Women Entrepreneurs in India

Syllabus:

GS 1  > Society   >   Role of women   >   Women and Child issues

REFERENCE NEWS:

• Recently, the Union Minister for MSME lauded the remarkable surge in women's entrepreneurship within the MSME sector during the 9th Shakti International Women Entrepreneurs Summit held in New Delhi. 
• The Minister expressed immense pride in the unprecedented rise of women entrepreneurs in the MSME sector, revealing that over 1.40 crore MSMEs are currently led by women.

MORE ON NEWS:

• The annual Shakti International Women Entrepreneurs Summit is held each year in observance of International Women's Day (8th March) with an aim to empower aspiring and established women entrepreneurs while also celebrating achievements of emerging women entrepreneurs from varied industry sectors .
• Hosted by the India SME Forum and the Ministry of MSME in association with the Women Entrepreneurs Forum, the event connected participants with the nation’s most successful women entrepreneurs and international experts. 
• The summit marked the launch of three significant initiatives:
• Panjikaran Se Pragati Campaign: The Ministry of MSME, in collaboration with the Women Entrepreneurship Platform (WEP), launched the “Panjikaran Se Pragati” campaign. This national initiative aims to encourage women entrepreneurs across the country to register under the Udyam scheme, unlocking a plethora of opportunities. 

• WEP Unnati – Udyamita se Pragati tak Program: A joint program of the Ministry of MSME and WEP, the “WEP Unnati – Udyamita se Pragati tak” initiative, introduces the Award-to-Reward (ATR) program. This groundbreaking effort provides comprehensive capacity-building support through WEP to propel women-led MSMEs to the next level of growth. 
• Mentorship Platform by WEP: The Women Entrepreneurship Platform (WEP) unveiled its mentorship platform, fostering guidance and support for aspiring women entrepreneurs.

STATISTICS:

• According to the Sixth Economic Census by the National Sample Survey Organisation (NSSO), only 14% of the businesses in India are run by women entrepreneurs.
• A collaborative report by Bain & Company and Google highlights the transformative potential of women entrepreneurs in India, suggesting that they could generate 150-170 million jobs by 2030, which would address over 25% of the new job requirements for the entire working-age population??.

WHY INDIA NEEDS WOMEN ENTREPRENEURS?

• Essential for Sustainable Development:
  • Women are foundational to a nation's growth across all spheres. Their economic independence is key to participatory decision-making at all levels, from personal to societal. Empowering women economically is a cornerstone for building an aspirational society, where every individual's potential is recognized and nurtured????.
• Addressing Economic Gender Disparity:
  • The economic gap between genders is a significant issue, with women earning significantly less than men in the country.
  • For instance, the gender pay gap in India is among the widest in the world, with women, on an average, earning 21% of the income of men, according to the Global Gender Gap Report 2021.
  • A 2022 World Bank report highlights that enhancing women's equality in India has the potential to significantly boost the economy, suggesting that greater involvement of women in the workforce could lead to double-digit economic growth for the country.
• Shattering Orthodox Views:
  • Challenging and changing patriarchal norms that confine women to domestic roles is essential for women's independence and societal progress. Financially empowered women can break these stereotypes, advocating for gender-neutral opportunities in all sectors????.
• Achieving Economic Targets
  • As India aims for economic milestones, such as becoming a USD 5 trillion economy, leveraging women entrepreneurs, especially from rural areas and through initiatives like Self-Help Groups (SHGs), becomes imperative.
  • For instance, as per NITI aayog report by accelerating women's entrepreneurship, India could create more than 30 million women-owned enterprises, potentially creating 150 to 170 million jobs.
• Superior Financial Management:
  • Women have demonstrated prowess in managing finances, both within households and businesses. This acumen extends to strategic investment and resource allocation, making women key players in sustainable economic growth and wealth management????.
• Influential Role in Families and Societies:
  • Educating and empowering women have a multiplier effect; it benefits entire generations. Women's participation in financial and business decisions can foster a culture of equality and empowerment, laying the groundwork for more inclusive future generations????.
• Empowerment and Overall Development:
  • Economically empowered women lead to stronger families, communities, and nations. The holistic development that comes from women's entrepreneurship extends beyond individual success stories, contributing to global prosperity and gender equality????.

