The Indian economy has grown at a steady pace throughout the last decade, achieving record heights with an impressing number of start-ups and businesses powering the nation’s progress.
It has also created a progressive workspace, slowly abolishing gender inequality and creating a balanced society for both men and women.
Social awareness, access to quality education, and several Government-led initiatives have created a positive environment, increasing the contribution of India’s female population in the nation’s workforce.
A recent nationwide study shows that nearly 14% of all businesses in the country is owned and operated by women, contributing to sectors ranging from finance to manufacturing.
Several other studies also released some other interesting facts –
Women entrepreneurship in India
- 8 million functional businesses across the nation are operated by a woman entrepreneur.
- Approximately 79% of these businesses are self-financed.
- According to a study conducted by the United Nations, India will add another Rs.500, 000 crore to its GDP if it achieves gender equality by 2025.
Availability of necessary training, several sources of financing for women business owners, and several Government-backed schemes have further helped accelerate the progress.
Facts women entrepreneurs should keep in mind before starting their business
Despite the growth in recent years, there are several facts that women entrepreneurs in India should remember when planning to form a business or organisation.
Let’s take a look at some of the most critical aspects:
- Taxation and accounting laws
Taxation is probably one of the most crucial aspects that every business should carefully follow. Indian taxation scheme is based on direct and indirect taxes, and with the introduction of GST, several indirect taxes have come under one umbrella.
Moreover, under the Government’s ‘Startup India’ scheme, MSMEs can avail a tax exemption for up to 3 years. Any registered partnership, private limited company, or limited liability company younger than 7 years and turnover not exceeding Rs.25 crore can avail such benefits.
Entrepreneurs can benefit significantly from this structure, as they can re-invest the amount in their organisation to promote better growth.
Entrepreneurs can fulfil their small business ideas for women and arrange the necessary finances by improving overall working capital.
However, every organisation should maintain a habit of proper bookkeeping at all times, and apply for TAN number after registering themselves with the Government of India.
- Licensing laws
There are several licensing laws applicable to startups in India, depending on the type and size of business. Running an organisation without a valid license can attract legal issues, and can even force an organisation to stop operations if they violate trading laws.
A current license applicable to all business is the Shop and Establishment Act whereas organisations catering to specific business ideas for women should seek specific authorisations, including service tax registrations, a certificate for environmental cleanliness, health, etc. while setting up. It is one of the first steps to becoming a successful business owner.
- Labour laws
Every organisation with a workforce have to abide by several labour laws implemented by the Government of India. Regulations regarding provident funds, minimum wage, gratuity, maternity benefits, holidays, payment, etc. have to be adhered by every firm on a mandatory basis.
Companies benefitting from ‘Startup India’ scheme have to mandatorily adhere to 9 labour laws and have to file self-certified returns for 3 consecutive years to avail tax exemptions against their TAN number.
Moreover, any consultant or freelancer, in addition to full-time staff, has to be included in the employee policy, mandatorily covering all individuals associated with the organisation.
- Protection of intellectual property
Intellectual properties play a crucial role in modern businesses, primarily if an organisation dealt in some of the most profitable sectors to start a business in 2019.
Startup India initiative offers the SIPP, or Scheme for Startup’s Intellectual Property Protection, which protects against unauthorised commercialisation of intellectual property.
It is supervised by the Office of Controller General of Patents, Designs, and Trademarks, and companies only have to pay a onetime fee for any patent application and other charges.
An organisation can easily overcome such expenses without compromising their working capital with the help of a business loan. These loans offer ample monetary backing for most costs, and women entrepreneurs can enjoy additional benefits over and above the usual credit norms.
Almost all reputed financial institutions, including NBFCs like Bajaj Finserv, offer such credits to eligible applicants. They also provide pre-approved offers that simplify the application process making it less time-consuming for borrowers.
Female entrepreneurs can choose from several business ideas for women and successfully start their business venture. Keeping the above-mentioned aspects in mind will help them navigate the complex legal and resource-related avenues of an organisation with ease.