Supporting Women Entrepreneurs in India: Essential Funding and Development Schemes

In the modern era, women have become significant contributors to various fields, including entrepreneurship. The Indian government has recognized this and introduced several schemes to promote women entrepreneurship. These initiatives aim to address financial, educational, and social barriers, fostering a supportive ecosystem for women-led startups.

The Role of Government Schemes in Women Entrepreneurship

The Indian government has launched numerous programs and schemes to empower women entrepreneurs. These initiatives are designed to provide financial assistance, training, and access to resources that help women build and scale their ventures.

Mahila Udyam Nidhi Scheme

Launched by the Small Industries Development Bank of India (SIDBI), this scheme provides financial assistance to women entrepreneurs to start or expand their businesses. The scheme offers loans ranging from 1 lakh to 10 lakhs. This financial assistance is crucial for female entrepreneurs who might not have the capital to initiate or scale their ventures.

Stree Shakti Package for Women Entrepreneurs

This initiative, introduced by the State Bank of India (SBI), aims to provide financial support and training to women entrepreneurs. It offers concessional loans with lower interest rates and flexible repayment options. Additionally, it supports training and skill development, helping women entrepreneurs strengthen their business strategies and knowledge.

Nari Shakti Yojana

As part of the National Policy for Women, this program focuses on empowering women through skill development and entrepreneurship. Nari Shakti Yojana provides various support mechanisms for women-led enterprises, including financial assistance, training, and access to markets. This initiative is instrumental in creating an enabling environment for women entrepreneurs to thrive.

Women Entrepreneurship Platform (WEP)

Launched by NITI Aayog, the Women Entrepreneurship Platform (WEP) aims to bring together women entrepreneurs and provide them with resources, mentorship, and access to funding. This platform facilitates networking and collaboration among women entrepreneurs, fostering a community of support and growth. Women entrepreneurs can connect with mentors, peers, and resources that help them overcome challenges and achieve their business goals.

Startup India Initiative

This initiative, while not exclusively for women, provides various benefits to all startups, including those led by women. Startups under the Startup India Initiative can avail of tax exemptions, funding support, and regulatory benefits to promote entrepreneurship. This scheme encourages innovation and growth, making it easier for women-led startups to succeed in the competitive market.

Mudra Yojana

A scheme introduced by the Government of India, Mudra Yojana provides loans to small businesses, including those run by women. The scheme offers three types of loans—Shishu, Kishore, and Tarun—that cover different stages of business growth. These loans are designed to be accessible and affordable, helping women entrepreneurs overcome financial barriers and invest in their ventures.

Women’s Entrepreneurship Development Programme (WEDP)

Launched by the Ministry of Micro, Small, and Medium Enterprises (MSME), the Women’s Entrepreneurship Development Programme (WEDP) aims to provide skill development and training to women entrepreneurs. This program focuses on building the capacity of women-led enterprises, equipping them with the knowledge and skills needed to succeed in their respective fields. WEDP plays a crucial role in empowering women entrepreneurs and enhancing their businesses.

Additional Supportive Schemes

Other notable schemes include:

Stand-Up India Scheme

This scheme offers loans between 10 lakhs and 1 crore to women entrepreneurs aged 18 and above. The eligibility criteria include no previous defaults, first-time ventures, and a minimum of 51% shareholding if not a sole proprietorship. This scheme provides crucial financial support to women entrepreneurs.

Cent Kalyani Scheme

Funded by the Central Bank of India, this scheme provides capital expenditure assistance for plant/machinery and working capital support. The maximum loan amount is Rs. 1 crore, with concessional interest rates and no processing fees. This scheme is beneficial for women entrepreneurs who need funds for business expansion.

Stree Shakti Package by SBI

Operated by SBI, this package offers concessions to women entrepreneurs with over 50% ownership in a small business. It requires enrollment in Entrepreneurship Development Programmes (EDPs) and offers interest concessions on loans exceeding 2 lakhs. This scheme also allows women to apply for loans up to 5 lakhs without requiring security in the tiny sector.

Women Empowerment Schemes by PNB

Promoted by the Punjab National Bank (PNB), several schemes under this initiative assist women entrepreneurs. Some key schemes include:

PNB Mahila Udyam Nidhi Scheme: Helps women set up new projects in the tiny/small-scale sector. PNB Samridhi Yojna: Includes schemes for financing creches, meeting working capital credit requirements, and empowerment initiatives. PNB Kalyani Card Scheme: Serves to meet working capital credit needs for agricultural and non-farm activities. PNB Mahila Sashaktikaran Abhiyan: Offers concessions under the scheme. TREAD Scheme: Provides credit and grants for setting up small/micro-enterprises, particularly for women in the non-farm sector.

These schemes collectively aim to create a supportive ecosystem for women entrepreneurs, addressing financial, educational, and social barriers to entrepreneurship. By providing essential resources and support, they help Indian women overcome challenges and achieve their entrepreneurial dreams.