Women Entrepreneurs and Women Empowerment – SOCIAL
ISSUE
News: A vision for women’s empowerment: the story of Ela Bhatt’s SEWA
What's in the news?
● SEWA, the Self Employed
Women’s Association set up by Ela Bhatt in 1972,
has achieved something that no company, conglomerate, or perhaps even
government has achieved in India - the creation of a truly effective employment
support programme for women who are among the country’s poorest and most
marginalized.
● Over 50 years, SEWA has
built more than four dozen institutions for the poor and by the poor, and to
empower poor women workers - all founded on the principle that “the poor do not
need charity, they need an enabling mechanism to strive and come out of the
vicious circle of poverty and vulnerability”.
● SEWA,
as Bhatt always said, is a trade union of women who “did not need to come
together against anyone, they just needed to come together for themselves”. And
by this act of coming together, these women gave themselves a voice.
● The efforts of SEWA to change the lives of over 2.1 million members and many more around the world - has long been recognised as a model for the world. Former United States first lady Hillary Clinton, and Cherie Blair, wife of former British Prime Minister Tony Blair, have visited SEWA and partnered with it.
Woman entrepreneurs:
● A
woman entrepreneur is the one who assumes dominant
financial control (minimum financial interest of 51 percent of the capital) in
an enterprise.
● Empowerment
of women is essential for sustainable
development and economic growth of the country.
● Women entrepreneurs have emerged as an important means to empower womenfolk to make decisions regarding their domestic, social, political and economic life.
Status of women entrepreneurs in India:
● According
to the National Sample Survey, women entrepreneurs account for only 14% of all enterprises in India.
● Women
are founders of only 6% of the Indian
Start-ups.
● In
terms of ownership of equity, business stakes held by women are highest in
India’s manufacturing sector (mainly related to paper and tobacco products)
even exceeding 50%.
● The
Sixth Economic Census is the most cited data in the literature on women
entrepreneurship in India. It reveals that out of the 58.5 million businesses,
only 8.05 million were owned by women. Thus, of the total entrepreneurs in
India, only 13.7% are women.
● According to the Female Entrepreneurship Index, out of 77 countries covered, India ranks 70.
Various hurdles for women entrepreneurs:
1. Male dominant economy:
Women have to work in the male-dominant world facing discrimination and social
stigma.
2. Familial constraints:
Even though a lot of women have the potential as well as ambition to make it to
the top in arenas that are usually dictated by a stark male presence.
3. Small scale:
The majority of the businesses are self-funded and operate on a small scale.
4. Uncertain times: At
the same time, uncertainty is an important concern for women. They fear
failing, especially if the people are sceptical about their business
capability.
5. Under-representation:
Despite India’s rapid economic growth in recent decades, India still has very
few women entrepreneurs.
6. Lack of funds:
It is not unheard of for women entrepreneurs to be denied basic enablers such
as easy access to funds and sponsorships.
7. Lack of enterprise:
With fewer female business founders, the pool of women who can mentor and
advise fellow entrepreneurs is consequently smaller.
Significance of women entrepreneurs:
1. Better management of finance:
It is a fact that women can easily utilize the funds whether it is raised for
home expenses or the business expenditure.
2. Access and vigilance:
The basic characteristic of an Entrepreneur is that they must stay high on the
updated information related to science and technology which would be helpful in
the business field.
3. Self-employment:
As all women are doing study and capable to grab the job opportunities but due
to less availability of positions in their field of interest they are facing
unemployment.
4. Empowerment:
Women have always a misconception in their minds that they cannot manage or run
a business like other men.
5. Breakthrough orthodox views:
In this world of non-conventional business fields, women need to get up and
stay strong to change the conventional thinking of segregating different
sectors for women and men as well.
6. Narrow down the gender gap:
Women Entrepreneurship motivates women to inspire and run a business.
7. Better company culture:
It has been observed that women-owned enterprises provide a well-developed and
safe atmosphere within the company.
Government Initiatives:
1. Women Entrepreneurship Platform:
● In
an effort to enhance the community experience for women entrepreneurs in India,
NITI Aayog and Flipkart, have come together to launch the revamped Women
Entrepreneurship Platform.
● The Women Entrepreneurship Platform (WEP) is a unified access portal which brings together women from different parts of India to realise their entrepreneurial aspirations.
2. Social Security Code, Code on Occupational Safety,
Health & Working Conditions Code, and Industrial Relations Code, 2020:
● Under
the new codes, women have to be permitted to work in every sector at night, but
it has to be ensured that provision for their security is made by the employer
and consent of women is taken.
3. Self Help Groups:
● In
this, rural women are engaged in small-scale entrepreneurship programmes
created with the intention that the joint efforts can be much more successful
in overcoming various obstacles faced by the individuals.
● The
members typically use savings, credit, or social involvement to support their
entrepreneurial ventures.
4. Stand-up India:
● According
to the available data, 81% of beneficiaries of this scheme are women
entrepreneurs.
5. Mahila e-Haat:
● It
is an online marketing platform to support women entrepreneurs.
● The
platform offers an opportunity for women entrepreneurs to leverage technology
for showcasing products manufactured by them.
6. Women Start-up Programme:
● Indian
Institute of Management Bangalore’s Start-up and Innovation Hub runs this
programme.
● The
programme aims to support ambitious and innovative women entrepreneurs by
transforming their idea into business ventures and enhancing their
entrepreneurial and managerial skills.
7. Capacity-building programmes:
● In
fields such as marketing, operations management, quality controls, and
financial management, etc.
8. Corporate-led Initiatives :
● These
have worked to bridge gaps in internet access and generate awareness among
women entrepreneurs.
● For
example: Google Internet Saathi, EdelGive Foundation’s UdyamStree campaign,
Facebook Pragati, etc.
9. SAMARTH:
● The
Union Ministry of MSMEs has launched a Special Entrepreneurship Promotion Drive
for Women "SAMARTH".
● The
initiative aims to develop an entrepreneurship culture among women by offering
several additional benefits for women in the schemes implemented by the
Ministry.
Way forward:
1. Progressive policies:
● To
achieve inclusive and equitable socio-economic growth, India must ensure that
at least 25 per cent of entrepreneurs in the country are women by 2025.
● Therefore,
there is an urgent need to create an enabling environment for women to pursue
their entrepreneurial aspirations through progressive policies.
2. Business infrastructure:
● India
must focus on establishing necessary infrastructure, such as women-centric
incubator and, increasing investment opportunities.
3. Financial accessibility:
● Access
to new age alternate funding for women entrepreneurs such as women specific
venture funds and crowd funding is important for encouraging their growth.
● Also,
India need to encourage women to invest in other female-led companies to
balance gender disparity, co-creating both mentorship and networking platforms.
● The
government can also provide interest-free loans to encourage women
entrepreneurs, increase the subsidy for loans and make provisions of
microcredit system to the women entrepreneurs.
4. Improving skillsets:
● With
emerging technologies such as blockchain, Artificial Intelligence (AI) and
Internet of Things (IoT), it is of vital importance that the skillset of women
be expanded to match the current market trends.
5. Improving social indicators:
● Better
education and health that increase female labour-force participation, reduced
discrimination and wage differentials that encourage more effort, and improved
career-advancement.
6. Leadership role:
● Existing
women entrepreneurs have an important role to play as they can reach out to
other aspiring female entrepreneurs in their region.