ANALYSIS ON IMPACT OF STAND UP INDIA SCHEME FOR WOMEN

ENTREPRENEURS

Dr. D. Swamikannan*
Yaadhav Dheepan C**

To boost the entrepreneurship and support the new age entrepreneurs in the economy,
Government of India has come up with the major initiative called as Stand-Up India.
STAND UP INDIA
In January 2016, Government of India had launched the Start-Up India scheme, which gave new
entrepreneurs a chance for growth through support from formal financial structure. Under the
scheme, entrepreneurs could get loans from banks to start their businesses. Now, a new scheme,
launching on April 5, will shift the focus to SC/ST and women entrepreneurs, to promote
inclusivity.
The Stand-Up India scheme provides loans to entrepreneurs of the Scheduled Caste and
Scheduled Tribes, as well as women. The loans range from Rs 10 lakh to Rs 1 crore. Both these
sectors are upcoming, and fast. The scheme helps them out by facilitating loans for non-farm
sector entrepreneurship. The scheme is expected to benefit at least 2.5 lakh borrowers based on
two new enterprises by a bank branch. Each enterprise will provide jobs depending on the nature
of its operations.
WOMEN ENTREPREUNERS IN INDIA:
A woman entrepreneur is a woman who starts and owns an enterprise by investing or holding at
least 51% in the total capital share. Women entrepreneurshp can be classified into Women in
Organised or Unorgainsed sector, Rural or Urban areas, large scale or small scale industries,
Single Woman or Joint Ventrue etc. Women entrepreneurs have evidently more to acquire than
their male counterparts, but the socio-cultural environment in which women are born and raised
hinders them.
______________________________________________________________________________
* Associate Professor and Head, Department of Environmental Economics, School of
Economics,Madurai Kamaraj University, Madurai -625 021. Email id: dskkanna@gmail.com

** Ph.D Research Scholor, Department of Environmental Economics, School of Economics,

Madurai Kamaraj University, Madurai -625 021. Email id: csydheepan@gmail.com

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Women entrepreuners in India can be classified into 3 broad categories:
i. Women entrepreuners with sound financial position, technical and professional
knowledge, Not bound by traditional items and living in Metro/Urban Cities. Ex:
shareholders/owners of corporate industries, IT firms etc.,
ii. Women entrepreneurs who lives in Metro,Urban and Semi-Urban areas with
sufficient education/work knowledge operating with own/borrowed capital and
follow both traditional/non-traditional customs. Ex: owing beauty parlors,
boutiques, Retail outlets, crches etc.,
iii. Women entrepreneurs who function as unorgainsed sector with weak education
operating with pre-domiinantly borrowed capital and follow traditional customs.
Ex: Road side vendors, agriculture and horticulture, cottage industries etc.,

The Indian society has evolved as a traditionally male-dominated one. Many Women socio-
economically depended on men throughout their life. Despite an equal population, very few
women were self-employed and the majority of them were engaged in the informal sector like
agriculture, agro-based industries, handicrafts, handloom and cottage-based industries.

In the last decade, there has been a remarkable shift from the traditional industry of handloom
and handicrafts to non-traditional industry and services. Opportunities are being identified,
considering the socio-economic, cultural and educational status and motivational level of women
entrepreneurs, particularly projects with low investment, low technical know-how and assured
market are suggested for them such as production of soaps, detergents, ready- made instant food
products including pickles, spices, papad, manufacturing of wooden goods, beauty parlor
business, typing centre, job contracts for packaging of goods and distribution and household
provision etc.

However, funding for their industries, especially start-ups still remain to be the challenge in the
Indian Economy.

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FUNDING ISSUES FACED BY WOMEN ENTREPREUNERS
Women entrepreneurs in India find it difficult to get funding for their startups. Global
Entrepreneurship and Development Institute (GEDI) published a global ranking for 2015 that
looked at how female entrepreneurs fare in the world. India was placed in the 70 th position
among 77 countries that were analysed. It stated that about Innovativeness, New Product and
Technology are the strong areas of Indian women entrepreneurs while Labour force parity and
Formal finance as weak areas.

