A Lok Sabha report revealed that despite having over 900 women-led startups, only 80 have received financial aid through central schemes in Telangana. Out of 1,278 startups across India that received funding through the Startup India Seed Fund Scheme (SISFS), only 75 from Telangana were beneficiaries, receiving 16.3 crore. Many entrepreneurs cited a lack of awareness about the schemes, difficulties in the application process, and short eligibility periods.
Telangana lacks a strong network of experienced entrepreneurs compared to cities like Bengaluru or Mumbai, making it harder for women to navigate these schemes. The report also highlighted the lack of proper time frames for receiving aid. The Startup India initiative has three major schemes, including the Fund of Funds for Startups (FFS), the Startup India Seed Fund Scheme (SISFS), and the Credit Guarantee Scheme for Startups (CGSS).
Saketha Pingali of Smart Pharma Startup and Sridevi Reddy of Zithara believe that the time and effort required for micro-entrepreneur schemes are not worth it, and suggest alternative funding sources, However, they highlight the lack of awareness, accessibility, and long application processes, particularly among women entrepreneurs in the tier 1 cities. Additionally, Mrinalini Shastry, founder of Six Yards Plus, expressed concerns about the short eligibility period for the SISFS scheme, which is only for startups under two years, and is currently using CGSS.
