In recent years, there has been a growing recognition of the crucial role that women play in shaping the economies of countries around the world. In particular, in the micro, small, and medium-sized enterprise (MSME) sector, women entrepreneurs are driving significant growth and innovation, generating jobs, and contributing to their countries’ overall economic development. This article will explore the increasing importance of women in the MSME sector and the various ways they are shaping their countries’ economies.
MSMEs and Their Importance to the Global Economy
Micro, small, and medium-sized enterprises (MSMEs) are businesses with fewer than 250 employees. These firms make up the majority of businesses worldwide and are significant contributors to job creation and economic growth. According to the International Council for Small Business (ICSB), MSMEs account for around 90% of businesses worldwide and employ over 50% of the global workforce. Moreover, MSMEs contribute significantly to the gross domestic product (GDP) of many countries. For instance, in India, MSMEs contribute around 30% to the country’s GDP and employ approximately 110 million people.
Women in the MSME Sector
Women are increasingly making their presence felt in the MSME sector, and they are having a considerable impact. In India, for example, women entrepreneurs are leading the way in the MSME sector. The number of women-owned MSMEs in India is estimated to be around 8 million, and this number is growing rapidly. According to a report by the National Sample Survey Organization (NSSO), the share of women in the MSME sector increased from 14% in 2006 to 20% in 2014.
Moreover, the International Finance Corporation (IFC) estimates that there are around 126 million women entrepreneurs worldwide, with this number expected to grow significantly in the coming years. Women entrepreneurs are not only contributing to the economy but are also empowering themselves and their communities. The growth of women-owned businesses is critical to the overall development of a country.
Challenges Faced by Women Entrepreneurs in the MSME Sector
Despite the significant contributions of women entrepreneurs to the MSME sector, they still face several challenges. These challenges include limited access to finance, lack of training and education, societal biases, and cultural barriers.
Access to finance is a major challenge faced by women entrepreneurs. Women entrepreneurs often struggle to obtain financing for their businesses because of discriminatory lending practices, lack of collateral, and limited credit history. As a result, women-owned MSMEs tend to be smaller and less profitable than those owned by men.
Moreover, women entrepreneurs often lack the necessary training and education to succeed in the MSME sector. They may not have access to the same level of education and training as men, limiting their knowledge and skills necessary to run successful businesses.
Societal biases and cultural barriers also pose significant challenges to women entrepreneurs.
In many societies, women are expected to prioritise family responsibilities over work, making it difficult for them to commit fully to their manufacturing units. Additionally, many cultural biases exist that limit women’s participation in the workforce and entrepreneurship, such as discrimination, harassment, and gender-based violence.
Ways Women Entrepreneurs Are Shaping the MSME Sector
Despite the challenges they face, women entrepreneurs are making significant contributions to the MSME sector and their countries’ economies.Women entrepreneurs are increasingly setting up their businesses in the MSME sector in India. According to the Ministry of MSME, women entrepreneurs account for around 14% of the total entrepreneurs in the country. This number is increasing every year as more and more women are breaking the traditional gender barriers and venturing into entrepreneurship.
One of the reasons for the increasing participation of women in the MSME sector is the government’s various initiatives to encourage women entrepreneurship. The Indian government has launched several schemes to support women entrepreneurs, such as the Annapurna Yojana, which provides loans for setting up food-based businesses, and the Mahila Udyam Nidhi Scheme, which provides financial assistance to women entrepreneurs for starting or expanding their businesses.
Women entrepreneurs are setting up businesses across various sectors in the MSME space, including handicrafts, textiles, food processing, and beauty and wellness. These businesses are not only creating employment opportunities for women but also contributing significantly to the country’s GDP.
Here are some of the ways women entrepreneurs are shaping the MSME sector:
Job Creation
Women entrepreneurs are creating jobs and contributing to their countries’ overall economic growth. According to the IFC, women-owned businesses have the potential to create millions of jobs and drive significant economic growth. For example, in India, women-owned MSMEs employ approximately 22 million people, contributing significantly to job creation and poverty reduction.
The MSME sector is a significant employer in India, contributing to over 110 million jobs. Women entrepreneurs are creating new job opportunities and employing more women in their businesses. Women entrepreneurs are also contributing to the country’s goal of achieving gender parity in the workforce. The participation of women in the workforce is essential for the country’s economic growth as it leads to increased productivity, innovation, and better decision-making.
Women entrepreneurs are also creating jobs for women in rural areas, which is crucial for the economic empowerment of women in these regions. These businesses are providing women with income-generating opportunities, which are helping them to become financially independent and support their families. This, in turn, is contributing to the overall development of the rural economy.
Innovation and Creativity
Women entrepreneurs are bringing innovation and creativity to the MSME sector. They are setting up businesses that are producing unique and niche products, which are in demand in the domestic and international markets. Women entrepreneurs are also incorporating new technology in their businesses, which is leading to increased productivity and efficiency. The unique perspective and experiences of women entrepreneurs are helping them to identify gaps in the market and come up with innovative solutions to meet the needs of their customers. This, in turn, is leading to the growth of their businesses and contributing to the overall growth of the MSME sector.
Export Promotion
The MSME sector is a significant contributor to India’s exports, accounting for around 45% of the total exports from the country. Women entrepreneurs are playing a crucial role in promoting exports from the country. They are setting up businesses that are producing high-quality, niche products that are in demand in the international market.
Women entrepreneurs are also participating in international trade fairs and exhibitions, showcasing their products and networking with potential buyers. These efforts are leading to increased exports from the country, contributing to the country’s economic growth.
