Panel Discussion on "Start-Ups & Industry" during Vigilance Awareness Week in India 2021: business integrity & acceleration

In line with the directions of the Central Vigilance Commission of India, the country’s annual Vigilance Awareness Week was observed from October 25 to November 1, 2021 under the theme ‘Independent India @ 75: Self-reliance with Integrity.’

Alliance for Integrity in partnership with the United Nations Global Compact Network of India (UNGCNI) and Partnership for Transparency Funds India (PTFI) organised an essay competition among students of Law, Business Administration and Management on the theme of the week, exploring the role of businesses.

This was followed by a panel discussion on ‘Start-Ups & Industry’ organised on November 1. The discussion focussed on how start-ups are changing the dynamics of the Indian economy and the need to instil integrity for a transition towards a self-reliant India.

In her welcome remarks, Shabnam Siddiqui, Executive Director-UNGCNI, remarked that the Vigilance Awareness Week in India has been a part of the multi-facetted approach of Central Vigilance commission, strategizing to implement the policy of “Zero Tolerance against Corruption”. According to her, development and progress happens when individuals and organisations are vigilant in safeguarding integrity as a core value. India has seen a boom in its start-up ecosystem within the last decade, but many start-ups do not make it beyond five years. One reason for this is the inadequate attention placed on compliance, either due to a drive for profit, lack of knowledge or misinformation.
The panel comprised of representation from PHD Chamber of Commerce & Industry, UN Global Compact Networks India, Ministry of Skill Development & Entrepreneurship and women entrepreneurs.

Shayesta Kibriya, Founder of Food Passionista, shared experiences from her entrepreneurial journey as she applied innovative measures throughout the process of establishing and integrating compliance in her business. She also expressed the challenge of constantly having to make executive decisions in an environment of limited information. According to her, quality assurance is key in the food and beverage sector and integrity in food management has helped her business in the long run. Through training and information, she has been able to put important compliance management systems in place for her start-up.

Dhirendra Singh and Jatinder Singh shared insights about the major challenges and the lack of awareness of the regulatory challenges faced by start-ups and small businesses. They advocated for a multi-stakeholder approach to build capacity. Business support organisations could play a key role by mentoring businesses and raising awareness to create thriving entrepreneurships ecosystems.

Another topic discussed in the panel was the changing business policies for start-ups and small businesses. Swiftly changing regulatory norms are challenging their survival and limiting their growth, making them unable to catch up with the latest requirements. This results in unnecessary costs, causing start-ups to face major cash flow issues and fear of shutting down. Experts believe these circumstances lead to a delay in improving compliance systems. Panellists strongly supported embedding compliance in every process and product from the moment the business is launched. Businesses should also be advised properly on compliance related topics by all the actors in the ecosystems.

Although certain initiatives from the Indian government are aimed at easing business for start-ups, it is important that business associations come forward and give support to start-ups by helping them mitigate risk. Associations can facilitate cost analysis and encourage start-ups to consider and include compliance costs right from the start of their businesses.

To end the event, Anavi Jaitely, a third year bachelor’s student of the Symbiosis Institute of Law Pune, was declared winner of the essay competition.

Author: Savita Singh