The current wave of entrepreneurship is quite contagious in India and has touched almost every section of society, encouraging many to take concrete steps to start their entrepreneurial journey. People of all age groups are exploring thriving opportunities that address India’s needs. Most astounding is women’s enthusiastic and active participation, which represents the country’s most important demographic and a promising future of India’s business ecosystem, especially the Micro, Small, and Medium Enterprises segment.
Women are coming forward and breaking barriers to not only attain financial independence but also provide Indians with products and services that address market opportunities and generate employment. Despite this rapidly evolving trend, the numbers are discouraging when it comes to grassroots enterprises run by women, especially those that have a significant proportion of their value chain in small towns and rural areas. For instance, India today boasts a staggering 63 million MSMEs, out of which approximately 20 per cent are women-owned. This should be a matter of concern for India, which has ambitious goals to accomplish in “Kartavya Kaal”. The targets require active participation of women in economic activities, especially from rural India.
Barriers to establishing a new business
Women entrepreneurs in India face multiple challenges in setting up and scaling their businesses. Access to capital is the primary issue that hampers their entrepreneurial journey. Securing loans is extremely difficult for them. A majority of Indian women don’t have property or any assets in their name. In the absence of collateral, banks hesitate to offer loans to them. Moreover, investors’ prejudice and reluctance to invest in women-led businesses escalate their financial problems.
In addition to this, limited access to professional networks, a lack of entrepreneurial environment in rural areas, pressure to stick to traditional women-specific roles, and limited exposure due to a lack of mobility are some other challenges that prevent the growth of women entrepreneurs. Instant remedies are required to improve this scenario and encourage more women to embrace entrepreneurship.
Most critically, in a ‘digital must’ world, women entrepreneurs, especially in rural areas, have limited access to digital tools and platforms. Despite the Digital India initiative, a persistent gap hampers women’s connectivity, hindering them from capitalising on financial resources and crucial industry connections.
*A recently conducted survey by Bharatiya Yuva Shakti Trust—depicted in the bar chart above—highlights that only 13% of female entrepreneurs establish and maintain an online presence on social media platforms such as Facebook, Instagram, YouTube, etc. (versus 30% male entrepreneurs), and only 20% of female entrepreneurs utilise digital payment methods like UPI, net banking, and other electronic transaction options (versus 40% male entrepreneurs). | Graph: Lakshmi V. Venkatesan
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What needs to be done
The success we have achieved in promoting entrepreneurship sentiment among women can be attributed to progressive initiatives of the government, including the Stand-Up India Scheme, the Mudra Yojana Scheme for Women, and the Fund of Funds for Startups. In order to add to this success story, we need to come up with more forward-thinking policies and implement the same at the grassroots level to empower rural women.
We must promote progressive initiatives such as the Nari Shakti Scheme, NITI Aayog’s Women Entrepreneurship Platform (WEP), and the Women in Engineering, Science and Technology (WEST) programme among grassroots women entrepreneurs. These initiatives have the potential to empower women to realise their business aspirations. Moreover, they will help nurture an ecosystem that encourages more women to own a business.
Additionally, promoting women-led self-help groups (SHGs) will complement actions toward bringing budding women entrepreneurs together while empowering them with financial resources.
Most importantly, stronger actions are required toward arming women entrepreneurs with digital literacy. It is crucial for rural women entrepreneurs to not only be aware of initiatives like Digital India, the Unified Payments Interface (UPI), and the AI-powered language translation platform ‘Bhashini’, but also reap the benefits for their businesses. These steps will help us accomplish digital and financial inclusion goals while encouraging women entrepreneurs. Other programmes that women can take advantage of to boost the growth of their businesses are the Udyam portal, the MSME Champions portal, and the Government e-Marketplace (GeM).
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Mentoring: The missing link
A major hurdle is the lack of education and skills required to establish and grow a business. The primary reason is limited access to mentorship and training facilities for beginners. The situation is worse in rural areas, where social norms and stereotypes prevent women from getting the required training. A large number of women entrepreneurs still face skills gaps, not only on the technical front but also in market knowledge and management skills.
These gaps can be bridged through adequate counselling, training and one-on-one mentoring. This requires both, onboarding of mentors and incorporating mentoring in the institutional framework – government establishments, banks, academic institutions and private corporations.
Women are key to a self-reliant India
Empowering rural women entrepreneurs and harnessing their true potential is critical for creating a more inclusive society and a resilient economy. Grassroots women entrepreneurs are vital for achieving India’s Atmanirbhar Bharat mission fostering community development and sustainable livelihoods.
This Women’s Day, we must initiate an important and much-needed conversation around empowering and uplifting grassroots women entrepreneurs who contribute massively to the Indian economy. We must also take concrete measures to address their challenges and create a favourable environment to allow them to spread their wings and fly high.
Lakshmi Venkataraman Venkatesan is the Founding and Managing Trustee of Bharatiya Yuva Shakti Trust. Views are personal.
(Edited by Zoya Bhatti)