Women entrepreneurs usually face hurdles like limited access to finance, unfavourable policies, regulatory barriers, lack of access to markets as well as lack of access to trusted networks. By removing many of these hurdles, Karnataka offers enormous opportunities and a level playing field for women who want to set up and run any type of business.
Karnataka ranks third in the country in women entrepreneurial activity and is home to 103,169 women-owned business enterprises. The total investment on women-owned enterprises totalled $404 million in 2012-13 and created 4,60,000 (0.46 million) jobs.
The fourth Medium, Small and Micro Enterprises (MSME) census shows that four states — Karnataka, Kerala, Tamil Nadu and West Bengal — together have 51.9 per cent of the country’s women-owned business indicating South India and especially Karnataka has an excellent ecosystem for women entrepreneurs.
Not resting on its laurels, the Karnataka Government has taken further policy decisions that support women enterprises. The New Industrial Policy 2014-19 merits a special mention.
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 follows:
- Two industrial areas, created exclusively for women at potential locations such as Hubli/Dharwad and Harohally in Kanakapura taluk.
- Reservation of 5 per cent of plots/sheds in the future industrial areas/estates established by the Karnataka Industrial Area Development Board (KIADB) and the Karnataka State Small Industries Development Corporation (KSSIDC) for women entrepreneurs.
- Exclusive clusters for women entrepreneurs operating in sectors of textile, gems & jewellery.
- Women entrepreneurs trained by CEDOK or recognised training institutions will be provided with low interest start-up loans (with interest subsidy) and flexible repayment schedule.
- State to introduce Entrepreneurship Development Programmes exclusively for prospective women entrepreneurs.
- Reimbursement of the cost of preparation of project reports to the extent of Rs 2 lakh per unit
- 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 the type of enterprise and whether it is located in Karnataka area or not.
- Exemption of MSMEs from stamp duty
- Concessional registration charges for MSMEs
- Reimbursement of Land Conversion Fee
- Exemption from entry tax- for 100 per cent exemption from payment of entry tax on ‘plant & machinery and capital goods ‘for a period of three years from the date of commencement of project
- Subsidy for setting up ETPs for manufacturing MSMEs. One-time capital subsidy of up to 75 per cent of the cost of ETPs, subject to a ceiling
Karnataka has many associations that help women to become successful entrepreneurs. Be it training, mentoring or networking, associations like AWAKE (Association of Women Entrepreneurs of Karnataka), EMERG (Engineering Manufacturer Entrepreneurs Resource Group), COWE (Confederation Of Women Entrepreneurs), KCCI (Karnataka Chamber Of Commerce And Industry) Hubbali and FKCCI (Federation of Karnataka Chambers of Commerce & Industry) are hand holding women entrepreneurs through their arduous journey to a successful enterprise.
Source: The Economic Times