Women Hold 20.5% of MSMEs in India, With Startups Flourishing in Tier 2 and 3 Cities
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New Delhi, Dec 11 (NationPress) Women currently possess 20.5% of micro, small, and medium enterprises (MSMEs) in India, with roughly 45% of startups originating from tier 2 and 3 cities, highlighting a remarkable transition towards regional entrepreneurial expansion, according to a report released on Wednesday.
More than 1,000 incubators nationwide are aiding access to resources, mentorship, and funding, as stated in the KPMG in India report.
Programs like the Women Entrepreneurship Platform (WEP) and Pradhan Mantri MUDRA Yojana are empowering women and low-income entrepreneurs, driving local development and nurturing future female leadership.
“The democratization of entrepreneurship in India is not merely a trend but a significant movement towards inclusive and sustainable economic growth,” remarked Supreet Sachdev, office managing partner–Bengaluru, KPMG in India.
By cultivating a diverse and inclusive entrepreneurial ecosystem, we are laying the groundwork for a more resilient and innovative economy, Sachdev added.
Initiatives like the Start-up Village Entrepreneurship Programme (SVEP) assist rural collectives in establishing non-farm enterprises by offering business support, funding, and specialized information services.
Government-supported incubators under the Atal Innovation Mission (AIM) and private sector efforts also play a vital role in democratizing entrepreneurship through essential support across the nation.
“India's startup ecosystem, now the third-largest globally, has made significant contributions to GDP growth, demonstrating resilience despite numerous challenges,” the report indicates.
However, challenges persist, such as the dominance of large tech firms hindering startup expansion and funding inequities, with entrepreneurs from tier 2 and 3 cities facing heightened difficulties in obtaining funding.
To tackle these issues, the report recommends advocating for transparency and fairness in competition, implementing equitable tech access policies, enhancing digital literacy, and broadening angel networks and incubators to tier 2 and 3 cities.
“Looking forward, the strong foundation being established through communities like TiE, government initiatives, technological advancements, and private sector collaborations has the potential to redefine India’s global position as an innovation hub,” said Akhilesh Tuteja, partner and head, clients and markets, KPMG in India.
