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.
1. The Idea
SWAYATT stands for Startups, Women and Youth Advantage Through e Transactions. 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.
2. 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.
The startups which are certified so by DPIIT (earlier know as DIPP) are eligible to register themselves on GeM portal.
4. 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.
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.