The State of Telangana's New MSME Policy Assists Female Entrepreneurs

Nitin Konde, Apoorva Bajj

Sep 23, 2024 — 3 min read

The State of Telangana's New MSME Policy Assists Female Entrepreneurs

Telangana has made significant progress in the direction of encouraging female entrepreneurs through the implementation of its MSME policy, which was recently unveiled. According to the most recent figures, the state has 58,644 women entrepreneurs who have registered their businesses on the Udyam portal of the Centre. In Telangana, which is home to more than 1.88 crore women, this essentially amounts to 3.1 women entrepreneurs for every 1,000 women in the state.

With a state of affairs in October 2022, the NITI Aayog's study on women entrepreneurs places Telangana at the third spot on the list. 7.85 percent of micro, small, and medium-sized enterprises (MSMEs) were held by women. West Bengal was at the top with a percentage of 23.42%, while Tamil Nadu had a percentage of 10.37%.

“The new MSME policy in Telangana marks a pivotal moment for women entrepreneurs. It opens up a world of possibilities, empowering us to pursue our ambitions with renewed confidence. This initiative provides essential resources, financial backing, and mentorship opportunities tailored specifically for women-led businesses. With this support, we can expand our ventures and enhance our offerings, ultimately reaching more families in our communities. It’s truly inspiring to see a government recognise the vital contributions that women make to the economy and society at large. This policy isn’t just about financial assistance; it represents a commitment to creating an inclusive environment where women can thrive," said Akanksha Sharma, CO-Founder & CEO, CITTA.

MSMEs Led by Women in India

With 12.39 million women-led businesses out of a total of 60.84 million micro, small, and medium-sized companies (MSMEs), women-owned MSMEs accounted for 20.37 percent of all MSMEs on a national scale. This, however, indicates that the majority of these businesses owned by women are very small, and the majority of them fall into the category of micro firms. What's more, the majority of them are run by a single individual.

Only 17 percent of these kinds of enterprises had employees, and ninety-five percent of those who did have employees had five or less employees. The report continues to suggest that the proportion of women-owned businesses is reduced as the size of the enterprise increases.

Obstacles Faced by Female Entrepreneurs

According to Dr. Anupama Panduru, who serves as the Chairperson of the Indian Women Network (IWN) Telangana for the CII, 93.6% of the women entrepreneurs in the state are operating in the nano and micro segments. The manufacturing industry is home to a large number of female entrepreneurs; nevertheless, there are a number of obstacles that must be overcome. These obstacles include the high cost of entrance into the industry as well as necessities such as subsidies, worker accommodations, and specialised labour.

K. Rama Devi, the Chairperson of ALEAP WE-HUB, pointed out that maintaining a business continues to be a difficulty for women entrepreneurs, despite being able to gain access to financial resources and experiencing an overall improvement in conditions. The majority of these businesses that are managed by women are unable to expand and thrive in such a competitive market because they lack the marketing strength necessary to sell their products or services.

The state government was approached by CII-IWN with a number of recommendations, including an industrial park strategy, the necessity of worker housing, the necessity of subsidies to lower the cost of starting up business for women entrepreneurs, and access to a pool of skilled labour.