Women entrepreneurship in India has grown significantly over the last decade, driven by government schemes, digital access, and changing social norms. As of 2026, women-owned businesses account for a growing share of India’s MSME sector, creating jobs and driving economic inclusion.
Women Entrepreneurship in India: Key Facts
A woman entrepreneur is defined under Indian policy as a woman or group of women who initiates, organises, and operates a business enterprise, with women holding majority ownership or management control.
- Women-owned MSMEs: Approximately 20% of all registered MSMEs in India are owned by women
- Mudra loans to women: Women account for 68% of all Mudra beneficiaries, with over 52 crore loan accounts opened since the scheme’s launch
- Top states for women MSME registrations: Maharashtra, Uttar Pradesh, and Tamil Nadu lead in total MSME registrations, accounting for nearly 32% of all registrations nationwide
- Credit gap: Women-led MSMEs face a significant funding gap, with access to formal credit remaining a key barrier to growth
Emerging Women Entrepreneurs in India
From the neighborhood aunty who runs a beauty parlor to a teacher who conducts a tuition center from home — we’ve all seen women spearheading businesses. But, then for years, women had to contend with these small, informal, work-from-home businesses. If you also have a spark to open your own business then refer 9 government scheme for female entrepreneurs catering finances of your business.
The challenges of breaking into the formal business sector are aplenty. Here are a few of the most common problems women face in India while setting up an entrepreneurial project:
● Family ties, homemaking, child-rearing responsibilities.
● Lack of support from family members, who want women to choose “secure and safe” jobs.
● Old school lending institutions that question the credibility of women, even though the loan repayment rate of women is higher than that of men.
● The red tape and tangles of bureaucracy.
● And, a patriarchal society that makes it difficult for women to compete with their male counterparts.
But, then in the last few years, with digitization, liberalization, growth of e-commerce and social networks, plenty has changed. Today, a vast majority of startups in India are either run by a team of women or has a female co-founder.
Also Read:- Udyogini Scheme For Women Entrepreneurs
The number of women starting their own businesses is growing quickly. A few years ago, women owned just 20% of all businesses. By 2030, this number is expected to rise to 33%. This means there will be a lot more businesses run by women. Women-led startups tend to perform better too, with a 35% higher return on investment compared to those run by men.
This shows that women can be very successful, making more money with less investment. My investment choices show that I believe in women’s potential; 80% of my investments support women-led startups.
Women entrepreneurs in India are categorized as follows:
Educated and Professionally Qualified Women:
This group includes women with adequate education and professional qualifications who actively participate in entrepreneurial ventures.
Middle-Class Women with Education but Limited Training:
Encompassing middle-class women who possess education but lack specific training, this category highlights the potential for entrepreneurship among women seeking to bridge the gap between education and practical business skills.
Women Entrepreneurs Facing Financial Difficulties:
This category comprises ladies entrepreneurs in India who encounter financial challenges while establishing and managing their business enterprises.
The Government of India has implemented various initiatives through industrial policies to support and encourage women in entrepreneurship.
7th Five-Year Plan:
The 1991 industrial policy incorporated special provisions for the development of business ventures for women. This plan introduced a targeted training program aimed at nurturing the skills and capabilities of women in entrepreneurship. The overarching goal was to augment the representation of women in the small industry sector and foster self-employment opportunities.
8th Five-Year Plan:
This plan underscored the significance of developing the Small Scale Industry (SSI) sector. Prior to its implementation, the percentage of growth of women entrepreneurship stood at 9%, with a target set to increase this figure to 20%. The plan focused on creating an environment conducive to the growth of women-led businesses within the SSI sector.
Also Read: The Best Ways Woman Entrepreneurs In India Can Avail Business Loans
3 Reasons Behind The Growth Of Women Entrepreneurs in India
Here are few reasons for the development of women entrepreneurs in India.
The Growth Of Digital Lenders
One of the biggest hurdles women had to face while setting up a business was the lack of capital. Old school lenders were stringent in lending business capital to women– they demanded collateral, a guarantor and put forth many other conditions.
