Introduction

Finance Minister Smt Nirmala Sitharaman Ji, in her budget speech for FY 2025-26, announced a new scheme for first-time entrepreneurs. The scheme would target 5 lakh women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs. This will provide term loans up to ₹2 crore during the next 5 years. The scheme will incorporate lessons from the successful Stand-Up India scheme. Online capacity building for entrepreneurship and managerial skills will also be organised. This scheme aims to facilitate access to capital for those who have historically faced challenges in securing credit. 

According to Bain and Co., over 15.7 million women-owned businesses in India currently comprise 22% of the country’s total entrepreneurial population. With more encouragement and support, this number may increase to 30 million. India’s Startup Ecosystem Report (WISER) also noted that the percentage of firms with female founders has significantly increased, rising from just 10% in 2017 to an impressive 18% in recent years. Although there has been a lot of progress, there are still many obstacles that women entrepreneurs must overcome, such as biased perceptions, restricted access to capital and networks, and the difficulty of balancing business endeavours with family obligations. The newly announced scheme aims to address some of these issues, primarily ensuring credit availability.

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