India’s micro, small, and medium enterprises (MSMEs) sector has been undergoing a transformative shift, with women entrepreneurs emerging as a driving force behind its growth. According to a recent KPMG report unveiled at the TiE Global Summit in Bengaluru, 20.5% of MSMEs in India are now owned by women. This development not only underscores the increasing gender diversity in business ownership but also signifies a broader trend of empowerment and inclusivity within the entrepreneurial ecosystem.
With over 49 million MSMEs registered under the Udyam portal as of August 2024, employing more than 210 million people, the sector is a cornerstone of India’s economic structure. This growth, particularly among women and in Tier II and III cities, can be attributed to targeted government initiatives such as the Women Entrepreneurship Platform (WEP), Pradhan Mantri MUDRA Yojana (PMMY), and the Start-up Village Entrepreneurship Programme (SVEP). Women Entrepreneurship Platform (WEP):Launched by NITI Aayog, the Women Entrepreneurship Platform (WEP) is a one-stop resource for aspiring and established women entrepreneurs. It aims to bring together stakeholders from various sectors to provide mentorship, funding, and networking opportunities. By fostering a supportive ecosystem, WEP has empowered thousands of women to establish and scale their businesses, contributing to the rising number of women-owned MSMEs in India.
Pradhan Mantri MUDRA Yojana (PMMY): Empowering Low-Income Entrepreneurs
The Pradhan Mantri MUDRA Yojana, launched in 2015, has been a game-changer for small businesses, particularly those owned by women and individuals from low-income groups. The scheme provides collateral-free loans up to ₹10 lakh under three categories—Shishu, Kishor, and Tarun—catering to different stages of business development.
Women entrepreneurs have been significant beneficiaries of this scheme, accounting for nearly 70% of the total loans disbursed. The accessibility of credit through PMMY has enabled women to launch new ventures, invest in technology, and expand operations, thereby boosting their economic independence and contribution to local economies.
For instance, rural women have leveraged MUDRA loans to set up enterprises in sectors like handicrafts, food processing, and agriculture. These businesses not only generate employment but also preserve and promote local traditions and skills.
Start-up Village Entrepreneurship Programme (SVEP): This program, implemented focuses on promoting non-farm enterprises and fostering local innovation.
SVEP provides financial assistance, capacity-building support, and market linkages to rural entrepreneurs.
Tier II and III Cities: The New Frontiers of Entrepreneurship
One of the most significant insights from the KPMG report is the rise of startups in Tier II and III cities, which now account for 45% of all new startups in India.
The Atal Innovation Mission (AIM), a flagship initiative by the Government of India, has been instrumental in promoting innovation and entrepreneurship in these cities.. State-level initiatives, such as Karnataka’s Elevate program and Odisha’s Startup Odisha initiative, have also provided tailored support to entrepreneurs, ensuring that regional startups receive the funding, mentorship, and infrastructure they need to succeed.
Breaking Barriers: The Role of Women Entrepreneurs in Economic Growth
The increasing participation of women in India’s MSME sector is not just a milestone for gender equality but also a significant economic driver. Women-owned businesses are known to reinvest a higher proportion of their earnings in their families and communities, resulting in improved education, health, and overall well-being.
By creating jobs and fostering innovation, women entrepreneurs are contributing to local and national economic growth. Their success stories inspire other women to pursue entrepreneurship, creating a ripple effect that strengthens the entrepreneurial ecosystem.
Conclusion : India’s journey towards becoming a global economic powerhouse is intrinsically linked to the success of its MSME sector and the entrepreneurs driving it. The growing presence of women entrepreneurs and the rise of startups in Tier II and III cities are indicative of a more inclusive and dynamic entrepreneurial landscape.
Government initiatives have been instrumental in this transformation. As India continues to build on these successes, the entrepreneurial spirit of its people, supported by robust policies and initiatives, will undoubtedly play a pivotal role in shaping the nation’s economic future.
Uday India Bureau
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