Karnataka’s ‘quit job to become entrepreneur’ scheme: 192 apply for Rs 25K monthly aid for 1 year

Aspiring entrepreneurs will not only receive financial assistance but also mentorship as they work on their innovative ideas.

The Karnataka’s government programme to encourage young graduates to leave traditional jobs received for entrepreneurship has received 192 applications in the first round.

The information technology-biotechnology (IT-BT) department's Rajiv Gandhi Entrepreneurship Programme’s is designed to support 30 innovators and entrepreneurs annually over the next three years, providing them a monthly grant of Rs 25,000 for 12 months. The programme's  "first call" was open from July 14 to August 13.

“The response to the programme has been encouraging. Many young graduates and innovators have expressed that this initiative offers a crucial support system for early-stage entrepreneurs, helping them overcome financial challenges and boosting their confidence to scale their ventures,” Karnataka IT-BT secretary Ekroop Caur told Moneycontrol.

Aspiring entrepreneurs would not only receive financial assistance but also mentorship. “This will ensure that innovators can focus on developing and scaling their ideas without being burdened by immediate financial constraints,” she said.

The programme offers guidance and access to the state government’s innovation hubs, ensuring that the aspiring entrepreneurs receive support on their journey, alongside financial backing.

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

Caur said applications may be called again if the programme does not meet its target of supporting 30 innovators in the first round after the evaluation of applications received in the first round.

“RGEP stands out due to its structured, holistic approach, combining financial, technical, and infrastructural support under one umbrella. Programme enhancements will also be considered based on future needs and assessments,” she said.

“This entrepreneurship programme is 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 ₹25,000 per month for a year,” IT-BT minister Priyank Kharge said at the Moneycontrol Startup Conclave in Bengaluru last month.

Also read: Karnataka: 817 startups enroll for Elevate 2023 scheme; 100 firms to get Rs 20 cr govt aid

The state government also has two other key initiatives — NAIN 2.0 (New Age Innovation Network) programme and ELEVATE programme — to promoting young entrepreneurs, officials said.

NAIN 2.0 serves as a foundational platform for students in higher educational institutions, offering them a supportive framework to embark on entrepreneurial journey.

ELEVATE is designed to provide grant-in-aid funding to the most innovative startups, helping them transition from concept to market-ready solutions, they said.