Why 24,000 Women-Led MSMEs Closed: Data & Support

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TL;DR: Over 24,000 women-led MSMEs were deregistered between 2020–2025, affecting 1,61,580 jobs. Targeted government schemes—higher credit guarantees, procurement quotas and subsidised fairs—aim to boost recovery; register on Udyam and use practical guides to access support.

Overview: The scale of closures and job loss

Between July 2020 and November 2025, more than 24,000 women-led MSMEs were deregistered, representing an employment loss of about 1,61,580 jobs. At the same time, over 2.86 crore women-led MSMEs were registered on the Udyam Registration and Udyam Assist platforms, which the government now uses as a verified data source for micro, small and medium enterprises.

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State-wise distribution and shutdown hotspots

Major states leading in registrations include Maharashtra (33.5 lakh), West Bengal (28.47 lakh), Tamil Nadu (25.5 lakh), Karnataka (20.5 lakh) and Andhra Pradesh (20.1 lakh). These same states also appear among the highest in deregistrations: Maharashtra reported 6,086 closures, Tamil Nadu 3,916, Gujarat 1,856 and Karnataka 1,497. For context on broader entrepreneurship insights and market trends in India, these patterns show how regional ecosystems and economic pressures affect women entrepreneurs differently.

Why deregistration does not always mean business failure

Officials note that de-registration from the Udyam portal can happen for multiple reasons: ownership changes, duplicate entries, when certificates are no longer required, or true business closures. Understanding the distinction is important for policy, recovery planning and targeted support.

Government interventions to support women entrepreneurs

Several targeted interventions aim to increase women’s participation and resilience in the MSME sector. Notable measures include:

• Public Procurement Policy: central public sector enterprises must source 3% of annual purchases from women-owned micro and small enterprises.
• Credit Guarantee Scheme: women-led units receive up to 90% guarantee coverage (versus 75% for others) plus a 10% concession in guarantee fees.
• Preferential access to programmes like the Prime Minister’s Employment Generation Programme (women make up 39% of beneficiaries), Skill Upgradation initiatives, and Mahila Coir Yojana.
• Trade fairs: women entrepreneurs get 100% subsidy for participation compared with 80% support available to others.
• New awareness and skilling drives such as PM Vishwakarma and the Yashasvini campaign to build skills, visibility and institutional support for traditional trades.

To stay updated on policy changes, support schemes and government announcements that affect women-led businesses, check MSME and startup policy updates and news regularly.

Practical steps for women entrepreneurs to stabilize and grow

If you run or plan to start a women-led MSME, consider these action points:

• Verify and maintain your Udyam registration—accurate data helps access credit, procurement opportunities and subsidies.
• Explore higher guarantee coverage under the Credit Guarantee Scheme to improve loan access and reduce collateral pressure.
• Leverage procurement quotas by marketing to central public sector buyers and participating in subsidised trade fairs.
• Join skill development programmes (PM Vishwakarma, Skill Upgradation) and sector-specific schemes such as Mahila Coir Yojana for artisanal support.
• Use targeted campaigns and awareness drives to increase visibility and demand for traditional products and services.

For step-by-step assistance on registration, funding applications and practical business fixes, see our curated guides and how-tos for Indian businesses that walk you through processes like Udyam registration, loan applications and procurement registration.

What policymakers and ecosystem builders can do

Data shows concentration of both registrations and deregistrations in certain states. Policymakers and incubators should focus on region-specific interventions—strengthening market linkages, improving access to credit, and running local outreach for digital and financial literacy. Continuous monitoring of the Udyam portal data and targeted assistance for at-risk cohorts (sector, geography, life-stage) can reduce actual business failures.

Takeaway

The headline numbers—over 24,000 deregistrations and 1,61,580 jobs impacted—underscore the need for sustained, tailored support for women entrepreneurs. While not all de-registrations mean permanent failure, proactive use of government schemes, accurate registrations and practical business steps can help women-led MSMEs recover and grow.

Next steps: Review the policy and market updates, align your business with eligible schemes, and follow practical guides to strengthen resilience and access financing.

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