Karnataka Government to Offer Rs 25,000 Monthly Stipend for Aspiring Entrepreneurs

• ByStartupStory     |    August 10, 2024

In a pioneering move, the Karnataka government is set to launch a unique entrepreneurship program aimed at supporting individuals who have quit their jobs to pursue entrepreneurial ventures. Speaking at the Moneycontrol Startup Conclave in Bengaluru on August 9, Karnataka IT-BT Minister Priyank Kharge announced the new initiative, which will provide a monthly stipend of Rs 25,000 for a year to eligible participants.

“We are soon launching an entrepreneurship programme, perhaps the first of its kind in the country, where if someone has quit their job to become an entrepreneur, we will pay a stipend of Rs 25,000 per month for a year. It’s a small amount considering the high inflation, but at least we will ensure that domestic expenses are taken care of,” Kharge stated.

This initiative is part of the broader Rajiv Gandhi Entrepreneurship Programme (RGEP), announced by Karnataka Chief Minister Siddaramaiah in the 2024-25 budget. The program targets young innovators and entrepreneurs, particularly those with a background in science or engineering. In addition to the financial support, participants will also receive guidance from K-tech innovation hubs, further strengthening the state’s supportive ecosystem for startups.

Kharge also highlighted the success of the Karnataka government’s Elevate programme, which he described as “the most-loved scheme for startups.” He emphasized that startups registered with the Karnataka government and who have participated in and won the Elevate programme will have the government as their first customer.

“If startups are registered with the Karnataka government and have participated in and won the Elevate programme, the Karnataka government will be their first customer,” he said.

The minister underscored Karnataka’s evolution from a hub for back-office operations and IT-enabled services to becoming a leader in research and development, making it the world’s fourth-largest technology cluster. “Bengaluru didn’t become the world’s fourth-largest technology cluster overnight. We evolved from being primarily a hub for back-office operations and IT-enabled services to becoming a leader in research and development. This progress has fueled significant innovations and inventions. Karnataka ranks number 1 in the Innovation Index, and we are the top state in service exports,” Kharge added.

In addition to the RGEP, the Karnataka government is also establishing sector-specific corridors for startups, such as an AI corridor with San Francisco as a sister city to Bengaluru. Kharge noted that the Global Innovation Alliance, which includes 32 countries, has created specific corridors for startups registered with the Karnataka government, ensuring they receive market access abroad.

“We have Bengaluru-based startups that have set up shop in Germany, Australia, and Belgium. No other state government is willing to take these kinds of risks for startups. We are already doing this and, more importantly, we provide opportunities,” he remarked.

Looking ahead, the Karnataka government is set to host a series of summits by November, including the Bengaluru Tech Summit, Social Innovation Summit, Urban Solutions Summit, Clean Water Summit, and Circular Economy Summit. These events will focus on addressing real-life challenges faced by the government and seek out disruptors—like startups—to develop innovative solutions.

Kharge emphasized the government’s commitment to fostering a conducive environment for entrepreneurship, saying, “The theme of Moneycontrol’s Startup Conclave is ‘Persist, Reset, and Rebuild’. Karnataka government too believes in this. We are steadfast in our policies, ready to reset to support businesses and generate employment, and fully prepared to rebuild. Our goal is to create an environment where everyone has the opportunity to become entrepreneurs.”

He further elaborated on the public procurement policy, which is designed to make the government the first client for startups in disruptive technologies. “If we find a solution good enough, we will fund startups and ensure they get a pilot project within the government. No other state government offers such a comprehensive 360-degree solution for startups,” Kharge concluded.

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