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(GIST OF KURUKSHETRA) COMPREHENSIVE ECOSYSTEM FOR RURAL WOMEN ENTREPRENEURSHIP

(DECEMBER-2024)

COMPREHENSIVE ECOSYSTEM FOR RURAL WOMEN ENTREPRENEURSHIP

Introduction

India, recognized as one of the rapidly advancing economies, aims to ascend to the position of the third-largest economy worldwide in the near future. Reaching this goal requires tapping into the underutilized entrepreneurial capabilities of rural women. Resilience and determination are innate characteristics of rural women, qualifying them as pivotal drivers of India's economic advancement. Nonetheless, their path to entrepreneurship is frequently obstructed by systemic barriers that must be addressed.

Key Statistics:

Women represent nearly 48% of India’s population but contribute only 17% to the GDP (World Bank, 2023).
Integrating 58 million more women into the workforce could elevate India’s GDP by USD 0.7 trillion by 2025 (NITI Aayog).
If 50% of women enter the workforce, female labor force participation could enhance GDP growth by 1.5 percentage points.

Despite these possibilities, women own merely 20% of businesses in India, with most situated in micro-units and the informal sector. Interestingly, rural areas excel compared to urban regions in terms of women-led enterprises, with 22.24% situated in rural locales against 18.42% in urban settings (MSME Annual Report).

Benefits of Supporting Rural Women Entrepreneurship

Economic Growth: Improved contribution to GDP and links between rural and urban development.
Social Cohesion: Inclusive workplaces and enhanced community relations.
Job Creation: Enterprises led by women employ three times more women than those led by men.
Poverty Reduction: Effectively combats rural poverty and joblessness.

Government Schemes to Foster Rural Women Entrepreneurship

Skill Enhancement and Mahila Coir Yojana (MCY):

Concentrates on skill development within the coir sector.
Provides two months of training and a stipend of ₹3,000/month.
Motivates recipients to launch coir enterprises under the Prime Minister’s Employment Generation Programme (PMEGP).

Start-Up Village Entrepreneurship Programme (SVEP):

A sub-scheme of DAY-NRLM aimed at creating non-farm businesses.
Focuses on rural impoverished populations, prioritizing women and marginalized communities.
Over 2.08 lakh businesses established across 29 states/UTs.

Mahila Kisan Sashaktikaran Pariyojana (MKSP):

Empowers women in agriculture by boosting productivity and supporting livelihoods.
Benefiting 1.77 crore women farmers through agricultural interventions.

Mahila Shakti Kendra (MSK):

Offers services including digital literacy, skills training, and access to government benefits.
Serves as a comprehensive solution for rural women entrepreneurs.

Women Enterprise Development Scheme (WED):

Provides financial aid for business initiatives in the Northeastern region.
Grants loans up to ₹15 lakh with a preferential interest rate of 8%.

Annapurna Yojana:

Aims at women entrepreneurs in the food services sector.
Provides collateral-free loans up to ₹50,000 for a 36-month period.

Mudra Yojana Loans for Women:

Enhances access to finance for small enterprises with a 25-bps interest concession for women-led businesses.
69% of the 44.46 crore loans sanctioned under this scheme have gone to women.

Startup India Initiative:

Promotes new ventures with over 46% having at least one female director.
Allocates 10% of the Fund of Funds for Startups (₹1,000 crore) specifically for women-led initiatives.

Shortcomings in Present Schemes

Lack of Awareness: Inadequate promotion and outreach, particularly in rural zones. Limited digital literacy hinders access.
Imbalanced Focus: Concentration on financial and skill support neglects concerns such as market connections and mentorship.
Absence of Targeted Schemes: Many schemes cater broadly, lacking attention to women-specific challenges.
Sectoral Oversight: Insufficient emphasis on entrepreneurship within the service sector.
Limited Online Access: Incomplete digitization and unwieldy interfaces obstruct scheme utilization.

Suggestions

Comprehensive Support Framework: Incorporate entrepreneurship development, business backing, market connections, financial accessibility, training, and mentorship in schemes.
User-Centric Design: Guarantee all-encompassing support for users throughout the scheme process, from registration to issue resolution.
Enhanced Digital Access: Advance user interfaces and include multilingual content. Utilize audio-visual aids for raising awareness and guiding application procedures.
Last-Mile Accessibility: Facilitate physical and assisted access to schemes. Deploy female frontline workers for effective outreach.
Gender-Disaggregated Data: Gather, report, and assess data to evaluate the impact of schemes on women entrepreneurs.
Formalization of Enterprises: Assist the transition of informal ventures into the formal sector with the aid of trained personnel.

Conclusion

Unlocking the entrepreneurial potential of rural women is paramount for India’s goal to emerge as the third-largest global economy. Their resilience and determination position them as key agents of economic prosperity. A strong and inclusive ecosystem supported by well-crafted government initiatives and focused assistance can convert rural women's enterprises into vital contributors to India’s development narrative.