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Women’s Entrepreneurship in India: Harnessing the Gender Dividend

March, 2021

India’s economic growth has largely bypassed its smallest enterprises-particularly those led by women. Despite an increase in the number of micro, small, and medium enterprises (MSMEs), only 21.5% were owned by women as of 2018-19. Even more concerning is the stagnation in growth: between 2010 and 2015, the share of women-led enterprises and their gross value added (GVA) remained static, while the share of workers in these enterprises declined.

Women entrepreneurs face layered barriers-from deep-rooted social norms and gender biases to unequal access to education, credit, and networks. For many women, entrepreneurship is not a path to scale but a survivalist response to limited employment opportunities, wage inequality, and inflexible work conditions.

India ranked 49th out of 57 countries in the 2020 Mastercard Index of Women Entrepreneurs-a stark reflection of the odds stacked against women in the entrepreneurial landscape.

To enable women to thrive as entrepreneurs, we must address structural and cultural challenges. Key recommendations include:
– Challenging restrictive gender norms and stereotypes;
– Ensuring better access to education and digital literacy;
– Expanding affordable and inclusive financing mechanisms;
– Creating women-friendly business networks and incubators;
– Leveraging technology to connect women to markets, mentorship, and information.

Enabling women to realise their entrepreneurial ambitions is not only a matter of equity-it is essential for India’s inclusive and sustainable economic growth.

Resource Type IWWAGE-ISST-BRIEFS

Authors Sanjana Vijay | Mridulya Narasimhan