Empowering Women Entrepreneurs in India for Economic Growth

The Indian government has set an ambitious goal of achieving a 5 trillion dollar economy by 2025. Women entrepreneurs, particularly in the Micro, Small, and Medium Enterprises (MSME) sector, are seen as key players in reaching this target. Currently, women own around 20% of India’s 63 million MSMEs, employing between 22 and 27 million individuals. Increased economic participation by women has the potential to significantly boost GDP, promote sustainable development, gender equality, and reduce poverty.

Challenges Faced by Women Entrepreneurs in India

Rural women entrepreneurs in India face unique challenges, with more than 45% starting businesses out of necessity. These women-owned MSMEs, or wMSMEs, operate differently from male-owned enterprises and are more vulnerable to economic shocks. They grapple with issues such as balancing household responsibilities, limited skills, restricted network access, and funding constraints. Safety and mobility concerns also hinder their access to markets, and in many cases, male family members exert control over business decisions.

Support Needed for Women Entrepreneurs

To ensure the survival, resilience, and growth of wMSMEs, ongoing support is needed throughout their entrepreneurial journey. This support should encompass fundamental ecosystem-based needs, including entrepreneurship promotion, business support services, market linkages, access to finance, training and skilling, as well as mentoring and networking. These are essential in enabling women to establish and grow their businesses despite adversities.

Government Schemes Supporting Women Entrepreneurship

While there are several government schemes in India that support entrepreneurship and cater to the needs of wMSMEs, there is still a need for more attention to areas such as market linkages and mentoring. Additionally, there is a call for a more seamless integration of fragmented schemes to address the diverse needs of women entrepreneurs.

Recommendations for Policymakers

Policymakers can play a crucial role in improving support for women entrepreneurs by adopting a lifecycle approach that aligns with the fundamental ecosystem-based needs. This approach should encompass the convergence of central and state schemes, ensuring convenient last-mile access to all support programs, and offering digital and physical assistance.

A specific and outcome-driven approach for women entrepreneurs, as well as the expansion of mentorship and early-stage incubation support, should also be prioritised. Comprehensive mentoring across all ecosystem needs, as well as the establishment of women-focused incubators and accelerators, can significantly contribute to the progress of women entrepreneurs in India.

Ultimately, the implementation of these strategies can enhance the role of women entrepreneurs in India, contributing to economic growth, gender equality, and sustainable development.