Role of Women Entrepreneurs in Economic Development

Abstract

Introduction: Of the 7.95 billion people living on the Earth in 2022, four billion were men and 3.95 billion were women. In a male dominated community and competitive global business world, a woman entrepreneur has to have guts to glory and prove her passion through determination to face the challenges through constant hard work, commitment, clear cut vision and creative nature. Women entrepreneurs are becoming mentally strong in decisive roles in whittling the fiscal backdrop of a nation, and their involvement in business, novelty and job creation has significantly impacted both native and universal economies.

Methodology: As the paper adopts a descriptive research method, the information was gathered purely from secondary sources. The review of literature draws on a survey by Bain & Co., data from the Ministry of Statistics and Programme Implementation, and reports from the Ministry of Labour& Employment and the Press Information Bureau, together with published statistics on the Micro, Small and Medium Enterprises sector, the National Multidimensional Poverty Index: A Progress Review 2023, and the Annual Periodic Labour Force Survey. The study is organised around three objectives of women entrepreneurship: to be a role model to inspire the upcoming generations, to contribute talent and skills to economic development, and to make supervisors and leaders.

Results & Discussion: According to a survey from Bain & Co., 15.7 million female entrepreneurs run establishments, representing 22 percent of the overall entrepreneurial landscape in India. The Ministry of Statistics and Programme Implementation records 8,050,819 establishments owned by women entrepreneurs, of which 5,243,044 or 65.12% were located in rural areas and 2,807,775 or 34.88% in urban areas. The five leading states by share of women-owned establishments are Tamil Nadu (13.51%), Kerala (11.35%), Andhra Pradesh (10.56%), West Bengal (10.33%) and Maharashtra (8.25%). Women constitute 14% of total entrepreneurs, amounting to 8 million, and about 20.37% of the MSME sector comprises women-led businesses employing approximately 23.3% of the labour force. The Worker Population Ratio increased from 46.8% in 2017-18 to 58.2% in 2023-24, while 14.96% of the population remains multidimensionally poor and MSMEs contribute 30% of GDP, with 63 million units providing jobs to 110 million people. Ten challenges are identified, from access to funding and gender bias to safety concerns and weak policy support.

Conclusion: Women entrepreneurs' role is increasing day by day. They are reducing the unemployment problem, generating income by establishing several industries which contribute to the country's GDP, and directly or indirectly taking on social responsibility. Their participation in entrepreneurship leads to a more inclusive and diverse economy, breaking gender barriers and promoting financial independence. Despite challenges such as limited access to capital, gender biases and work-life balance struggles, women continue to rise as strong business leaders, and with better funding opportunities, mentorship programmes and policy reforms they can further accelerate economic progress. Encouraging women in entrepreneurship is not just about gender equality; it is a strategic move for sustainable economic development.