CHALLENGES FACED BY WOMEN ENTREPRENEURS IN INDIA:

• Funding and Financial Barriers: 
  • The Female entrepreneurs in India face significant financial obstacles due to gender biases and societal norms. Limited access to generational wealth, especially in semi-urban and rural areas, and restrictions on property ownership make securing loans challenging. These issues restrict women's access to necessary business capital.
  • Top of Form
  • For instance, according to a report by Innoven Capital, of all the companies in India that received funding in 2019, only 12% had at least one female founder.
• Societal and Cultural Barriers:
  • Traditional gender roles and cultural norms place women as primary caregivers, side lining their professional endeavours. Balancing household responsibilities with business demands is challenging, further complicated by the difficulty in gaining social permission to work due to cultural and safety concerns. These factors collectively discourage women's entrepreneurial pursuits.
• Sector Accessibility and Gender Stereotypes: 
  • Many industries in India are not welcoming to women, leading them to operate in traditionally "women-friendly" sectors like education and beauty. This limitation restricts their growth opportunities and confines their entrepreneurial ventures to lower-revenue sectors.
• Lack of Access to Professional Networks:
  • Limited access to professional networks is another one of the basic problems of women entrepreneurs in India. According to the Google-Bain survey, female business owners are less integrated with formal and informal networks. The survey further indicates that over 45% of urban small business owners suffer due to insufficient avenues of network development.
• Entrepreneurial Environment and Mobility Restrictions: 
  • The lack of a conducive entrepreneurial environment and restricted mobility due to safety concerns and societal norms limit women's ability to interact with the wider business community, attend networking events, and access necessary resources for their businesses.
• Educational and Skill Gaps: 
  • Despite advancements in educational access for women, a notable gap persists in opportunities for obtaining the entrepreneurship-relevant skills and knowledge, especially in sectors demanding technical expertise or business savvy. 
  • This gap is starkly evident in the Science, Technology, Engineering, and Math (STEM) fields, where women constitute just 28% of the workforce, and men significantly outnumber women in college STEM majors, underscoring the disparities in preparation and access to essential entrepreneurial skills.
• Risk Aversion: 
  • Societal conditioning and lack of financial independence contribute to a lower risk-bearing capacity among women. This aversion to risk is a considerable obstacle to entrepreneurship, which inherently involves uncertainty and the potential for failure.
• Work-Life Balance: 
  • Balancing the demands of a business with familial responsibilities poses a unique challenge for women, who are often expected to prioritize their roles as caregivers over their professional aspirations.
• Lack of Role Models and Mentors: 
  • The scarcity of successful female entrepreneurs as role models and mentors makes it difficult for aspiring women to envision their success and obtain the guidance and support necessary for their entrepreneurial journey.
• Regulatory and Institutional Hurdles: 
  • Navigating the legal and regulatory framework for business operations in India can be particularly challenging for women, who may lack access to legal and procedural advice.

WAY FORWARD:

• Enhanced Access to Finance: Simplify access to credit and offer financial literacy programs specifically for women entrepreneurs.
• Strengthen Support Networks: Create more women-only business networks for mentorship and knowledge exchange.
• Promote Women in STEM: Increase scholarships, internships, and mentorship programs for women in STEM fields.
• Enhance Government Programs: Refine and make government support schemes for women entrepreneurs more accessible.
• Address Societal Norms: Launch campaigns to challenge gender stereotypes and promote acceptance of women in leadership.
• Improve Legal and Regulatory Frameworks: Simplify the legal process for starting and running businesses and provide specialized advice for women.
• Encourage Corporate Partnerships: Foster partnerships between large corporations and women-owned businesses.
• Focus on Rural Areas: Target support for women entrepreneurs in rural and semi-urban areas, including market access and technology.
• Promote Work-Life Balance: Support flexible working arrangements and provide resources for balancing business and family responsibilities.
• Celebrate Success Stories: Use media to highlight and celebrate the achievements of women entrepreneurs as inspiration.

PRACTICE QUESTION:

Q. Discuss why the integration of women into the entrepreneurial ecosystem is significant for India. (10 marks, 150 words)