Empowering Women Entrepreneurs: A Path to Growth in India

Original: Building an ecosystem for women entrepreneurs

Hindustan Times•Apr 4, 20263 min

In a Nutshell

The environment for women entrepreneurs in India is improving, with more women launching businesses due to supportive government schemes. A recent report indicates that women-owned micro, small, and medium enterprises (MSMEs) outperform their male counterparts in various metrics, but challenges in scaling and access to capital remain significant.

Key Points

01Women-owned MSMEs in India hire 11% more women employees than those owned by men.
02Women entrepreneurs excel in cost optimization, income growth, and loan repayment.
03India ranks 57th out of 65 countries in the Mastercard Index on Women Entrepreneurship.
04Access to growth capital and global networks is a major challenge for women-led enterprises.
05Encouraging women to explore manufacturing ventures could enhance their creditworthiness.

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Full Summary

The landscape for women entrepreneurs in India is transforming, driven by government initiatives and growing awareness of their potential. According to Kinara Capital’s MSME Insights Report 2024, women-owned micro, small, and medium enterprises (MSMEs) employ 11% more women than those owned by men and demonstrate superior performance in cost optimization and loan repayment. Despite these advancements, scaling remains a challenge due to systemic barriers such as limited access to growth capital and inadequate global networks. India ranks 57th out of 65 countries in the Mastercard Index on Women Entrepreneurship, highlighting the need for improved institutional support. Experts like Priya Pansare and CA Tripti Singhal Somani stress the importance of structured approaches that provide financial access, mentorship, and global market integration for women entrepreneurs. Bridging the credit gap, particularly by encouraging women to pursue manufacturing ventures, could enhance their growth potential and attract institutional investment. As economies strive for inclusive growth, empowering women-led enterprises must be a priority.

Key Figures

11%

Increase in women employees hired by women-owned MSMEs compared to men-owned MSMEs

57th out of 65

India's rank in the Mastercard Index on Women Entrepreneurship

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Why It Matters

Improving support for women entrepreneurs can lead to increased employment opportunities and economic growth in local communities.

Who is affected

Women entrepreneurs, potential employees, and local economies.

What to know

Support initiatives that provide financial access and mentorship for women-led enterprises.

FAQ

Women entrepreneurs in India face challenges such as limited access to growth capital, inadequate global networks, regulatory complexities, and a significant credit gap.

Women-owned MSMEs hire more women employees and perform better in cost optimization, income growth, and repayment of business loans compared to those owned by men.

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