“Women should be uplifted for the upliftment of the nation, for if a
woman is uplifted, society and nation are uplifted” said Jawaharlal Nehru, the
first Prime Minister of India.
Women empowerment is critical to the process of
the development of the community.
In
recognition of this adage, Karnataka Government is dedicated to
advancing women throughout the entrepreneurial ecosystem. By building a diverse
entrepreneurial ecosystem that taps into the immense pipeline of talented women
entrepreneurs, the Karnataka Government has provided an ideal platform for
global investors to set up women owned enterprises in the State. Women
entrepreneurs face many hurdles like limited access to finance, unfavourable
policies, regulatory barriers, lack of access to markets and lack of access to
trusted networks. By removing many of these hurdles Karnataka offers enormous
opportunities and a level the playing field for women who want to set up and run
any type of business.
Karnataka ranks third in the nation
for women entrepreneurial activity and is home to 103,169 Women Business Enterprises.
The total investment of women owned enterprises totalled $ 404 million in
2012-13 and they employed 0.46 million persons signifying the economic impact
of women owned enterprises. The fourth Medium, Small and Micro Enterprises
(MSME) census, the four States — Karnataka, Kerala, Tamil Nadu and West Bengal
— put together have 51.9 per cent of the country’s women-owned business
indicating that South India and especially Karnataka has an excellent ecosystem
for women entrepreneurs.
Not resting on its laurels Karnataka
Government has taken further policy decisions that support women
enterprises. New Industrial Policy
2014-19 merits a special mention.
New Industrial Policy 2014-19
Women entrepreneurship is one of
the thrust areas in Karnataka Government’s New Industrial Policy 2014-19. According
to the New Industrial Policy of 2014-19, the aim of the government is
to encourage women entrepreneurs and “….give a special thrust to women
entrepreneurship and to improve the contribution of women entrepreneurs and
facilitate creation of more women enterprises in the state in the next five
years.” In this policy
enterprises promoted either as a proprietary concern or a partnership firm / private limited
company where all the partners or directors are women will be given special concessions and
facilities as given below:
1. Two
industrial areas especially created and exclusively for women at potential
locations such as Hubli/Dharwad and Harohally in Kanakapura taluk.
2. Reservation
of 5% of plots/sheds in the future industrial areas/estates established by
Karnataka Industrial Area Development Board (KIADB) and Karnataka State Small
Industries Development Corporation (KSSIDC) for women entrepreneurs.
3. Exclusive
clusters for women entrepreneurs operating in sectors of textile, gems &
jewellery.
4. Women
entrepreneurs trained by CEDOK or recognized training institutions will be
provided with low interest start-up loans (with interest subsidy) and flexible
repayment schedule.
5. State
to introduce Entrepreneurship Development Programmes exclusively for
prospective women entrepreneurs.
6. Reimbursement
of the cost of preparation of project reports to the extent of Rs.2 lakh per
unit
7. Investment
promotion subsidy will be given to micro, small and medium manufacturing
enterprises based on value of fixed assets
(VFA). The extent of the subsidy will be based on type of enterprise and
whether it is located in Hyderabad Karnataka area or not.
8. Exemption
from Stamp Duty for MSMEs
9. Concessional
registration charges for MSMEs
10. Reimbursement
of Land Conversion Fee
11. Exemption
from Entry Tax- for 100% exemption from payment of Entry Tax on 'Plant &
Machinery and Capital Goods 'for an period of three years from the date of
commencement of project
12. Subsidy for Setting up ETPs for Manufacturing
MSMEs One time capital subsidy up to 75% of the cost of ETPs, subject to
a ceiling
Support system for women entrepreneurs
Karnataka has many associations that focus on creating
an ecosystem that supports and encourages women to become successful
entrepreneurs. Be it training, mentoring or networking associations like AWAKE,
EMERG, COWE, KCCI Hubbali and FKCCI are hand holding women entrepreneurs
through their arduous journey to a successful enterprise.
Along with these associations the Karnataka
Government too contributes to the growth of women enterprises. Many women led
enterprises fail due lack of proper global exposure. The Karnataka Government tries
to give international exposure to women entrepreneurs by sponsoring delegations
to various trade fairs. This gives an opportunity to women entrepreneurs to network
with various business organisations/ industries and invite investors to invest
in Karnataka with joint ventures between women-to-women entrepreneurs. For
example, in June 2015, I led a delegation of women entrepreneurs to Austin
Texas, in United Sates of America. The delegation appraised US-based MNCs of
investment opportunities in Karnataka and prospects for women entrepreneurs. This year Invest Karnataka 2016 will be a different as
the focus will be not only on large industries but also on small enterprises promoted
by women. We intend to encourage MNCs to associate with women led enterprises
and invest in Karnataka.
Future beckons….
Several studies have said India is a
future hotspot of female entrepreneurial activity, ahead of Hong Kong and other
places but women entrepreneurs have still some way to go before reaching full
potential. With these new initiatives taken by the Karnataka Government, women
entrepreneurs now have a golden opportunity to set up their entities in this State.
K Ratna Prabha, IAS,
Additional Chief Secretary, Commerce
& Industries, GoK
