In recent years, the entrepreneurial ecosystem in India has witnessed a significant rise in female entrepreneurs, with women breaking barriers in various industries, from technology to retail and services. Despite the growing number of women-led startups, there is still a considerable gender gap in the entrepreneurial sector. However, the Indian government has introduced a range of initiatives and schemes to address these disparities and encourage female entrepreneurship.

These government schemes, particularly under the Startup and MSME (Micro, Small, and Medium Enterprises) frameworks, provide women with the resources, financial support, and mentoring needed to launch and scale their businesses. In this blog, we will delve into the various government schemes designed specifically for female entrepreneurs, explaining how they work and how women-led startups can benefit from them.

The Rise of Women Entrepreneurs in India

India has seen a surge in women-led businesses in recent years. According to the National Sample Survey (NSS), the number of women-owned businesses has been steadily increasing, though it still represents only a fraction of the total entrepreneurial ventures in the country. This growth is a result of multiple factors, including an increase in education, digital literacy, and government initiatives that promote gender equality in the business world.

However, challenges like access to funding, limited networking opportunities, societal stereotypes, and balancing work-life pressures remain obstacles for many women entrepreneurs. To address these challenges, the Indian government has introduced several schemes and policies to promote and empower female entrepreneurs.

Government Schemes for Women Entrepreneurs

1. Pradhan Mantri Mudra Yojana (PMMY)

The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme launched by the Government of India to provide financial support to micro and small businesses. Under PMMY, women entrepreneurs can avail themselves of loans up to INR 10 lakh without any collateral. This scheme is particularly beneficial for women running small businesses or startups in need of financial support to grow their ventures.

• Eligibility: Any women entrepreneur running a micro or small business can apply.
• Loan Type: Loans are provided under three categories: Shishu (loans up to INR 50,000), Kishore (loans from INR 50,000 to INR 5 lakh), and Tarun (loans from INR 5 lakh to INR 10 lakh).
• Benefits: Access to affordable credit, no collateral required, and flexible repayment options.

This scheme has significantly empowered women entrepreneurs by making capital more accessible and enabling them to fund their business ideas with ease.

2. Stand-Up India Scheme

The Stand-Up India Scheme was launched to promote entrepreneurship among women, Scheduled Castes (SCs), and Scheduled Tribes (STs). The scheme aims to provide financial assistance to women entrepreneurs who are looking to set up greenfield (new) projects in manufacturing, services, or the trading sectors.

• Loan Amount: Under this scheme, women entrepreneurs can avail loans ranging from INR 10 lakh to INR 1 crore for setting up new businesses.
• Eligibility: The applicant must be a woman or from an SC/ST background, and the business must be a greenfield project.
• Purpose: The loan can be used for setting up new enterprises in manufacturing, services, or trading.

The Stand-Up India Scheme is a step towards bridging the gap for women entrepreneurs who struggle to access financial support for establishing new businesses. The scheme is especially helpful for women who wish to take the leap into entrepreneurship but are often limited by the lack of capital.

3. Women Entrepreneurship Platform (WEP)

The Women Entrepreneurship Platform (WEP), launched by NITI Aayog, is an initiative aimed at supporting women entrepreneurs through a single online portal. The platform provides women entrepreneurs with access to funding, training, mentoring, and networking opportunities.

• Access to Mentorship: The platform connects women with experienced mentors and industry experts to help them refine their business models and grow their enterprises.
• Funding Support: WEP helps women entrepreneurs connect with venture capitalists, angel investors, and financial institutions to secure funding for their businesses.
• Training and Capacity Building: The platform offers various training programs to help women enhance their skills and knowledge, particularly in the areas of leadership, digital literacy, and financial management.

The WEP is a great tool for women entrepreneurs to navigate the complexities of starting and growing a business. It provides them with all the resources and support they need to succeed.

