Women-Owned MSMEs in India Reach 20.5%, Driving Growth in Tier II & III Cities: KPMG Report

New Delhi, Dec 12 (KNN) India's micro, small, and medium enterprises (MSMEs) sector is seeing a marked shift, with women now owning 20.5 per cent of these businesses, according to a new KPMG report unveiled at the TiE Global Summit in Bengaluru.

This statistic highlights a growing trend towards gender diversity in business ownership, signalling progress in empowering women entrepreneurs in the country.

As of August 2024, India boasts over 49 million MSMEs, registered under the Udyam portal, collectively employing more than 210 million people.

The KPMG report emphasises that this rise in women-owned enterprises is a significant step in achieving broader gender parity within India’s entrepreneurial ecosystem.

The report also notes a shift in startup dynamics, with 45 per cent of all new startups originating from Tier II and III cities. This development indicates a regional entrepreneurial boom, moving beyond the traditional startup hubs of metropolitan areas.

It highlights how initiatives like the Women Entrepreneurship Platform and Pradhan Mantri MUDRA Yojana have supported women and low-income entrepreneurs, providing them with the tools to thrive and drive local economic growth.

Rural communities have also benefited from programs like the Start-up Village Entrepreneurship Programme, which promotes non-farm enterprises and local innovation.

The Indian government’s role in facilitating this entrepreneurial shift has been crucial, with policies such as the Atal Innovation Mission and state-level startup initiatives providing tailored support to foster innovation.

By mid-2024, 31 states and union territories had adopted dedicated startup policies. Furthermore, collaborations with private sector entities, including corporate incubators, have bolstered these efforts.

India’s startup ecosystem, now the third-largest globally, has become a key driver of economic growth, contributing 10-15 per cent of GDP between FY2016 and FY2023.

With over 140,000 startups and more than 100 unicorns, this dynamic sector is poised to play a pivotal role in the country's goal of becoming a USD 5 trillion economy.

Akhilesh Tuteja, Partner and Head at KPMG in India, noted that “entrepreneurship in India is undergoing a paradigm shift, evolving into a more accessible and inclusive force for economic growth.”

(KNN Bureau)