Females who organize, manage an enterprise and undertake risk with a view of earning profit are termed as women entrepreneurs. In other words, an enterprise or a business that is owned and controlled by women or a group of women which initiates, innovates an economic activity, having minimum 51% financial interest on capital and at least 51% of the employment opportunities for women. Due to gender disparity, there were not many ventures that were being operated by female entrepreneurs. Many initiatives taken by the Government like Start-up India, Make in India and various loans are being provided only for women entrepreneurs, this has boosted the growth of women entrepreneurs. Do you know over one-third of the entrepreneurs are women entrepreneurs?
Some of the common features of women entrepreneurs are:-
- Women having low income are most likely to become entrepreneurs.
- Small facilities also tend women to become entrepreneurs.
- Rather than growth-oriented women, entrepreneurs are security-oriented.
- Economic necessity is one of the main reasons for the emergence of females to become entrepreneurs.
- Minimized risk and stability of income are preferred by most of the women entrepreneurs.
- They face a lot of difficulties in obtaining financial support.
- A large number of women enter into this field without proper knowledge, training or education.
Women entrepreneurs possess a vast quality that can beat any enterprise that is being operated by men. In the present stitch, there is a need for female entrepreneurs as:-
- Optimum management of finance: – It is a fact that women can manage finance in a better way, irrespective of whether it is raised for home expenses or business expenses.
- Employment generation: – In this era of digitization, the growth of women are being witnessed day by day. They are growing in every field be it fashion designer, interior designer, exported or any other. They are shifting from job seeker to job creator and thereby contributing to the economic growth of the country.
- To break the orthodox view: – It is a misconception that women cannot manage or run a business. Women need to get up and stay strong to change this assumption.
- To narrow down gender disparity: – Women entrepreneurs will motivate other females to become self-independent and would open doors for many. This initiative is a key step to reduce the gender gap.
- Self Identity: – Women that are entering the business field can create self-identity and recognition of social status.
Women are the creator of this world and can achieve anything with ease, they just require little support and motivation which is being provided by the government in the form of easy loan facilities. The various schemes that are started to provide financial aid to female entrepreneurs are:-
- Cent Kalyani: – This loan is being offered by the Central Bank of India for women that want to open, expand, or make alterations to their business. This loan can be availed by MSMEs, women working in farming, retailing or in government-backed firms. The main aim of this loan is to meet both working and fixed capital requirements. You can avail loan up to 100 lakh without any processing fee under the scheme.
- Shree Shakti Package: – It is a scheme to provide financial support to businesswomen by State Bank of India. You can avail this loan without any collateral at a rate of 11.20% onwards. The repayment tenure ranges up to 36 months including a moratorium period of one month.
- Shringaar and Annapurna Scheme: – Bharatiya Mahila Bank offers this scheme to women entrepreneurs to help them set up a new or expand an existing business. The Shringaar loan targets women that aspire to set up beauty parlor whereas Annapurna scheme is for the women who are interested in setting up a food catering business. Both schemes do not require any security.
- Shakti Scheme: – You can avail this scheme from Dena Bank with no processing fee and would also get a rebate of 0.5% on loan up to 5 lakh. The Shakti scheme aims to support women entrepreneurs who are indulged in activities like agriculture, retail trade, manufacturing, service, etc.
- Mudra Yojana Scheme: – A government scheme for small units and for woman or group of women who want to set up a small enterprise like tuition Centre, beauty parlour, tailoring units, etc. The amount of loan ranges from 50,000 to 50 lakh. Collateral and guarantee are required when the amount of loan exceeds 10 lakh. There are three plans and under this scheme they are:-
- Shishu plan: – In this plan loan up to 50,000 is sanctioned for new enterprises.
- Kishor plan: – Under this plan, an existing business can avail loan from 50,000 to 5 lakh.
- Tarun plan: – Loan between 5 lakh to 50 lakh is sanctioned for business expansion.
- TREAD scheme: – Trade-related entrepreneurship assistance and development Scheme aims to empower women by providing financial assistance, conducting training, counseling, and eliciting information on related needs.
- Mahila Udyam Nidhi Scheme: – This scheme is offered by Small Industries Development Bank of India (SIDBI) to get financial assistance up to 10 lakh for setting up a new small scale enterprise or for up-gradation of an existing venture. You can repay this loan within 10 years including a moratorium period of 5 years. The interest varies according to the market rates.
- Udyogini scheme: – Women who are involved in agricultural, retail and similar small businesses can avail loan up to 1 lakh under this scheme from Punjab and Sind Bank. The terms and conditions to avail the benefits of this scheme are:-
- Age limit should be between 18 to 45 years.
- Family income should be less than Rs. 45,000.
There is no income limit for widowed, disabled or destitute women. A subsidiary of 30% of the loan up to Rs. 10,000 is provided to widowed, destitute or disabled women from SC or ST category.
These business loans are exclusively offered for promoting women entrepreneurs in India. Did you know? There are over 8 million female entrepreneurs in India and Tamil Nadu has the highest share. Women population constitutes nearly half of the total population but only one-fourth take part in economic activities. To have better growth and access to finance these loans are being offered specially for women who aspire to become entrepreneurs. India needs more women entrepreneurs to have economic stability, to grow socially and culturally as well.
By Vanshika Tandon