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India’s MSME Sector Oct 07, 2022, 13:55
MSME Innovative Scheme Apr 27, 2022, 14:05

Authors

Dikshu C. Kukreja
Dikshu C. Kukreja
Mr. V. Raman Kumar
Mr. V. Raman Kumar
Ms. Chandra Ganjoo
Ms. Chandra Ganjoo
Sanjay Bhatia
Sanjay Bhatia
Aprameya Radhakrishna
Aprameya Radhakrishna
Colin Shah
Colin Shah
Shri P.R. Aqeel Ahmed
Shri P.R. Aqeel Ahmed
Dr. Vidya Yeravdekar
Dr. Vidya Yeravdekar
Alok Kirloskar
Alok Kirloskar
Pragati Khare
Pragati Khare
Devang Mody
Devang Mody
Vinay Kalantri
Vinay Kalantri

SAMARTH – Special Entrepreneurship Promotion Drive for Women

SAMARTH – Special Entrepreneurship Promotion Drive for Women

Women’s Contribution to the Economy
Rural women are the true torchbearers for social, economic, and environmental reform and can lead to a “New India”. Agriculture employs over 80% of rural women in India. With the 'Azaadi Ka Amrit Mahotsav,' India is honouring and enjoying the progressive 75 years since independence, and promulgating the objective of warranting women as "Empowered Women Empowered Nation. Through government beneficiary programmes, rural women now have access to education, productive resources, capacity building, skill development, healthcare, and a variety of livelihood options.

Women account for nearly 30% of the overall workforce and 3% of self-employed individuals. Having said that, putting the future of business in the hands of women opens chances not just for themselves but also for others. Women are the embodiment of love, passion, duty, and beauty, and their energy must be channelled into resource management.

Importance of Skill Development Among Women
The government and its agency partners have taken a variety of steps to ensure that the skill development system for women is implemented effectively. Women's empowerment has been greatly influenced by skill development. It has altered the perception of women in the workforce. The importance of skill development is highlighted below.

  • In today's globalised world, skill development is an essential factor that improves employability.
  • Education and skill development may contribute to industrial growth, economic diversification, innovation, technical advancement, and country’s overall development.
  • Quality education and training are widely recognised as essential components in dismantling the poverty ecosystem.
  • Many companies favour competent workers over less skilled workers because skilled workers have more opportunities for advancement and can contribute to the company’s success like proficient workers. Skills boost productivity and enhance the quality of work, resulting in more substantial outcomes.

In order to help women acquire these skills and empower them, the government and the Ministry of MSME have come up with various initiatives such as Pradhan Mantri Mudra Yojana, Mahila Udyam Nidhi Scheme and SAMART- a special entrepreneurship promotion drive for women.

What is SAMARTH?
Minister of Micro, Small and Medium Enterprises, Mr. Narayan Rane, and Minister of State for MSME, Mr. Bhanu Pratap Singh Verma, launched a Special Entrepreneurship Promotion Drive for Women, "SAMARTH", in New Delhi on the occasion of International Women's Day 2022. This drive aims to help women become independent through self-employment. In FY 2022–23, the Ministry of MSME will focus on providing skill development and market development assistance to women, with over 7,500 women applicants from rural and sub-urban regions being trained.

The following benefits will be offered to prospective and current women entrepreneurs under the SAMARTH initiative:

  • Around 20% of seats in free skill development programmes offered under the Ministry's skill development plans will be reserved for women.
  • Under the Ministry's marketing assistance programmes, 20% of MSME Business Delegations sent to local and foreign exhibits would be devoted to women-owned MSMEs.
  • During 2022–23, NSIC will give a special 20% discount on the yearly processing fee on the following business schemes:
    • Single Point Registration Scheme
    • Raw Material Assistance and Bill Discounting
    • Tender Marketing
    • B2B Portal msmemart.com
  • Udyam registration has launched a special drive to register women-owned MSMEs.
  • Thousands of women will have the opportunity to advertise their products at national and international shows.

MSME Sector and Women
The MSME sector provides a plethora of opportunities for women; the Ministry of MSME, through its schemes and initiatives, is constantly working to develop an entrepreneurship culture among women by providing several additional benefits for women in the schemes that it implements. As gender equality becomes increasingly important across the world, the MSME ministry is focusing on empowering women further. Women entrepreneurs have initiated 1.38 lakh projects under the Prime Minister's Employment Generation Programme (PMEGP) Scheme since January 23, 2019. These projects account for around 30% of the overall initiatives funded under the PMEGP scheme.

Initiatives implemented by the government to help women establish businesses are mentioned below.

Sr. No

Scheme

Description

1

Mudra Yojana Scheme

This is a government programme for women who wish to start a small business, such as a beauty parlour, a tuition centre, or a tailoring business. Three plans have been implemented under this scheme: Shishu plan (loans up to Rs 50,000 [US$ 655.38] for new businesses), Kishor plan (loans between Rs 50,000 [US$ 655.38] and Rs 5 lakh [US$ 6,553.81] for well-established businesses), and Tarun plan (loans of Rs 5–10 lakh [US$ 6,553.81–13,107] for business expansion).

2

Trade-Related Entrepreneurship Assistance and Development (TREAD) Scheme

PMEGP created TREAD, a programme that strives to empower women by giving credit to projects, offering particular training and counselling, and disseminating information for their businesses. The government would finance up to 30% of the overall project cost, as determined by financing institutions. The remaining 70% would be financed by these institutions.

3

Mahila Udyam Nidhi Scheme

This initiative intends to assist women in starting new enterprises as well as improving and modernising the existing ones. The loans must be returned within 10 years, which includes a five-year moratorium period; interest rates would be adjusted as per the market rates.

4

Annapurna Scheme

This plan is designed specifically for women's hidden cooks, as the name implies. A loan of up to Rs. 50,000 (US$ 655.38) would be provided to establish a catering business and buy cooking equipment including utensils and water filters. To procure the funding, collateral in the form of assets as well as a guarantor is required. Also, the loan must be returned within three years. The women can obtain a one-month grace period before the repayment process starts. The interest rates under this programme depend on the market rates, and the relevant bank will take assets as collateral.

5

Stree Shakti Package for Women Entrepreneurs

To secure a loan under this programme, women must first register under their state's Entrepreneurship Development Program (EDP). They also need to possess a controlling stake (more than 50%) in a small firm. On loans above Rs 2 lakh (US$ 2,621.52), a 0.05% concession on interest is offered.

 

Future of Women Entrepreneurship
Gender equality in entrepreneurship has been critical in terms of generating opportunity, creativity, and development. From Ms. Vandana Luthra to Ms. Falguni Nayar, the creator of Nykaa, women have made a significant contribution to the world of business. The future of women entrepreneurship is secure, as more women seek entrepreneurship training. The Prime Minister, Mr. Narendra Modi’s Employment Generation Programme and other programmes such as Mudra Yojana Scheme, Market Promotion and Development Scheme (MPDA) have supported large and small businesses. Women entrepreneurs, on the whole, are responsible for and will continue to be responsible for greater economic growth and stability within the country. They not only seek advancement for themselves, but also serve as role models for other women who want to establish their own businesses. This vision will contribute to social and economic development in India.

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