Thriving Market for Women Entrepreneurs worth INR 3000 Crores cents around Gem
In India, women entrepreneurs now have a multitude of opportunities to access finance and government procurement, thanks to initiatives like the Stand-Up India scheme and the Government e-Marketplace (GeM) portal.
Finance Access Opportunities
- Stand-Up India Scheme: Launched by the Ministry of Finance, this scheme offers composite loans ranging from ₹10 lakhs to ₹1 crore to first-time greenfield ventures by women entrepreneurs across various sectors. With a loan repayment period of up to 7 years and an 18-month moratorium, this scheme has significantly boosted women's participation in formal financing.[1][2]
- Udyogini Scheme: Primarily designed for women from economically weaker sections, including SC/ST and Below Poverty Line categories, this scheme provides subsidized business loans. The loan disbursal timeline is approximately 2-3 weeks after application.[3]
- HerVikas MSME Program: Offered by Kinara Capital, this program provides discounted business loans (₹50,000 to ₹30 lakhs) to women-owned MSMEs, with benefits like a 60-day repayment holiday and reduced interest rates.[1]
- Mudra Yojana Scheme: This scheme provides collateral-free loans to women entrepreneurs for micro and small enterprises, with tiers ranging from Shishu (up to ₹50,000) to Tarun (up to ₹10 lakhs).[2]
Government Procurement and Business Growth Opportunities
- Government e-Marketplace (GeM) Portal: GeM is an online procurement platform by the Indian government aimed at enhancing transparency and efficiency. Women entrepreneurs registered on GeM can access direct government procurement opportunities. The portal facilitates MSMEs, including women-led businesses, to participate in tenders and sell goods and services to government buyers.[4]
- Support through awards and recognition: Initiatives like the ET MSME Awards include special categories recognizing women entrepreneurs, providing them visibility, networking opportunities, and credibility that can enhance access to finance and procurement contracts.[4]
- Start-Up India Scheme: While not exclusive to women, it supports women entrepreneurs with easier access to bank loans and encourages the setup of new ventures eligible for government benefits.[2]
These schemes and platforms provide women entrepreneurs with structured access to finance on favourable terms and enable participation in government procurement, thereby expanding their business growth possibilities in India.[1][2][3][4]
- The GeM portal reserves 25% of its procurement for MSMEs, with 3% allocated for women-run MSMEs.
- The Credit Guarantee Scheme, designed to support women entrepreneurs in patriarchal societies where they may not have property to pledge as collateral, offers loans up to Rs 5 lakh without requiring collaterals or third party guarantees.
- Women will receive up to 90 per cent of the Rs 5 lakh loan under the Credit Guarantee Scheme.
- The GeM portal facilitates transactions worth Rs 3000 crore for goods and services from women entrepreneurs, procuring products and services for PSUs and government departments.
- Under the Stand-Up India scheme, the government provides up to Rs 2 crore in loans to SC/ST and women entrepreneurs without collaterals.
- The Stand-Up India and Credit Guarantee for Micro and Small Enterprises (CGTMSE) schemes offer easy financing for women entrepreneurs, with a combined loan amount of Rs 2 crore.
Several state governments also offer similar facilities to women entrepreneurs, and initiatives like the ET MSME Awards recognize and support women entrepreneurs, providing them with visibility, networking opportunities, and credibility that can enhance access to finance and procurement contracts.
