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Analysis Of Sansad TV Discussion ”Women Entrepreneurs & India’s Financial Development”

Analysis Of Sansad TV Discussion ”Women Entrepreneurs & India’s Financial Development”


”GS 1: Salient Features of Indian Society, Role of Women, Population and Associated Issues, Social Empowerment”
”GS 2: Government Policies & Interventions, Issues Related to Women, Gender”


  • Women entrepreneurs and their increasing presence in India have significantly influenced the social and economic demographics of the country.
  • The participation of women in the labour force has helped millions of families pull out of poverty and has also led to job creation.
  • 20.37% of women are MSME owners Account for 23.3% of labour force India to add US$ 700 bn to global GDP by increasing women’s participation.
  • According to research by the IMF, gender diversity is likely to boost productivity growth, as women bring new skills to the workplace.
  • A World Bank report says India can grow in double digits if more women participate in the product line of the economy. On the other hand, only seven of every 100 entrepreneurs in India are women.

Importance of Women-Led Startups

  • Women have a significant economic impact on all economies as they make proactive choices about work and independence.
  • Women entrepreneurship has been recognized as a provider of social upgrading, promoting economic regeneration and growth, and job creation.
  • Women’s participation in economic expansion has been also documented as very important for a country, particularly their participation in the area of entrepreneurship.
  • During the pandemic, women entrepreneurs have used the power of digitalisation for social development and helped aid frontline healthcare workers and students to access online education.
  • This new entrepreneurial energy is what can take India to the next level and put women at the forefront.

How do Women Entrepreneurs work differently?

  • Women entrepreneurs have been seen to initiate business operations, hone in on opportunities and lead ventures successfully.
  • Women entrepreneurs use creative, practical, and innovative approaches to convert an opportunity into commercial reality.
  • They get actively involved in the operations of the enterprise as a manager or administrator and generate employment for themselves and others.

Common Barriers Faced By Women Entrepreneurs?

  • Men and women entrepreneurs have to face completely different restrictions including psychological and cultural factors.
  • Female entrepreneurs are often lacking in access to financial support, which affects business growth eventually.
  • Women have different mindsets of constraints over them such as risk-aversion, soft skills, and leadership.
  • In addition, women have culturally-imposed limitations that obstruct their independence, aspiration, and priorities.
  • Thus, the success of female entrepreneurs hinges on their personal lives and successful entrepreneurial skills, and how supportive stakeholders are to them.

The Role Of Women in Workplaces

  • It has undertaken a dramatic change in the past 50 years, where just five decades ago, women were limited to homes and operated their own businesses.
  • Over time, change in mindset, external factors and strong women paving the way for others, has brought many more women into the workforce and we are watching women breaking all the traditional barriers and shining in every industry possible.
  • Also, there has been a significant social, political, and economic shift that has created opportunities for women as well as given them greater acceptance and recognition in the corporate world.
  • Slowly women are making their mark as entrepreneurs and leaders of tomorrow.
  • Recent years have not just seen women helm prominent leadership roles in the government but in many spheres that were otherwise considered male bastions.

Systematic Improvement in Several Indicators

  • India’s sex ratio at birth (SRB) has increased from 918 in 2014-2015 to 937 in 2021.
  • Coupled with an increased life expectancy, the recent National Family Health Survey (NFHS) has revealed that India’s overall sex ratio has more women than men – 1,020 women for 1,000 men.
  • In the NFHS of 2015-2016 the sex ratio at birth stood at 991 women for 1000 men.
  • Initiatives such as #SelfieWithDaughter actually brought about the much-needed behavioural changes towards the birth and the rights of girl children.
  • This multifaceted campaign is gradually and consistently reinforcing change by inspiring parents to no longer see their daughters as financial burdens.

What GOI is Doing To Encourage Women Entrepreneurs?

  • The massive focus on nutrition, health, and education are aimed at strengthening the underlying fundamentals that are required for structural changes.
  • The unprecedented focus on women entrepreneurship through schemes such as MUDRA Yojana, Stand Up India and Start-Up India has nudged women to become drivers of their own destiny.
  • That close to 70 per cent of the MUDRA loan accounts belong to women and are a testimonial to this fact.
  • Landmark initiatives such as increasing the paid maternity leaves to 26 weeks and the recently-implemented Occupational Safety, Health and Working Conditions Code, 2020 sets the path for the presence of women in all establishments covering all types of work.
  • Budget 2022 has proposed to set up a panel for venture capital (VC) and private equity firms. This will help to frame strategies and suggest appropriate measures to facilitate the healthy growth of startups and will help promote women’s entrepreneurship.
  • Non-banking financial companies (NBFCs) are also taking the initiative to promote loans to women borrowers. Some are offering collateral-free business loans, with an emphasis on women entrepreneurs, at competitive interest rates. The Bank Credit Facilitation Scheme headed by National Small Industries Corporation is targeted at meeting the credit needs of MSMEs through tie-ups with banks.
  • The policies and schemes have been designed with a fundamental objective of equipping women by creating opportunities, building an enabling environment and effecting a qualitative change in the mindset of society at large.
  • These have been the three fundamental pillars of this new paradigm of women’s empowerment. It is these principles that have led to a paradigm shift in the outcomes for women’s empowerment.


Women entrepreneurs can possibly be the greatest power in India’s financial development story. The term no longer signifies an act of supporting the weak and vulnerable but curating leaders, change-makers of tomorrow and architects of a New India. India needs to adopt the policy of “women’s development to women led-development”.

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