As per a survey conducted by the NSSO, women entrepreneurship amounts to just about 14% of the total entrepreneurship ventures in India. While a large number of these companies operate on a small scale, over 75% of them run as self-financed organisations.
Stats like these and an overall aim to empower women in India led the government to focus on the growth and development of female entrepreneurship in the country. With financing being the major roadblock to these ventures, schemes like Stand Up India now provide women with the necessary funding to start their own business.
The scheme aims to uplift underprivileged sections of the society through monetary as well as other support. Here’s a brief outlook of what the scheme comprises of and how it will benefit women entrepreneurs in the country.
Stand Up India scheme – A brief overview
Launched back on April 5, 2016, Stand Up India scheme offers an opportunity for aspiring women entrepreneurs to make it big in the business world. It provides women as well as individuals belonging to scheduled castes and scheduled tribes a chance of establishing their venture through funds.
Under this scheme, business loans for women to boost finances are available, ranging between Rs. 10 Lakh and Rs. 1 Crore. Depending on their stage of entrepreneurship, this loan for women entrepreneurs can be utilised to set up a new business venture or give a boost to an existing one.
For aspiring women falling short of funds to start up their business, the scheme can help them big time.
Know the benefits of this scheme for women entrepreneurs
- Loans and advances available for aspiring women entrepreneurs
As per the global ranking on female entrepreneurship success and efficiency done by GEDI, India stood among the last 5 countries out of 30 countries evaluated. As per this report, as many as 73% of female entrepreneurs could not receive VC (Venture Capitalist) funding. Also, as per a study in Karnataka, loans were not available for 68% of these budding women entrepreneurs.
Considering these setbacks, this scheme gives a much-needed spur to the existing scenario of ventures initiated by women. Business loans for women entrepreneurs are among the standalone benefits of this program.2
2. It brings an option to refinance existing business
Not only start-ups but also businesses already being run by women have an option to avail financing under this scheme. Ventures that already operate but still belong to the start-up segment can avail the refinancing option under this scheme. The scheme allows for this through SIDBI, and the initial amount one can avail under this option is Rs. 10 Crore. It comes off as a composite loan, whereby an NCGTC corpus of Rs. 5,000 Crore runs along as credit guarantee.
3. The benefit of entrepreneurial knowledge and support
According to research conducted back in 2014, as many as 58% of women did not have a clear idea of the functioning and problem-solving of a start-up. Hence, with the necessity to educate women about entrepreneurship and its training along with providing loans, the Stand Up India scheme also makes way for business ideas for women and arrange for funds. It extends from the pre-loan period until the stage of operation.
4. It will have maximised benefits with substantial reach
As per estimates, the scheme’s benefits are expected to reach as many as 2.5 Lakh budding and existing entrepreneurs from the marginalised section of the society. Women are expected to be the primary beneficiaries of this scheme.
With these many advantages of the Stand Up India scheme, aspiring female entrepreneurs can start with their entrepreneurship ventures through outside funding.
There is a noticeable lack of women in leading business positions across the nation. Government schemes such as Stand Up India as well as tailored financing options from leading lenders provide aspiring women entrepreneurs the financial backing to achieve their dreams.
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