Women-led businesses need better regulatory support, 3% GeM quota, licensing reforms key for participation: ORF

New Delhi [India], April 17 : To enable women to participate as equal stakeholders in the marketplace requires policy interventions that go beyond visibility and address deeper structural, spatial and institutional barriers, highlighted a report by Observer Research Foundation.

The report noted that while existing frameworks recognise the social and financial dimensions of women's entrepreneurship, they often overlook critical aspects like urban planning, licensing, and institutional access that shape women's economic participation.

It emphasised that governance and procurement reforms are essential to improve market integration for women-led enterprises.

It stated, "Beyond the metrics of registration and credit, policies should reflect a vision of spatial justice and structural changes, in which women not only participate but also co-govern the marketplaces."

The report called for enforcing the 3 per cent Government e-Marketplace (GeM) procurement quota for women entrepreneurs and ensuring it is not limited to low-margin sectors.

It also recommended simplifying bid criteria by relaxing requirements related to turnover, experience and certifications for microenterprises.

Further, it suggested introducing post-disbursal reporting frameworks to assess whether financial support actually leads to meaningful economic participation. The report also called for establishing ward-level Vendor Support Cells to assist women in accessing procurement platforms through digital training, documentation and tax literacy.

On regulatory aspects, the report highlighted the need to reform urban licensing and zoning rules. It recommended amending the Shops and Establishments Acts to recognise home-based and hybrid businesses, as well as relaxing working hour restrictions that limit women's participation in evening and night markets.

The report also stressed the importance of recognising women-led enterprises in non-commercial zones and simplifying licensing processes through integration with planning mechanisms.

In the MSME ecosystem, the report called for recognising collectives, informal units and hybrid businesses as valid economic entities. It also suggested integrating multiple registrations, such as GST, FSSAI, trade licences and Udyam into a single-window system tailored for women-led businesses.

Institutional representation was identified as another key gap. The report recommended mandatory inclusion of women in market boards, municipal licensing committees and Town Vending Committees. It also proposed setting up dedicated Market Women's Cells at the city level to address grievances and support entrepreneurs.

Additionally, the report emphasised the need for better infrastructure and hybrid models to support digital and physical business integration. It called for extending labour protections and social security to women operating on online platforms.

The report concluded that recognising care work and unpaid labour as constraints, along with involving women in policy design, is crucial for building an inclusive and sustainable entrepreneurial ecosystem.

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