ISSN: 2320-5407 Int. J. Adv. Res.

12(01), 532-539

Journal Homepage: -www.journalijar.com

Article DOI:10.21474/IJAR01/18151
DOI URL: http://dx.doi.org/10.21474/IJAR01/18151

RESEARCH ARTICLE
AN ANALYSIS OF ROLE OF WOMEN ENTREPRENEURS IN MSME SECTOR IN INDIA

Abhilasha Patel1 and Dr. Bhawana Rewadikar2

1. Research Scholar, Department of Commerce, Dr. Harisingh Gour Vishwavidyalaya, Sagar, Madhya Pradesh.
2. Assistant Professor, Department of Commerce, Dr. Harisingh Gour Vishwavidyalaya, Sagar, Madhya Pradesh.
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Manuscript Info Abstract
……………………. ………………………………………………………………
Manuscript History Micro, small and medium enterprises or MSMEs are called the
Received: 11 November 2023 “Growth Engines” of Indian economy as they contribute immensely in
Final Accepted: 14 December 2023 its growth and development through industrialization and employment
Published: January 2024 generation. With the growth in MSME sector it has also provided
entrepreneurial opportunities to women which has resulted in positive
Key words:-
MSME, Entrepreneurship, Women socio-economic impact in India. This study is an endeavour to assess
Entrepreneurs, Women Owned the current scenario of women entrepreneurs in the MSME sector. The
Enterprises findings of the study shows that the share of women owned MSMEs is
20.37% is India whereas share of male owned MSMEs is 79.63%,
which reflects the male dominance in MSME sector. In comparison in
female owned MSMEs West Bengal has the largest share of 23.42% of
women owned MSMEs. The MSMEs has grown over time but there is
still need to work to increase the contribution of female entrepreneurs
in the sector.

Copy Right, IJAR, 2024,. All rights reserved.

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Introduction:-
India's Micro, Small, and Medium-Sized Enterprises are a key engine for the expansion of the Indian Economy.
Through the provision of employment opportunities & the industrialization of rural and urban areas, these MSMEs
aid in lowering the uneven income distribution among the population. MSMEs have a huge impact on the growth of
the Indian economy through local and export production, less need for capital investment, operational flexibility,
technology- oriented businesses, etc. The MSMEs complement the major industries that are active in the economy
and provide significant contributions to the socioeconomic advancement of the nation. After the agriculture sector, it
ranks second for creating the most employment possibilities in the nation and has a relatively higher labour-capital
ratio. The government has recently realized the importance of the MSME sector in order to increase the
manufacturing sector's GDP contribution. Having a well-diversified industrial base has long been a goal of our
policymakers, but the Indian economy has shifted from being agrarian to being service- based, skipping over the
importance of the manufacturing sector in the interim. From the very beginning, MSME sector has established itself
as a vivid sector of the Indian economy. MSMEs create and produce a wide range of good products for both home
and foreign markets. They have supported the expansion and development of the coir, khadi, and village industries.
In order to improve and develop the rural areas, they have cooperated and worked with the relevant ministries, state
governments, and stakeholders.

From the last few decades women entrepreneurship is growing with a good pace in India. In India, female
entrepreneurs are essential to the growth of the national economy. Their contributions go beyond only having an
economic influence; they also shape social norms, promote inclusivity, and stimulate innovation.A woman or group

Corresponding Author:- Abhilasha Patel 532

Address:- Research Scholar, Department of Commerce, Dr. Harisingh Gour Vishwavidyalaya,
Sagar, Madhya Pradesh.
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of women who launch, plan, and run a business enterprise are referred to as women entrepreneurs. According to the
Indian government, “a women-owned and controlled business is one in which at least 51% of the capital is owned
and controlled by women, and at least 51% of the jobs created by the business are held by women”. Micro, small
and medium enterprises are playing a good part in empowering women by providing them entrepreneurial
opportunities and employment. Ministry of Micro, Small and Medium Enterprises providetraining and skill-
development initiatives, providing women with the essential skills and knowledge. Through these activities, they
strengthen their entrepreneurial skills and become more equipped to deal with the difficulties of being a business
owner.By breaking down prejudices and giving women the opportunity to take on leadership roles, develop their
talents, and become financially independent, these enterprises help women have a positive influence on their
communities and families. Women involved in MSMEs have access to chances for creating income that enhance
their sense of accomplishment, self-worth, and financial security. Additionally, MSMEs usually offer flexible work
schedules, which support women in effectively balancing their domestic and professional responsibilities.

