Study reveals that one third of new jobs created by women-owned MSMEs were filled by female employees

New Delhi, March 7 (IANS) Women-owned MSMEs have shown a significant increase in hiring women employees compared to male-owned MSMEs, according to a data analysis by Kinara Capital. One-third of all new jobs created by women-owned MSMEs were filled by women, contributing to local economies.

The analysis highlighted that women employees made up over 32.4 per cent of all jobs created by women-owned MSMEs, outperforming male-owned MSMEs by 11 per cent. This trend showcases the positive impact of women entrepreneurs on female employment and economic development within their communities. Women-owned MSMEs in sectors like Manufacturing, Trading, and Services displayed a higher inclination towards employing women, demonstrating a more inclusive approach.

Women MSME entrepreneurs were found to be more adept at cost optimization and income generation. With access to formal credit and resources, women-owned MSMEs reported a 12 per cent increase in monthly revenue. Additionally, these women entrepreneurs saw a 19 per cent rise in monthly net income, indicating effective resource management and cost control capabilities compared to men-owned MSMEs.

The analysis also highlighted the higher loan repayment diligence demonstrated by women entrepreneurs. Only 3.4 per cent of women defaulted on loan repayments, a lower rate compared to the 4.6 per cent default rate among men. This showcases the responsible financial behavior exhibited by women-owned MSMEs.

The study analyzed data from 44,821 MSMEs across six states and the Union Territory of Puducherry, including Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu, and Telangana. Hardika Shah, Founder & CEO of Kinara Capital, emphasized that women entrepreneurs have shown better loan repayment, job creation for women, and personal income growth. This data sheds light on the positive impact of women-owned MSMEs on the overall economy and employment landscape.