Economic Empowerment of Women Startupsthrough Government Schemes and Assistance
Economic Empowerment of Women Startupsthrough Government Schemes and Assistance
Economic Empowerment of Women Startupsthrough Government Schemes and Assistance
12(01), 941-949
Article DOI:10.21474/IJAR01/18207
DOI URL: http://dx.doi.org/10.21474/IJAR01/18207
RESEARCH ARTICLE
ECONOMIC EMPOWERMENT OF WOMEN STARTUPSTHROUGH GOVERNMENT SCHEMES AND
ASSISTANCE
In the last five years, the DPIIT has registered 8,635 organisations as start-ups in the nation, followed by 11,279 in
2019, 14,498 in 2020, 20,046 in 2021, and 26,542 in 2022.
It is clear that the women-owned business enterprisesnowadays are playing a significant role in society by creating
job opportunities, driving demographic changes, and inspiring the next generation of women entrepreneurs.
Therefore, to support and foster innovation, the Indian government launched the Startup India initiative, which aims
to build and nurture start-ups. A key aspect of this initiative is the focus on strengthening women's entrepreneurship
through various schemes and creating supportive networks and partnerships within the start-up ecosystem.
Recognizing the economic value of start-ups in terms of solving real problems and generating employment, the
government has taken multiple steps to promote sustainable growth among women entrepreneurs. These initiatives
are intended to empower women-owned start-up ventures, contributing to overall economic development and
prosperity in India. Hence, the study aims to evaluate the awareness and effectiveness of the government and bank
schemes dedicated to promoting the growth and sustainability of women-owned start-ups, with the ultimate goal of
making India a stronger and better economy.
25000
20000
15000
10000
5000
0
2018 2019 2020 2021 2022
No of start ups
Source: https://www.ibef.org/news/number-of-recognised-startups
Literature Review
(Eliganur & Ravi 2023), provided insight on governments effort in creating an enabling environment for startups in
India through various startup India schemes and analysed the impact of government initiatives on the startup
ecosystem. The data was collected using the secondary sources. The findings reveal that the scheme offer several
benefits like tax exemption, cost reduction, access to funds, fast-track patent registration and easy business windup
options. Another important scheme analysed in the study is the Startup India Seed Fund Scheme (SISFS), which
provides financial assistance to early-stage startups for market entry, product trials, and prototype development.
Therefore, the study concluded that the government has taken several efforts to help the entrepreneurs. But it is
necessary to know the effectiveness and outcomes of these schemes, for the growth and success of startups in India.
(Font-Cot et al., 2023),aimed to understand the start-up ecosystem and the role of local government in digital
transformation. The study adopts exploratory research. The findings of the study stated that the government has
provided great support through the implementation of tax incentives, infrastructure, various training programs,
innovation and access to finance for effective business through digitalization. Hence, the study concluded that the
success of the startup ecosystem is not a static process, it is an evolving one and the government has played a crucial
role in providing more supportive measures, therefore the study has suggested that policymakers should have an eye
on regular monitoring of those supportive measures to ensure the continued success of their businesses.
(Ingale et al., 2022),explored the various initiatives taken by the government for start-up financing, to determine the
level of funds received by entrepreneurs. It is seen that among the various initiatives taken by the government, the
most utilised are Startup India, Mudra Yojna, SETU, E-Business portal and Royalty Tax. So, the study highlights
the need for the government to take more initiatives in the country to create awareness about various other start-up
financing schemes among the people and recommends focusing more on venture capital and seed finance to boost a
greater number of start-ups in this competitive era.
(Jayanthi 2019), focused on entrepreneurship in India and its promotion under the ‘Startup India’ scheme. It
highlighted its role in generating employment, contributing to national income, rural development, industrialization
and technological development. The findings stated that there is a dominance of small enterprises in the
entrepreneurship landscape in India, and the reason for their low performance is due to the lack of startup skills,
networks, cultural support and technology absorption. Further, the study emphasized the initiatives taken by the
942
ISSN: 2320-5407 Int. J. Adv. Res. 12(01), 941-949
Government of India to nurture innovation and create opportunities for entrepreneurship across various sectors,
engaging with academia, industry, investors and underserved sections of the society.
(Garg et al., 2018), examined the opportunities to start a business by encouraging entrepreneurship and found that
the Indian government has come up with a wide array of startup policies and startup funds to encourage the launch
and growth of startups in the country. But from the data analysed it is observed that among the many initiatives, only
a few such as fund of funds and tax exemption have gained hype among the startup community. Most of the
entrepreneurs are either not aware of these different schemes or do not have a clear idea of how to avail them.
Therefore, the study concluded that there is a necessity to create an up-down and bottom-up approach to develop
responsibility to local and regional authorities and require their active involvement to shape and empower the
policies and programs.
