{"id":13969,"date":"2025-06-19T10:24:24","date_gmt":"2025-06-19T10:24:24","guid":{"rendered":"https:\/\/www.smilefoundationindia.org\/blog\/?p=13969"},"modified":"2025-06-30T13:40:22","modified_gmt":"2025-06-30T13:40:22","slug":"importance-of-women-entrepreneurship","status":"publish","type":"post","link":"https:\/\/www.smilefoundationindia.org\/blog\/importance-of-women-entrepreneurship\/","title":{"rendered":"Women Rewriting the Rules of Rural Enterprise"},"content":{"rendered":"\n

In a village near Bangalore, Yajjiamma<\/strong> turned a domestic chore into a livelihood. \u201cI have turned a simple habit into something more \u2014 a source of income, confidence and purpose,\u201d she says. After joining Swabhiman\u2019s entrepreneurship training last year, Yajjiamma began hygienically packaging and selling fresh paneer (\u201ccottage cheese\u201d) every other day. \u201cSome people from nearby towns place regular orders. A local shop also buys from me,\u201d she reports, and the extra income now pays for her son\u2019s school books, letting her \u201csave a little too\u201d. Stories like hers are multiplying across rural India.<\/p>\n\n\n\n

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Figure 1 and 2: <\/strong>Yajjiamma (left) extracting paneer from curdled milk. She displays a plate of paneer (right) they now sell commercially, thanks to Smile Foundation\u2019s Swabhiman training. <\/p>\n\n\n\n

Nearby, Pavithra<\/strong> of Bangalore Rural had a similar transformation. \u201cI grew up in a small village near Bangalore, where survival was all we knew\u2026 There was no room for dreams,\u201d she recalls. With her husband\u2019s encouragement, Pavithra tried Swabhiman\u2019s training and \u201ccame across beekeeping. It seemed simple, but it felt right. Working with bees\u2026 gave me a sense of purpose.\u201d Today she sells honey from her own hives, which \u201cbecame a way for me to provide for my family and build something lasting.\u201d For the first time, she felt she could create something of her own.<\/p>\n\n\n\n

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Figure 3: <\/strong>Pavithra with a jar of honey from the beehives she manages as an entrepreneur.<\/p>\n\n\n\n

These personal accounts scoop up a broader trend: rural women are stepping into entrepreneurship at unprecedented rates. According to NITI Aayog\u2019s latest data, women borrowers in India have surged with a 22% CAGR from 2019 to 2024<\/a>, and most of the new borrowers come from semi-urban and rural areas. In fact, as of December 2024 some 27 million Indian women are monitoring their credit scores, a sign of rising financial awareness that grew 42% over the previous year<\/a>. Importantly, women\u2019s share of business loan applications has also climbed \u2013 reaching 35% of all business borrowers by late 2024 \u2013 though consumer loans (for personal needs) still dominate their borrowing. In sum, more rural women are seeking loans and education<\/a> on finances than ever before.<\/p>\n\n\n\n

Yet entrepreneurship remains a small share of the total. Women constitute only about 14% of all entrepreneurs in India<\/a>, and they own roughly 22% of micro, small and medium enterprises (MSMEs<\/a>) overall. The Economic Survey notes that women\u2019s entrepreneurship falls off sharply with scale: women own 22% of micro-enterprises, but only 12% of small and 7% of medium firms. In rural areas the pattern is similar: most women-led businesses are micro-enterprises employing only family members or a handful of workers. Globally, India also lags. A World Bank analysis found female entrepreneurs account for less than a fifth of business owners in India, and female-led firms tend to employ more women than male-led ones.<\/p>\n\n\n\n

Despite these gaps, the potential impact of rural women entrepreneurs is vast. The World Bank highlights that women-led enterprises in rural India already employ an estimated 22\u201327 million people<\/a>. Supporting these growth-oriented, opportunity-driven enterprises (GOWEs) through tailored finance and services could dramatically expand rural jobs and reduce poverty. As one NITI report observes, encouraging women\u2019s entrepreneurship \u201ccould create employment opportunities for 150 to 170 million people\u201d while boosting overall economic growth. In other words, each village woman who starts a viable business can spark change far beyond her own home.<\/p>\n\n\n\n

