(GIST OF YOJANA) Women Entrepreneurship in MSME Sector

(APRIL-2023)

According to the Registrar General of India, the work participation rate for women stands at 25 percent which is one of the lowest in the world.
Emerging reports show a growing decline in women’s participation in the workforce.
Frequent reports indicate a lack of safe and quality childcare support a major contributing reason for this decline.
In addition to this, there is a lack of infrastructural facilities for women at workplaces e,g. proper crèche facilities and their maintenance with decent infrastructure and other resources needed for the same.
The Report of the Expert Committee on Micro, Small and Medium Enterprises (2019), constituted by the Reserve Bank of India, has identified a lack of access to credit as one of the major constraints faced by the MSME Sector.
A 2022 report by the International Finance Corporation (IFC) has identified the lack of access to credit as an important constraint being faced by women entrepreneurs in India.

The MSME sector offers multiple opportunities to empower women by promoting entrepreneurship and plays a crucial role in the process of economic and social development through value addition, employment generation, equitable distribution of income, and removal of regional disparities.
Women-owned enterprises account for approximately 18.67% of the total MSMEs registered on the Udyam Registration Portal, over the last three years.
Similarly, the share of women employed by the MSMEs registered on the Udyam portal, in around two and a half years, is 23.59% out of the total employment by the MSME registered units during this period.
The Ministry of MSME is continuously making efforts to encourage women’s empowerment through various interventions.

Khadi and Village Industries Commission (KV1C), has engaged 3.99 lakh women artisans (80%), out of a total of 4.97 lakh artisans in the country, under its Khadi Programme.
In addition, KVIC, through its various skill development training programmes in disciplines like – Beekeeping, Pottery, Leather Goods, Fruits and Vegetable Processing, Bakery courses, Tailoring and Embroidery, Soap and Detergent making, Beautician course, etc., has been skilling women across the country.
During the last six years, a total of 1.81 lakh women have been skilled through these programmes.
In the coastal states of the country, Coir Board, under different schemes, imparts training to women workers on manufacturing quality coir products, thereby creating employment opportunities.

Initiatives for women-led enterprises: Under the Credit Guarantee Scheme Fund Trust for Micro & Small Enterprises (CGTMSE), to support Women Entrepreneurs, with effect from 1 December 2022, the concession of 10% in guarantee fee (over the normal rate) and enhanced guarantee coverage of 85% (against 75% in other cases) has been introduced in respect of loans given to women entrepreneurs.
Through the Credit Guarantee Scheme for Micro & Small Enterprises, since its inception in 2000, an amount of Rs. 53,080 crore has been guaranteed in respect of loans availed by 13.29 lakh accounts of women-led MSMEs.
Artisan-Based Cluster Development: Under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI), a special focus has been given to providing sustainable livelihood to artisans through the formation of manufacturing collectives in the traditional sector.
Apart from the above, Schemes of other Ministries, like Pradhan Mantri Mudra Yojana (PMMY) and Stand Up India, etc., help women set up their own enterprises. The Pradhan Mantri Kaushal Vikas Yojana provides opportunities for training and capacity building of prospective/existing women entrepreneurs.