G20 nations are working towards agreeing on a common definition for start-ups by July this year to help create an ecosystem that will enable global policymaking, say officials.

“We are going to collaboratively define start-ups uniformly across G20 countries. Two discussions have happened. A clean chit is likely to be given by all members in the third meeting,” a government official tracking the matter told businessline.

A G20 Startup20 Engagement Group was formed recently to come up with policy recommendations on entrepreneurship and innovation priorities of G20 countries. The taskforce on foundation and alliances, one of the three taskforces, has been tasked to come up with consensus-based definitions and promote knowledge sharing.

Common understanding

“A single communique on start-ups, including its definition, agreed upon by all G20 members will be shared on July 3-4 during the start-up summit,” the official said.

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According to the Department for Promotion of Industry and Internal Trade (DPIIT), the nodal department for start-ups in India, an entity would be considered a start-up up to 10 years from its date of incorporation and if its turnover for any of the financial years since incorporation does not exceed ₹100 crore. “Other G20 member countries are coming up with various definitions of their own. The attempt will be to reach a common understanding on the matter and zero in on parameters acceptable to all,” the official said.

Definition of start-ups is important as governments extend various incentives, including tax sops to such entities by meeting the stated requirements and parameters. The G20 Starup20 Engagement Group also seeks to bridge the knowledge gap between the start-up ecosystems of G20 member countries and emerging economies through partnerships with enablers such as incubators and government agencies, per a government statement.

The finance taskforce aims to increase access to capital for start-ups by providing financing and investment platforms and also create pitching and networking opportunities. The inclusion and sustainability taskforce is working on the roadmap to increasing support for women-led start-ups and organisations. It also plans to promote start-ups working on making communities more inclusive and those working on sustainable development goals in areas of global interest.

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