From Start-Up to Stardom: How TREAD Transforms Entrepreneurs into Titans.
Entrepreneurs are the architects of innovation, job creation, and economic growth. In the fast-paced world of business and trade, governments all across the world have put in place various support structures and initiatives to aid these visionaries. The Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme is one such scheme that has made ripples in India. we will delve into the intricacies of this transformative scheme, exploring its benefits and its potential as a game changer for prospective entrepreneurs.
Understanding TREAD: What is it?
Women often face challenges and are more likely to hear a "NO" when it comes to securing financing, establishing a firm, expanding, and other aspects of the business world. Despite their skills, talents, and capabilities, women often encounter difficulties in securing business loans from major lenders, leading them to seek funds from less reliable sources. The Government of India launched the Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme for Women to encourage female entrepreneurship.
Under this scheme, the government provides financial help of up to 30% of the entire project value as estimated by lending banks, with the remaining 70% being financed as grants to applicant women.
The scheme's principal goal is to establish long-term employment for underprivileged women by strengthening their entrepreneurial and technical skills through a package of support services. This scheme also develops the capacities of such women's NGOs and trade-related service institutions through training, product and market development, and skill and technology transfer. Apart from training and counseling, it also provides credit, which is an issue for underprivileged women.
The Pillars of TREAD:
Aspiring entrepreneurs need to understand the core pillars of the TREAD Scheme:
1. Financial Assistance
TREAD provides eligible entrepreneurs with financial support in the form of grants and subsidies. This financial aid can be a game-changer for small and medium enterprises, providing the necessary capital to kickstart their ventures.
2. Capacity Building
Capacity building is the cornerstone of TREAD. It provides entrepreneurs with training and skill development programs, helping them enhance their knowledge and expertise in their respective fields.
3. Marketing Assistance
Marketing is a vital component of any business. TREAD assists entrepreneurs in promoting their products and services through various marketing activities, including participation in trade fairs and exhibitions.
4. Research and Development
Innovation drives businesses forward. TREAD encourages entrepreneurs to invest in research and development, fostering creativity and competitiveness in the market.
5. Export Promotion
TREAD is not confined to domestic markets. It encourages and supports entrepreneurs to explore international markets, helping them expand their businesses beyond borders.
Who Can Take Benefits of TREAD?
TREAD is a program that values diversity. It is aimed at specific types of entrepreneurs:
- Female Entrepreneurs
TREAD seeks to empower female entrepreneurs by providing them with the resources and opportunities they need to succeed in their chosen industries. - Entrepreneurs with Disabilities
This program recognizes the potential of entrepreneurs with impairments, providing them with a level playing field through financial and logistical assistance. - Entrepreneurs from Underserved Communities
TREAD ensures that entrepreneurs from underserved communities do not fall behind. It provides opportunities for those who may confront socioeconomic issues.
Benefits of the TREAD scheme:
Under this scheme, the government offers women a 30% rebate on the total project cost. The subsidy is only granted if the loan request is routed through an NGO. The institutions providing the remaining 70% of the loan support assess the project's cost. The Government of India's grant, along with the loan amount from significant institutions to aid underprivileged women, will be channeled through approved NGOs. These NGOs are actively engaged in assisting women in various income-generating activities within the non-farm sector.
Training and counseling assistance
The following training organizations conduct empowerment programs for women. These programs are funded if the institutions contribute at least 25% of the total cost.
• EDIs (Entrepreneurship Development Institutes)
• MSMEs (Micro, Small, and Medium Enterprises)
• NISIET
• NGOs
Women beneficiaries identified through this initiative are eligible for a stipend of up to Rs. 1 lakh for each program. The training program will last at least one month, with a minimum of 20 participants in each batch.
Eligibility Criteria for Registration:
- Must be a legal entity with a minimum of three years of registration.
- Experience with SHGs (Self Help Groups) thrift and saving programs.
- Qualified personnel should attend training sessions for women's skill development.
- Basic infrastructure and services for training delivery.
- The applicant should not be blacklisted by any ministry or statutory authority.
- Participation in entrepreneurship and income-generating activities.
- Extensive experience producing project proposals on behalf of women SHGs and businesses.
Documents required:
To apply for the TREAD Scheme, applicants must provide the following papers in addition to the Application Form.
• Identity Documents: PAN Card, Aadhar Card, Driving License, Voter ID Card, and so on.
• Address Proof: Aadhar Card, Valid Passport, Utility Bill, Property Tax Bill, and so on.
• Audited Accounts Records for the Previous Three Years
• Details on funding sources
• Candidates with work experience must provide supporting documentation.
How to Apply?
To apply for the scheme, submit an application to the nearest micro, small, and medium enterprise (MSME) development institute, and the required request will be handled by the relevant official.
Conclusion:
TREAD is a game changer for women entrepreneurs, those with impairments, and people from poor backgrounds. It evens the playing field, making chances in business available to all, regardless of gender or socioeconomic condition.
In essence, TREAD is more than just a scheme; it epitomizes the government's dedication to fostering entrepreneurship. It's an invitation to dreamers, inventors, and doers to take the first step toward a successful and rewarding business path.
Accept the Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme as your partner on the road to entrepreneurship success.
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