4. Bharatiya Mahila Bank Business Loan (BMB)

The Bharatiya Mahila Bank (BMB), a women-specific banking institution, offers financial products and services aimed at empowering women entrepreneurs. The bank provides business loans specifically designed for women-led businesses to support their growth and expansion.

• Loan Amount: BMB offers loans ranging from INR 10 lakh to INR 1 crore for women entrepreneurs.
• Eligibility: The applicant must be a woman entrepreneur and should be running a business that qualifies under the MSME sector.
• Benefits: Lower interest rates and flexible repayment terms make it easier for women to secure financing.

BMB’s business loans have been tailored to address the financial needs of women entrepreneurs, making it easier for them to access credit with favorable terms.

5. Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE)

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) provides collateral-free loans to MSMEs, including women-led businesses, to promote entrepreneurship and business growth. The scheme offers a credit guarantee to banks and financial institutions for loans extended to micro and small enterprises.

• Eligibility: Women-led MSMEs can apply for this scheme.
• Loan Amount: The scheme covers loans of up to INR 2 crore for eligible MSMEs.
• Benefits: No collateral required, easier access to credit, and support from financial institutions.

This scheme is ideal for women entrepreneurs who lack the necessary collateral but need financial support to expand their businesses.

6. National Minorities Development and Finance Corporation (NMDFC)

The National Minorities Development and Finance Corporation (NMDFC) offers schemes for women from minority communities, providing them with financial support to start and grow their businesses. The scheme provides soft loans, training, and financial aid to women entrepreneurs from minority groups, including Muslims, Christians, Sikhs, Buddhists, and others.

• Eligibility: Women entrepreneurs from minority communities can apply.
• Loan Amount: Loans are available for both small businesses and larger startups, with financial aid ranging from INR 10,000 to INR 10 lakh.
• Benefits: Access to concessional loans, training programs, and skill development.

This scheme ensures that women from minority communities are not left behind and have equal access to opportunities for entrepreneurship and business development.

7. TREAD (Trade Related Entrepreneurship Assistance and Development) Scheme

The TREAD scheme, introduced by the Ministry of Micro, Small, and Medium Enterprises (MSME), provides financial assistance to women entrepreneurs for setting up their businesses and acquiring skills necessary for entrepreneurship.

• Eligibility: Women entrepreneurs who are part of self-help groups or cooperatives are eligible to apply for TREAD.
• Loan Amount: The scheme offers financial aid for skill training and entrepreneurship development, with loans and grants available for small businesses.
• Benefits: Access to skills training, financial assistance, and guidance for setting up small enterprises.

This scheme is particularly beneficial for women who are new to entrepreneurship and need additional support in terms of skills development.

Challenges Faced by Women Entrepreneurs

While the government has introduced several schemes to support women entrepreneurs, there are still challenges that women face when it comes to starting and scaling their businesses. These challenges include:

• Access to Finance: Women entrepreneurs often find it difficult to access capital due to the lack of collateral, lower credit scores, or the perception that women are less capable of running businesses.
• Limited Networking Opportunities: Women are often excluded from business networks and mentorship programs that could help them gain valuable insights and connections.
• Balancing Work and Family: Societal expectations often place a disproportionate burden on women to manage both family and business, which can hinder their ability to fully commit to their ventures.
• Stereotypes and Bias: Gender bias continues to affect women in business, from securing funding to receiving fair treatment in the workplace.

Conclusion

The Indian government has taken significant steps to empower women entrepreneurs through various schemes and initiatives. These schemes not only provide financial assistance but also offer training, mentorship, and networking opportunities, enabling women to start, grow, and scale their businesses.

Women entrepreneurs have a tremendous potential to contribute to the economy, and the government schemes outlined above play a vital role in making this possible. As more women take the entrepreneurial route, it is crucial for them to take advantage of these schemes and leverage the resources available to ensure their success.

With a supportive environment and targeted schemes, the future for women entrepreneurs in India looks promising, and the country is well on its way to becoming a hub for female-led businesses.