Women MSEs’ share in govt procurement remains dismal despite YoY growth in value — here’s why

Women MSEs’ share in govt procurement remains dismal despite YoY growth in value — here’s why

Ease of Doing Business for MSMEs: Overall, the share of MSEs in total annual government procurement had increased from 26.32 per cent in FY19 to 30.18 per cent in FY20 but contracted to 28.04 per cent in FY21.

Ease of Doing Business for MSMEs: Even as public procurement from women-owned enterprises hit a record level in the financial year 2020-21, their share in 25 per cent mandatory annual procurement from micro and small enterprises (MSEs) by central ministries, departments, and PSUs have remained dismal. The annual procurement target for government buyers from MSEs was revised in 2018 to 25 per cent from earlier 20 per cent of their total annual purchases. The 25 per cent procurement included a 3 per cent target from women-owned MSEs which the government has failed to meet every year.b

While procurement from women-owned MSEs grew from Rs 232.56 crore across 1,410 enterprises in FY19 and Rs 393.56 crore from 3,667 enterprises in FY20 to Rs 724.81 crore from 4,926 enterprises in FY21, the share has managed to crawl up from 0.15 per cent to 0.50 per cent in FY21 while the annual target has been of 3 per cent, data from MSME Sambandh showed. In FY22 so far, the procurement from women MSEs stood at Rs 138.13 crore from 600 enterprises with a share of 0.69 per cent.Comments from the Office of Development Commissioner, Ministry of Micro, Small & Medium Enterprises were not available immediately for this story.

The challenge is both ways – lack of awareness among women entrepreneurs and government has also been not very keen. Either they wouldn’t need the product or women wouldn’t know how to approach or they simply would have no idea about it. After multiple inputs, the government had agreed to a 3 per cent annual target but there’s no headway as such. Also, payments delay is a big issue. It is tougher for women entrepreneurs to get payments on time. Women entrepreneurs are ready to engage but then payment issue is a barrier. The attitude of government as well has been lukewarm,” Rajni Agrawal, President, Federation of Indian Women Entrepreneurs told Financial Express Online.

News source :- financial express

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