Role of Women Entrepreneurs in Indian Economy

As it is said that “women are home- makers”. In the same way women can also help in the development of Indian
Economy. As women make a significant part of Indian population, it is their duty and right to contribute
significantly in the economy. As women take part in entrepreneurship, they help in job creation, poverty alleviation
and in many other sectors.

Economic Growth

Employment Generation

Balanced Regional Growth

Capital Formation

Better Standard of living

Women Empowerment

Innovation

Economic Growth:
Through entrepreneurial activities women help in economic growth by establishing business units for manufacturing
and rendering services which ultimately contributes in the GDP of country. With this an economy fosters along with
growth in the GDP.

Employment Generation:
Unemployment is a major challenge in Indian economy. Entrepreneurial activities help in tackling this. When
women participate in entrepreneurial practices and establish business units, they become job providers in the society.

Balanced Regional Growth:

Government provides various incentives and subsidies to establish industrial units in the rural and underdeveloped
regions to curb regional imbalance. Women entrepreneurs avail these opportunities and establishtheir units in rural
underdeveloped regions which helps to foster development in these areas along with reducing regional imbalances.

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Capital Formation:
As women establish their business units, some idle funds get mobilised and invested in these units. With these
investments resources are utilised in a better way and results in capital formation.

Better Standard of living:

As women take part in entrepreneurial activities, they start new business units and provide employment majorly to
women‟s. And offer products and services at reasonable prices which helps in improving standard of living of
people.

Women Empowerment:
Women entrepreneurs play a key role in empowering other women in society. When a women entrepreneur becomes
successful, she becomes a role model for many other women and inspires them to pursue entrepreneurial activities
and promote gender equality.

Innovation:
When women become contributors in entrepreneurship, they innovate something which contributes in society for
something good. Women entrepreneurs bring unique and innovative solutions for societal and business problems
which results in Innovation.

Women entrepreneurs are playing a major role in transforming society along with contributing in the growth of
Indian economy. They contribute in social development, bring financial independence in other women‟s lives by
breaking prejudices and social norms which hindered the growth of women. As women take part in entrepreneurial
activities, they promote inclusive and equitable growth of the society.

Government Initiatives for Women Entrepreneurs in MSME Sector in India

Micro, Small and Medium Enterprises are a gateway to foster women entrepreneurs in India. Government provides
special support to women entrepreneurs for establishing MSMEs.Ministry of MSMEs and various other ministries
provide technical and financial assistance along with training programs to increase women participation in MSME
sector in India.

Skill Upgradation and Mahila Coir Yojana:

It is a sub scheme under the main scheme „Coir Vikas Yojana‟. This scheme is implemented by coir board to
empower women and provide self-employment opportunities to the women artisans of rural areas in coir sector.
Under this scheme training is provided to rural women artisans with monthly stipend of Rs. 1000/. After completing
training programs, a subsidy of 75% is provided for machinery and equipment to establish the enterprises producing
coir products.

Trade Related Entrepreneurship Assistance and Development (TREAD):

TREAD is a scheme launched by Government of India with an objective to empower women economically by
providing them training, counselling and financial assistance to women for pursuing any kind of activity in non-farm
sector. Under this scheme training and counselling will be provided by the different organizations like Micro, Small
and Medium Enterprises Development Institutes, EDIs known as Entrepreneurship Development Institutes, National
Institute for Micro, Small and Medium Enterprises (NIMSME) and other. While the credit assistance of 30% (Max
30 lakhs) will be provided by GoI through eligible NGOs.

