Interim Budget 2014: Venture capital fund for Scheduled Castes just a populist move

The venture capital fund for Scheduled Castes is just another populist measure offered by the United Progressive Alliance. Entrepreneurship was probably the only area devoid of reservations, and didn't call for a fund that caters specifically to scheduled castes.  

Mahendra Swarup, former President, Indian Private Equity and Venture Capital Association, says that an ideal measure would have been to go in for a fund for economically backward regions to spur entrepreneurship there. A fund that caters to areas such as Jharkhand, Bihar, Odisha and the Northeast would have gone a long way in providing mentorship and capital to entrepreneurs in those regions, rather than a caste-specific fund.

By its very nature, venture capital investing does not discriminate on the basis of caste or creed. It is an idea that is backed by venture capitalists, and caste is nowhere in the scheme of things of an investor. A good idea and business model will find investors and funding irrespective of caste. In a slew of impact and social funds, what role it can fulfill, and what quality of entrepreneurship it can promote, are questionable.