On August 29, Hurun India released a list of the top 10 wealthy people in the country. Though the list contained all the familiar names, it was heartbreaking to see that the list contained no names of women. This, despite the significant rise in the number of women leading businesses in the country in recent times. What is more heartbreaking is the fact that India is the world’s third-largest startup ecosystem and one of the thriving economies in the world.
However, the institute also released a separate list titled ‘Top 10 self-made women in Hurun India Rich List 2024’. The list was topped by Zoho’s co-founder Radha Vembu, followed by Nykaa’s founder Falguni Nayar and Arista Networks’ Jayshree Ullal.
The report also noted that women’s representation in Indian business and the workforce remains relatively low. “Women constitute only 14% of all entrepreneurs in the country and just 35% of startup employees are women. Even more striking, in 2021, only 5 out of 136 unicorn founders were women, a stark decline from previous years. In micro, small, and medium enterprises (MSMEs), women oversee a mere 20% of the 58.5 million enterprises,” the report said.
The data clearly shows that gender equality in entrepreneurship continues to remain an elusive goal. NSE data also confirms the same. As per the data, only close to 100 companies in the country have women as either managing directors or CEOs. This percentage of women CEOs in India is much lower than the global average of 23.3%.
Why does the gender inequality continue to persist in the Indian start-up ecosystem? What are the challenges faced by women entrepreneurs? Let’s discuss further in detail to get an overall understanding.
Challenges for women entrepreneurs:
Access to capital
One of the evident barriers that women face in their entrepreneurship is access to capital. Research shows that women-led start-ups receive less funding in comparison with their counterparts, even though their performance is better in all aspects. The lack of access to capital makes their businesses underfunded. As a result, many budding women entrepreneurs end up shutting down their businesses within a short period of time.
Despite the fact that studies show that women-led companies tend to outperform their male counterparts in terms of return on investment, there is a misconception among the investors about the scalability and profitability of their businesses. Not just that, the glaring stereotypes and biases often cloud decision-making in the investment community. Venture capital and investment communities are dominated by men and often have less or no women representation.
The lack of women’s representation in the sectors reflects the lack of support or advocacy they need to run their businesses. The barrier to access to capital remains strong despite women constantly proving that they are well capable of establishing a successful business.
Societal expectations
Despite women holding important positions both in the government and multi-national companies, women are even today expected to juggle multiple roles. In many households, which are often considered supportive by society, women are expected to allocate time for their business only after completing their household chores, caregiving and motherly duties. How can a woman put her complete concentration on work if she ends up exhausting all her energy and time in taking care of her house?
Perceived notion puts women only in domestic and caregiving positions and does not allow her to raise to beyond that. A woman is always expected to put her family first, not just over business pursuits but also over herself. If anything ever goes wrong anywhere—be it at home or at the workplace—society always puts the blame on the woman and accuses her. This bias often shatters the confidence of women and stops them from pursuing their entrepreneurial dreams.
Mentorship and networking
Most of the networking spaces, including professional events, have historically been catered to male priorities and interests. This often does not align with the needs of women entrepreneurs. Also, when a woman enters the man-dominated domain, she is often looked down upon.
Women also face challenges in networking and grabbing mentorship from experts due to the existing socialisation pattern and societal expectations. This further deters women from pursuing their entrepreneurial ventures. The sector also lacks structured mentorship programmes that are tailored to support women entrepreneurs. Women are often not allowed to travel out of their city to attend mentorship programmes or broaden their networking connections.
Also, the sector hardly has many women mentors or role models. This often results in putting women entrepreneurs with less or no mentorship. Without proper guidance and a lack of networks to expand the business, women-led startups often stall before collapsing completely—becoming one of the biggest challenges for women entrepreneurs.
Bias and discrimination
Gender bias and discrimination in entrepreneurship manifest in several ways. More than often, it negatively impacts women entrepreneurs at various stages of their business journey. Due to the entrenched stereotypes related to the role of women, their confidence and reliability, clients prefer to work with men over women. Without being treated on par with men, women often receive less respectful and more critical feedback from clients.
Support systems like business incubators, accelerators, and advisory services may not always address the specific needs of women entrepreneurs. Even though it does, they are less accessible to them. The laws against gender discrimination remain insufficient and ineffective in the country. It makes it further harder for women to address and abolish discriminatory practices at the workplace.
The country can see a rise in the number of successful women entrepreneurs only if the challenges are addressed properly. We need to follow a multifaceted approach by creating more inclusive networking spaces, supporting mentorship programmes and effective and stringent laws against discrimination at the workplace to resolve the issues. The government should take steps to encourage diversity and equal inclusion of women in investment to reduce funding disparities.
Stakeholders should be educated about gender biases and how their impact can help challenge and change existing stereotypes and practices. Communities should also work on encouraging a cultural shift towards greater recognition and support for women in business. Without bringing in a change in society and their expectations for women, there will be no path ahead for women entrepreneurs.
Smile and Swabhiman
Smile Foundation’s Swabhiman programme is a powerful force in the journey toward gender equality. This initiative takes a holistic approach, focusing on improving health, education and self-reliance for women in underserved communities. By offering essential resources and skills training, Swabhiman is breaking down the barriers that prevent women from realising their full potential.
In the context of entrepreneurship, the programme provides a foundation for women to rise above systemic challenges like limited access to capital, mentorship and networking opportunities. Swabhiman equips women with vocational skills and with the confidence to pursue their ambitions. It’s a platform for women to transform their futures and reshape their communities. As the conversation around gender equality in entrepreneurship continues, initiatives like Swabhiman are important in leveling the playing field and creating lasting change.