Prime Minister’s Employment Generation Program:

PMEGP is a scheme implemented by Khadi and Village Industries Commission (KVIC), as the nodal agency. This
scheme aims at generating employment by setting up self-employed micro enterprises, ventures and projects. The
max admissible limit for manufacturing sector is 50lakhs whereas for the service sector the limit is 20 lakhs. Under
this program higher subsidy is granted to women entrepreneurs in comparison of others.The subsidy rate for women
in rural areas is 35% and in urban areas it is 25%. As per the annual report of MSME 2022-23 total 259339 women
beneficiaries has been benefitted under this program.

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Start-Up Village Entrepreneurship Programme:

This scheme is a sub component of Deendayal Antyodaya Yojana – National Rural Livelihoods Mission which is
implemented by Ministry of Rural Development.Start-Up Village Entrepreneurship Programme aims to empower
women by helping them to set up micro units who are members of Self-Help Groups.

Entrepreneurial Skill Development Program:

ESDPs are conducted to foster the youth to train and develop technical and vocational skill required to set up micro
and small enterprises. Out of the total EDPs, 20% are exclusively conducted for women and other weaker sections
of the society.

Other than these government of India provides various incentives and subsidies via various ministries and their
programsto women entrepreneurs for setting up business units and empower women.

Review of Literature:-
(Danabakyam & Kurian, 2012)conducted study on 100 MSMEs from Chennai city by using convenience
sampling method to identify industrial profile, the motivating and contributing factorsin the success of women
entrepreneurs along with analysing the relation between industries related factors and the success of women
entrepreneurs. The results showed that education level, previous work experience and government policies,
incentives, subsidies are the most significant motivating factors while theirachievements and human relations are the
highly contributing factors in the success of female entrepreneurs. Their success is highly affected by the industrial
related factors.

(Singh & Raina, 2013)in their study titled as Women Entrepreneurs in Micro, Small and Medium Enterprises
discussed about the current status of women entrepreneurs in India along with the challenges faced by them. The
authors examined that for economic development, participation of women entrepreneurs is needed as much as of
male entrepreneurs and from the last few decades it has been recognized. But now also women entrepreneurs face a
lot of problems related to finance, education, technological knowledge, risk management skills etc. which are
responsible for low participation of women in comparison of male entrepreneurs. However, Government is laying
emphasis on promoting women entrepreneurship through various policies, granting subsidies, Entrepreneurship
Development Programmes, Incubation centres and many more.

(Chavan & Murkute, 2016)discussed about the role of women entrepreneurship in the Indian economy. They
stated that female entrepreneurs face a lot of challenges into any entrepreneurial activity. But the government of
India is providing support through various incentives and policies for the development of women entrepreneurship.
The study reveals that women entrepreneurs can significantly contribute in the development of economy through
capital formation, increasing per capita income, generating employment and innovations.

(Ilahi, 2018)analysed the status of women entrepreneurs in the micro, small and medium enterprises (MSMEs) in
India based on the NSS 73rd round of NSSO. In addition, the author also discussed about the hindrances faced by the
women entrepreneurs and various government initiatives to accelerate women entrepreneurship in MSME sector.
The study revealed that in Indian MSME sector female entrepreneurs have only 20.37% share. In categorial basis
micro enterprises has the highest share of female entrepreneurs i.e., 20.44% whereas this share is 5.26% and 2.67%
in small and medium sized enterprises respectively.

(Vejju, 2018)has analysed the role of Self-HelpGroup (SHG) in promoting women entrepreneurship in Andhra
Pradesh during the period 1981 to October 2016. The results of the study showed Nellore district has received the
maximum benefit from SHG in promoting micro enterprises. Theshare of female entrepreneurs in SHG promoted
micro enterprises was around 60% whereas the share of male entrepreneurs was approximately 40% which showed a
positive growth in women entrepreneurs.

