Tag: Stand Up India

5 Ways the Stand Up India scheme could benefit aspiring women and SC/ST entrepreneurs

The Stand Up India scheme, launched on April 5, ensures that women and SC/ST entrepreneurs have a fair chance at setting up their own businesses.

In January 2016, Prime Minister Narendra Modi had launched the Start-Up India scheme, which gave new entrepreneurs a chance at making it big. Under the scheme, entrepreneurs could get loans from banks to kick start their businesses. Now, a new scheme, launching on April 5, will shift the focus to SC/ST and women entrepreneurs, to promote inclusivity.

The Stand Up India scheme provides loans to entrepreneurs of the Scheduled Caste and Scheduled Tribes, as well as women. The loans range from Rs 10 lakh to Rs 1 crore. According to the government, these are sectors of the population that are often underprivileged or under-served. Both these sectors are upcoming, and fast. The scheme helps them out by facilitating loans for non-farm sector entrepreneurship.

Loans for Women Entrepreneurs

Women entrepreneurs in India find it difficult to get funding for their startups. Global Entrepreneurship and Development Institute (GEDI) published a global ranking that looked at how female entrepreneurs fare in the world. India was placed in the last five among the 30 countries that were analysed. It stated that about 73% women entrepreneurs failed to get funding from Venture Capitalists (VC). A study based in Karnataka found that about 90% women had only their own funding to rely on, while 68% found it tougher to get bank loans. All that is set to change once the Stand Up India scheme comes into action.

Refinancing Options

The scheme helps not just those who are in the initial stages of their entrepreneurial plans, but also those who have already set up their company but still fall under the startup category. Under the scheme, the government has opened refinancing options through Small Industries Development Bank of India (SIDBI), at an initial amount of Rs 10,000 crore. Along with that, a corpus (principal amount) of Rs 5000 crore would be created, to ensure credit guarantee through the National Credit Guarantee Trustee Company. Along with the composite loan, they will also be provided with a debit card.



Support and Knowledge

A research done by YourStory in 2014 indicates that about 54% women have no idea what a startup should work like or how to work on problem solving. About 58% women need to be educated about entrepreneurial resources and techniques. However, provisions under the scheme also includes support for both women and SC/ST borrowers, all the way from pre-loan stage to operating stage. Besides familiarising them with bank guidelines and terminology, they will also know about registering online and how to use e-markets, and entrepreneurial practices. To bring together all the information related to the scheme, the government will be setting up a website for Stand Up India.

Substantial Reach for Maximum Benefit

While self-employed women working in the low-skill sector (such as manual labour or street vending) has increased to almost 1 crore between 2000 and 2010, the number of women in higher income entrepreneurship still remains low. To increase this number, the intention of the scheme is to get at least two entrepreneurial projects started in every bank branch in the country. The Stand Up India scheme is expected to benefit about 250,000 potential borrowers, according to its official statement.

Connect Centres Near Home

The number of SC/ST entrepreneurs is growing. For instance, according to The Hindu, there’s been an impressive rise in SC/ST entrepreneurs in Andhra Pradesh. The number of organisations set up by them went from 319 in 2004 to 2275 in 2012. To cater to the growing demand, Stand Up Connect Centres would be established at the offices of SIDBI and National Bank for Agriculture and Rural Development (NABARD). With country-wide presence of more than 15 regional offices and 84 branches accommodating more than 600 clusters, the reach of SIDBI is massive. The SIDBI would join hands with the Dalit Indian Chamber of Commerce and Industry (DICCI), among other institutions, to facilitate the loans.

This story was originally published in The Better India

Image credit: http://www.narendramodi.in/



10 Things entrepreneurs must avoid while starting their ventures in India

With the launch of ‘Start Up India, Stand Up India’ initiative this weekend, many would-be entrepreneurs who were earlier waiting in the wings will be more willing to take the entrepreneurial leap and start their own ventures.

With the launch of ‘Start Up India, Stand Up India’ initiative this weekend, many would-be entrepreneurs who were earlier waiting in the wings will be more willing to take the entrepreneurial leap and start their own ventures.

