GS1 – Society
Context
The Government of India is proactively promoting women entrepreneurship to drive inclusive economic growth and enhance their participation in the Micro, Small, and Medium Enterprises (MSME) sector.
Current Status and Key Data
- Women-Led MSMEs: As per the Udyam portal, more than 46.7 lakh MSMEs are operated by women.
- Informal Sector Presence: Approximately 70.5% of micro-enterprises registered on the Udyam Assist Platform are women-owned.
- Gender Disparity in Formal Entrepreneurship: Less than 1% of women in India are formal entrepreneurs, in contrast to 3% of men.
- Self-Employment: According to the Periodic Labour Force Survey (PLFS), 67.4% of employed women are engaged in self-employment.
Government Measures to Foster Women Entrepreneurship
- MUDRA Scheme
- Provides collateral-free loans up to ₹10 lakh for women-led micro-enterprises.
- Stand-Up India Scheme
- Mandates each bank branch to extend loans between ₹10 lakh and ₹1 crore to at least one woman borrower.
- PMEGP Subsidy
- Offers up to 35% capital subsidy to women under the Prime Minister’s Employment Generation Programme.
- Swavalambini Programme
- Jointly launched by SIDBI and the NITI Aayog Women Entrepreneurship Platform to train women students in entrepreneurship.
- Pradhan Mantri Vishwakarma Yojana
- Focuses on training and branding for women artisans engaged in 18 traditional trades.
- PM JANMAN & Dharti Aaba Abhiyan
- Special focus on entrepreneurial and skill development for tribal women.
Importance of Women Entrepreneurship
- Employment Generation: Women-owned businesses employ over 2.84 crore individuals, contributing to both GDP and formal job creation.
- Harnessing Demographic Potential: Women constitute 48% of India’s population, making their economic participation critical for national growth.
- Startup Innovation: India has more than 76,000 women-led startups, fostering diversity, innovation, and inclusion in the business ecosystem.
- Poverty Alleviation: Entrepreneurship serves as a tool for income generation and economic independence, aiding in poverty reduction.