With the increase of digital lending platforms today availing business loan to women has become far simpler. Today, a woman who has an entrepreneurial idea need not look for financial support from her family members or conventional banks.
She can easily get the capital from a digital lender and kick-start her venture, with minimal waiting time.
Also Read:- Top 5 Nationalized Bank Loan Options For Women Entrepreneurs
Online Selling
This is another major factor that has helped the meteoric growth of women entrepreneurship in the country. Today, one can sell products right from home. With online shopping, a woman entrepreneur can easily send products to anywhere across the country and even worldwide.
All they need to do is — set up an e-commerce website, or sign up for an online marketplace, and they get a portal to showcase and demonstrate products. This digital platform has made it easy for women to set up a business right from home and expand as the business grows. Also know how digital lending platforms changed the picture of lending for MSMEs.
The Popularity Of Social Networks
Just a few years back, marketing was one of the major hurdles faced by all entrepreneurs and not just women. Thanks to the popularity of social networks like Instagram, Facebook, and others, today one can easily spread the word about their products.
With a social media page and the right content, the business can go places. In fact, social media networks are one of the biggest tools in the arsenal of women entrepreneurs in India
Key Challenges Women Entrepreneurs Face in 2026
Despite progress between 2022 and 2026, women entrepreneurs in India still navigate significant obstacles:
- Access to credit: Women-owned businesses receive a disproportionately small share of formal business credit. Many lenders still perceive women-led ventures as higher risk, despite data showing women have better loan repayment rates.
- Collateral requirements: Traditional lenders often demand property or assets as security. Since property ownership among women remains low in India, this requirement locks out many potential entrepreneurs.
- Social and family constraints: Expectations around household responsibilities and caregiving continue to limit the time and mobility women can dedicate to business operations, particularly in smaller towns.
- Digital literacy gaps: While digital tools have opened new opportunities, many women entrepreneurs, especially in Tier 2 and Tier 3 cities, lack training in using digital payments, e-commerce platforms, and online marketing.
- Market access: Women-owned businesses often struggle to connect with larger buyers, supply chains, and export markets due to limited networks and visibility.
Conclusion
If you’re a woman, starting out the entrepreneurial journey, don’t let any financial roadblocks stop you. Go ahead, get business loans for women from a digital lending platform like Indifi and transform your idea into a reality.
FAQs
How is women’s entrepreneurship growing in India?
Based on research from the Edelgive Foundation, women-owned businesses in India are expected to expand by as much as 90% over the next five years. This growth rate surpasses the expected growth in the US (50%) and the UK (24%). Out of India’s 63 million MSMEs, around 20% are owned by women.
What is the percentage of women entrepreneurs in India?
In India, women constitute just 14% of entrepreneurs, overseeing 20% of micro, small and medium enterprises (MSMEs) among 58.5 million enterprises.
What is India’s number on the Female Entrepreneurship Index?
In the report of NITI Aayog Mastercard Index on growth of Women Entrepreneurship (MIWE), India is placed at the 57th spot out of 65 countries. Additionally, it holds the 70th position among 77 countries on the Female Entrepreneurship Index. According to national surveys, women’s participation in entrepreneurship within the MSME sector stands at 20%.
What is the role of women in developing entrepreneurship?
Women entrepreneurs help create new ideas and bring diversity to business. They offer fresh viewpoints and different ways to solve problems. By networking and mentoring others, they help build inclusive communities that support women in business.
What are the problems faced by women entrepreneurs?
Women entrepreneurs face several challenges, including limited access to funding and capital, as they often struggle to secure loans and investments compared to men. They also encounter gender biases and discrimination, both in the marketplace and within financial institutions.
Additionally, women may have limited access to networks, mentorship, and support systems crucial for business growth. Balancing work and family responsibilities is another common obstacle, and they often lack access to education and training that can equip them with necessary business skills.
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