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March 27, 2023

MSME Women Business Proprietors Emerge as the Next-Gen Entrepreneurs in India

    • March 27, 2023
    • By Team Kinara
    • < 1 mins read

    HerVikas

    "Don’t limit yourself. Many people limit themselves to what they think they can do. You can go as far as your mind lets you. What you believe, remember, you can achieve." – Mary Kay Ash, Founder, Mary Kay Cosmetics

    Women entrepreneurs in India are paving new paths towards building their own identity in the world of business. Every year, countless women-owned Micro, Small, and Medium enterprises (MSMEs) begin their entrepreneurial journey, which inspires more and more women to follow their path. The participation of women in the labour force has saved millions of families from poverty as it has created many job opportunities. In the financial year 2021–2022, Udyam Portal witnessed a 75% hike in the registration of women-owned MSMEs even as their share in the total registration count was only around 17 per cent. It is the living proof of women's empowerment in the modern workforce.

    Women are well-known for their leadership skills. Hence, they can dominate in new-age industries such as electronic manufacturing, trading, service sectors, etc., where more than 50% of the employees are women because of their high-precision work and better productivity levels.

    Role of Women-owned MSMEs in the Indian Economy

    MSME women entrepreneurs in India are leading a cultural revolution. They play a crucial part in business, which has helped India's industrialisation, employment creation, and economic progress. They are considered as the cornerstone of the economy and women make up a greater percentage of the workforce in manufacturing and agriculture than men do. Moreover, as per the National Survey of India, literacy rates among women grew by 70.3% in FY22, which further highlights the bright prospects of the country.

    What impact has women-owned MSMEs brought to the Indian economy? MSME women entrepreneurs provide a great impetus to the economy. According to a report from India Brand Equity Foundation (IBEF), India has 432 million working-age women and 13.5–15.7 million women-owned MSMEs that provide direct employment to 22–27 million people. Indian women are self-reliant and highly motivated to launch their own businesses. Their smart attitude towards work and commendable business skills have also highlighted the importance of women in the modern labour force.

    Reasons Why the Majority of MSME Women Business Proprietors Achieve their Desired Goals

    • They are motivated and determined to reach their goals.
    • They believe in working consistently from the beginning.
    • Instead of wasting time waiting for big ideas, they start working on smaller ones.
    • They consistently practise their skills to refine them over time.
    • They never let a setback stop them from attaining their goals.
    • They understand the importance of time.
    • They are usually highly organised and efficient in their business operations.

    Grow your MSME with collateral-free business loans

    Various Schemes from the Government to Encourage Women Entrepreneurs in India

    Women are the major pillars of society, and when women are empowered, the whole world is empowered. The Ministry of MSME empowers women entrepreneurs through its different schemes, helping women spark their talent and build their own identities. Some of the government initiatives to encourage women's participation include:

    Bharatiya Mahila Bank Business Loans

    Set up in 2017, this type of business loan is aimed at helping women access cheap loans and dream big despite their lack of resources. The scheme provides MSME loans to women business proprietors of over Rs. 20 crores (US$ 2.46 million). Apart from that, a collateral-free loan can also be availed of for loans worth less than Rs. 1 crore (US$ 0.13 million).

    Dena Shakti Scheme

    This scheme was launched for women entrepreneurs in India looking to start their businesses in certain sectors such as agriculture, retail, and manufacturing. The scheme provides business loans at an interest rate that is 0.25% below the base rate. The maximum loan application is Rs. 20 lakhs (US$ 26,468).

    Udyogini Scheme

    Women with an annual income of Rs. 1.5 lakh ($1,985) are eligible for this program. It provides loans of up to Rs. 3 lakhs (US$ 3,890) for women wishing to start a business without capital.

    Women Entrepreneurship Platform

    This is a flagship platform initiated by NITI Aayog to promote women entrepreneurship. A variety of workshops and educational activities are held on the platform to encourage women to launch their own businesses.

    Pradhan Mantri Mudra Yojana

    Even though the scheme was designed to provide institutional loans of up to Rs. 10 lakhs (US$ 13,240) to anyone wishing to launch a micro or small business, women seemed to use it more frequently.

