The government estimates that the newly announced scheme for first-time entrepreneurs will generate 25 lakh jobs over the next five years in manufacturing, services, and allied agriculture sectors, a senior government official said.
The initiative, scheme for first time entrepreneurs, introduced in the Union Budget 2025-26, is designed to build on the gains of the Stand-Up India scheme and provide financial support to new entrepreneurs from underrepresented groups.
The scheme will provide term loans ranging from Rs 10 lakh to Rs 2 crore for greenfield enterprises, enabling first-time entrepreneurs to access formal credit through banks. The government’s employment projection is based on the 10 lakh jobs created under the Stand-Up India initiative, which has so far facilitated 2.5 lakh loans of up to Rs 1 crore.
“The likely impact of the scheme is employment generation of at least 25 lakh over the next five years. The scheme will not only promote entrepreneurship among women and scheduled caste (SC) and scheduled tribe (ST) communities by offering financial support but also ensure proper hand-holding through specialised agencies,” a senior government official said.
The scheme is expected to focus on increasing formal credit access, reducing barriers to entry for marginalised entrepreneurs, and fostering economic empowerment.
Targeted Support
A key component of the initiative is a dedicated scheme aimed at supporting 5 lakh first-time entrepreneurs from women, SC, and ST categories. “The new scheme will build on the entrepreneurial spirit kindled by the Stand-Up India scheme, leading to greater social empowerment,” the official added.
The scheme will cover businesses in the manufacturing, services, and allied agricultural sectors, ensuring a broad-based impact on job creation. Eligible borrowers will receive not just financial assistance but also training and mentoring through specialised hand-holding agencies.
Credit Guarantee
To ensure the smooth implementation of the scheme, a credit guarantee mechanism will be provided through the National Credit Guarantee Trustee Company (NCGTC). This will mitigate risks for lenders and encourage greater participation from financial institutions in extending credit to first-time entrepreneurs.
“The scheme will incorporate lessons from Stand-Up India and further refine the approach to supporting new businesses. By providing structured credit and necessary guidance, we expect to see long-term economic benefits and enhanced self-reliance among first-time entrepreneurs,” the official noted.
With 5 lakh new entrepreneurs expected to benefit in the next five years, the government sees this initiative as a crucial step in fostering inclusive economic growth and strengthening India’s entrepreneurial ecosystem.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
