International Women’s Day 2024: The resilience and rise of women entrepreneurs – SME News

By Neeru Mohindru

As we celebrate International Women’s Day, it’s crucial to reflect on the remarkable strides made by women in the entrepreneurial landscape. Recent statistics from Udyam, India’s comprehensive MSME registration platform, highlight the significant role played by women-owned businesses in shaping the nation’s economic landscape. Currently women owned MSMEs contribute an impressive 18.73% to the total employment generated by all Udyam registered units. Basically, we are witnessing an invaluable contribution in terms of job creation, fostering economic growth, and sustainability on part of women-led businesses. 

The trailblazing influencers

As of March 2023, the Udyam portal recorded 2,775,390 women led MSMEs. Fast forward to January 2024, and this number has surged by an impressive 68.17%, reaching 4,667,278. This positive trend showcases the increasing participation of women entrepreneurs in the MSME sector. Women-owned MSMEs now constitute a substantial 20.5% of the total MSMEs registered on the Udyam portal, highlighting their growing influence and significance. They are also playing a crucial role in creating jobs and fostering economic development, especially in the more vulnerable and marginalized sections of society. Currently women-owned IMEs contribute 70.84% to the total employment within the informal sector. 

Seizing opportunities amidst challenges

Despite such a dominant contribution, women owned MSMEs often face challenges in accessing formal financing. Limited collateral, lack of financial literacy, and gender biases in lending institutions hinder their growth prospects. The solution lies in developing tailored financial products and services catering to the specific needs of women entrepreneurs.

Women entrepreneurs also face limited access to technology infrastructure, digital skills, and cybersecurity concerns. Investing in digital literacy programs and providing access to affordable technology solutions can unlock new opportunities for women entrepreneurs to expand their businesses and reach new markets.

The current scenario calls for enabling policy frameworks to foster the growth of women owned MSMEs. Streamlining regulatory processes, offering incentives for women entrepreneurs, and implementing gender-responsive policies can create a conducive environment for their success. Collaborative efforts between governments and industry associations can drive policy reforms that promote gender equality and support women’s entrepreneurship.

These entrepreneurs often face barriers such as limited networks, lack of market information, and discriminatory practices. Developing mentorship programs, facilitating networking opportunities, and promoting women-owned businesses through public procurement initiatives can enhance their market access and competitiveness. In fact, continuous learning and skill development are vital for the sustainability of women owned MSMEs. The right entrepreneurship training, mentorship, and networking platforms can enhance their managerial and technical capabilities. 

Conclusion

Deep-rooted cultural and social norms often constrain the participation of women in economic activities. It is important to overcome gender stereotypes, promote women’s leadership, and challenge traditional gender roles to foster an inclusive entrepreneurial ecosystem. Engaging communities, raising awareness, and showcasing success stories of women entrepreneurs can inspire societal change and create a supportive environment for women’s entrepreneurship. An enabling environment, technological prowess, and gender-responsive policies can empower women entrepreneurs to thrive and contribute significantly to India’s socio-economic development.

The author is Director Marketing, M1xchange.

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