Special Entrepreneurship Promotion Drive for Women "SAMARTH"

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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.