The Growing Role of Women in Indian MSMEs 

What’s the most dynamic force shaping India’s MSME landscape today? Look no further than the rising tide of women entrepreneurs. This blog examines the growing role of women in Indian MSMEs, exploring their contributions, challenges, and the exciting future they’re building.

Women entrepreneurs have made significant strides in India’s MSME sector, owning 39% of the enterprises registered since the launch of Udyam and UAP (2020-2023) (Financial Express). Their increasing participation is not only a success for gender equality but also a significant driving force behind economic growth. However, despite substantial progress, challenges remain. This article explores the current landscape, key drivers, obstacles, and the way forward.

The Indian MSME sector is witnessing a significant surge in women’s participation, with women-owned establishments increasing steadily. This trend is driven by women entrepreneurs actively engaging in various sectors, including:

• Textiles and Handicrafts: Women play a crucial role in traditional industries, with many leading social enterprises like Rangsutra empowering rural women artisans.
• Food Processing: Women are leveraging family recipes and healthy ingredients to tap into a rapidly growing market, exemplified by successful cooperatives like Lijjat Papad.
• E-commerce: Women entrepreneurs are capitalizing on the burgeoning e-commerce sector by establishing direct-to-consumer (D2C) brands, such as Viha Online.
• Education: Women-led EdTech startups are revolutionizing education by making it more accessible and affordable, with companies like Eduauraa and Hamstech leading the way.

These successes demonstrate the significant impact of women entrepreneurs on the Indian economy. To further empower women and unlock their full potential, continued support through funding, mentorship, and government initiatives is crucial. This will not only drive economic growth but also foster greater inclusivity and job creation across various sectors.

Even with the amount of progress achieved for women in India in recent years, women who start businesses still run into big roadblocks that hold them back:

• Only 27% of women-owned businesses have access to official loans, forcing many to rely on personal funds or borrow from informal sources

• Limited professional networks hinder the growth of many women-owned businesses. A Google and Bain survey found that 49% of women entrepreneurs lack sufficient professional support due to limited network access. Limited access to successful female mentors hinders their ability to learn from experienced role models. Furthermore, navigating male-dominated business networks restrict their access to crucial resources, valuable connections, and the opportunities that come with them.

• Balancing the demands of family and business creates additional hurdles for women entrepreneurs.

To give women’s involvement in the MSME sector a bigger push, we need to zero in on key areas:

• Microfinance and crowdfunding platforms provide alternative ways to get funding.
• Gender-focused banking plans offer lower interest rates to businesses women run.
• Private sector banks and fintech firms team up to make financial products for women entrepreneurs. One example of this collaborative effort is YES Bank’s new program launch. YES Bank is actively reaching out to women entrepreneurs through various initiatives, the most recent being YES PowherUp, launched with FICCI FLO. This program would provide women-led MSMEs with tailored financial solutions, mentorship, and market access to upscale their businesses. Through financial empowerment and business expansion, YES BANK empowers women entrepreneurs to spearhead innovation toward India’s economic growth.

• Regional women’s business centers offer skill-building, legal assistance, and networking opportunities.
• More digital literacy programs help women use e-commerce, social media marketing, and digital payments.
• Big companies support new women founders through dedicated funding programs.
• They also offer mentorship initiatives and skill-building workshops.
• The mentorship programs from successful women entrepreneurs foster a supportive ecosystem. This ecosystem further encourages collaboration and innovation among emerging women entrepreneurs.

Women entrepreneurs in India benefit from various schemes provided by the government, such as:

For instance, Saheli, an initiative by Amazon, supports women entrepreneurs by providing them with a dedicated marketplace on Amazon India. It offers free training on online selling, business growth strategies, and logistics support. The Amazon Saheli X Startup India Programme empowers women entrepreneurs with the knowledge and resources they need to launch and grow successful businesses.

Similarly, Google India’s Women Will initiative focuses on empowering women entrepreneurs. It offers digital skills training, leadership development, and business resources. Mentorship, online learning, and networking help them leverage technology for growth.

• Improved access to technology and digital tools enables women to grow their businesses. 
• Women entrepreneurs learn to use AI solutions, automation, and online markets.
• Government e-commerce projects show women-led brands to the world.

Women are increasingly driving the Indian MSME sector, a major economic force. To fully realize this potential, women entrepreneurs need better access to funding, mentorship, and technology. Collaborative efforts between the government, businesses, and society are crucial to overcome challenges and create an equitable environment for all. The future of India’s MSME sector appears bright, with women poised to play a leading role.

We at Astravise Services believe that empowering women in business is essential for economic growth. We support MSME growth, with a special focus on women-owned businesses. We offer a suite of services, including fundraising assistance, financial mentoring, strategic CFO services, and CHRO services, to help companies thrive. We understand the importance of inclusive HR strategies and work with organizations to tailor their approach to attract and empower female employees. Our team’s expertise ensures our clients achieve sustainable growth through optimized financial management and a focus on a high-performance culture.

After detailed consulting with our clients, we propose customized plans that best suit their objectives. Partner with us and unlock the future potential of your business.

Schedule your free consultation today.