Business Scopes for women’s from all over India
Women in India have come a long way from being confined within the four walls of their homes to being successful entrepreneurs in various fields. Over the years, the government has taken several initiatives to encourage women entrepreneurship and increase their participation in business. However, the business opportunities for women differ across different parts of India.
The northern region of India comprises states like Jammu and Kashmir, Punjab, Haryana, Himachal Pradesh, Rajasthan, and Uttar Pradesh. Women in this region are known for their skills in handicrafts, embroidery, and textiles. Therefore, starting a business in these fields can be a good option for women. Additionally, the food industry is also booming in this region, and women can explore opportunities in catering, bakery, and confectionery with their small scale manufacturing unit.
However, women entrepreneurs in this region may face challenges related to the patriarchal mindset and lack of support from family members. The government has taken several steps to promote women entrepreneurship in this region, such as providing financial assistance and training programs.
The eastern region of India includes states like Bihar, Jharkhand, Odisha, West Bengal, and
the seven sisters of Northeast India. Women in this region have traditionally been involved in agriculture and handicrafts. They also have a knack for fashion designing and jewellery making, which can be leveraged to start their own manufacturing unit.
The government has set up several schemes to promote entrepreneurship among women in this region. For example, the Pradhan Mantri Mudra Yojana provides loans to small and micro-enterprises, including those run by women. Moreover, the government has set up women-only industrial parks in several states, providing women entrepreneurs with an environment that is conducive to business growth.
The southern region of India comprises states like Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, and Telangana. Women in this region are known for their entrepreneurial spirit and are involved in a wide range of businesses, from agriculture to technology.
One of the popular businesses that women entrepreneurs in this region are involved in is the food industry. South Indian cuisine is famous all over the world, and women entrepreneurs can capitalise on this by starting their own restaurants, cafes, or catering services. Another popular business is textile manufacturing units, with many women involved in the production of handloom and silk saree in their own manufacturing unit
Women is breaking down the cliche & soaring new heights
The MSME sector has traditionally been male-dominated, with women facing numerous obstacles in starting and running their own businesses. However, over the years, women have played an increasingly important role in shaping the MSME sector, both as entrepreneurs and as policymakers.
One of the main ways in which women have contributed to the MSME sector is by breaking down gender stereotypes and cultural barriers. Women entrepreneurs have shown that they can be just as successful as men in starting and running their own businesses. They have challenged traditional gender roles and demonstrated that women can be effective leaders and decision-makers in the business world.
Over the years, women have carved a niche for themselves in this field and have shown that they are no less than men when it comes to entrepreneurship and business acumen. Their contribution to the MSME industry has been significant, and their success stories have been an inspiration to many. Till now in this blog, we have discussed many iconic roles of women in the MSME industry. From starting their businesses to creating a niche for themselves in male-dominated industries, these women have shown that gender is no barrier when it comes to entrepreneurship.
One such iconic contribution is that of Kiran Mazumdar-Shaw, the founder of Biocon Limited. She started her company in 1978 with just Rs. 10,000 and today, it is one of the largest biotechnology companies in India. Her journey has been an inspiration to many women, and she has proved that with hard work and determination, anything is possible.
Another woman who has made a significant contribution to the MSME industry is Rashmi Daga, the founder of FreshMenu. She started her company in 2014 and has since then, taken it to great heights. Her innovative approach to food delivery has won her many accolades, and she has shown that there is a lot of potential in the food delivery industry.
These women are just a few examples of the many who have made a significant contribution to the MSME industry. However, despite their success, there is still a long way to go in terms of gender equality in the business world. Women continue to face various challenges such as gender bias, lack of access to funding, and lack of representation in leadership positions. To overcome these challenges, there is a need for more support and initiatives that promote gender equality in the MSME industry. This includes providing women with access to funding and mentoring, creating awareness about the benefits of gender diversity, and encouraging women to pursue careers in entrepreneurship.
However, there is still a long way to go in terms of gender equality in this field. It is important to recognize the challenges that women face and work towards creating a more inclusive and diverse business environment. With the right support and initiatives, women can continue to break barriers and achieve success in the MSME industry.
Moreover, women entrepreneurs have brought a fresh perspective to the MSME sector, which has led to the development of innovative products and services. They have identified untapped markets and have created businesses that cater to the needs of women customers. For example, women entrepreneurs have set up businesses that provide financial services to women, such as microcredit, microinsurance, and microsavings. These businesses have helped to empower women economically and have contributed to their financial independence.
Another way in which women have played a greater role in shaping the MSME sector is through policy interventions. Governments around the world have recognized the importance of women’s entrepreneurship and have introduced policies and programs that support women entrepreneurs. For example, many countries have introduced affirmative action policies that reserve a certain percentage of government contracts for women-owned manufacturing units.
Some governments have also set up women’s entrepreneurship development programs that provide training, mentorship, and financial support to women entrepreneurs.
The private sector has also recognized the importance of women’s entrepreneurship and has introduced initiatives that support women entrepreneurs. For example, many corporations have set up programs that provide business development services, such as training, mentorship, and networking opportunities, to women entrepreneurs. Some corporations have also introduced supplier diversity programs that encourage the procurement of goods and services from women-owned businesses.
Let’s Wrap Up!
In conclusion, women have played and continue to play a greater role in shaping the MSME sector. They have broken down gender stereotypes and cultural barriers, brought a fresh perspective to the sector, and contributed to the development of innovative products and services. They have also benefited from policy interventions that support women’s entrepreneurship and from initiatives introduced by the private sector. As we look to the future, it is clear that women will continue to play an important role in shaping the MSME sector and contributing to its growth and development. Goodwill Bizhub is a prominent landmark for all to strive high in their endeavours. Come & witness a most dynamic address of success in Navi Mumbai.
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