Fostering Growth: What to Expect for Women Entrepreneurship in Interim Budget 2024

In the dynamic realm of India's entrepreneurial scene, the focus on women entrepreneurship intensifies, especially with the impending release of the interim Union Budget for 2024. The government's steadfast commitment to inclusive economic growth shines through policies designed to empower women entrepreneurs, reflecting CreditEnable's ethos. As a fintech led by a woman entrepreneur, dedicated to helping SMEs access the most affordable business loans, we engage daily with entrepreneurs, and see first and the unique challenges faced by women entrepreneurs and businesses led by women. From lending biases like the requirement of a male co-applicant to regulatory concerns and higher risk categorization. This year, the interim budget presents a pivotal opportunity to showcase financial inclusion and economic empowerment in India on a grand scale.

This article explores existing initiatives, their strengths, and proposes enhancements to support and encourage women entrepreneurship.

Vivad se Vishwas Scheme – Relief for MSMEs (Year: 2023)

A standout initiative from the government, the 'Vivad se Vishwas Scheme,' unveiled in 2023, has been tailored to provide relief to Micro, Small, and Medium Enterprises (MSMEs). Covering a substantial 95 per cent of performance security, bid security, and liquidated damages, the scheme has witnessed the approval of over 10,000 claims, resulting in a significant grant exceeding Rs 256 crore to MSMEs. Beyond immediate financial relief, this injection of funds has catalyzed increased bank credit flow by liberating guarantees, fostering an environment conducive to the growth of MSMEs.

As expectations soar for the upcoming interim budget, there's a collective call for an augmentation of impactful schemes with a specific focus on fostering women entrepreneurs. Acknowledging the unique challenges faced by women in the business landscape, there is a need for tailored caveats within this scheme. A nuanced approach within this scheme can pave the way for a more equitable and thriving entrepreneurial ecosystem, where the empowerment of women entrepreneurs is not just a goal but a measurable outcome.

Mudra Scheme (Year: 2015)

The Pradhan Mantri Mudra Yojana, initiated in 2015, has played a pivotal role in supporting small entrepreneurs, with a particular focus on empowering women. Geared towards providing credit of up to Rs 10 lakh, this transformative scheme witnessed an impressive 38 per cent growth in the disbursal of small business loans in the first half of 2023. The surge in support underscores the success of the Mudra Scheme in empowering women entrepreneurs, offering them essential financial assistance, and serving as a regulatory framework for Micro-Finance Institutions (MFIs). Expectations run high for continued and expanded support for women entrepreneurs under the Mudra Scheme in the upcoming budget.

Stand Up India scheme (Years: 2016-2025)

The Stand-Up India scheme holds the promise of being a catalyst for the growth of women entrepreneurs, with expectations set high for the upcoming interim budget. Envisaged until 2025, the scheme's strategic focus on economic empowerment fuels aspirations for aspiring women business leaders. Anticipations include increased financial inclusion through allocated funds for bank loans ranging from Rs. 10 lakh to Rs. 100 lakh, promoting equitable access to financial resources. Tailored sector-specific support, technology adoption aid, streamlined processes, and incentives for innovation form pivotal expectations. The collaborative efforts with industry associations and a push for sustainable practices further contribute to the envisioned environment for women entrepreneurs. As the budget unfolds, the collective desire is for a more supportive, inclusive, and empowering ecosystem, propelling women-led businesses towards success and contributing to overall economic growth.

Women Enterprise Development Scheme (WEDS):

The Women Enterprise Development Scheme (WEDS) encompasses a comprehensive set of key features designed to empower and elevate women entrepreneurs. Offering essential financial assistance, WEDS supports the establishment and growth of enterprises, covering working capital, infrastructure development, and technology adoption. Recognizing the importance of skill development, the scheme incorporates programs to enhance the capabilities of women entrepreneurs, fostering confidence and effective navigation of the dynamic business landscape. WEDS facilitates access to market opportunities, allowing women entrepreneurs to showcase and market their products effectively, crucial for sustainable growth. Moreover, the scheme fosters networking and mentorship programs, creating a supportive environment for learning and navigating entrepreneurship complexities. Looking ahead to the Interim Budget 2024, expectations include increased funding allocations, targeted support for technology adoption, expanded skill development programs, incentives for women-led innovations, promotion of sustainable practices, streamlined access to credit, and the introduction of specialized schemes for diverse sectors. These expectations reflect a collective desire for a more inclusive and impactful environment for women entrepreneurs to thrive.

Anticipating the Future: Interim Budget 2024 and Beyond

As the curtain rises on the interim Union Budget for 2024, there's anticipation for groundbreaking initiatives to boost women entrepreneurship. These visionary policies pave the way for financial inclusion and socio-economic empowerment. Indian women have a strong entrepreneurial spirit, and the upcoming budget is a crucial catalyst to empowering the dreams of more women across the country. CreditEnable believes in fundamental changes supporting women entrepreneurs until the landscape becomes egalitarian.

While the journey may be long, we stand by women entrepreneurs, helping them advance in a complicated and time-consuming financial landscape. With optimism, the stage is set for a future where women play a pivotal role in shaping India's economic destiny, and we look forward to seeing the opportunities the interim Budget provides for this to become a reality.

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