From Vision to Venture: 8 Laws and Schemes Shaping the Future for Women Entrepreneurs
“There is no limit to what we, as women, can accomplish.” – Michelle Obama
International Women’s Day: Promoting equality goes beyond granting rights; it’s about providing everyone with equal opportunities to exercise those rights. While global efforts are underway to bridge gender gaps and enhance opportunities, there’s still progress to be made.
In the entrepreneurial realm, a key driver of economic and societal progress, women may face challenges compared to their male counterparts. These challenges can stem from societal norms, traditions, or economic factors. However, a positive step forward involves considering the legal framework.
Knowledge is power, and understanding the rules and laws governing your business is crucial.
As we commemorate International Women’s Day on March 8 let us start by exploring the current empowering laws and schemes in India that women entrepreneurs should be aware of.
Companies Act, 2013
The 2013 Company Act mandates that listed companies appoint at least one woman director within six months of incorporation. This initiative aims to enhance women’s influence in decision-making at higher organizational levels, promoting meaningful participation. Amendments may be needed to ensure appointed women directors contribute independently outside of personal or company relations.
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
The right to an Internal Complaints Committee at the workplace is a crucial aspect mandated by the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act of India, enacted in 2013. This requirement applies to all organizations with 10 or more employees. The organizations are obligated to establish an internal complaints committee, and to raise awareness within their setup. The names of committee members must be openly published, and to avoid bias, an external member is required to be part of the committee.
The Micro, Small, and Medium Enterprises (MSME) Development Act, 2006
Under the MSME Development Act of 2006, women entrepreneurs can benefit from various schemes and incentives provided by the government to promote their participation in the business sector. These measures include financial assistance, training programs, and priority in procurement from government agencies.
Additionally, the Indian government has introduced several initiatives specifically aimed at supporting women entrepreneurs and freelancers:
Stand-Up India Scheme
Launched in 2016, the Stand-Up India Scheme facilitates bank loans between ₹10 lakh and ₹1 crore to at least one scheduled caste (SC) or scheduled tribe (ST) borrower and at least one woman borrower per bank branch for setting up greenfield enterprises in manufacturing, services, or the trading sector.
Mudra Yojana
The Pradhan Mantri Mudra Yojana (PMMY) provides funding to non-corporate, non-farm small/micro-enterprises. Women entrepreneurs are encouraged to avail loans under this scheme, which offers three types of loans: Shishu (up to ₹50,000), Kishor (₹50,000 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh).
National Policy for Skill Development and Entrepreneurship
The National Policy for Skill Development and Entrepreneurship aims to empower women by providing skill development training and entrepreneurial support. It focuses on creating an enabling ecosystem for entrepreneurship development, including access to finance, incubation facilities, and market linkages.
Startup India
Launched in 2016, the Startup India initiative fosters entrepreneurship and promotes innovation. Women-led startups are encouraged to register under this scheme, which offers various benefits such as tax exemptions, self-certification compliance, and funding support through the Startup India Fund.
Atal Innovation Mission (AIM)
The Atal Innovation Mission promotes a culture of innovation and entrepreneurship among women and youth. Through initiatives like Atal Tinkering Labs (ATLs) in schools, Atal Incubation Centers (AICs), and Atal New India Challenges (ANICs), AIM provides platforms for women entrepreneurs and freelancers to turn their innovative ideas into viable businesses.
By being aware of and leveraging these empowering laws, women entrepreneurs in India can navigate their business ventures with confidence and resilience, contributing significantly to the country’s economic growth and societal development.
Join us as we empower, enlighten, and celebrate the strength of women who dream big and break boundaries.
At Tide, we are on a mission to propagate the ideology of equality and empowerment throughout the entrepreneurial community. By providing accessible and innovative financial solutions, we aim to level the playing field and create a conducive environment for women entrepreneurs to thrive. Through advocacy, partnerships, and community engagement, Tide seeks to contribute to the advancement of women in business and society as a whole.
To every woman with a vision, a dream, and the courage to build her own entrepreneurial journey , we salute you.
Wish you a Happy International Women’s Day!
Disclaimer: Please note that the content of this post is provided for informational purposes only. It should not be considered as expert advice on any subject matter. You should not act, or refrain from acting on the basis of this post without first seeking professional advice.
