Women-Owned MSMEs Account for 39% of Udyam-Registered Enterprises
Recent data shared by MSME Minister Jitan Ram Manjhi in a written reply to the Lok Sabha revealed that 39% of micro, small, and medium-sized enterprises (MSMEs) registered with the MSME Ministry under the revised MSME definition of 2020 are women-owned. As of July 25, 2024, out of approximately 4.78 crore Udyam-registered units since July 2020, including Udyam Assist Platform (UAP) units since January 2023, 1.84 crore enterprises are owned by women.
Manjhi emphasized the significance of women in the MSME sector and cited various initiatives aimed at increasing the participation of women entrepreneurs. Notably, the amended Public Procurement Policy in 2018 mandates CPSEs to procure a minimum of 3% of their annual procurement from women entrepreneurs. Furthermore, the Credit Guarantee Scheme for Micro and Small Enterprises has introduced provisions specifically for women entrepreneurs, including increased guarantee coverage of up to 85% and a 10% concession in annual guarantee fees.
In June of this year, the MSME Ministry launched the Yashasvini initiative, focusing on empowering women entrepreneurs in Tier-II and III towns by enhancing their capacities. These initiatives are crucial in fostering the growth of women-owned MSMEs and addressing the existing gender gap in the sector.
It is worth noting that as of August 1 last year, the share of women-owned units in more than 2.10 crore MSMEs was reported to be 19.43%. The steady increase to 39% signifies a positive trend towards greater inclusion and empowerment of women in the MSME landscape.
The rise in women-owned MSMEs aligns with the broader goal of fostering diversity and inclusivity in the entrepreneurial ecosystem. As these initiatives continue to gain traction, it is hoped that the representation of women in the MSME sector will further increase, driving economic growth and fostering a more equitable business environment.
