Government Initiatives for Small Business owners In India

ARE YOU A SMALL BUSINESS OWNER IN INDIA? Or are you planning to establish your entrepreneurial venture anytime soon? Or are you an economics/ current affair geek who loves to collect information and retain it in your cerebellum? If the answer to any of the above is a “YES”, then read along, this article is going to be insightful for you!

Handicraft in India or handmade goods have been almost a part of our cultural identity, we try to carry a piece of tradition forward with us by carefully curating designs and objects. However, it is not always easy to establish such a Business identity. Handicrafts ventures have to deal with a lot of prejudices and shortcomings like capital, marketing, incentives, raw materials, etc. It seems to be an alluring proposition, that is much until you later delve into actual technicalities and paperwork part of it. Administration and government-related tasks in accordance with setting up Business Plans can be pretty exhausting and tiresome. And that too above all the manual and mental efforts that go in with work.

Well, we have something to help you. Here is a list of a few Government schemes formulated to support and make work easy for  Small Scale businesses and cottage industries. Have fun reading 🙂

  1. Pradhan Mantri Mudra Yojana

Under the scheme launched by PM Modi, Micro Units Development and Refinance Agency bank or MUDRA Bank provides low rate loans to microfinance institutions and non-banking financial institutions who in turn provide loans to startups and MSMEs on very low interest. Loans upto 10 lakh can be availed under this scheme based on the size of your business.

  1. Single Point Registration Scheme

For a variety of goods, the government is the single largest buyer. In order to increase the share of purchase from a small scale sector the government stores purchase program was launched where micro and small enterprises are registered under the Single Point Registration scheme for participation and government purchases.

  1. Stand up India for financing SC/ST and/or women entrepreneurs

A scheme launched by Small Industries Development Bank of India that tries to facilitate bank loans between 10 lakhs to 1 crore to at least one scheduled castes and scheduled Tribes and at least one woman per Bank branch for setting up a Greenfield enterprise. The enterprise can either be in manufacturing, services, or other trading sectors.

  1. Sustainable finance scheme

If your business is a Sustainable development project that contributes to energy efficiency and cleaner production but is not covered under the international or bilateral lines of credit then under SIDBI you can avail funding exclusively for the same.

  1. Virasat

Virasat is a credit scheme for craft persons that comes under the National Minorities Development and Finance Corporation. The purpose of the scheme is to help artisans and craftspersons in meeting their working capital and fixed capital requirements. A maximum loan of upto 10 lacs can be availed and that this and women artisans can avail an extra loan rebate for the same

  1. Coir Vikas Yojana

This scheme is made up of 6 parts that try to facilitate the development of domestic and export markets, skill development and training, empowerment of women, entrepreneurship creation and development, enhance material utilisation, trade-related services, and welfare activities for coir workers. It accounts for a lot of benefits which include providing machinery and equipment along with various subsidies on any COir related business.

  1. Raw Material Assistance Scheme

This scheme aims at helping small enterprises by way of financing the purchase of raw materials, both indigenous and imported. It gives an opportunity to small ventures to focus better and manufacture quality products. Financial assistance of credit for procurement of raw materials is provided up to 90 days along with discounts received under bulk supplies arrangements.

  1. Marketing assistant scheme

This scheme intends to improve the marketing capabilities and competitiveness of various small level businesses and show their competency as well as inform entrepreneurs about prevalent market scenarios and marketing impact on their activities. Entrepreneurs are helped with their budget for organising and participating in various domestic exhibitions or international trade fairs till upto 30 lakhs.

  1. Credit linked capital subsidy for technology upgradation

In order to foster better technological development and scientific upgrade to existing resources, the government provides financial help to MSMEs for the same. It provides a 15% subsidy to investment upto rupees 1 crore for updating technology for startups and such enterprises in India and more than 7500 products and services are covered under this government scheme.

  1. Design clinic for design expertise to MSMEs

Innovation and design are imperative for any sector and every small enterprise should have a design-centric approach so that it is easier for them to solve the problems they are facing. To provide an impetus and inspired small businesses to experiment and innovate new designs for their products, the ministry has established a Design clinic for inducing design-related expertise in form of seminars and workshops wherein entrepreneurs and their team can learn and implement design theories. The government provides upto rupees 60K for attending the seminar and up to 75% bearing the cost of conducting the seminar.There are certainly many more schemes available on the net ( on basis of what your work domain is, the size of your business, the identity of the business owner, etc. It is always good to stay in touch with recent policy-led developments so as to ensure getting full benefits from the administrative overheads that are supposed to make work easier for one.

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