In a vibrant economy like India, government constitutes one of the largest consumer. Public procurements are lucrative source of revenue for any business. However, because of complex eligibility norms and non-transparent selection process, often well-established and large business entities bag government contracts.
In order to bring transparency to the process and increase the participation of MSMEs, Government e Marketplace, an online market place for procurement of common use goods and services by government ministries, departments and CPSEs was setup in 2016.
Recently launched programmes, SWAYATT and the Start-up Runway will take this initiative a step ahead. Following are 5 things entrepreneurs should know about Start-up Runway.
- The Idea
SWAYATT stands for Startups, Women and Youth Advantage Through eTransactions. It is an initiative to enable startups, women entrepreneurs, self-help groups and MSMEs to participate in government procurements through Government e Marketplace (GeM).
GeM Start-up Runway is designed to enable Start-ups in scaling operations from ideation to growth stage in minimal time by facilitating their alignment with Government procurement orders and contracts.
- Norms relaxed
Generally, certain prior experience and/or prior turnover is required for being eligible for public procurement. Moreover, the bidder has to make Earnest Money Deposit [EMD] to participate in the bid. However, Startups have now been exempted from these norms.
- Eligibility
The startups which are certified so by DPIIT (earlier know as DIPP) are eligible to register themselves on GeM portal. (Read more on startup registration at http://bhaskara.in/start-up-india-steps-to-get-register/)
- Feedback and Ratings
Product comparison and price discovery are two major constraints for Government buyers in procuring innovative products from Start-ups. To overcome this challenge, Start-up Runway will enable Start-ups to conduct market trials with government buyers and seek time-bound feedback.
After that, if the product/service receives at least 3+ ratings on a rating scale of (1-5) from 3 or more buyers, the startup will be promoted as a full-time seller on the platform beyond the runway page.
This mechanism would facilitate realistic product, price comparison and market valuation from potential buyers and investors.
- Steps
Following steps are involved for startup to enter into public procurement market:
It is clear that the aptly named initiative “Start-up Runway” will provide essential base for startups to take-off and become major player in business to government transactions.
Disclaimer: This article is for the purpose of general awareness and does not represent professional opinion of the author.