(Sanu, Ahmad, & Anjum, 2021) examined the effect of MSMEs on women entrepreneurship with special
reference to Cachar district of Assamby surveying 200 MSMEs in the district. In addition, the comparative study of
performance of male and female owned enterprises was also conducted. The results showed that most of the female
owned enterprises are concentratedin service sector. Their main motives to join MSME sector are to earn profit and
independence. Whereas other factors likemarital status, age, education level, business experience and place of
residence have significant impact in motivating females to join MSMEs. Further the comparative study of

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performance of male and female owned enterprises reveals that female- owned MSMEs generate more employment
as compared to male owned MSMEs but the difference is insignificant. While the net return per owner is higher in
male -owned MSMEs.

(Kamal & Chandrakala, 2023)examined the significant characteristics which influence the success of
entrepreneurs by surveying 150 Bangalore based MSMEs. The results revealed that the previous occupation has
significant impact on the success level of entrepreneurs whereas other factors like age, education level, parental
occupation and initial fixed capital investment do not have impact on the success level of the business.

(Tiwari, 2023)studied the current scenario of women empowerment in India along with the role of micro, small and
medium enterprises (MSMEs) in empowering women. MSMEs provide opportunities to women for self-
employment and job creation because these enterprises perform in local areas which makes it easier for women to
balance their personal and professional life. Further theauthor talked about the various obstacles like gender
prejudices, lack of infrastructure, financial constraints and social norms which hinder the growth of women
empowerment in India. Although the MSME sector is playing a major role in empowering women by providing
entrepreneurial opportunities and employment to women. However, there is still need for some policies and
framework to support women.

Objectives:-
1. To analyse the performance of MSME sector in India
2. To assess the participation of women entrepreneurs in MSME sector

Research Methodology:-
The nature of the study is descriptive and analytical which is totally based on secondary data which is collected from
various annual reports of the MSME sector and government websites.

Performance of MSME sector in India

The GDP, exports, and employment that micro, small, and medium-sized businesses have produced for the nation
have all expanded dramatically over time. The MSME sector has experienced significant growth, which has reduced
regional imbalances and the unequal distribution of wealth and income. The information gathered from the 73rd
National Sample Survey, which was carried out in 2015–16, is shown in Table No. 1.

Table No. 1:- Estimated number of MSMEs and Employment Generation in MSME Sector.
SECTOR No. of Share (%) Employment Share (%)
Enterprises (in lakh)
MICRO 630.52 99 1076.19 97
SMALL 3.31 0.52 31.95 2.88
MEDIUM 0.05 0.01 1.75 0.16
TOTAL 633.88 100 1109.89 100%
Source: MSME Annual Report 2022-23

According to the NSS 73rdround, there were 633.88 MSMEs in total, of which 630.52 lakh were micro, 3.31 lakh
were small, and 0.05 lakh were medium-sized businesses. It is predicted that 11.10 crore jobs have been created by
MSMEs. There have been 1076.19 lakh people employed by 630.52 lakh micro enterprises overall. In contrast,
31.95 lakh and 1.75 lakh employment have been created by small and medium-sized businesses, respectively. The
micro sector, which accounts for the biggest proportion of 99% of all MSMEs, is the largest employer in the MSME
sector, providing over 97% of all jobs in the sector. The largest portion of MSMEs is covered by “manufacturing”
and “trade” sector enterprises which consist of 196.65 lakh and 230.35 lakh enterprises employing 360.41 lakh and
387.18 lakh people respectively. Further the “other services” consist of 206.85 lakh enterprises, employing
approximately 362.22 lakh people. Whereas there are only 0.03 electricity enterprises which employ 0.07 lakh
people.

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Women Entrepreneurs in MSMEs in India

From the last few decades women entrepreneurs has achieved a good recognition in India. Their contribution is
increasing in Indian economy‟s growth and development. In the MSME sector also female
entrepreneurs‟contribution has increased in the last few years.

