Women Entrepreneurship Policies

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Government Policies for Women Entrepreneurs Aim: Reduce financial, social, structural barriers Key Features: Subsidized loans Skill development & training Reservation/preference in government procurement Support via dedicated schemes Examples: Stand-Up India, Mudra Yojana, Mahila Coir Yojana, TREAD Scheme, Annapurna Scheme Stand-Up India Scheme (2016) Purpose: Promote entrepreneurship among women & SC/ST communities Offers: Bank loans: ₹10 lakh to ₹1 crore For manufacturing, service, or trading enterprises At least one woman borrower per bank branch Handholding support (project prep, training, loan facilitation) Benefits for women: Encourages first-time entrepreneurs Reduces financial barriers Helps start medium-scale businesses MUDRA Yojana (Micro Units Development & Refinance Agency) Purpose: Small, collateral-free loans to micro & small women entrepreneurs Loan Categories: Shishu: up to ₹50,000 Kishore: ₹50,000 to ₹5 lakh Tarun: ₹5 lakh to ₹10 lakh Special benefits for women: Reduced interest rates No collateral security Loans for beauty parlours, tailoring, food stalls, handicraft units, etc. Mahila Coir Yojana Implemented by: Coir Board, Ministry of MSME Purpose: Empower rural women through coir-based industries Key features: First women-oriented self-employment program in coir sector Training in coir fiber production & product manufacturing 75% subsidy on motorized coir spinning machines Benefits for women: Supports rural employment Encourages small-scale cottage industries Enhances income generation in coastal & rural areas TREAD Scheme (Trade Related Entrepreneurship Assistance & Development) Purpose: Promote women entrepreneurship via training, counseling, financial assistance How it works: Government grant: up to 30% of total project cost Remaining 70%: arranged by NGOs or financial institutions NGOs handle training & capacity building Benefits: Helps women without collateral Provides financial & managerial support Encourages group-based entrepreneurship Annapurna Scheme Implemented by: Nationalized banks (SBI, Bharatiya Mahila Bank) Purpose: Support women running food-related businesses (small catering units) Loan details: Loans up to ₹50,000 for utensils, kitchen equipment, raw materials, etc. Repayment period: up to 3 years Guarantor/asset requirement may apply Benefits: Supports home-based food services Helps women start small catering/tiffin businesses Encourages local entrepreneurship in food sector Other Important Schemes Pradhan Mantri Rozgar Yojana (PMRY) - for women Loans for self-employment in manufacturing/service Priority to women applicants Includes entrepreneurship training Dena Shakti Scheme Loans to women in agriculture, retail trade, manufacturing, micro-credit, small enterprises 0.25% concession in interest rate Udyogini Scheme Encourages women entrepreneurship in rural & backward areas Loans up to ₹3 lakh No income limit for women from SC/ST Bharatiya Mahila Bank Business Loan (merged with SBI) Supports women-owned MSMEs Loans up to ₹20 crore Lower interest rates for women-led manufacturing businesses Business Incubators and Accelerators Business Incubators Provide support: New or early-stage businesses Offerings: Office space & infrastructure Mentorship & expert guidance Networking opportunities Support for building business models Training in marketing, finance, operations Focus: Nurturing a start-up during its initial phase. Business Accelerators Support: Growth-ready start-ups Offerings: Intensive short-term training programs Access to investors & venture capital Product scaling support Market linkages & business expansion strategies Focus: Speeding up growth of an already-established startup. Simple Difference: Incubators = help build the business Accelerators = help grow the business quickly Legal and Regulatory Support Purpose: Make business operations easier for women entrepreneurs Assistance includes: Simplified business registration processes (e.g., Udyam Registration) Labour law relaxations for small enterprises Protection under laws (Maternity Benefit Act, Equal Remuneration Act, POSH) Support for intellectual property rights (IPR) Guidance through government agencies (MSME Development Institutes, DICs, Women Entrepreneur Cells) Access to Finance and Credit Challenge: Funding for women entrepreneurs Solutions from government/financial institutions: Loans at lower interest rates Collateral-free loans (e.g., Mudra Yojana) Credit guarantee schemes Special funding for women-led startups Microfinance options through SHGs & NGOs Venture capital & angel investment support