Role of Women Entrepreneurs in Upliftment of Indian Economy

Abstract

Introduction: The socio-economic landscape has changed significantly as a result of women's growing involvement in a variety of industries, such as technology, retail, healthcare, and agriculture. The development of women has always had a significant impact on the country's overall progress, and women have moved from the kitchen to higher levels of professional activities as a result of their increased awareness and educational attainment. In India, the emergence of women entrepreneurs and their role in fostering economic growth are significant and noteworthy.

Methodology: The paper reviews the existing literature on women entrepreneurship in India, drawing on Vinesh (2014) on the role of women entrepreneurs in India, Deepthi Poreddy (2020) on challenges and opportunities for Indian women entrepreneurs, and Dr. V. Preethi Mahesh (2020) on issues and challenges facing women entrepreneurs in the Indian economy. It is organised around four objectives: to assess the situation of Indian women and female entrepreneurs; to examine the issues that Indian women entrepreneurs face; to project the prospects and room for growth for Indian women entrepreneurs; and to investigate new opportunities for current and prospective Indian women entrepreneurs. Evidence is drawn from published statistics of the Ministry of Micro, Small & Medium Enterprises, the Indian Brand Equity Foundation and government scheme data.

Results & Discussion: Women make up about 14% of all Indian entrepreneurs, or about 8 million people, and 10% of all formal business owners are female entrepreneurs. Women lead about 20.37 percent of India's MSME sector, which employs roughly 23.3% of the workforce, and female entrepreneurs own businesses worth 13.5% to 15.7% of the total, employing between 22 and 27 million people. Beneficiaries of the Prime Minister's Employment Generation Programme total 39,154, with women beneficiaries increasing by 43% between FY21 and FY22, while the Public Procurement Policy saw a 105% increase in women beneficiaries to 10,287 and participation in the Entrepreneurs' Skills Development Programme rose from 13,640 in FY21 to 24,734 in FY22. As of March 2024, 4,00,42,875 MSMEs are registered on the Udyam portal, of which 97.7% are micro, 1.5% small and 0.8% medium, and 5.8 million orders totalling Rs. 3,87,006 crore (US$ 46.67 billion) were placed on the Government e-Marketplace. Increased female labour force participation is predicted to boost the economy by USD 770 billion by 2025, with the participation rate rising to 24% in Q2 FY24.

Conclusion: Women entrepreneurs are an integral force in India's economic upliftment, contributing to employment, innovation, and GDP growth. Despite facing significant challenges such as gender disparity, lower risk bearing capacity, poor financial support, limited managerial proficiency, insufficient training programmes and socio-cultural barriers, their perseverance and government support initiatives are gradually transforming the business landscape. Empowering women entrepreneurs with financial access, skill development, and policy support can unlock their full potential, leading to a more inclusive and prosperous economy. As India moves towards becoming a global economic powerhouse, fostering women-led businesses is not just a choice but a necessity for sustainable growth.