How Government Agencies Are Fostering Women Entrepreneurship

How Government Agencies Are Fostering Women Entrepreneurship

Women empowerment is among the current trends in India. Led by economic liberalisation and globalisation, women's entrepreneurship is gaining prominence. Women entrepreneurs innovate, initiate, and run businesses to contribute to the economic development of India. Government agencies are working towards promoting this trend. 

The Role of Women Entrepreneurs in India

• Entrepreneurship development is one of the keys to the overall growth of a nation and about 20.37% of the Micro, Small & Medium Enterprises (MSME) industry in India is made up of women-led firms. 

• Women entrepreneurs are growing more substantially in India. 13.5 –15.7 million women-owned firms provide employment to 22–27 million of the Indian population. They provide employment to about 23.3% of the labour population. Therefore, the contributions of women entrepreneurs are significant.

• According to McKinsey Global, the potential contribution of India towards global GDP (Gross Domestic Product) can be US$ 700 billion with the rise in women’s participation in the labour force. 

• Also, the percentage of women's participation in the agriculture and manufacturing industry is higher than men's participation. Since these sectors help families to contribute to higher household income, the contribution from women is really significant. 

India being a developing country concerned that the major stratum of society i.e. women should not be excluded from the process of economic development. India has around 432 million working-age women. Women should be able to fully exercise their rights and receive support from the government to stay contributing to the economy. 

How Government Fostering the Women's Entrepreneurship in India

1. Providing Access to Funding

One of the challenges for women entrepreneurs is access to the required capital. Many entrepreneurs have great strategies to grow their businesses but a lack of finances is the blockage to employ. Several government institutions are devoted to the development of women-led entrepreneurship. These institutions provide funding for the initiation and sustenance of startups to women entrepreneurs. Few of these institutions

• The Ministry of MSME, India has opened a women’s cell offering assistance to women entrepreneurs. 

• The Women and Child Development department offers several income-generating schemes to assist women entrepreneurs.

• Other institutions are the Federation of Indian Women Entrepreneurs (FASME), the Entrepreneurship Development Institute of India (EDII), the National Bank for Agriculture and Rural Development (NABARD), the National Institute for Entrepreneurship and Small Business Development (NIESBUD), the Small Industries Development of Bank of India (SIDBI), and various others. 

2. Training and Education Support 

Entrepreneurship involves developing several skills to succeed, from product development and cash flow management to business management. Government agencies can invest in training programmes to support women entrepreneurs. For example, the NSTEDB provides training to entrepreneurs in science and technology.

3. Reduce Complexity in Regulations

Entrepreneurship often involves complex regulations and paperwork. Government agencies can work on simplifying and streamlining the process of initiation and running a business. They can provide a supportive legal framework, facilitate the online business registration process, ease the process of protecting intellectual property rights, etc.

4. Foster a Culture of Women-led Entrepreneurship

Government agencies can promote women's entrepreneurship through public awareness campaigns and celebrating their contributions in India. They can organise events to bring entrepreneurs, investors and experts together to exchange business strategies and showcase the latest innovations. It also helps to foster networking and collaboration.

Government Schemes for Women Entrepreneurship Development

Recognising the contribution of women to the economy, the government has launched several schemes for them. 

1. Mudra Loan for Women: It is a collateral-free woman loan scheme to provide financial aid to women entrepreneurs. There are different categories under Mudra Loan for Women scheme:

• Shishu Loan for a business loan at the initial stage.

• Kishor Loan for already established businesses looking for finances to improve services. 

• Tarun Loans for established businesses that need capital to expand their reach.

2. Annapurna Yojna: The government can grant a loan of up to Rs 50,000 to women entrepreneurs in the food catering business.

3. Bhartiya Mahila Bank Business Loan: The Bhartiya Mahila Bank (BMB) is a public sector bank offering a loan of up to Rs.20 crores to women entrepreneurs. The loan amount can be used to meet working capital requirements, for business expansion, or for manufacturing enterprises. 

4. Cent Kalyani Scheme: The scheme can provide financial assistance for starting a business or expanding projects. The loan amount can be up to Rs.1 crore. 

There are many government schemes that provide access to funds through grants, loans and other monetary incentives. 

Thus, the rise of women-led entrepreneurship is of immense importance so that women can become independent and participate in the economic growth. The Government of India supports the spirit of women entrepreneurship in India with various schemes. With such support, present and prospective women entrepreneurs can be encouraged more towards their entrepreneurial path.