Tamil Nadu is soon likely to set up a panel of 10 members – a mix of entrepreneurs, investors, and government officials – to select start-ups that it will help incubate by providing inexpensive space and mentorship.
Called the ‘Warehouse for Start-ups,’ the new programme, for which Tamil Nadu has tied up with the IT industry body, National Association of Software and Services Companies (Nasscom), draws on similar ideas in Bengaluru and Kolkata.
This is the plan: the State will spend Rs 3.5 crore in setting up a centre where 20 ventures can make a start. They will ‘graduate’ after six months.Then, another 20 will take their place. Each seat in the warehouse will cost Rs 2,500, less than half of the going market rate.
Additionally, it has planned to make available 10 per cent of the space in all IT parks operated by the State as incubation centres.
“This would pave way for youngsters looking for incubation space. Secondly, this is an opportunity to utilise the IT parks, which have been lying idle in many parts of Tamil Nadu,” said a senior government official, who wished anonymity.
The official added that IT firms and captive units (entities that serve the needs of their parent companies) are willing to patronise the initiative.
Nasscom’s Regional Director for South, K. Purushothaman said, “If you look at Silicon Valley, a lot of the techies there are Indians. There is an opportunity to create a lot of IT jobs here. The main intention of this venture is to groom start-ups here who need a hand-holding.”
Till date, Tamil Nadu did not have any such government-run initiative. It is far behind cities such as Bengaluru. This is seen as an attempt to build more entrepreneurial ideas here, especially since avenues for jobs not keeping pace with the growing number of graduates coming out of colleges.
Lakshmi Narayanan, President of TiE, Chennai, said, “For a young man or woman with nothing but an idea, a dream, a deep desire to create and an aspiration to make a difference, a professional home or shelter, which is the place to succeed, is an absolute necessity. Such an entrepreneur has to be given a protective shelter during the formative days.” TiE stands for The Indus Entrepreneurs, a non-profit global network of entrepreneurs.
“Such a shelter should not be just a physical shelter like an office space or an incubation centre. It has to be an ecosystem in a box, with all statutory requirements taken care of, legal help, mentorship, market help, access to fund, and above all an institution to fall back on.”
Chandu Nair, an investor with Chennai Angels, said most such entrepreneurial support activities are predominantly focused out of Chennai, given that geographical barriers to entry have disappeared in many cases. “There are several other cities in Tamil Nadu, where this can be easily extended and the government can play a key role in making this happen,” he said.
