Women entrepreneurship in India is evolving but numerous challenges persist, especially for women from low-income backgrounds. In both India and globally, women entrepreneurs face unique hurdles and opportunities. Despite progress, many struggle with limited access to funding, education and mentorship, alongside deep-rooted cultural and societal barriers. These challenges, however, are not insurmountable.
By implementing targeted support and strategic initiatives, we can empower women from diverse backgrounds to transform their entrepreneurial dreams into thriving businesses.
Global Landscape of Women Entrepreneurship
Globally, women own approximately 37% of all businesses, a number that continues to grow. Yet, they often encounter gender-specific barriers, including limited access to funding, lack of mentorship and societal expectations. According to the Global Entrepreneurship Monitor (GEM) 2020/2021 Women’s Report, 49% of women entrepreneurs globally cite fear of failure as a major obstacle, compared to 37% of men.
In many developing countries, these challenges are compounded by socio-economic factors. Women in slums and rural areas often have limited access to education, financial resources and social networks, making it exceedingly difficult for them to start and sustain businesses. Nevertheless, driven by resilience and an innovative spirit, women entrepreneurs are rising up the ladder making their presence felt in the very male-dominated space of business.
How’s India faring in creating Successful Women Entrepreneurs?
In India, out of 58.5 million establishments in India, 8.05 million are run by women entrepreneurs, accounting for approximately 13.76% of all establishments, as per the Sixth Economic Census by the National Sample Survey Organisation (NSSO). This low percentage reflects the myriad challenges faced by women, particularly those from underserved backgrounds.
Women in rural areas or urban slums encounter additional hurdles such as societal norms, lack of family support and financial constraints. Many women drop out of school due to socio-economic pressures or early marriages, limiting their knowledge and skills. For instance, only 27% of Indian women above the age of 25 have completed secondary education, compared to 56% of men.
Furthermore, access to capital remains a significant challenge. The credit gap for women-owned small and medium enterprises (SMEs) in developing countries is estimated at $1.5 trillion, according to the International Finance Corporation.
Barriers and Challenges Faced by Women Entrepreneurs
Access to capital remains a significant barrier, with many women lacking collateral and facing discrimination from financial institutions. Societal expectations and cultural norms often impose additional hurdles, limiting their business opportunities and involvement.
Balancing domestic responsibilities, especially during pregnancy and as new mothers, further complicates their entrepreneurial pursuits. Many women also encounter a lack of support, both emotional and professional, important for business growth. These multifaceted challenges highlight the need for targeted interventions and support systems to empower women entrepreneurs to succeed.
Opportunities and Support Systems
Government initiatives like Mahila e-Haat, Stand-Up India and Mudra Yojana aim to provide financial and technical assistance to women entrepreneurs, bridging the gender gap by offering easier access to credit and resources.
Companies can invest in women-centric projects, through Corporate Social Responsibility (CSR) providing funding, training and mentorship. For instance, the Tata Group’s initiatives for women’s empowerment include vocational training programmes and financial literacy workshops. NGOs are instrumental in providing grassroots support.
Various development organisations offer training, financial assistance and advocacy for women entrepreneurs, particularly those from rural and slum areas. The rise of digital platforms has opened new avenues for women entrepreneurs. E-commerce platforms, social media and digital marketing enable women to reach wider markets with minimal investment. Digital literacy programmes can further enhance these opportunities.
Swabhiman: A Smile Foundation Initiative
Swabhiman, an initiative by Smile Foundation, has been instrumental in empowering women through entrepreneurship skilling since 2005. Recognising the critical link between gender equality and sustainable development, Swabhiman works with marginalised and socially excluded women, providing interventions in livelihood, nutrition and healthcare.
Through innovative community practices, the programme empowers women with reproductive healthcare knowledge, nutritional awareness and skills training to achieve financial independence. Additionally, Swabhiman focuses on entrepreneurship development and skill training for women in urban slums and rural areas, promoting digital financial literacy to enhance economic security. By actively engaging men and boys, the initiative strives to cultivate a gender-equal society, encouraging community-wide support for women’s empowerment.
The Role of Society in Creating Successful Women Entrepreneurs
Community support systems, such as women’s business associations and local initiatives, can provide essential training and financial assistance. Moreover, societal attitudes that celebrate and normalise women’s achievements in business can inspire confidence and ambition. By addressing structural barriers and biases, society can empower women to innovate, lead and thrive in the entrepreneurial landscape.
By addressing the unique challenges of women and leveraging opportunities through social work, government and CSR initiatives, and societal support, we can pave the way for successful women entrepreneurs.
As activist-writer Bosa Sebele said,
“There is no source more powerful than a woman determined to rise”.
Their success not only transforms their lives but also contributes significantly to the broader socio-economic development of their communities. Through collaborative efforts and sustained support, we can create a world where every woman, regardless of her background, has the opportunity to realise her entrepreneurial dreams and contribute to a more equitable society. Let us work together to ensure that the path to success is open to any woman who dares to dream!
