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In News

• The President of India launched the 'herStart' -- a start-up platform of Gujarat University for women entrepreneurs.
  • On the occasion, the President highlighted that “If the states move forward by learning and adopting each other's successful models, then India will ensure its place as a developed country during the Amrit Kal”.
• The President also inaugurated various projects related to education and tribal development at Gujarat University.
• The president said that the 'HerStart' initiative will link women entrepreneurs with various private and government platforms.

Women Entrepreneurs in India

• Nearly 3 million micro, small, and medium enterprises with full or partial female ownership contribute more than 3 % of industrial output and employ over 8 million people
• 78% of women's enterprises belong to the services sector.

Concerns

• The social status of women and prevalent social norms in India influence financial institutions and the ability of women entrepreneurs to access finance.
• Absence of collateral security and guarantee/support.
• Limited financial awareness and understanding of financial products/ services.
• Bank branches are unwelcoming to women customers.
• Lack of confidence or hesitation to approach financial institutions.
• The lack of reliable information about financial management makes women entrepreneurs less attractive to financiers.

Way Forward

• Access to finance is key to the growth of the MSME sector in India.
• Microfinance plays a key role in expanding access to finance for low-income women aspiring to become entrepreneurs.
• Training programs on human resources, financial management, business management, marketing, and financing the venture.
• Learning from Global Best Practices for Women-owned Enterprise Financing; Westpac Banking Corporation (AUSTRALIA), American Express (USA).
• DFCU BANK in UGANDA created a “land loan” specifically for women. Women can take a loan to purchase property that they can later use as collateral for business loans.
• Ensure access to business and financial management training through the bank’s partnerships with local universities.
• Simplify the approval process to reduce the number of visits to branches.
• Explore the potential for “doorstep financial delivery model” branchless banking and other innovative delivery systems tie-ups with NGOs, microfinance institutions, and SHGs.
• Remove dependence on male members of the family as a prerequisite to access finance.
• Promote a friendlier environment for women customers.
• Governments should promote Equal rights to property, joint property registration, and land ownership of women.
• Formulate women-focused policies to promote women-owned enterprises. Create online customer care support.

https://newsonair.gov.in/News?title=President-Draupadi-Murmu-launches-%26%2339%3BherSTART%26%2339%3B---a-start-up-platform-of-Gujarat-University-for-women-entrepreneurs&id=448778

https://t.me/+hJqMV1O0se03Njk9

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