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Context: The Union Government launched the “SAMARTH” Campaign on the occasion of International Women’s Day 2022.

Details:

• On the occasion of International Women’s Day 2022, the Union Ministry of MSMEs has launched a Special Entrepreneurship Promotion Drive for Women "SAMARTH".
• The initiative aims to develop entrepreneurship culture among women by offering several additional benefits for women in the schemes implemented by the Ministry.
• Following benefits will be available to aspiring and existing women entrepreneurs:
  • 20% Seats will be allocated for women in free Skill Development Programs organized under skill development schemes of the Ministry.
  • 20% of MSME Business Delegations sent to domestic and international exhibitions will be dedicated to women owned MSMEs.
  • 20% Discount on annual processing fee on Commercial Schemes.
  • Special Drive for registration of women-owned MSMEs under Udyam Registration.

Significance of the "SAMARTH" initiative:

• Through this initiative, the Ministry of MSME will provide Skill Development and Market Development Assistance to women and more than 7500 women candidates from rural and sub- urban areas will be trained in the FY 2022-23.
• Thousands of women will get marketing opportunities to showcase their products in domestic and international exhibitions.
• Single Point Registration Scheme.

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 enterprises belong to the services sector.

Concerns:

• 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.
• Lack of reliable information about financial management makes the women entrepreneurs less attractive to financiers.

Way Forward:

• Access to finance is a key for the growth of the MSME sector in India.
• Micro finance 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 potential for “doorstep financial delivery model” branchless banking and other innovative delivery systems tie-ups with NGOs, microfinance institutions, 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 an online customer care support.

https://www.pib.gov.in/PressReleasePage.aspx?PRID=1803626

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