Women-owned MSMEs needs special attention

CUTS International, which runs a wall newspaper Gram Gadar in Rajasthan, in a study revealed that the average growth rate of WMSMEs (women owned and managed micro, small and medium enterprises) is significantly lower than the average growth rate of MSMEs run by men. While the entrepreneurial process is the same for men and women, in practice however, the problems faced by women are of different dimensions and magnitudes.

Tackling these constraints requires a holistic approach that addresses and acknowledges the importance of both domestic constraints as well as related non-tariff barriers in hampering the creation of an enabling WMSME environment.

CUTS International undertook a project that sought to look at the regional trade potential and related non-tariff barriers in South Asia associated with women owned and managed micro, small and medium enterprises (WMSMEs). The project was carried out with support from the Asia-Pacific Regional Centre of the United Nations Development Programme (APRC-UNDP).

"Several issues hinder participation of women to operate a business and become a successful entrepreneur. Issues such as availability of easy and affordable credit are one of the important aspects, which needs government's attention. There is a high level of involvement of middlemen and contractors that needs to be curtailed and regulated," said Chenai Mukumba, Assistant Policy Analyst, CUTS International in an event of National Consultation Regional Trade Potential and Associated Non-Tariff Barriers.

The purpose of this national consultation workshop is to share the findings of the study entitled Regional Trade Potential and Associated Non-Tariff Barriers, with Special Focus on WMSMEs: The Case of India.

Micro, small and medium enterprises (MSMEs) are recognised as an important source of both formal and informal employment and poverty alleviation, especially for women across many developing countries. However, there exists a broad range of supply- and demand-side constraints, which limit the full potential of growth and development of MSMEs in general, and WMSMEs in particular.

With an estimated 48 million MSMEs, India has the second largest number of MSMEs in the world after China which has 50 million MSMEs.