Systemic barriers towards women entrepreneurship<\/strong><\/h2>\n\n\n\n

However, significant barriers still hold many rural women back. <\/p>\n\n\n\n

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  1. Access to credit<\/strong> is a perennial challenge. Banks often require collateral that most rural women lack, and financial products are rarely designed for tiny micro-enterprises. The NITI report notes persistent \u201ccredit aversion\u201d and collateral issues for women, despite rising awareness.\u00a0<\/li>\n<\/ol>\n\n\n\n
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    1. Formal financial institutions tend to focus on larger loans<\/strong>, leaving rural entrepreneurs dependent on informal SHGs (self-help groups) or local lenders with limited capacity. In practice, even women with proven small businesses hit a ceiling; one Tamil Nadu vendor, Bhai Amma<\/a>, made \u20b9700\u2013800 a day selling biryani and eggs, but couldn\u2019t find the \u20b9100,000 she needed to expand beyond her local lending group.<\/li>\n<\/ol>\n\n\n\n
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      1. Skills and training gaps<\/strong> compound the problem. Many rural women have valuable craft or agricultural skills but limited business know-how. They may not know cost-pricing, bookkeeping, or marketing. A recent World Bank feature emphasizes that rural women often \u201cmiss critical business development services like marketing, technology, and advisory\u201d.\u00a0<\/li>\n<\/ol>\n\n\n\n
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        1. Another analysis highlights that rural women entrepreneurs suffer from limited business skills, weak market access, and technology deficits<\/strong>, along with a shortage of mentors and networks. For example, Yajjiamma needed training on hygiene, pricing and communication before she could scale her paneer sales.<\/li>\n<\/ol>\n\n\n\n
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          1. Infrastructure and markets<\/strong> are also weak in rural areas. Poor roads, unreliable power or internet, and lack of cold storage can make scaling a dairy or food enterprise nearly impossible. Local markets may pay low prices or remain closed to small producers. Women entrepreneurs often have to travel long distances on difficult terrain or depend on middlemen who take a large cut.<\/li>\n<\/ol>\n\n\n\n
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            1. Finally, social norms and time poverty<\/strong> limit many women. Even with interest in business, women typically bear the bulk of household chores and childcare. As Pavithra recalls, her \u201cdays were filled with chores and working in the fields\u201d and \u201cthere was no room for dreams\u201d until she found the courage and support to try something new. In some villages, families may oppose women traveling alone or doing \u201cmen\u2019s work.\u201d\u00a0<\/li>\n<\/ol>\n\n\n\n
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              1. Lack of mentorship<\/strong> means many women feel isolated. One report notes that rural entrepreneurs often lack exposure and networking, unlike urban businesswomen.<\/li>\n<\/ol>\n\n\n\n

                Support from the state and NGOs<\/strong> for women entrepreneurship<\/strong><\/h2>\n\n\n\n

                Recognising these issues, both government and civil society have launched numerous initiatives to help rural women entrepreneurs. The Government of India created the Women Entrepreneurship Platform (WEP)<\/strong> in 2017, an online ecosystem run by NITI Aayog. WEP aggregates information on funding, mentorship, incubators and skill training. Through partnerships it provides services in key areas like funding access, compliance assistance, mentoring and marketing for women entrepreneurs. <\/p>\n\n\n\n

                Other national schemes include Stand Up India<\/em> (subsidised loans for women and SC\/ST entrepreneurs), Mudra Yojana<\/em> (collateral-free loans up to \u20b910 lakh for new businesses, with 3\u20135 year tenures), PMEGP<\/em> (subsidies to create micro-units), and targeted credit lines like Mahila Samriddhi Yojana<\/em>. There are also industry-specific programmes (e.g. skill training for women artisans under the Mahila Coir Yojana).<\/p>\n\n\n\n

                At the state and local level, governments have set up incubators, startup grants, and women\u2019s SHG federations to channel funding. For example, some states offer reserved industrial plots or reduced fees to women-owned enterprises. Broadly, policy efforts have raised awareness of credit access, launched entrepreneurship modules in rural livelihoods programmes, and created awards and capacity-building grants for women.<\/p>\n\n\n\n

                The Swabhiman approach<\/strong><\/h2>\n\n\n\n

                Development organisations and corporate CSR funds complement these schemes on the ground. Smile Foundation\u2019s Swabhiman<\/strong> programme is a prime example. Launched in 2015 and now active in over 20 states, Swabhiman takes a holistic<\/em> approach: it integrates health<\/a>, nutrition, skill training, and entrepreneurship development<\/strong> in villages. Our team organises village-level groups of women and girls for regular sessions. These include <\/p>\n\n\n\n