The government of India has prioritized the encouragement of startup ecosystem through Startup India initiative. Apart from the central government, many state governments have introduced its own startup policy. Kerala is one such state which has its own startup policy. Based on extensive literature review this paper analyse different entrepreneurship support services provided by the government around the globe. The aim of this study is to analyse the government support on the performance of startups in Kerala, India. The conclusion is made after conducting qualitative interview of 201 startup entrepreneurs, 2 academic faculties and 5 mentors in Kerala. By analysing various startup support schemes introduced by the government, this paper highlights the key impediments in Kerala’s startup ecosystem. Access to funding is a major issue impeding the growth of startups in Kerala. Private investments must be encouraged to reduce the funding gap in the ecosystem. Kerala need policies that helps in setting up an initial market for startups. Steps have been taken to create enterprises from educational institutions. More research funds should be granted to promote research in universities which encourage tech transfer through university industry interaction. The study contributes to the existing theory and helps the policy makers in taking necessary action towards promoting a startup culture in the state.

Keywords: Government support, Policy initiatives, Entrepreneurship, Startups, Startup ecosystem