Government Schemes for Women Entrepreneurs in India: Empowering Women in Business

Abstract

Introduction: Indian entrepreneurship has emerged as a role model for the new generation, inspiring innovation and success despite various constraints. Family businesses have played a crucial role in this transformation, and Micro, Small and Medium Enterprises form the backbone of India's industrial sector. Women entrepreneurs in India have been making remarkable strides, overcoming societal and economic challenges to attain leadership positions. Despite barriers such as balancing responsibilities, limited access to resources and financial constraints, women have demonstrated their capabilities across various sectors.

Methodology: This paper explores the key governmental programs aimed at empowering female entrepreneurs in India, the hurdles encountered by women in the business realm, and the comprehensive influence of these initiatives on their entrepreneurial trajectories. It reviews an extensive body of literature including Acero et al. (2024) on barriers to rural women's empowerment, Akuokwe et al. (2024) on government involvement, Emon and Nipa (2024) on Bangladesh's measures, Jain and Mathur (2024) on 104 studies of education and empowerment, Poonam et al. (2024) on global perspectives, Agarwala et al. (2022) on the Mudra Yojana, Mashapure et al. (2022, 2023) on Zimbabwe, Venugopalan et al. (2021) on Kudumbashree, Haupt and Ndimande (2019), Barba-Sánchez and Atienza-Sahuquillo (2012), Brinetto and Farr-Wharton (2007), the McKinsey Global Institute (2015) and Stephan et al. (2015). Ten government schemes are then examined in turn.

Results & Discussion: According to the National Sample Survey, women constitute approximately 14-15% of all entrepreneurs in India, substantially lower than men at nearly 85% of the total entrepreneurial workforce. Ten schemes are documented: Mahila Coir Yojana offering financial assistance up to ₹1 lakh; Stand Up India, launched in 2016, facilitating bank loans between ₹10 lakh and ₹1 crore with 25% of beneficiaries expected to be women; Pradhan Mantri Mudra Yojana providing loans up to ₹10 lakh under Shishu, Kishore and Tarun categories with no collateral below ₹1 lakh; the Women Entrepreneurship Platform of NITI Aayog; the National Mission for Empowerment of Women; Startup India with income tax exemption for the first three years; the Annapurna Scheme offering loans up to ₹50,000 over a three-year tenure; Rashtriya Mahila Kosh; DAY-NULM; and skill development schemes including PMKVY. Eleven challenges are identified, from limited access to finance and social and cultural barriers to legal and regulatory challenges and risk aversion.

Conclusion: The Indian government has made great progress in establishing an environment that is supportive of female entrepreneurs. Targeted programs and initiatives have made it possible for women to break through many of the socially imposed barriers and enter the business sector. However, more inclusive financial services, improved support networks, and tenacious attempts to overcome cultural barriers are still required in order to fully realize the potential of female entrepreneurs. Ultimately, India's overall development depends on women's economic empowerment via entrepreneurship, and the future of India's economy can be significantly shaped by women entrepreneurs with sustained government assistance.