Support and approval of the husbands seem to be a necessary condition for womens entry into
business in India. When family members are not in favour of supporting their ladies to take up
the business, naturally they do not support with the finances required for starting a new business
unit. Banking and financial sector feel the same way and often refuse finance on the bases of
gender bias.

BENEFITS FOR WOMAN ENTREPREUNERS UNDER STAND-UP INDIA:

To address the issue regarding formal finance, Stand up India scheme for Women entrepreneurs
as a part of social banking was launched. Stand Up India could transform Indian banks from
lenders to business facilitators. At the same time, Indian banks can steer Stand Up India from a
campaign to an agent of job creation and economic growth.

The objective of the Stand-up India scheme is to facilitate bank loans between ` 10 lakh and ` 1
crore to at least one scheduled Caste (SC) / Scheduled Tribe (ST) and at least one women
borrower per bank branch for setting up a Greenfield enterprise. This enterprise may be in
manufacturing, services or the trading sector. In Non-individual enterprises at least 51% of the
shareholding and controlling stake should be held by the borrower under stand up India scheme.

Stand up India scheme support entrepreneurs under two categories: Ready Borrower and Trainee
Borrower. Ready Borrower is the one who does not require hand holding support and starts the
process of application for the loan at the selected bank.

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Trainee borrowers are the borrowers who are in need of handholding. This borrower will be
linked to the LDM of the concerned district and the relevant office of NABARD/SIDBI.
SIDBI/NABARD offices will then arrange for support of such trainee borrowers as requested.
NABARD/SIDBI arrange for Financial training, Skill/Vocational Training, Entrepreneurship
Development Programme, support for Project profiles, mentoring support from established
enterprises etc., along with financial support from the bank. Interactive web-portal
www.standupmitra.in acts as a single point for availing all these services apart from approaching
bank branches/respective offices.
Stand up India designed under the Eco-system is as follows:

Source: Standupmitra.in

IMPACT ASSESSMENT
The elimination of obstacles for women entrepreneurship requires a major change in traditional
attitudes and mindsets of people in society rather than being limited to only creation of
opportunities for women. Hence, it is imperative that apart from financial support there was a
need for development programmes that will lead to change in attitude, skill development and
supportive services.
In this regard, Stand-up India scheme covers all the aspects as cited above. Deviating from the
previous schemes, Stand-up India comprises of training, skill development, supportive service
and financial support which will provide all-round support for women entrepreneurs at the single
point.

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However, in the bankers point of view, like other social banking initiatives launched by the
government of India, this scheme also has its own hitches. Bankers pointed out that, though loan
being availed for women entrepreneurs, many firms are being operated by male counter-parts. In
many firms, women remain as mere signatories who avail loan for their counter-part business.
Also, these schemes are yet to reach the 3 rd category of women entrepreneurs who are in real
need of financial and skill training support. Unless, likely reduction of informal finance
dependence is difficult.

REFERENCES:

https://www.standupmitra.in/Home/SchemeGuidelines
Paper titled Women Entrepreneurship in India by M/s.. Shikha Mahajan, Univertsity of Delhi.
Paper titled Trends in Women Entrepreneuship in India by M/s.Radha J. L, NWIMSR.
http://www.pradhanmantriyojana.co.in/stand-up-india-loan-scheme-sc-st-women-sbi-hindi-pdf/
http://pib.nic.in/newsite/PrintRelease.aspx?relid=138523
http://smallb.sidbi.in/%20/fund-your-business%20/additional-benefits-msmes%20/women-
entrepreneurship
http://www.thebetterindia.com/51130/stand-uo-india-scheme-benefit-women-scst-entrepreneurs/
Personal reference with bankers about stand-up India scheme

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