Mr Anand Deshpande
CEO & MD / Persistent
---------------------------------------------
Dear Anand,
In
yesterday's Business Line , read about your efforts to create 25,000 small
entrepreneurs
Congratulations
for taking on , just what India needs right now
Couple
of my own suggestions , along the same line that you are pursuing , are
reproduced below
I
have sent these to quite a few Ministers / Secretaries / ASSOCHAM / FICCI etc -
without , an acknowledgement !
with
regards,
hemen
parekh
Mumbai
/ hcp@RecruitGuru.com / (M) 0 -
98,67,55,08,08
PS
:
You
may like to glance at " L&T
Story "
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Start-Up Eco-Systems / USA vs
INDIA
Whereas
there is a lot to learn from Start Up Eco-System of Silicon Valley , it cannot
be blindly replicated in India
Here
is why :
In
Silicon Valley , a typical start up has its roots in Internet
These
are web sites / mobile apps focusing on,
*
E Commerce
*
Social Media
*
Price Comparison
*
Geo-location
*
Dating
*
Buying - Selling
*
Causes...................etc
In
India , we are talking of getting " Unemployed " to launch "
Start Ups "
Anywhere
between 100 million to 400 million " Unemployed " for whom neither Public Sector nor
Private Sector , is in any position to create jobs
We
want them to become " Self Employed
" - what Shri Narendra Modi described in USA , as our " Personal Sector "
They
are unlikely to launch Web-based businesses , even if their businesses will
require them to have a Smart phone , on which , their customers can reach them
They
aspire to become :
*
Street-side Vendors ( Vegetables / shoes / purses / Fruits / trinkets )
*
Craftsmen ( Plumber / Electrician / Carpenter / Repairer )
*
Dhobi / Barber / Pan Beedi shop-owner / Tailor / Mochi
*
Doodh-wala / Ruddi Paper-wala / Gajra-wala / Delivery Boy
*
Cook / Maid / Courier / Tuition teacher / beautician / Taxi Driver
*
Home-cooked Tiffin Service / Car wash / Gardening
The
contrast ( from Silicon Valley ) is striking !
How
can we help millions of jobless to set up such micro businesses ?
As
USA entrepreneurs advised :
By
Government ( Central / State / Municipal ) getting
out of their way !
How
?
*
No licenses / permits / approvals / registrations
*
No personal Income tax ( a dejure recognition of a defacto situation )
I
hope Policy Makers will think " Out of Box
" and implement ,
Start Up Act - 2015
Anything
less just won't make much difference !
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hemen
parekh
01
Oct 2015
B2BmessageBlaster
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FROM JOB-SEEKERS
TO JOB-CREATORS ?
How
to turn 12 million persons entering our work-force
each year from being job-seekers to becoming job-creators ?
At
the conceptual level , this was
well-answered in BJP poll manifesto as :
" Encourage and empower our youth for Self
Employment - incubating entrepreneurship as well as facilitating credit "
How to translate this policy into specific
actions ?
May be the clue lies in the following incidence
:
After getting a post-graduate degree in
engineering from USA , when I
returned to India in 1959 , my father
took me to meet Shri Manubhai Shah , the then Minister for Industry in Union
Government
My father inquired if Manubhai could give me a
job in government
Manubhai answered :
" Chunibhai , I have no job for your son .
Let him set up a factory and manufacture
fractional horse power motors of which India is currently importing some 3000 per year
We will ,
> Immediately issue to him
, an Industrial License
> Allot him a factory-shed in Rajkot Industrial
Estate
> Give him a loan of Rs 5 lakhs to buy machinery "
56 years later , we are better organized /
equipped to " Institutionalize " this
pioneering thinking
Here is my suggestion :
* Role of
MakeinIndia web site
> On its web site ,
list 5000 products that we currently import ( with
annual import bill / sources / ave landed cost etc )
> Invite 1000
leading manufacturing companies of India , to make
online selection of minimum of 5 items each, for preparing DPR
( Detailed Project Reports ) . Freely visible
online database of who
selected which items will avoid duplication
* Role
of Manufacturing Companies
> Prepare and
submit to Ministry of Commerce, at least 5 DPR by
Dec 2016 . More the merrier !
Earlier the better !
> Each report must
carry , name of at least one bank which has
accepted that as a " Bankable Report " , eligible for funding
> Train at least 100 fresh engineering graduates in various
manufacturing
related functions under GET ( Graduate
Engineer
Training ) Scheme , each year
* Role
of Ministry of Commerce
> Publish DPRs on its web
site for free downloading
* Role
of Income Tax Department
> Give 200 % tax deduction to
existing manufacturing units for 2
years ,
for employing fresh engineering graduates on their rolls ,
under :
" Graduate Engineers Training Subsidy Act - 2015 "
( to
be enacted )
This will
motivate manufacturing units to impart
manufacturing
related
experience to fresh engineering graduates before they
venture to set
up own MSME factories
> Admit expenses incurred by
manufacturing units for preparation of
DPR ,under their CSR obligation ( 2 % of ave net profit for 5 years )
> Exempt all GET Start Ups ( registered on eBiz web site ) from
paying
Corporate Income Tax for first 10 years of working
> Exempt all GET Start Ups from
GST payment , for 10 years
* Role
of Fresh Engineering Graduates
> Get GET Training Certificate
from employer companies
> Download DPR from Commerce
Ministry web site
> Apply for funding to banks ,
attaching DPR and GET Certificate
> Upon receiving Approval
Intimation from bank , apply for various
permissions on eBiz web site , quoting Bank Approval
Number
* Role of
ASSOCHAM / FICCI / CII etc
>
Encourage their manufacturing member firms to take on the
task of preparation of
DPRs and follow up
> Publish DPR reports on their
web sites for free downloading
> Constitute State-wise " Hand-holding Teams " of
retired
executives having
" Manufacturing "
experience , to guide the
local GET applicants
in obtaining all permissions from various
State Authorities
* Role of eBiz
web site
>
To make available in public domain ,
all investment related
applications , and progress status of each
* Role of State
Governments
>
To keep track of those eBiz investment applications where
the State
is the proposed manufacturing location
> Pro-actively reach out
to such applicants for expediting their
proposals
All of the above need not / must not take
months to materialize !
If it takes any longer , millions of India's
jobless will overthrow the governments in power !
We don't need an Oracle to tell us what future
holds for us !
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hemen parekh
16 Sept 2015
B2BmessageBlaster
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