In the diverse realm of Indian female entrepreneurship, the tale of Aditi Bhutia Madan shines as a beacon of success. Her journey began with a profound inspiration — the memory of her grandmother’s mouth-watering momos. While Madan’s culinary skills were unquestionable, the road to growth presented a formidable challenge: accessing formal financing.
For years, Madan grappled with the burden of loan sharks until she discovered the transformative Women StartUp Programme (WSP) at NSRCEL. Empowered with new skills and knowledge, Madan secured vital investments, propelling her passion into a thriving business.
The Impact of Women in Entrepreneurship
Women, acting as forces of innovation and resilience, play a pivotal role in industries that embrace entrepreneurship. Achieving equal access to opportunities unleashes the full economic potential of women-owned enterprises, thereby matching the impact of those led by men.
Pioneering Change: Women Entrepreneurs Making a Difference
Mansi Mehta and Niyati Mehta, the dynamic duo behind CancerMitr, exemplify the transformative power embedded in women entrepreneurship. Their initiative has left an indelible mark on the cancer community, providing support to over 20,000 patients and saving significant costs on treatment.
Wilma Rodrigues, through Saahas Zero Waste, has made substantial contributions to sustainability by significantly reducing reject waste. This effort has garnered recognition from esteemed institutions such as the UN and WEF.
Government Initiatives Empowering Women Entrepreneurs
The Ministry of Micro, Small & Medium Enterprises (MSME) has introduced several commendable schemes to foster women’s entrepreneurship. The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) ensures an 85% guarantee coverage, coupled with a 10% reduction in the annual guarantee fee. ‘herSTART,’ inaugurated by President Droupadi Murmu in October 2022, offers a monthly allowance of Rs 20,000 for women-led startups for up to one year, fostering financial inclusion and entrepreneurship.
The Mudra Scheme provides women with loans ranging from Rs 50,000 to Rs 10 lakh. Additionally, schemes like Stree Shakti Yojana and Dena Shakti Scheme offer interest concessions, further incentivizing women entrepreneurs. The Udyogini Scheme, led by the Women Development Corporation, supports women entrepreneurs across various sectors with financial assistance at an attractive interest rate of 4% per annum.
Challenges and Opportunities in Female Entrepreneurship
Of the 63 million Micro, Small & Medium Enterprises (MSMEs) in India, 20% are women-owned, employing approximately 22 to 27 million people. Estimates suggest that by accelerating female entrepreneurship, India could potentially create over 30 million women-owned enterprises, resulting in the creation of 150 to 170 million jobs. Women entrepreneurs face numerous obstacles, including limited access to finance, networks, training opportunities, and societal and cultural barriers such as gender stereotypes and discrimination, constraining their ability to initiate and expand their businesses.
Overcoming Challenges: The Resilience of Female Entrepreneurs
Despite these hurdles, female-led startups have demonstrated exceptional performance. According to a Bain & Company and Google survey, women entrepreneurs, though receiving less investment, exhibited better performance. They generated 10% more cumulative revenue over five years and were more efficient in turning investment into revenue compared to male-founded startups.
However, a 2022 survey highlighted that a significant percentage of women entrepreneurs faced challenges in accessing essential financial services, with 60% experiencing difficulties and 85% struggling to obtain loan services from nationalized banks.
Empowering Women Entrepreneurs: A Nationwide Call to Action
While some states like Meghalaya, Mizoram, Manipur, Tamil Nadu, and Karnataka have actively promoted female entrepreneurship, a nationwide effort is imperative. Bridging the credit disparity for Women-Led Enterprises holds substantial economic and societal benefits.
Reducing the gender gap in capital access and representation could potentially increase annual incomes by 12% on average by 2030. This Women’s Entrepreneurship Day 2023, let’s rally behind women entrepreneurs, fostering inclusivity and prosperity in India.
