The G20 group of countries is set to agree on a framework to define start-ups that will have five components including legal entity type, age, size, scalability and innovation, at the Startup20 summit meeting in Gurgaon on July 3-4, according to Chintan Vaishnav, Chairman, Startup20.
“I think of this final leg of this year’s Startup20 journey as a new beginning…. We have built consensus over a first-ever powerful communiqué that will harness the power of start-ups, paving the way for their vibrant and sustainable future,” Vaishnav said at a press briefing on Tuesday.
The Startup20 Engagement Group operates under the India G20 Presidency, aiming to shape the future of the global start-up ecosystem and foster innovation, collaboration, and inclusive growth to unleash the full potential of start-ups, according to a statement issued by the DPIIT (Department for Promotion of Industry and Internal Trade).
On defining start-ups, Vaishnav said that the countries had realised earlier that having a single definition for start-ups was not a practical idea. “But having a framework for people to chose from given their legacies and interest is the way to go. That framework is right before us,” he said.
The framework would look into what kind of legal entity is the start-up, whether it is a private entity or sole proprietorship for instance, what is the maximum age and size, what is the scalability of the start-up and what is the innovation, he added.
In addition to the discussion on building a global start-up ecosystem, the summit will host a large start-up Conclave, where start-ups will not only showcase their products and services but will engage in investor pitches, mentoring sessions, and other networking opportunities, the statement pointed out.