How the Stand Up India Scheme Promote Women's Entrepreneurship? |

How the Stand Up India Scheme Promote Women’s Entrepreneurship?

Stand Up India

Women entrepreneurs are becoming a powerful force in India’s economic domain. Recognising the immense potential of women-led businesses, the government has launched various initiatives to support and encourage female entrepreneurship. One such initiative is the Stand Up India Scheme, designed to provide financial assistance and support to women entrepreneurs, particularly those from marginalised communities.

This article explores how the Stand Up India Scheme promotes women’s entrepreneurship, its impact on the economy, and the role of banks in supporting these initiatives.

Overview of the Stand Up India Scheme

Launched in April 2016, the Stand Up India Scheme is a significant component of MSME government schemes aimed at promoting entrepreneurship among women and SC/ST communities. The scheme provides loans ranging from ₹10 lakh to ₹1 crore to help set up greenfield enterprises in manufacturing, services, or trading sectors. The objective is to empower women entrepreneurs by providing them with the financial resources needed to start and sustain their businesses.

Key Features of the Stand Up India Scheme

There are several features of the Stand Up Scheme. Some of them are listed below.

  1. Loan Amount: The scheme offers loans between ₹10 lakh and ₹1 crore.
  2. Interest Rate: The interest rates are competitive and determined by the respective banks.
  3. Repayment Period: The repayment period can extend up to 7 years with a maximum moratorium period of 18 months.
  4. Eligibility: Women entrepreneurs and SC/ST individuals aged between 18 and 65 years, starting a new venture, are eligible for the scheme.
  5. Collateral: The scheme may require collateral or guarantee under the Credit Guarantee Fund Scheme for Stand Up India Loans (CGFSIL).

Impact of Stand Up India Scheme on Women’s Entrepreneurship

Stand Up India scheme has a major impact on the industry of women entrepreneurship. The impact is highlighted below.

  1. Financial Empowerment

Access to capital is a significant challenge for women entrepreneurs. The Stand Up India Scheme addresses this issue by providing easy access to credit. By enabling women to secure the necessary funds to start their ventures, the scheme plays a crucial role in financial empowerment. This not only boosts their confidence but also enhances their ability to take calculated risks and innovate in their respective fields.

  1. Encouraging Innovation and Growth

The Stand Up India Scheme has encouraged many women to enter sectors traditionally dominated by men. By providing the necessary financial support, the scheme has enabled women to innovate and explore new business ideas. This diversification is essential for economic growth and helps create a more inclusive and balanced business environment.

  1. Boosting Employment and Economic Development

Women-led businesses tend to have a significant impact on job creation. By supporting women entrepreneurs, the Stand Up India Scheme indirectly contributes to employment generation. As these businesses grow, they create job opportunities for others, thus boosting the overall economy. This, in turn, helps in reducing poverty and improving the standard of living, especially in rural and semi-urban areas.

Fostering a Supportive Ecosystem

The Stand Up India Scheme is not just about providing financial assistance; it also fosters a supportive ecosystem for women entrepreneurs. This includes access to mentorship, guidance on business development, and assistance with understanding regulatory requirements. Such a holistic approach ensures that women entrepreneurs have the resources and support they need to succeed.

Challenges and Opportunities

While the Stand Up India Scheme has been successful in promoting women’s entrepreneurship, it is not without challenges. Some of the barriers include:

  • Lack of Awareness: Many potential women entrepreneurs are still unaware of the scheme and its benefits.
  • Complex Procedures: The application and approval process can be cumbersome, deterring some women from applying.
  • Cultural Barriers: In some regions, cultural norms and societal expectations continue to hinder women’s participation in entrepreneurship.

Opportunities for Improvement

To overcome these challenges, several steps can be taken:

  1. Enhanced Awareness Campaigns: Conducting awareness campaigns, particularly in rural areas, to educate women about the scheme and how they can benefit from it.
  2. Simplification of Procedures: Streamlining the application and approval processes to make it easier for women to access the loans.
  3. Community Support Programmes: Developing community support programmes that encourage women to pursue entrepreneurship and provide them with the necessary resources and networks.

Case Studies of Successful Women Entrepreneurs

Some of the success stories are as follows:

Example 1: Empowering Rural Artisans

One of the success stories of the Stand Up India Scheme is the rise of rural artisan businesses led by women. By accessing funds through the scheme, many rural women have transformed their traditional skills into thriving businesses, producing handcrafted goods that are now sold across the country and even internationally. This not only preserves cultural heritage but also provides a sustainable livelihood for many families.

Example 2: Breaking Barriers in Tech

In the technology sector, a traditionally male-dominated field, the Stand Up India Scheme has enabled several women to start their own tech ventures. These women have not only broken stereotypes but have also brought innovative solutions to the market, contributing to the growth of the Indian tech industry.

Financial Banks Contributing to Women Entrepreneurship

Banks play a crucial role in the successful implementation of the Stand Up India Scheme. They are responsible for disbursing loans, providing guidance, and supporting women entrepreneurs throughout their entrepreneurial journey. One such bank that has been actively involved in this initiative is HDFC Bank.

The bank has gone beyond just providing loans; it offers comprehensive support, including business mentorship, financial literacy programmes, and personalised banking solutions tailored to women entrepreneurs. By doing so, HDFC Bank has contributed to the success of many women-led businesses, helping them grow and prosper in a competitive market.

The Stand Up India Scheme has been instrumental in promoting women’s entrepreneurship in India. By providing financial assistance, fostering innovation, and creating employment opportunities, the scheme is helping women entrepreneurs overcome barriers and contribute to the country’s economic growth. With continued support from banks like HDFC, the future looks bright for women entrepreneurs in India.

Source: https://cleartax.in/s/loans

Photo by Thought Catalog on Unsplash (Free for commercial use)

Image Published on August 29, 2017

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