FICCI FLO to Establish Support Centres for Women-led MSMEs

The Ministry of Micro, Small and Medium Enterprises (MSME) has extended its support to the Federation of Indian Chambers of Commerce & Industry’s (FICCI) Ladies Organisation (FLO) to establish MSME support centers across several regions, including Pune. During the announcement, Narayan Rane, the Union Minister of MSME, also emphasized the potential of advanced technologies and Artificial Intelligence (AI) in driving the growth and resilience of businesses led by women in the MSME sector.

“Adoption of digitalization by small businesses means having the flexibility to adapt to disruptions and continue their operations. MSMEs are the backbone of India’s economy and play an intrinsic role in India achieving its ambitions of becoming the third largest economy by the year 2030,” Rane said.

“Providing regulatory, legal and financial frameworks conducive to entrepreneurship and small firms as well as startups has been our priority. Advancement of digital technologies and development of digital service models especially for women led MSMEs offer small businesses enhanced accessibility to business tools,” the Minister added.

Sudha Shivkumar, National President, FICCI Ladies Organisation (FLO) has informed that the organization has planned to open six MSME support centres for enterprises led by women in different parts of the country.

“The continuous nurturing of this sector, along with measures to embrace new technologies and favourable government policies, will be crucial to promoting the MSME sector and positioning them on the world map,” said Sudha Shivkumar.

“FLO has a dedicated vertical—MSME Assist—that aims at providing assistance and support to women entrepreneurs who are looking to start or grow their own MSME businesses. The objective of this cell is to equip women with the necessary tools to succeed in the MSME sector, by providing access to valuable resources, handholding, and mentoring,” she added.

Earlier this month, FLO partnered with Guru Nanak Dev University (GNDU), Amritsar, in order to promote skill development and provide a network of support to women entrepreneurs in various sectors.

Female Labor Force Participation

NeoGrowth Impact, a digital MSME lender, in its report said that approximately INR 1,900 crore were disbursed to MSMEs in the financial year 2022-23. Of the total loan amount, INR 430 crore were availed of by more than 2,600 women-led enterprises in the last fiscal year.

Interestingly, according to a report from Barclays, India's aim to attain an 8 per cent GDP growth rate necessitates women making up over 50 per cent of the new workforce set to be created by 2030. The report highlights the significance of enhancing labor productivity by leveraging the young workforce. Currently, the female labor force participation rate (FLFPR) stands at 37 per cent, but India must raise it to 43.4 per cent by 2030 to foster further growth in the workforce.

In conclusion, with continuous support from the government to women-owned enterprises through various schemes and programs, there is a promising outlook for growth and economic development in the country. Leveraging technology and harnessing the potential of women in the workforce are essential steps toward achieving the country's ambitious economic goals.