This research article investigates the effectiveness of entrepreneurship financing schemes offered by the State Bank of India (SBI) in promoting entrepreneurship across urban and rural India. India’s micro, small and medium enterprise (MSME) sector is the cornerstone of its economic architecture, contributing 30.1% to the nation’s Gross Domestic Product (GDP), accounting for 35.4% of manufacturing output and constituting 45.73% of total exports (Ministry of MSME, Government of India, 2024). Despite numerous government-backed financial schemes channelled through SBI — such as the PM Mudra Yojana, Stand-Up India, PM SVANidhi and MSME loans — a persistent rural-urban disparity in credit access continues to challenge inclusive entrepreneurial development. Using a primary survey of 120 respondents drawn from urban and rural areas, this study evaluates awareness levels, accessibility, utilisation and perceived impact of SBI’s financing schemes on business growth and employment. The study employs descriptive statistics, chi-square analysis and t-tests to analyse the collected data. Findings reveal that while urban entrepreneurs demonstrate higher awareness and utilisation of SBI schemes, rural entrepreneurs face significant barriers including inadequate financial literacy, collateral requirements, bureaucratic procedures and limited branch proximity. The study recommends targeted outreach, digital banking literacy programmes, simplified loan procedures and dedicated rural entrepreneurship cells to bridge the gap. This research contributes to the existing body of knowledge on institutional finance and entrepreneurship development in emerging economies