Even as Finance Minister Arun Jaitley failed to enthuse the salaried class, he seems to have made adequate provisions for Indians to quit their jobs and turn entrepreneurs. He set a target of providing credit of Rs 3 trillion (Rs 3 lakh crore) to anyone who wants to start a medium, small and micro enterprise (MSME) in the coming year. In addition, he slashed the tax rate on smaller companies have a turnover of less than Rs 2.5 billion (Rs 250 crore) to 25 per cent from 29 per cent. Online credit for anyone who wants to open a small business is also supposed to get easier if the finance minister is sincere in his exhortations about promoting entrepreneurship in India.
While there has been enhanced formalisation of the MSME sector in India post-demonetisation and startups are mushrooming if not blossoming across the country, there are many reasons for Indians to quit their jobs and turn entrepreneur.
The Modi government, since coming to power, has sanctioned almost Rs 1.5 trillion (Rs 1.5 lakh crore) to almost 40 million micro, small and medium entrepreneurs across the country. Not only has the Modi government given more credit to ordinary people, it has also made sure that products produced by wannabe entrepreneurs are procured by the government if not anyone else.
PM Modi in a recent interview emphasised on how the Government e-Marketplace (GEM) was procuring items like waste-paper bins from women entrepreneurs in small towns and rural areas. Many of these women constitute a significant number of people to whom bank credit has been extended under the Mudra scheme.
The PM emphasised how big companies were getting most of the contracts to supply these things to central government departments and state governments. Now the government could directly procure it from the people.
A look at GEM shows that the government is now openly asking people to supply it with anything from almirahs to air conditioners to art paper to synthetic tape holders and mosquito coils. These contracts are worth several thousand rupees and anyone who can supply the best product at the most reasonable price bags the business. Jaitley also emphasised that the government would tackle the non-performing assets problem of the MSME sector soon. This means that even if an individual fails while trying hard to succeed in its small business, help from the government is not far away.