In light of the new schemes announced by the government, startups may miss out opportunities to grow, due to them not qualifying for the loans scheme outlined by the government. They are waiting, and are almost hopeful that the finance minister will put forth some guidelines and take more measures to help them as well.
According to Siddarth Pai, the founding partner at 3one4 Capital, several startups will find it challenging and difficult to acquire any form of credit. Due to the startups not being able to commence a line of credit, they may not be able to reap the benefits of the announced scheme.
Another disadvantage faced by startups is the fact that due to the MSME’s definition, many of them may not be able to get help even in the Aatm Nirbhar Scheme. In response to this, several startups in the manufacturing and ancillary services might make certain changes, in order to classify their business as MSME’s. This comes in light of the finance minister announcing an infusion of Rs.50,000 Crore into the MSME’s.