Women Entrepreneurs Need 3% GeM Quota, Licensing Reforms: ORF Report

A new report by the Observer Research Foundation highlights that enabling women as equal market stakeholders requires policy interventions addressing structural and institutional barriers. It strongly advocates for the enforcement of the 3% Government e-Marketplace procurement quota for women entrepreneurs. The report recommends critical reforms, including simplifying licensing for home-based businesses and integrating multiple registrations into a single-window system. It concludes that involving women in policy design and recognizing care work constraints is crucial for an inclusive entrepreneurial ecosystem.

Key Points: ORF Report: Key Reforms Needed for Women-Led Businesses

  • Enforce 3% GeM procurement quota
  • Reform urban licensing & zoning rules
  • Simplify bid criteria for microenterprises
  • Mandate women in market boards
3 min read

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

ORF report calls for enforcing 3% GeM quota, licensing reforms, and institutional support to overcome barriers for women entrepreneurs.

"Beyond the metrics of registration and credit, policies should reflect a vision of spatial justice and structural changes - ORF Report"

New Delhi, 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.

- ANI

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Reader Comments

A
Arjun K
Finally, someone is talking about the structural issues and not just handing out loans. The single-window system for registrations is a brilliant suggestion. The current process is so fragmented it discourages even the most determined entrepreneurs.
S
Sarah B
The point about care work and unpaid labour being a constraint is spot on. Policy often assumes the entrepreneur has no other responsibilities. Support with digital training and documentation at the ward level could be a real game-changer for accessibility.
R
Rajesh Q
Good recommendations, but implementation is key. We have seen many good reports gather dust. Mandatory inclusion in market boards and committees is crucial—real change happens when women have a seat at the decision-making table.
N
Nisha Z
Relaxing working hour restrictions for women in night markets is a sensitive but necessary point. Safety is paramount, but so is economic opportunity. This needs to be coupled with proper infrastructure and security measures. A balanced approach is needed.
M
Michael C
The focus on "spatial justice" is interesting. Urban planning is rarely considered in entrepreneurship discussions. If a woman can't safely access a marketplace or a bank, all the financial schemes in the world won't help. Holistic thinking is required.
K
Karthik V
While I

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