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To boost entrepreneurship and strengthen the backbone of India’s economy, the government has launched several schemes targeted at startups and Micro, Small, and Medium Enterprises (MSMEs). These initiatives are meant to provide much-needed financial aid, mentoring, infrastructure, and training support to both emerging and established business ventures.
1. Startup India Seed Fund Scheme
This scheme supports the early stages of a startup’s journey by offering funding for tasks like building prototypes, conducting market trials, and validating ideas. The aim is to help entrepreneurs cross the initial hurdles that come with limited access to capital.
2. Pradhan Mantri Mudra Yojana (PMMY)
Under this initiative, small business owners can apply for loans without needing to provide any collateral. These loans are disbursed through banks and micro-financing institutions under three categories: Shishu (up to ₹50,000), Kishore (₹50,000 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh).
3. Prime Minister’s Employment Generation Programme (PMEGP)
This is a credit-linked subsidy scheme that encourages people, particularly in rural and semi-urban areas, to start their own businesses. The program also aims to create jobs by financially supporting self-employment projects.
4. Stand-Up India Scheme
Designed specifically to promote inclusivity in entrepreneurship, this scheme provides loans to Scheduled Castes, Scheduled Tribes, and women entrepreneurs. It helps them start businesses in sectors like manufacturing, trading, and services with easier access to funding and handholding support.
5. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
For many small businesses, securing loans without collateral is a challenge. This scheme steps in to offer a guarantee to banks, making it easier for them to lend to MSMEs. It helps promote credit flow to deserving businesses that lack strong financial backing.
6. MSME Loan Support Schemes
Various financial institutions, including the MUDRA Bank, offer targeted loan schemes to MSMEs. These schemes are intended to address working capital needs, help with equipment purchases, and support business expansion.
Additional Initiatives Supporting Entrepreneurs
- Atal Innovation Mission (AIM): Encourages innovation through incubation centres, tinkering labs, and challenges that promote problem-solving and new ideas.
- Udyam Registration Portal: Simplifies the process of registering as an MSME, giving enterprises access to subsidies, credit, and market opportunities.
- PM Vishwakarma Scheme: Aimed at traditional artisans and skilled tradespeople, this scheme supports upskilling and provides financial assistance.
- SFURTI (Scheme of Fund for Regeneration of Traditional Industries): Encourages the formation of artisan and craft clusters to preserve traditional industries and boost productivity.
- Public Procurement Policy for MSEs: This policy mandates that a portion of all central government purchases must come from registered MSEs, providing them a stable market.
- Annapurna Scheme: Designed for women entrepreneurs in the food sector, this scheme helps finance small-scale catering and food supply businesses.
- Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS): Encourages MSMEs to adopt modern machinery and improve production quality through financial incentives.
