Women Entrepreneurship: Capitalising on the Push for the MSME Sector in the Union Budget of India 2023-24  

Overview
In the 2023−24 Union Budget of India, seven priorities have been defined, which were termed ‘Saptarishi’ for the nation. These priorities are inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and the financial sector. All the seven key priorities can be leveraged through the Micro, Small, and Medium Enterprises (MSME) sector, which has immense potential to create an impact on social, environmental and economic aspects in the areas of green enterprises as both individual and collective enterprises. Till November 2022, the number of microenterprises registered stood at 11,735,117 (96.17%), with small businesses in second place with 426,864 (3.49%) and mid-sized businesses coming in third at 39,467 (0.32%). The 2023−24 budget has been called a ‘pro-MSME budget’.

For infrastructure and investment, a budget has been allocated to promote One District One Product, Geographical Indication products and handicrafts that are off-shoots of the MSME sector. The Startup Village Entrepreneurship Programme, the sub-scheme of the National Rural Livelihoods Mission of the Ministry of Rural Development, intends to promote self-employment by setting up women-owned producer collectives. To further boost the entrepreneurial culture, Rural Self Employment Training Institutes are providing entrepreneurship development education to rural youth. Under the Pradhan Mantri Vishwakarma Kaushal Samman, a package of assistance has been conceptualised for artisans and craftsmen to set up collective enterprises. The new programme will allow the artisans to improve the quality, scale and reach of their products while also integrating these into the MSME value chain. The scheme’s components include access to advanced skill training, knowledge of modern digital techniques and efficient green technologies, brand promotion, linkage with local and global markets, digital payments and social security.

Making Entrepreneurship Possible

Development Alternatives works on entrepreneurship development in the energy, water and climate sectors that responds to the seven priorities listed in the budget. To take innovations in entrepreneurship to scale, Development Alternatives’ collaboration with its partners has resulted in the setting up of 8000+ enterprises¹, of which 35% are collective enterprises. These enterprises have created 37,000+ jobs in the local economy, including 9000+ livelihoods for women artisans and farmers. The enterprises cover all three sectors of farm, off-farm and non-farm. To further enhance enterprise development, the entrepreneurs have accessed credit worth INR 489.38 million² through Development Alternatives’ phygital platform (udyaME.in), which offers financial, technical, marketing and capacity-building support services to set up green enterprises. Some of these enterprises include integrated fisheries-cum-backyard poultry models, vermicomposting and women-led e-mobility networks, which cater to all three aspects of the Triple Bottom Line. Development Alternatives is also promoting integrated enterprise models around water bodies in Bundelkhand in convergence with the foundations of financial institutions.

To ensure 1 million jobs in 1000 days and 3 million sustainable livelihoods by 2030, Development Alternatives collaboration with central, state and district-level government agencies will generate jobs and unlock access to finance and technology in the local economies. Its vision is to replicate successful enterprise models and co-create solutions to build robust local entrepreneurial ecosystems across geographies through knowledge transference. Development Alternatives, in collaboration with the Ministry of MSME, Government of India, has established 29 collective enterprise models in 12 States of India and invested INR 924 million worth of grants under the Scheme of Fund for Regeneration of Traditional Industries. These models range from diverse sectors of agro-based, home-decor, lifestyle, service, medicinal and aromatic plants and non-timber forest products (NTFPs). More than 21,000 farmer-artisans, including 8000+ women, have been collectivised to run their brands, doubling their incomes to an average of INR 3500 per month. These collective enterprises also promote GI-tag products such as Malabar Pepper and Channapatna wooden toys.

A Robust Women’s Collective

The Matcraft cluster in the Pashchim Medinipur district of West Bengal is a 500-women-led handicraft collective. This is a model cluster as all green technological solutions, such as rainwater harvesting, water recycling, kitchen gardening and solar energy, are practised at the Common Facility Centre. The artisans make a wide variety of utility products from mat grass including yoga mats, handbags and coasters. These products are marketed under the brand ‘Medini Handicrafts’ and help the artisans earn an average monthly income of INR 12,000.

The Way Ahead

The partnership between civil society organisations and the government can result in micromovements of change for the economy such that many more can be included in the purviews of entrepreneurship by scaling in convergence the technical expertise of NGOs with government initiatives. In the macro vision, Development Alternatives and its partners can build strong relationships with the Ministry of Rural Development and the Ministry of Skill Development and Entrepreneurship for building an entrepreneurial culture in the hinterlands of the country, which foster the job creators of tomorrow.

Websites

https://www.downtoearth.org.in/video/economy/union-budget-2023-24-key-highlights-employment--87465
https://www.india.gov.in/spotlight/union-budget-2023-2024
https://rural.nic.in/en/press-release/entrepreneurial-culture-rural-india
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1811442

Endnotes