India Can Generate Over 30 Million New Enterprises Owned by Women: Analysis
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New Delhi, Dec 11 (NationPress) India holds the promise of establishing over 30 million new women-owned businesses, as highlighted in a recent analysis. The report, focusing on the democratisation of entrepreneurship in India, by the consulting firm KPMG, indicates that this growth could lead to an addition of 150 to 170 million jobs in the nation.
Investing in ventures led by women can produce a multiplier effect, as these entrepreneurs are more inclined to reinvest in their local communities, as per the findings.
Furthermore, increasing venture capital (VC) funding for women-led startups in India can significantly improve gender equity. This support will empower women founders to expand their businesses, generate employment, and contribute to the economy on a broader scale.
Akhilesh Tuteja, Client’s and Market Partner at KPMG, noted during the TiE Global Summit 2024 in Bengaluru that over 20 percent of India's MSME startups are initiated by women-led ventures, with 45 percent of these emerging from tier II and III cities.
Additionally, the Ministry of Commerce and Industry reports that nearly half of the 152,139 startups backed by the government now include at least one woman Director, amounting to around 73,151 startups. This underscores the crucial role of women in fostering innovation and economic growth in the nation.
The government has introduced various flagship initiatives to support women-led startups, including an investment of approximately Rs 3,107 crore in 149 women-led startups through Alternative Investment Funds (AIFs).
Since its launch in April 2021, the Startup India Seed Fund Scheme (SISFS) has allocated Rs 227.12 crore in funding for 1,278 women-led startups.
The Credit Guarantee Scheme for Startups (CGSS), which has been operational since April 2023, has guaranteed Rs 24.6 crore in loans for women-led ventures, according to the ministry.
Notably, the Startup India Initiative, initiated in 2016, has been transformative in promoting entrepreneurship across the country.
Women-led startups are flourishing in over 600 districts within India's tech ecosystem, with more than half of the startups in these areas being spearheaded by women.
