VENTURE CAPITAL FUND FOR SCHEDULED CASTES: AN OVERVIEW

Abstract

Entrepreneurs suffer from lack of finance since the bank system as well as the micro finance sector is unwilling or unable to finance them. There is a gap in financing for inclusive innovation and social entrepreneurship. In a developing country like India, entrepreneurship has a pivotal role to play for acceleration of industrialization, generating employment and eradication of poverty and exploitation of natural resources for the economic development of the country. Entrepreneurs with qualities and skills are very essential for industries development as well as for eradication of poverty by means of creating self-employment and employment to others. Venture capital has a very important role to play in the industrial and economic development of an emerging economy. Venture capital is a new financial service, the emergence of which has been embarked for the formulation and developing strategies to help a new class of new entrepreneurs to convert their business ideas into realities. In particular, for a small entrepreneur with zeal and dynamism but with inadequate or lack of finance, venture capital or seed capital is a boon making a launching pad for financial growth. On February 2014 government of India announced the setting of a venture capital fund under the head social sector initiative in order to promote entrepreneurship among Scheduled Caste people and to promote concessional finance to them. IFCI will set up to lend a Venture Capital Fund for Scheduled Castes from an initial capital of Rs. 200 Crore, which can be supplemented every year.