India offers numerous government schemes for women entrepreneurs, encouraging their active participation in the business ecosystem. These initiatives provide financial support, training, and resources, enabling women to overcome barriers and build successful ventures. From funding options to skill development, these women schemes are designed to uplift aspiring and established female entrepreneurs. Additionally, several MSME schemes for women entrepreneurs aim to enhance access to credit and foster innovation in small businesses, contributing to economic growth and self-reliance. These programs reflect the government’s commitment to empowering women in the entrepreneurial landscape.
In recent years, the Indian government has introduced several government schemes for women to support and uplift female entrepreneurs. These initiatives focus on providing financial assistance, training, and opportunities to help women build and sustain their businesses. Here’s a detailed look at some of the top schemes aimed at fostering women empowerment through entrepreneurship:
1. Udyogini Scheme
The Udyogini Scheme focuses on empowering women by offering financial assistance to start or expand their businesses. This scheme supports a wide range of industries, particularly in rural areas, and provides loans at concessional rates. Women from economically weaker sections can benefit significantly from this initiative.
2. Stand Up India Scheme
The Stand Up India Scheme aims to support women and SC/ST entrepreneurs by offering loans between ₹10 lakh and ₹1 crore. This initiative helps women establish enterprises in manufacturing, trading, or service sectors. Its goal is to enhance financial independence and encourage entrepreneurship among underrepresented groups.
3. Annapurna Scheme
The Annapurna Scheme is designed for women entrepreneurs who want to start food-based businesses. Under this scheme, women can access loans of up to Rs. 50,000 to purchase equipment and raw materials. The scheme promotes women-led businesses in the food industry, contributing to both economic growth and self-reliance.
4. Mudra Yojana Scheme
The Mudra Yojana Scheme is one of the most popular government schemes for women empowerment, offering collateral-free loans to small businesses. Women entrepreneurs can avail loans under three categories—Shishu, Kishor, and Tarun—depending on the stage and scale of their business. The initiative provides financial stability and boosts the growth of MSMEs.
5. Mahila Udyam Nidhi Scheme
The Mahila Udyam Nidhi Scheme, offered by Small Industries Development Bank of India (SIDBI), supports women entrepreneurs in setting up new ventures or expanding existing businesses. The scheme provides financial assistance of up to ₹10 lakh with flexible repayment options. It encourages innovation and business growth among women in the MSME sector.
6. Pradhan Mantri Rozgar Yojana (PMRY)
The Pradhan Mantri Rozgar Yojana offers financial assistance to unemployed women who wish to start their own businesses. It provides loans of up to Rs. 2 lakh for businesses in manufacturing, trade, and services. The initiative is a significant step toward reducing unemployment and fostering entrepreneurship among women.
7. Mahila Coir Yojana
The Mahila Coir Yojana focuses on empowering rural women through coir-based industries. Under this scheme, women can receive financial assistance for purchasing equipment and training to produce coir products. It encourages self-employment in rural areas, contributing to the overall economic development of women.
8. TREAD Scheme (Trade Related Entrepreneurship Assistance and Development)
The TREAD Scheme is designed to support women entrepreneurs from economically weaker sections. The scheme provides financial assistance, skill development, and counseling to help women establish successful businesses. By fostering entrepreneurial skills, it ensures the sustainable growth of women-led enterprises.
The Global Gender Gap Report from the World Economic Forum indicates that while India has made slight progress in bridging gender parity, it continues to rank low globally. Economic inequality remains a significant factor, widening the gap for women across various aspects of life. Here’s a closer look at some of the key challenges that women in India face:
According to a 2022 report by the International Finance Corporation (IFC), nearly 90% of women entrepreneurs in India have never accessed credit from formal financial institutions. This gap became even more evident during the 2020 lockdown, where 72% of women-led businesses reported having no financial reserves, compared to 53% of their male counterparts.
Moreover, women in India receive credit equivalent to only 27% of their total deposits, while men secure loans amounting to 52% of their deposits. This disparity reflects systemic biases, where financial institutions often fail to provide equal lending opportunities to women.
For many women entrepreneurs in India, the lack of professional networks remains a significant challenge. A survey by Google and Bain revealed that 49% of women reported limited professional support due to restricted access to formal and informal networking opportunities. These networks are often crucial for mentorship, collaboration, and business growth, leaving many women at a disadvantage.
In India, societal expectations often place women in the dual role of caretakers at home and professionals at work. Regardless of their entrepreneurial or workplace commitments, women are expected to manage household responsibilities efficiently. This constant juggling can compromise their performance and growth, making it essential for women to redefine these expectations and prioritize their goals without succumbing to the “superwoman” stereotype.
A lack of structured knowledge and training continues to hold back many women entrepreneurs. Bridging this gap with targeted training programs can empower women with the tools and confidence needed to thrive in their ventures.
By addressing these challenges, India can take significant strides toward gender equality in entrepreneurship and ensure women are empowered to contribute meaningfully to the economy.
Empowering women entrepreneurs is not just about closing the gender gap, it’s about unlocking a massive potential for economic growth. By addressing critical barriers such as financial inequality, lack of networks, family responsibilities, and inadequate training, India can create an environment where women can thrive as business leaders. Access to resources like a business loan for women, targeted training programs, and inclusive networks can make a significant difference. Additionally, leveraging initiatives like the MSME loan scheme and other financial options can enable women to scale their ventures successfully. It’s time to foster equality and ensure every woman has the tools to succeed.
Kinara Capital understands the unique challenges women entrepreneurs face and is committed to supporting them through tailored financial products and resources. Specifically, Kinara’s HerVikas program offers women-led businesses access to collateral-free business loans with a streamlined application process, helping them scale with ease at a discounted interest rate. By providing financial empowerment and guidance, Kinara is ensuring women entrepreneurs can lead their businesses to greater heights, contributing to both personal growth and the wider economy.
Yes, women entrepreneurs can apply for government subsidies under schemes like Udyogini Scheme and Mahila Udyam Nidhi Scheme, which offer financial support to encourage women-led businesses in India.
Women can apply for these government schemes by visiting the official websites of the respective schemes, submitting necessary documents, and completing the application process online or through designated financial institutions like banks.
To apply for government schemes for women MSMEs, required documents typically include identity proof, business registration, address proof, bank account details, GST registration, and financial statements or business plans.
The Mahila Udyam Nidhi Scheme provides financial assistance to women entrepreneurs to establish or expand small-scale businesses. It offers loans up to ₹10 lakh, supporting business growth and financial independence.
MSMEs (Micro, Small, and Medium Enterprises) are small-scale businesses crucial for economic growth. They offer women entrepreneurs opportunities to start and grow businesses, providing access to financing, employment, and empowerment in the economy.