(Jain 2018), examined the relationship between entrepreneurial training and startup initiatives among students. The
study used both quantitative and qualitative research methods to gather the data. The findings of the study revealed
that there is a positive relationship between entrepreneurial training and startup initiatives among the students.
Hence the study highlights the need to integrate training courses in education which will create a greater impact in
creating more successful young entrepreneurs and promoting the overall startup movement in India
Research Questions
1. What is the level of awareness among start-up women entrepreneurs regarding the central government and
bank schemes designed to support them?
2. To what extent are women entrepreneurs utilizing these initiatives to access financial support, training,
mentorship, and other forms of assistance?
3. What is the impact of these schemes on the growth, success, and sustainability of women-led businesses?
4. How can existing schemes be improved or new measures be introduced to better support and empower women
entrepreneurs in their entrepreneurial journey?
943
ISSN: 2320-5407 Int. J. Adv. Res. 12(01), 941-949
Research Methodology
Area of the study
Coimbatore City is chosen as the area for the study.
42
28
16
8
6
Percentage of…
The above Figure No. 1 states most (42%) of the respondents are aware of the schemes initiated.
64
Yes No
36
The above Figure No. 2 states majority (64%) of the respondents have utilised the schemes.
944
ISSN: 2320-5407 Int. J. Adv. Res. 12(01), 941-949
Correlation Analysis:
Ho: There exists a relationship between the Location of the Enterprise and Awareness of Schemes
Location of the Enterprise Location of the Scheme
Enterprise Awareness
Location of the Enterprise Pearson Correlation 1 .014
Sig. (2-tailed) .922
Scheme Awareness Pearson Correlation .014 1
Sig. (2-tailed) .922
From the correlation table, value r=0.014, so it is clear that there exists a positive relationship between the location
of the enterprise and scheme awareness among women entrepreneurs.
Ho: There exists a relationship between the Educational Qualification and Awareness of Schemes
Educational Qualification EducationalQualification Scheme Awareness
Educational Pearson Correlation 1 .172
Qualification Sig. (2-tailed) .237
Scheme Pearson Correlation .173 1
awareness Sig. (2-tailed) .237
From the correlation table, value r=0.172, so it is clear that there exists a positive relationship between educational
qualification and scheme awareness among women entrepreneurs.
From figure No.3 it is exhibited that central government schemes are more effective when comoared to bank
schemes.
945
ISSN: 2320-5407 Int. J. Adv. Res. 12(01), 941-949
0 5 10 15 20 25 30 35
From figure No. 4 it isexhibited that the most contributing aspect for the effectiveness of the scheme is financial
assistance.
[VALUE]
Not sure
48
36
0 10 20 30 40 50 60
The above figure No.5 depicts that there is a need for more inclusivity of schemes in order to benefit more
entrepreneurs.
946
ISSN: 2320-5407 Int. J. Adv. Res. 12(01), 941-949
CHART TITLE
Sustainable and long-lasting
Somewhat sustainable 36 24
40
The above figure No.6 depicts that most of the respondents perceive that the initiatives are sustainable and long-
lasting.
One-Way ANOVA
Ho: There is no significant difference between the impact of schemes and business sustainability.
Sum of Mean F P
Squares Square Sig
Impactof Between Groups 3.200 1.067 1.797 .161
schemes Within Groups 27.300 .593 NS
Total 30.500
Business Between Groups .203 .068 .146 .932
sustainability Within Groups 21.317 .463 NS
Total 21.520
The above data clearly shows that there is no significant difference between business sustainability and the impact
of schemes on women entrepreneurs.
Suggestions
To further empower start-up women entrepreneurs through financial lending, it is crucial for governments and
banks to focus on the following areas:
1. Targeted Outreach and Awareness: Conduct targeted outreach and awareness campaigns to reach aspiring
women entrepreneurs, especially in rural areas and inform them about the available financial support and
resources.
947
ISSN: 2320-5407 Int. J. Adv. Res. 12(01), 941-949
2. Tailored Financial Products: Develop financial products specifically designed to meet the unique needs and
challenges faced by women entrepreneurs, including flexible repayment terms and lower interest rates.
3. Financial Literacy Programs: Invest in educational programs that promote financial literacy and business
management skills among women entrepreneurs to enhance their capacity to manage finances effectively.
4. Streamlined Application Processes: Simplify and digitize the application processes for loans and funding to
make them more accessible and efficient for women entrepreneurs.
5. Collaborative Ecosystems: Foster collaboration between governments, banks, non-profit organizations, and
private sector stakeholders to create a supportive ecosystem that addresses the various aspects of women’s
entrepreneurship.
6. Incentivize Private Sector Participation: Encourage private sector organizations to actively invest in
women-led businesses and start-ups through partnerships and mentorship programs.
