What Female Entrepreneurs Want from FM

The wave of Indian entrepreneurship is driving individuals to compete and expand their business horizons globally. More and more women entrepreneurs are riding the wave and making a big impact in this new world. However, female representation continues to be suboptimal.

According to the All India Report of the 6th Economic Census, the total number of business establishments owned by women entrepreneurs in India was only 8.05 million (or 13.76%). The foundations of women entrepreneurship in India have been covered to some extent, but much remains to be accomplished. Let’s take a look at the key challenges facing women entrepreneurs and what the government expects from the 2023 federal budget.

Read more: Gender Budget 2023-24: Promote Women-Led Development in India?

fundraising

Unconscious sexism continues to plague the development of women entrepreneurial ventures. Inadequate funding availability by PE investors is caused by weak creditworthiness and an unfair perception of their ability to run successful businesses. The government has introduced various funding opportunities for women, including Bharatiya Mahila Bank Business Loan, Dena Shakti Scheme, Udyogini Scheme, etc., but funding is moderately limited and economically viable for a scalable business model. does not offer freedom.

To address women’s concerns, governments could make the following reforms in the 2023 budget.

education and awareness programs

The government has introduced the NITI Aayog, which operates on seven principles of effective governance, including specifically promoting women’s empowerment and equality. We also launched the Women Entrepreneurship Platform (WEP) initiative, which brings together women entrepreneurs and sponsors to support them.

To provide further stimulation, the government could introduce additional skill development and education centers to train aspiring women entrepreneurs.

This also paves the way for interacting with who is who in their areas of interest, bringing different facets to reform, transformation and implementation, consistent with the governance reforms introduced by the Government of India.

Appointment of female directors

Current law requires public companies to have at least one female director on their board. The law is not good enough, otherwise having just one female director on a male board cannot have a real impact on the structure. Additionally, a single female director may feel uncomfortable expressing an ineffective vote in a male-dominated board.

Governments should consider replacing the words “at least one” with a percentage of the Board’s strength or one, whichever is higher.

Additionally, interactive websites can be developed to enhance the convenience of the company and women entrepreneurs. There, based on qualifications and experience, eligible female entrepreneurs seeking directorships can register. Such platforms can also provide the convenience for companies to welcome female directors in a work-appropriate manner.

Existing regulations allow one person to hold up to 20 directorships, but the maximum number of directorships in a public company is limited to 10. I need to increase my public company to 20. This gives women more opportunities to broaden their horizons.

preferential tax system

To unlock the potential of women across the country, governments may consider introducing special tax incentives for companies that provide employment to a specified minimum percentage of women in the total workforce. No. It will act as a catalyst to boost the employment of women in India, thereby promoting diversity and gender equality in the workforce.

social security benefits

The government has introduced various social security and welfare systems, but for women entrepreneurs, there is a guaranteed pension (at a lower premium) that provides financial security to women entrepreneurs, similar to the local social security system. ) can also introduce a system that provides

In addition, labor law should have employment protection provisions for women going on maternity leave in line with European practice.

Conclusion

Women in selected Asian economies, including India, continue to lag behind their global peers in their ability to advance professionally as business leaders, professionals or technologists, according to the results of the Mastercard Index of Women Entrepreneurs 2021. I am taking

Multiple government reforms have been introduced over the years to boost and empower women entrepreneurs, but there is still a long way to go. Union Budget 2023 is expected to provide additional opportunities for women to promote an inclusive workplace culture.

Riaz Thinna – Partner, Grant Thornton Bharat. This article was written with input from CA Nilpa Gosrani and CA Disha Mehta.