The Role of Womens' Participation in the Era of India’s New Entrepreneur

Introduction

Women entrepreneurs and their growing presence in India have had a tremendous impact on the country's social and economic demography. Women's participation in the labour force has aided millions of families in escaping poverty and has resulted in the creation of jobs. Women are known for their leadership abilities, and as a result, they dominate new-age industries such as electronic manufacturing, where women make up more than half of the workforce due to their high-precision work and higher productivity levels. This positive attitude toward work, as well as outstanding business abilities, has highlighted the relevance of women in today's workforce.

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Women's Contribution to India's Economy

Women own 20.37 per cent of MSME businesses in India, accounting for 23.3 per cent of the workforce. They are thought to be the economy's backbone. According to Mckinsey Global, increasing women's involvement in the labour force in India might add US$ 700 billion to global GDP. Women make up a bigger share of workers in the manufacturing and agriculture industries than men. These industries are often credited with assisting families in escaping poverty and contributing to increased household income. Furthermore, literacy rates among women increased by 8.8 per cent in FY21, highlighting the country's promising future.

Impact of Women-led Businesses

Women-owned enterprises give the economy a huge boost. There are 432 million working-age women in India, and 13.5–15.7 million women-owned companies employ 22–27 million people directly. In addition, a large percentage of firms are run by women. Indian women are powerful entrepreneurs with a strong desire to start their own firms. Over a five-year period, start-ups formed or co-founded by women generate 10 per cent greater total revenue, according to Boston Consulting Group. These start-ups have a more inclusive work environment and employ three times as many women as men. Furthermore, in the following five years, women-led firms are expected to grow by 90 per cent.

Factors Influencing Women's Decisions to Start Businesses or Enter the Workforce

50 per cent of India's start-up ecosystem is led by women entrepreneurs, thanks to these entrepreneurs being inspired by recognition in the form of admiration, esteem, and reputation. According to a Bain & Company poll, more than 45 per cent of Indian women in rural areas felt compelled to establish their own business in order to acquire attention.

Results show that start-ups run by women had a 35 per cent better return on investment than those led by men. Women are more likely to start their own firms as a result of their potential to earn higher profits.

Providing for unfulfilled needs: A major issue is women's natural desire to provide for their families. Women are motivated by the need to create a better lifestyle since they make 85 per cent of purchase decisions.

Women-owned businesses are more efficient than men-owned businesses

Women-led businesses are thought to function more efficiently, and the following are some of the compelling reasons to invest in one:

● Women-led businesses have a higher return potential since they demand less investment but create more net revenue. Women-led start-ups return 78 per cent for every dollar invested, compared to 31 per cent for men-led start-ups.

● Women are excellent multitaskers, as the majority of them manage many tasks at the same time. These ladies could be quite useful in establishing a variety of income streams and assisting in the development of new businesses. According to a study conducted by psychologists at the University of Hertfordshire, when women and men were given two tasks at the same time, women slowed by 61 per cent, while men slowed by approx 12 per cent.

● The risk appetite: according to the survey done by KPMG around 40% of female entrepreneurs are risk-takers.

● Adaptability and better EQ: Ladies have a dynamic ability to adapt. A survey conducted by Bain & Company, Google and AWE Foundation of 350 ladies solopreneurs and tiny company homeowners in the urban Republic of India found that corporations that surpass ladies founders were resilient and quick to adapt. The results additionally showed that ladies additionally had a better emotional quotient (EQ).

Figure 1: Some running business by women of India

BRAND	FOUNDER/ CO-FOUNDER	FOUNDING YEAR	FUNDRAISED
ZOLO	Isha Chaudhary	2015	$90 million
MOBIKWIK	Upasana Taku	2009	$380 million
NYKAA	Falguni Nayar	2012	$148.5 MILLION
BYJUS	Divya Gokulnath	2011	$8.5 BILLION

Source: Smartbuisnessbox.in

Indian government initiatives

The Union government is focussing more than 2020 and increased the funds by 13 per cent this year (2021). It's put aside over Rs. 30,000 crores (US$ three.97 billion) in FY21. This fund allocation additionally includes numerous development schemes as listed below.

1. Bharatiya Mahila Bank commercial loan

This type of commercial loan was discovered in 2017 to assist girls accessing low-cost loans and dream huge despite their lack of resources. The theme provides loans of over Rs. 20 crores for girls entrepreneurs. A collateral-free loan can even be availed.

2. Dena Sakti theme

This theme was launched for girl entrepreneurs wanting to start out their business in sectors like Agriculture, Retail and Manufacturing. The Dena shakti lends money to the women on the application of 2 million rupees at the rate of 0.25 per cent.

3. Udyogini scheme

This scheme is for girls with associate degrees annual financial gain of Rs. 1.5 hundred thousand. It provides loans of up to Rs. 300,000 for girls needing to begin a business however don't have any capital.

4. Women Entrepreneurship Platform

This is a flagship platform started by NITI Aayog to push girls entrepreneurship. The platform hosts numerous workshops and academic events to encourage girls to start out their own businesses.

5. Pradhan Mantri mudra Yojana

Even though the theme was beginning to facilitate associate degree one wanting to line up a micro/small enterprise get an institutional credit of up to Rs. 10 lakhs, it absolutely was largely availed of by girls.

Conclusion

In sum, India was a country where a woman indeed retaining a bank account was considered a major standard. Still, it presently has over 15.7 million women-possessed enterprises, with women leading the launch-up ecosystem. This drastic metamorphosis easily underlines the eventuality of Indian women and their determination. In the coming decades, India is set to witness a major shift, with women dominating the pool as well as shaping and enhancing the future of the country. It's estimated that over 30 million further women-possessed businesses are anticipated to give 150 – 170 million jobs by 2030. This could be a game-changer and help the profitable outlook look brighter than ever.

References

1) Women’s Entrepreneurs in India,www.economicdiscussion.net

2) women’s entrepreneurship-startup India,www.startupindia.gov.in

3) Indian government initiative to help,vakilsearch.com

4) Smartbuisnessbox.in

Written by:  Mr Ashish Gupta, BA in Political Science, 2nd Year, Department of Social and Political Studies, Faculty of Behavioural and Social Science (FBSS), Manav Rachna International Institute of Research & Studies (MRIIRS), Haryana.