Future Direction
Looking ahead, the empowerment of women entrepreneurs through financial lending can be advanced through the
following future directions:
1. Digital Financial Inclusion: Leverage advancements in financial technology to provide digital banking and
payment solutions that enable easier access to financial services for women entrepreneurs, especially in remote
or underserved areas.
2. Impact Investment: Promote the concept of impact investment, encouraging investors to prioritize funding
for businesses with social and gender-inclusive objectives, including women-led start-ups.
3. Measuring and Reporting Impact: Implement comprehensive impact measurement frameworks to assess the
effectiveness of financial lending initiatives in empowering women entrepreneurs, and use this data to refine
and improve future programs.
4. Global Collaboration: Facilitate international cooperation and knowledge-sharing among countries to learn
from successful models and implement best practices in supporting women entrepreneurs.
5. Diversity in Decision-making: Encourage gender diversity in decision-making roles within financial
institutions to ensure a more inclusive and equitable approach to funding decisions.
Conclusion
Women's economic engagement and inclusive growth have been greatly aided by government and bank initiatives to
support female start-up businesses through financial assistance. These programmes provide women business owners
with access to funding, individualised assistance, and mentorship, all of which have proven essential in reducing the
gender gap in entrepreneurship and maximizing the potential of female leaders in the corporate sector.However,
despite the positive outcomes, there is still much work ahead. Focusing on process efficiency, creating targeted
financial solutions, and putting financial literacy initiatives in place is crucial for ensuring the ongoing effectiveness
and impact of these initiatives.In this way, female business owners might be more prepared to confront obstacles and
succeed in their endeavours. A future where women entrepreneurs are acknowledged as significant contributors to
economic development, creativity, and constructive social change will ultimately result from prioritising diversity
and inclusion. In addition to the financial gains, empowering women through financial lending is a critical step in
building a more equitable and successful society.
References
1. Rani, V. S., & Natarajan Sundaram. (2023). Impact Of Financial Inclusion On Women Entrepreneurs In India:
An Empirical Study. International Journal of Professional Business Review.
2. Eliganur, B., & Ravi. (2023). A Descriptive Study on Government Schemes for Startup Initiatives in India.
Education and Society, 47(2), 113-120. Retrieved from https://www.researchgate.net/publication/372157322
3. Font-Cot, F., Lara-Navarra, P., & Serradell-Lopez, E. (2023). Digital Transformation Policies to Develop an
Effective Startup Ecosystem: the Case of Barcelona. Transforming Government: People, Process and Policy.
doi:https://doi.org/10.1108/TG-01-2023-0006
4. Nasa, D. V., & Dr. Susheela2. (2022, October). Retrieved from https://creativecommons.org/licenses/by/4.0/.
5. Sharma, N., & Dr. Rajeshree Gokhale. (2022). She Is The Game Changer: An Analytical Study of Generation Z
. International Research Journal, 396- 404.
6. Dr. Partha Naskar, & Biki Digar. (2022, 22 May). Exploring Trends of Startup Financing: Potentials-
Possibilities-Prospects. International Journal of All Multidisciplinary Research Studies, 01(02), 1-6.
file:///C:/Users/anuin/Downloads/reviews%20start%20up/StartupFinancing.pdf
948
ISSN: 2320-5407 Int. J. Adv. Res. 12(01), 941-949
7. Vishwakarma, S. (2022). A Study on Start-Up Ecosystem and its future scope in India. Entrepreneurship and
Startups Culture in India, 1-14.
8. Ingale, D. D., Dr. Mangalgouri S., P., & Mrs. Sadhana Ganesh Awate. (2022). A Study On Start-Up Financing
For Entrepreneurs In India. IJFANs, 1985 - 1994.
9. Jayanthi. (2019). A Study about Entrepreneurship in India and its Promotion under Startup India Scheme. Iconic
Research and Engineering Journals, 2(11). doi:https://www.irejournals.com/formatedpaper/1701234.pdf
10. Garg, V., Gupta, H., Khan, S. H., & Samrity. (2018). Opportunity for startups and Entrepreneurship.
International Journal for Research in Applied Science & Engineering Technology, 6(IV). Retrieved from
https://www.ijraset.com/fileserve.php?FID=16249
11. Jain, T. K. (2018). Entrepreneurial Training and Startup Initiative Among Students: The Case of Suresh Gyan
Vihar University Jaipur. SSRN . doi:https://dx.doi.org/10.2139/ssrn.3292801
12. https://www.startupindia.gov.in/content/sih/en/women_entrepreneurs.html
13. https://www.ibef.org/blogs/women-entrepreneurs-shaping-the-future-of-india
14. https://www.gemconsortium.org/reports/womens-entrepreneurship.
949