Quitting your job to pursue entrepreneurship? Karnataka to offer Rs 25K a month, says Priyank Kharge

Karnataka IT-BT minister Priyank Kharge

Karnataka government will provide Rs 25,000 per month for a year to support people who have left their jobs to pursue entrepreneurship.

Speaking at the Moneycontrol Startup Conclave in Bengaluru on August 9, Karnataka IT-BT Minister Priyank Kharge said, “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 highlighted the success of the Karnataka government's Elevate programme, calling it "the most-loved scheme for startups."

Also, read: Karnataka govt turns to startups for sustainable water solutions, urban challenges

"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," said Kharge.

In 2024-25 budget, Karnataka CM Siddaramaiah announced Rajiv Gandhi Entrepreneurship Programme (RGEP) for for young innovators and entrepreneurs. According to IT-BT department, RGEP is designed for young entrepreneurs with a science or engineering background. They will receive a monthly stipend of Rs 25,000 for 12 months, along with guidance from K-tech innovation hubs.

Kharge said many entrepreneurs from other states also have registered their businesses in Karnataka to be part of this supportive ecosystem. "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." said Kharge.

Also, read: Karnataka to empanel 100 startups for 'preferential market access' in govt tenders

The minister said they will come up with sector-specific corridors for startups, such as an AI corridor with San Francisco as a sister city to Bengaluru. “We have also established the Global Innovation Alliance with 32 countries, creating specific corridors for startups registered with the Karnataka government to ensure they get market access abroad. For instance, 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.” said Kharge.

"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." said Kharge.

Kharge said that no other state government holds as many conclaves as Karnataka. “By November, we will be hosting Bengaluru Tech Summit, Social Innovation Summit, Urban Solutions Summit, Clean Water Summit, and Circular Economy Summit. These summits will focus on real-life problems that are plaguing the government. We are looking for disruptors, like startups, who will accept the government’s challenges—whether it’s portability of water, mobility, solid waste management, or process automation within governance.”

Kharge also said public procurement policy 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.”

Also, read: Bengaluru tech summit on November 19-21; Karnataka CM hosts breakfast for corporate leaders

Watch the full edition of the Moneycontrol Startup Conclave 2024 here