But even the most experienced professionals will agree that entrepreneurship is a tricky choice to make. On one hand there are so many things that you have to do to achieve success and growth, while on the other there is an equally lengthy list of things that you absolutely must NOT do at any cost if you want your venture to survive.

So, in a bid to empower the budding entrepreneurs with the knowledge to make the most informed and viable business decisions, here are a few things that you should avoid like a plague if you want your venture to succeed in India.

1. Half-prepared entry

This is one of the most elementary mistakes a first-time entrepreneur can make, and yet it is one of the most easily avoidable ones. Often, while starting their ventures, entrepreneurs can be swayed by their own vision so much that they fail to factor in several key requirements to make their vision a reality.

Do you have enough employees to support your business? A viable revenue model? Do you know who your competitors are in the market? Any future strategies that will help you evolve past the initial stage? All these things need to be addressed before taking the plunge into entrepreneurship.

2. Ignore the value of analytics and research

Another easily avoidable mistake that most entrepreneurs starting their own businesses make is discounting the pivotal role data analytics and market research can make to your business.

Data analytic tools have improved to such a great extent today that they can often identify and predict consumer behavioural patterns and market trends well before they even occur. Leveraging them could give your business a big boost by identifying the strategic opportunities for your venture.

Moreover, a market research can also help you in identifying the target demographic for your product or service, which will make it easier for you to decide on the optimal brand positioning.

3. Modelling your business on short-term trends

Jumping on board a particularly popular bandwagon is a needless pit that entrepreneurs often end up jumping into. Needless to say, most of these startups often fail to survive beyond the initial few years.

In a digital age where people have the attention span of a goldfish, what is popular today may not be popular tomorrow. Therefore, if you are in for the long haul, always devise your products to address market gaps instead of trends.



4. Make more than just another job

Most entrepreneurs start their ventures to ‘work for themselves’ and escape the tedium of their professions. This sort of approach can hamper the growth of a start-up. Entrepreneurs must always look to evolve their businesses beyond just another ‘job’ that they do and continuously work on expanding their business.

5. Focusing too much on the idea and not enough on the team

A great business has a great idea at its core, but at the same time it also has a great team working hard to make that idea a success.While the idea that you come up with might be very good in itself, you also need to hire individuals that can support your venture’s long term vision.

6. Square pegs in round holes

This covers everything from hiring to incorrect business decisions. As a first-time entrepreneur you will require individuals who work as an employee as well as independent freelance contractors for one-off tasks.Both have their own sets of benefits and drawbacks; a contractor getting paid on a pro-rata basis might fail to meet deadlines, while having an employee is a full-time drain on your resources. The difference lies in identifying what to choose as the best-fit for your venture.

  • Most entrepreneurs also end up taking on multiple responsibilities to cut down operational costs. This practice should be avoided, as it leaves you with no time to build your business. Moreover, follow the tenet of ‘you get what you pay for’. Do not compromise on the quality of your service to save a few pennies.

7. Over emphasis on a certain business function

A successful business is a seamless confluence of several vital functions – sales, administration, marketing, finance and operations.End up concentrating on only one area of your business and you end up neglecting the others. This can be detrimental to a budding start-up.

8. Focusing on short-term gains

Many entrepreneurs often lose sight of the bigger picture in order to secure short-term gains. The effort, instead, should be on building lasting professional relationships with clients in order to ensure repeatable business. Will taking a cut in fees ensure the client will be associated with your venture for the long haul? Do it.

9. Inflexible business model

One of the most frequent mistakes that first-time entrepreneurs make is getting too attached to their idea. It sounded good when you told your colleagues about it and it looked good on the drawing board. However, always create an agile business model that will help your start-up survive the rough and tumble of the real market.

10. Ignoring the importance of contracts and legal framework

Never, ever, ever get into any arrangement without defining the contract. You and your clients mutually decide and agree upon certain terms and conditions when entering into a business deal; a contract is a documented proof of that agreement.

It often becomes your saving grace when the client expectations start to strain your budget more than your initial operational outlay. The benefits of a legal advisory, whether associated full-time with the start-up or on a consultation basis, cannot be stressed enough in these cases. Always ensure that you cover your legal bases in all your business dealings with clients or auxiliary service providers.



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