How women business owners can lead India’s economic growth: According to a study by the International Labour Organization (ILO), proceeding women’s fairness in business would rise the global GDP by Rs. 6
trillion by 2026. Not amazingly, most of the growth would come from
developing economies where the gender equivalence gap is now the
broadest.
Rare countries, because of their size and population, are composed to
benefit from equality, especially India, where currently only 26 percent of
the labor force is female. However, their role in domestic GDP is only 15
percent, less than semi the global average. Rendering to the World Bank,
doubling the percentage of women in the workforce would increase India’s
growth rate from 7 to 9% and raise the country’s GDP to US$750 billion by
2026(How women business owners can lead India’s economic growth).
Inspiring as such a rise would be, there is more to be gained if we enhance
women business owners to the discussion in the C-suite of corporations in
India and about the world. According to a 2019 survey led by the Reserve
Bank of India (RBI), only about 14 percent of all micro, small and medium
enterprises (MSMEs) in India are majorly owned by women, and only 6
percent of all start-ups are led only by women. And while gender equality is
still many years away, even a diffident increase in India would reap benefits
well beyond GDP figures.
Women are both better placed to understand the total needs of their groups
and more motivated by a desire to substantially improve the quality of life
for all those about them. In applied terms, this takes the form of reducing
poverty by increasing general employment (more small jobs slightly than a
few big ones), improving health and communal well-being by engaging
more in those commercial enterprises that address family-level needs, and
encouraging extensive basic education by emphasizing literacy. And it is
exactly because women entrepreneurs are inclined to focus on smaller-scale,
community-level needs, that they have a better overall record of success in
countless areas than their male counterparts, including repaying loans
more reliably.
To its credit, India has already reputable a higher level of political
commitment to promoting and sustaining women entrepreneurs than most
other developing economies. A part of this comes from the country’s
decades-old embrace of liberalization, globalization, and privatization
policies that placed the foundation for the extraordinary growth of self-
employment that has reinforced the rise of women as business owners.
Today, approximately three million Indian women-owned enterprises
employ incompletely eight million persons.
To begin to realize the possibility of Indian women as business owners, the
private and public sector, at both the state and national level, need to work
together to allow greater entree to markets and funding since, according to
the RBI survey, friends and family contributions currently constitute 44
percent of small business funding. Business training and the development
of growth-oriented women suppliers on the fast market, access is dangerous.
In a similar vein, non-governmental organizations also have a key part to play in enabling capacity building, access to markets, access to finance, and
business networking. With so much change, it is clear that women business owners signify the most promising engine of the next stage of India’s remarkable growth and that an investment in India’s women entrepreneurs is not only an investment in the country’s economic future but also its collective improvement.