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Women-led nano and micro enterprises (NMEs) in rural India are emerging as important drivers of inclusive economic growth, according to a report by Women's World Banking.
The report highlighted that women entrepreneurship is more prevalent in rural India than in urban areas, with women-owned enterprises accounting for 22.24 per cent of all enterprises in rural regions compared to 18.42 per cent in urban areas. According to the report, India's entrepreneurial ecosystem is built around a large network of nano and micro enterprises estimated at 73.3 million, of which women own around 26.2 per cent, translating to nearly 19.2 million businesses. It stated, "Women-led nano and micro enterprises in rural India are crucial levers of inclusive economic growth". The report said women-led enterprises are expected to become a major pillar of India's long-term economic growth vision, with the number of women-owned businesses projected to rise from 19.2 million currently to around 45 million by 2047. "From 19.2 million today (ASUSE, 2023-24) to an estimated 45 million by 2047, women-led enterprises are set to become a central pillar of India's Viksit Bharat growth vision," the report stated. It further noted that nearly 9 million women-led enterprises are formally registered under Udyam, reflecting gradual progress toward formalisation. The report stated that women-owned enterprises operate across a wide range of sectors including home-based production units, grocery stores and service businesses, playing an important role in supporting household incomes and local economies. At the same time, the report highlighted that access to finance remains a major challenge for women entrepreneurs. According to the report, around 3.85 million women-led NMEs are currently seeking credit, representing a financing opportunity of approximately Rs 75,028 crore (USD 9.0 billion) across different loan categories. Out of this, nearly Rs 12,388 crore (USD 1.49 billion) demand exists in the Rs 5-20 lakh loan segment alone. The report said the financial needs of women entrepreneurs remain significantly underserved despite growing participation in business activities. It added that women entrepreneurs benefit not only from access to finance but also from capability building, digital tools and stronger market linkages. Around 35 per cent of women-owned MSMEs still face a credit gap, while 41 per cent identified market competition as a major challenge affecting business expansion. The report recommended steps such as strengthening peer networks, simplifying formalisation processes, improving market access and investing in inclusive digital tools designed specifically for women entrepreneurs. The findings are based on insights from the EmpowerHer programme, which reached 100,000 women entrepreneurs associated with Self-Help Groups in Maharashtra in partnership with the Maharashtra State Rural Livelihoods Mission (UMED-MSRLM). Women's World Banking works with financial institutions and policymakers to develop financial solutions aimed at improving inclusion for women excluded from the formal financial system. (ANI)
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