Table No. 2:- Percentage distribution of MSMEs owned by Male and Female entrepreneurs.
CATEGORY MALE FEMALE ALL
MICRO 79.56 20.44 100
SMALL 94.74 5.26 100
MEDIUM 97.33 2.67 100
ALL 79.63 20.37 100
Source: MSME Annual Report 2022-23

Graph No. 2:-

Percentage distribution of enterprises owned by Male/

Female entrepreneurs wise
120
94.74 97.33
100
79.56
80
60
40
20.44
20 5.26 2.67
0
MICRO SMALL MEDIUM

MALE FEMALE

Source: MSME Annual Report 2022-23

Table No. 2 and Graph No 1 depicts the percentage share of male and female entrepreneurs in the MSME sector
according to NSS 73rd round. The data shows that male entrepreneurs have the dominance in the sector. As a whole
males own 79.63% of the MSMEs whereas the female owned MSMEs are 20.37% only. On the basis of categorical
distribution 79.56% Micro enterprises are male owned and 20.44% are owned by females. Further the small
enterprises have the share of 94.74% and 5.26% of male and female entrepreneurs. At last medium enterprises are
shared by male and female owners in the percentage of 97.33% and 2.67% respectively. Under female category
only, women have largest share in micro enterprises and lowest share in medium enterprises. From this observation
it can be concluded that as the size of the enterprises is increasing the share of women entrepreneurs is decreasing.

Top 10 States with Highest Women MSME Entrepreneurs

The results of the73rd National Sample Survey conducted in 2015-16 shows thatin the MSME sector 79.63% are the
male owned enterprises whereas there are only 20.37% female owned MSMEs as a whole. Table No 3 andgraph
no 2 shows the share of female entrepreneurs in MSME in the top 10 states.

Table No.3:- Top 10 States with Highest Percentage of Women Owned MSMEs.
S. STATE % SHARE
NO.
1 West Bengal 23.42
2 Tamil Nadu 10.37
3 Telangana 7.85

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4 Karnataka 7.56
5 Uttar Pradesh 6.96
6 Andhra Pradesh 6.76
7 Gujarat 6.67
8 Maharashtra 6.47
9 Kerala 4
10 Rajasthan 3.07
Source: MSME Annual Report 2022-23

Graph No. 2:-

Top 10 States with Female Owned MSMEs

23.42

10.37
7.85 7.56 6.96 6.76 6.67 6.47
4
3.07

% SHARE

Source: MSME Annual Report 2022-23

West Bengal with 23.42% of female owned MSMEs has the largest number of womenowned MSMEs, on the other
hand this share is 0.01% and 0%in case of Daman & Diu and Lakshadweep respectively. In the top 10 women led
MSME states there are 5 states from the South India named as Tamil Nadu (10.37%), Telangana (7.85%), Karnataka
(7.56%), Andhra Pradesh (6.76%) and Kerala (4%). From this it can be observed that most of the female owned
MSMEs are concentrated in the South India. This reflects that geographically south provides healthy environment to
women entrepreneurs for growing and nurturing their businesses.

Conclusion:-
Micro, small and medium enterprises (MSMEs) are playing front role in developing the Indian economy. With its
growth it has led to involvement of women entrepreneurs in this sector. As per 73rd NSS round there are total
633.88 lakh enterprises in MSME sector in India. Out of all as a whole 79.63% enterprises are owned by males and
the rest 20.37% are owned by females. In the all over India, West Bengal has the highest share of 23.42% of female
entrepreneurs in India. All these stats shows that there is still need to work to improve the participation of women
entrepreneurs. Government is taking various initiatives through schemes, skill development programs, policies and
financial support though loans and subsidy grants to promote women to start their entrepreneurial journey. However,
there is a long way to go to achieve the equal participation of male and female entrepreneurs in the MSME sector
and all other sectors in India.

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References:-
1. Chavan, V., &Murkute, D. (2016). ROLE OF WOMEN ENTREPRENEURSHIP IN INDIAN ECONOMY.
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MEDIUM ENTERPRISES (MSME) IN CHENNAI CITY. International Journal of Marketing, Financial
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3. Ilahi, D. S. (2018). An Overview of Female Entrepreneurs in Indian MSME Sector. Saudi Journal of Business
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