24K Women-Led MSMEs Closed in 5 Years: Govt Informs Parliament

By: WE staff | Friday, 5 December 2025

• Almost 24,000 women-led MSMEs have closed in the last five years
• The data was shared by the government during the Winter Session of Parliament
• Over 1.6 lakh jobs were lost due to the closures

The government informed Parliament that almost 24,000 women-led micro, small and medium enterprises have closed in the past five years. Providing an update during the Winter Session, it also cited YourStory's report that over 1.6 lakh jobs were lost due to these closures.

More than 2.86 crore women-led MSMEs were registered on the Udyam Registration Portal and the Udyam Assist Platform, from July 2020 to November 2025, said Minister of State for MSMEs Shobha Karandlaje. These two digital platforms, introduced in 2020, are the prime sources of verified MSME data by the government.

In response to an unstarred question in the Lok Sabha, the minister presented state wise figures about women-led enterprises.

Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh, West Bengal, and Uttar Pradesh have the highest numbers, with Maharashtra leading at over 33.5 lakh units, followed by West Bengal at 28.47 lakh and Tamil Nadu at 25.5 lakh.

Some of these states also reported the most closures. Maharashtra accounted for 6,086 closures, followed by Tamil Nadu with 3,916, Gujarat with 1,856, and Karnataka with 1,497.

According to the Ministry, de-registration is not necessarily indicative of business failure because enterprises may end operations due to ownership changes, mergers, duplicate entries, or reduced need for certification.

Shobha said the government has increased efforts to strengthen women's participation in the MSME sector, including focused registration drives on Udyam platforms. She further highlighted targeted initiatives across credit, procurement, and skill development in support of women entrepreneurs.

As per Public Procurement Policy, 3 percent of the annual purchases of every central public sector enterprise are to be sourced from women-led micro and small enterprises.

Women-owned units get up to 90 percent guarantee cover under the Credit Guarantee Scheme against 75 percent in case of others, while there is also a 10 percent concession in guarantee fees.

Women entrepreneurs account for 39 percent of the beneficiaries under the Prime Minister's Employment Generation Programme.

Special schemes for this segment include the Skill Upgradation programme and the Mahila Coir Yojana. Participation in trade fairs is fully subsidised in the case of women-led enterprises, against 80 percent in the case of others.

Schemes like PM Vishwakarma and the Yashasvini awareness campaign have been initiated to enhance visibility, capacity-building and institutional support for women in traditional and craft-based sectors.

Overall, the data shows not only the increasing trend of women entrepreneurs, but also points to the challenges of micro-enterprises, especially in states with large numbers of women-led units.

Government measures related to access to credit, market linkages and procurement are expected to play a key role in enhancing the sustainability of these businesses in the coming years.