If you want to dive into the world of entrepreneurship but don’t know where to begin, we’ve got your back. One of the main components of what it takes to build your own business is,capital, which is why the government has launched a number of schemes to aid women. We have some great businesswomen heading industries today including Falguni Nayar, Indra Nooyi, Nisaba Godrej, Isha Ambani Piramal, and more.
Many studies, including one published by global consultancy firm McKinsey, have shown that women are great leaders and that the country can boost its GDP by US$ 700 billion by increasing women’s participation in the labour force. Women are already taking over newer industries like electronic manufacturing because they have better productivity levels and an eye for detail.
There are some schemes that women can avail themselves of to make the process of setting up their own enterprises easier. If you’re someone who is looking for a financial boost or know anyone else who is, keep reading.
Why women should consider becoming entrepreneurs
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Praise in the form of admiration and esteem can serve as motivation for women. According to a study by Bain & Company, a management consultant company, more than 45 per cent of women in rural India were keen on starting a business so they could get some recognition and renown.
Higher percentage of return on investment
Women-led companies can provide 35 per cent higher returns on investment when compared to men and this serves as a huge source of inspiration for smaller, newer businesses.
One woman wins, all women win
According to another study by the Boston Consulting Group, if a women is leading a business, it is more likely to be an inclusive workplace and will employ three times more women than men. It also reports that these enterprises have the potential to grow up to 90 per cent in the next five years.
Major multitaskers
We all know how women have serious juggling skills and can overlook multiple things at one time. This talent can be leveraged in finding various streams of income. Women are also better at adapting to different situations, as per a study by Bain & Company, Google and AWE Foundation. About 350 women solopreneurs and small women-led companies in urban India were resilient and fast to adapt. This could have a lot to do with the fact that women also had a higher emotional quotient.
How government schemes aim to support women entrepreneurs
The Women and Child Development budget for 2022 is ₹25,172.28 crore and includes an allocation to schemes like…
Bharathiya Mahila Bank Business Loan
This was set up in 2017 and provides loans of over 20 crores to businesswomen who own manufacturing enterprises. It makes it easier for them to get access to cheaper loans, despite their lack of resources. A collateral-free loan can also be approved for an amount lesser than ₹ one crore.
Mudra Yojana Scheme
Not a scheme that is for women specifically, but this one can help women set up their small businesses like salons or small shops. It is a collateral-free option and you can apply for a loan from anywhere between ₹50,000 to ₹10,00,000.
Dena Shakti Scheme
If you want to start a business in the agriculture, retail, manufacturing, micro-credit, housing, or education space, you can try opting for this scheme. The maximum loan amount is ₹20,000,000 and the interest per cent is 0.25 per cent below that of the base rate. Please note, that the amount you can apply for depends on the sector your business belongs to. To apply for this scheme, you can visit a Dena Bank branch.
Udyogini Scheme
If you have a family income of less than ₹1,50,000 per annum, you can opt for this scheme that aims to help women who are struggling financially to become independent. Loan subsidies will also be provided for women and there are no restrictions for widowed, destitute, or disabled women. To apply for this scheme, you can visit your nearest Bajaj Finserv, Punjab and Sind Bank, and Saraswat Bank, apart from others.
Kalyani Scheme
Want to start or expand your SME? Cent Kaylani is a scheme by the Central Bank of India for women like you. Under the scheme loans up to ₹100 lakhs that is sanctioned without asking for any collateral or processing fees.
If you’re looking for a collateral- or processing fee-free option, consider the Cent Kalyani scheme by the Central Bank of India. Loans for up to ₹100 lakhs can be sanctioned to every type of business except self-help groups, retail trade, and educational and training institutions.
For more information about this scheme, you can visit the CBI website.
Mahila Udyam Nidhi Scheme
This one by the Punjab National Bank aims to support small-scale industries and promotes modernisation and tech advancement by providing hassle-free loans. The limit for it is ₹10 lakhs and the borrower gets 10 years to repay the loan.
Annapurna Scheme
Under this scheme, 10 kilograms of food grains per month will be provided free of cost to old destitute people 65 years and older. The main criteria to avail this is that the person shouldn’t be in receipt of a pension under the national old-age pension scheme or state pension scheme.
Stree Shakti Yojana
If you have been a part of entrepreneurship programmes and are looking for a financial boost for your business, consider this scheme: no security required can avail up to 50 lakh rupees, if the amount exceeds ₹2,00,000, a concession of 0.5 per cent will be given on the interest.
Women Entrepreneurship Platform and how it helps women
NITI Aayog (National Institution for Transforming India) is a Government of India policy that has launched the Women Entrepreneurship Platform (WEP). This works to provide an ecosystem for up-and-coming and existing Indian women entrepreneurs.
How does it help women entrepreneurs?
WEP has three basic pillars that include iccha shakti–motivating women who aspire to be entrepreneurs, gyaan shakti–giving them support and the required knowledge to get started, and karma shakti–providing them with prompt backing so they can set and scale up their businesses.
Challenges faced by female entrepreneurs
Lack of proper funding opportunities
According to a study by Innoven Capital, of all the companies that received funding in 2019, only 12 per cent had a female co-founder. The problem also lies in the fact that banks and financial institutions consider women less credit-worthy because they don’t usually have assets in their name. This becomes a problem when applying for loans or financing.
Pressure to stick to traditional gender roles
Women are expected to be homemakers and deviating from that path, they’re looked down upon. Balancing a family and professional responsibilities is no mean feat and the pressure to stick to traditional roles can take a toll on their mental and physical health. The lack of role models and people to look up to also leads to women being unable to visualise and in turn, work towards success.
Lack of education
In India, about 60 per cent of women are still illiterate and this is one of the main reasons behind our socio-economic problems. Lack of education leads to little to no awareness about today’s technology, opportunities, and businesses.
Male-dominated society
Sexism is ingrained in society because of which women are always looked down upon and considered weaker than the other sex. This leads to them not being able to get the same opportunities as men.
How to support female entrepreneurs
· Celebrate each other’s success
· Support one another. If your friend has a small business, give it a shout-out on social media or turn up for her pop-up shops.
· Make important introductions.
· Share your knowledge so that women who are just beginning their journeys don’t end up making the same mistakes that you did.
Women have been making big movies in businesses over the last few years and it is clear that with the support of other entrepreneurs, they will grow and go even further than anyone can imagine. When your tribe consists of people who get you and your vision, they can motivate you, give great advice and have your back when you need them.
FAQs
What do I look for in a mentor as a female entrepreneur?
Look for someone who has walked your path, can give you constructive criticism, and should be senior from where you are in your journey.
Who are some famous Indian female entrepreneurs?
Divya Gokulnath, co-founder, BYJU’S
Falguni Nayar, founder, Nykaa
Khushboo Jain, co-founder & COO, ImpactGuru.com
Kiran Mazumdar Shaw, founder, Biocon Limited
Richa Kar, co-founder & ex-CEO, Zivame