Dr. Arpita Mukherjee
as india
According to the World Bank, women-owned businesses in India create employment opportunities for an estimated 8 million people, underscoring their importance. According to NITI Aayog’s 2021 report, women entrepreneurs account for her 20% share of all businesses in India, but these ventures are mostly rural, small-scale and informal . According to projections, this figure is expected to rise to 30% by 2030, indicating a promising trajectory of growth and empowerment.
About 70% of women entrepreneurs find their niche in the manufacturing sector. These enterprising women operate primarily from home-based setups and navigate the complexities of textiles, clothing, handicrafts, food processing, and various service sectors such as nursing, hospitality, and beauty services. I’m gated.
Challenges faced by women in business
While female entrepreneurship is on the rise, women entrepreneurs face various challenges and are relegated to the informal sector. Gender bias and scarce resources act as powerful barriers, preventing access to critical finance, technology and markets.
The Government of India offers a number of schemes to support entrepreneurship, but these focus on two areas: access to finance (45 per cent of central schemes) and skill acquisition (27 per cent of central schemes). I am putting Other important areas such as market linkages and mentoring have received less attention, with only 3 per cent of states and 4 per cent of central schemes focusing on these as their primary support.
Although there are many schemes to support entrepreneurs, only a small portion, 7% at both central and state levels, are in place for women entrepreneurs, indicating a significant disparity. Additionally, the reliance on offline applications, mandated in 46 per cent of central schemes and 73 per cent of state schemes, poses accessibility challenges, especially for people in remote areas or with limited mobility. .
Women have an entrepreneurial spirit, but the digital age requires specific skills, compounded by unequal access to education. Gender stereotypes further limit mobility and decision-making autonomy, hindering access to resources and business expansion.Despite these challenges, women entrepreneurs are injecting innovation into the Indian economy
A new path for female entrepreneurs
In India, women entrepreneurs are leveraging e-commerce platforms to overcome traditional hurdles. Unlike brick-and-mortar ventures, e-commerce requires minimal initial investment in infrastructure, allowing for modest starts and incremental scalability. This reduced financial burden allows women to test products and grow their businesses with minimal risk.
Moreover, e-commerce platforms act as gateways to a vast and limitless network of customers, transcending local boundaries. This national and even global activity emboldens women entrepreneurs to engage with domestic and international customers, greatly expanding their market potential beyond the limitations of traditional brick-and-mortar stores.
E-commerce platforms not only offer financing alternatives, but also customized training programs for women entrepreneurs. Integrated payment gateways and online solutions enhance access to capital and free you from the constraints of traditional lenders. E-commerce also offers a level of flexibility that is especially valuable for female entrepreneurs who are balancing work and family.
Programs like Amazon
Several other innovative initiatives are actively promoting women’s entrepreneurship in India. WEP (Women Entrepreneurship Platform) by NITI Aayog provides comprehensive support through mentorship, skill-up programs, financial resources and policy advocacy. HER&NOW by GIZ reaches 10,000 women and girls, equipping them with technical and entrepreneurial skills. Man Desi Mahila Sahakari Bank provides small loans and financial services to rural women entrepreneurs.
Ensuring the participation and equity of women entrepreneurs in the e-commerce sector requires targeted policy interventions, including government- and NGO-supported initiatives focused on digital literacy and e-commerce training. .
Special financial schemes are needed for women-owned MSMEs operating in the e-commerce sector. This includes flexible loan products, unsecured options, and partnerships with e-commerce platforms that facilitate access to credit. Government efforts need to actively connect women entrepreneurs on e-commerce platforms with global markets, export opportunities and mentorship networks.
These networks provide critical guidance and knowledge sharing, leveling the playing field.Investment in local logistics
Recognizing the transformative potential of e-commerce for women entrepreneurs in India, targeted policies can address existing barriers and foster an inclusive ecosystem. This will lead to economic empowerment, job creation and strengthen the MSME sector. Beyond gender equality, we are strategically driving India’s economic growth.
Estimates suggest that integrating an additional 68 million women into the workforce could boost GDP by $700 billion by 2025, and a 50% increase in female labor force participation would boost GDP growth by 1.5%. The points could increase, highlighting that supporting women’s entrepreneurship is essential for India’s economic development.
Dr. Arpita Mukherjee is an economist and professor at ICRIER. His views are personal.
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