current scenarios.
The premier banking institution and one of the nationalised banks of India known as the State Bank of India has created India’s first dedicated branch for start-ups. The major work of this establishment will be to create a new branch for offering financial and credit facilities for the start-ups.
On the 75th anniversary of India’s Independence this establishment will be established and the first branch will come up at Koramangala on August 16, 2022. This is due to the signing of the MoU between the Karnataka Government, establishment Karnataka Digital Economy Mission (KDEM) and the State Bank of India. The slogan is “IF YOU HAVE A VISION, WE MAKE IT A REALITY”.
Under this agreement, the SBI will take the initiative to bring and boost the various start-ups in India. Furthermore, this will be known as the SBI Start Up Hub Branch. The branches will be established in places like Mangaluru, Belagavi, Bengaluru, Mysuru, Dharwad, Huballi and others. Later onwards it will spread to other states of India.
To be honest, Karnataka is becoming the 3rd most industrialised state after Maharashtra and Gujarat. Furthermore, there are more than 16000 start-ups getting started in Karnataka and most of them are facing scarcity of money and guidance.
SBI is offering various banking needs under one roof and they are services like:
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTSME) is one of the majorenterprises established in order to use the funds towards development of the Small and Micro enterprises in India. The CGTMSE is the initiative undertaken by the Government of India under the Atmanirbhar Bharat initiative to encourage the mushrooming of the small and medium enterprises in India on a war footing.
As per the statement given by the Karnataka Digital Economy Mission (KDEM) Chairman B.V. Naidu, “Each of the groups will have unique connection to INR 26 Crores and the funds will come from the respective state governments and rest from the SBI”.
The major concept behind the implementation of this scheme is the finance must not come in the way of growth for any entrepreneurs in India and they must not depend on Investments from rich corporate groups and business houses, as other sources are present to offer the new breed of entrepreneurs a wonderful financial support.
The best part is the SBI branch located at Koramangala consists of a whole new team having lot of experience in Banking, Corporate to build spectacular network among various people.
The government is playing a major role in creating a new industrial revolution in India and the amount is used to promote more Research and Development in various segments like Power, Electronics, Telecommunications, Plastics, Chemicals, Petroleum Products, IT and BT, Railways, Transportation, Logistics, Fisheries, Education, Real Estates, Fast Moving Consumer Goods (FMCG) and others.
The Government is doing various things in order to develop various smart cities in India to make a difference to the life style of the people. The major focus is on offering employment to the people and effectively use the funds in a logical manner. The start-ups in India will definitely be a path breaker in this scenario. The initial plan is to offer INR 2 Crores collateral free financial assistance to the start-ups in India.
There are new schemes introduced in order to offer interest free loans to encourage the technically qualified professionals and entrepreneurs to establish Small and Medium Enterprises in India. This scheme launched by the State Bank of India is known as the SBI Smile Scheme for Start Ups.
The maximum financial assistance offered to various professionals will consist of Doctors, Pharmacists, Engineers and the management graduates. Furthermore, the interest free loan is repayable in 3 years with a freezeperiod of 7 years.
The success of this plan will be the result of a good relationship between the government and the SBI. Furthermore, the way it is executed with various entrepreneurs, businesses and the result shown on the ground zero.
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