Factors contributing to the rise of women entrepreneurs in India
Historically speaking, women in India have always been active earning members and contributors to the family income. From the neighborhood aunty who runs a beauty parlor to a housewife that has her own catering service, women were confined to running these small, informal, work-from-home businesses. However, the role of women in a formal workspace has undergone a dramatic change in the last few decades. From conventional sectors like food processing, handicrafts, and textiles, to new-age startups, women have started holding the reins everywhere.
The modern Indian women are no longer working out of necessity but have made an individual choice to hone their skills and pursue a career of their choice. This not only gives them financial independence but also contributes to the economic growth of the country. According to recent studies, women constitute around 14% of the total entrepreneurship i.e 8.05 million out of a total of 58.5 million entrepreneurs in India. The country has witnessed a steep rise in female entrepreneurship, despite the challenges that they face. The factors contributing to this rise are:
Globalization has led to the creation of job opportunities. With growing economic integration and interdependence, women’s employment opportunities have also increased multiple folds. Multinational companies have created a competitive work environment, leaving no room for gender bias.
Employees are hired on the basis of merit, and not their gender. This has gives women an opportunity to enhance their skills and gain exposure before starting their own ventures. Working in a corporate setting has given them the opportunity to network with others with access to mentorship from superiors.
Education has paved way for skill development. Improved access to education has enabled women to gain expertise across various fields. More women are now exploring STEM(Science, Technology, Engineering, and Mathematics) related fields of education, previously considered a male domain. They are no longer restricted to conventional educational courses and are taking up specialized management education, like MBA to excel in their respective fields. Apart from that, education is also responsible for changing the mindset of people, making them more liberal towards women taking new roles, such as that of an entrepreneur.
Support from the government has been an enabling factor for the success of women entrepreneurs. The government recognizes the contribution of women towards economic growth and encourages female entrepreneurship. Specialized loans at lower interest rates and collateral by the government have worked in the favor of women. A number of schemes like Stree Shakti, Gyaan Shakti, and Iccha Shakti provide an ecosystem for budding and existing entrepreneurs across India, through support services like incubation, training, marketing, and more.
Women with financial freedom have been able to start their own ventures. With access to opportunities and education, women in India are becoming financially independent. They have complete control over their earnings and are able to make their own purchase and investment decisions. The facilitation of financial independence and decision-making has given women the power to transform themselves into leaders and entrepreneurs. Financial independence gives you the freedom to start your own venture, without depending on others for the same and I recommend all women to work for it.
Empowering women to work has motivated them to become entrepreneurs. Shared responsibilities and constant support from family members have enabled women to step outside and pursue a career. Women are no longer expected to sit at home and manage households. In fact, they are encouraged to follow their professional goals and ambitions. Investors and incubators are extremely vocal about women’s empowerment by setting-up female-oriented funds to encourage female entrepreneurship.
Despite a significant rise in female entrepreneurship, we are still far from an ideal setting. There is a need for sustainable growth of women entrepreneurs to promote balanced growth in the country. As a country with one of the fastest-growing entrepreneurial ecosystems, women need to make most of the available opportunities to mark their ground, in comparison to their male counterparts.
About the author:
Masumi Mewawalla, Founder of Pink Peacock Couture & Emblaze