    Conclusion

    India was a country where a woman even owning a bank account was remarked as a major benchmark. However, it currently has over 15.7 million women-owned enterprises, with women leading the start-up ecosystem. They are striving hard to make a difference in this male-dominated business world. Their drastic transformation from homemakers to independent entrepreneurs clearly underlines the potential of Indian women and their determination. India is expected to undergo a significant shift in the upcoming decades as women dominate the workforce as well as shaping and enhancing the future of the country. It is estimated that over 30 million women-owned businesses are expected to provide 150–170 million jobs by 2030. This might certainly be a game-changer and make the economic outlook appear more promising than ever.

    Every path leading to a successful business begins with baby steps. Finding the right lender to provide adequate financing is one of the tiny steps for female business owners on the long journey to conquering the mountain of their dreams. It helps them in covering costs such as new inventory, upkeep, paying employees, and other business expenses. Kinara Capital, one of the top MSME lenders, has a particular programme for women entrepreneurs named HerVikas. Through the HerVikas programme, women small business proprietors get an automatic discount without any additional documentation. To check your loan eligibility in just 1 minute, download the myKinara app from the Google Play store now. Furthermore, you can also avail a collateral-free business loan from Kinara Capital by giving a missed call at 080-68264454. By providing women with the tools they need to follow their entrepreneurial aspirations, Kinara enables them to become growth drivers and make meaningful contributions to the community across generations.

    Female entrepreneurs can continue their business journey without interruption as they get discounted business loans. They can expand their business without needing any additional documentation. Along with the quick and flexible MSME loan for women, Kinara also provides doorstep customer service to MSME entrepreneurs with their preferred vernacular language.

    FAQs

    1. What is HerVikas Program?

    HerVikas Program is a myKinara Business Loan specially designed to empower women entrepreneurs.

    2. What are the benefits of applying for HerVikas Business Loans for women?

    Applying for a business loan from Kinara Capital is quick and hassle-free. You don't need to submit any property collateral or make a separate application. With minimal documentation, you can avail the loan at a 1% discount upfront and complete the process online. If you need assistance with the online loan application, Kinara offers doorstep customer service. A representative will visit you at your place of business and provide the necessary information to help you take the loan application forward.

    3. Why are Business Loans for women important?

    Business Loans for Women are important because they can help to increase economic opportunities for women, create more jobs, and promote financial inclusion. Additionally, it can provide access to fast credit and support that women may not otherwise have access to.

    4. How long does it take to get approved for Small Business Loans for women?

    Kinara’s provides quick business loan disbursals to customers. Therefore, MSME women entrepreneurs can acquire the entire amount in their bank account within 24-hours.

    5. Who is eligible for HerVikas Business Loans for women?

    Business Loans for Women are typically available to female entrepreneurs and small business owners who are into manufacturing for 1+ years, trading or services sectors for 2+ years can apply for Business Loans at Kinara Capital.

    6. Do I require any collateral to acquire HerVikas Business Loans?

    Kinara Capital provides Collateral-free Business Loans. This means you will not have to submit any property documents while applying for a business loan from Kinara.

    7. Do I need to submit any additional documents to get a 1% discount on the loan interest rate?

    No. Women applicants need not provide any additional documents to get this loan.

    8. How can I use HerVikas Business Loans for my business?

    You can use HerVikas Business Loans for Women for various purposes, such as expanding operations, hiring employees, purchasing equipment, etc.

    9. How do I apply for a myKinara Business Loans for women online?

    To apply for HerVikas business loan with Kinara Capital, start by taking the 1-minute eligibility check, click here to get started. If you qualify for a business loan eligibility, you can take the loan application forward by providing personal and business documents to complete the process. The loan amount is transferred into the mentioned bank account within 24-hours after verifying the documents.

    Check your eligibility in just 1-minute!

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    Written by
    Team Kinara
    • Tags
    • MSME Women
    • MSME women entrepreneurs
    • MSME Women Business Proprietors
    • women business loan
    • MSME loan for women
    • MSME loans for women
    • Entrepreneurs in India

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