Women in Startups: How India is Empowering Women Entrepreneurs

The entrepreneurial spirit in India is soaring, and a significant part of this growth story is the rise of women entrepreneurs who are breaking barriers and redefining business norms. From tech innovators to social change-makers, women across the country are launching startups that not only drive economic growth but also foster inclusive development. This quiet revolution is gaining momentum, backed by robust government initiatives and policies aimed at empowering women entrepreneurs.

A New Dawn for Women Entrepreneurs

Imagine a landscape where half the population contributes equally to innovation and economic progress. This vision is steadily becoming a reality in India. According to the Sixth Economic Census by the National Sample Survey Organization, women constitute about 14% of the total entrepreneurship in India, numbering approximately 8 million women entrepreneurs. While this is a significant number, the potential for growth is immense, and the government recognizes this untapped reservoir of talent.

As of 2022, approximately 20% of all enterprises in India are led by women​

While this represents progress, women-owned businesses still face significant hurdles, including access to funding, mentorship, and networks. However, with the rise of government-backed schemes and policy interventions, female entrepreneurship is gaining momentum in sectors like technology, e-commerce, and social enterprises.

According to a NASSCOM report, women-led startups are showing immense potential and have been key contributors to job creation, innovation, and economic growth​

With improved access to capital, networks, and government support, Indian women entrepreneurs are making a significant mark on the global startup landscape.

Government Initiatives Fueling Women's Entrepreneurship

The Indian government has launched several initiatives to create a conducive environment for women-led startups. These programs are designed to provide financial assistance, mentorship, and resources necessary for women to start and scale their businesses.

1. Stand-Up India Scheme: Launched in 2016, this scheme facilitates bank loans between ₹10 lakh and ₹1 crore to at least one woman borrower per bank branch for setting up a greenfield enterprise. By August 2023, the scheme had benefited over 1.6 lakh women entrepreneurs, providing them with crucial capital to kick-start their ventures.

2. Mahila e-Haat: An initiative by the Ministry of Women and Child Development, Mahila e-Haat is an online marketing platform that leverages technology to help aspiring women entrepreneurs, self-help groups, and NGOs showcase their products and services. Since its inception, over 26,000 women have been empowered through this platform.

3. Women Entrepreneurship Platform (WEP): Spearheaded by NITI Aayog, WEP is a unified access portal that brings together women from diverse backgrounds to collaborate, learn, and grow. It offers incubation support, mentorship, and funding avenues. By 2023, WEP had onboarded over 15,000 women entrepreneurs.

4. Mudra Yojana Scheme: Under the Pradhan Mantri Mudra Yojana, women can avail loans up to ₹10 lakh without collateral. Remarkably, about 70% of the total loans under this scheme have been sanctioned to women entrepreneurs, highlighting the significant impact of this initiative.

5. Trade Related Entrepreneurship Assistance and Development (TREAD): This scheme provides women with access to loans and grants up to 30% of the total project cost. It also offers counseling and training to enhance their entrepreneurial skills.
   

Success Stories Inspiring a Generation

The impact of these initiatives is evident in the success stories emerging from every corner of India.

• Falguni Nayar, the founder of Nykaa, left her investment banking career to start an e-commerce platform for beauty products. Today, Nykaa is a billion-dollar enterprise and a household name, showcasing the potential of women-led startups.

• Upasana Taku, co-founder of MobiKwik, leveraged government support to build one of India's leading digital payment companies, emphasizing the role of policy in nurturing fintech innovations.

• Richa Kar, founder of Zivame, revolutionized the online lingerie market in India, breaking societal taboos and empowering women to make confident choices.
  

Key Takeaways for Aspiring Entrepreneurs and Investors

• Access to Finance: Utilize government schemes like Stand-Up India and Mudra Yojana, which offer collateral-free loans and financial assistance tailored for women entrepreneurs.

• Leverage Platforms for Growth: Engage with platforms like WEP and Mahila e-Haat for networking, mentorship, and market access, which are critical for scaling businesses.

• Skill Development: Take advantage of training and development programs under various schemes to enhance business acumen and leadership skills.

• Investor Opportunities: For investors, the rise of women-led startups presents a lucrative opportunity. Studies have shown that companies with women at the helm often outperform their peers due to diverse perspectives and inclusive leadership styles.

A Promising Horizon

The collective efforts of the government, private sector, and the entrepreneurs themselves are creating a vibrant ecosystem where women can thrive. The International Finance Corporation (IFC) reports that closing the gender gap in entrepreneurship could add $2.9 trillion to India's GDP by 2025. This underscores the economic imperative of supporting women entrepreneurs.

Empowering Change Through Policy

Policies aimed at promoting women's entrepreneurship are not just about funding; they are about changing societal norms and creating an enabling environment. Initiatives focus on:

• Legal and Regulatory Support: Simplifying business registration processes and providing tax exemptions to encourage more women to formalize their businesses.

• Safety and Infrastructure: Implementing measures to ensure women's safety in workplaces and public spaces, thereby encouraging their active participation in economic activities.

• Awareness Campaigns: Conducting outreach programs to educate women about available resources and opportunities, especially in rural and semi-urban areas.

Overcoming Challenges and Building Networks

Despite the success stories, women entrepreneurs still face significant challenges, especially in terms of accessing funding. Data shows that women-led startups receive less than 10% of total venture capital funding in India​

To bridge this gap, initiatives like Women’s Angel Network and Saha Fund have been established to provide funding specifically for women entrepreneurs.

Additionally, industry bodies such as FICCI Ladies Organization (FLO) and Wednesday Wisdom by Women initiative by RisingWoman.in offer networking, training, and mentoring support, helping women entrepreneurs gain access to the right opportunities.


The journey of women entrepreneurs in India is one of resilience, innovation, and unyielding spirit. With the government's continued support through targeted initiatives and policies, the path is being paved for more women to step into entrepreneurship. This not only accelerates economic growth but also promotes social change, leading to a more equitable and prosperous society.

Empowerment begins with opportunity, and India is striving to ensure that every woman with a dream has the chance to achieve it. As we move forward, it's essential for stakeholders—government, private sector, investors, and the entrepreneurs themselves—to collaborate and nurture this burgeoning segment of the startup ecosystem.

Key Takeaways

• For Women Entrepreneurs: Leverage government schemes for financial assistance, mentorship, and resources. Engage with networks and platforms like RisingWoman.in designed to support your growth.

• For Investors: Recognize the potential of women-led startups. Investing in these ventures not only yields financial returns but also contributes to social equity.

• For Policymakers: Continue to create inclusive policies that address the unique challenges faced by women entrepreneurs, ensuring sustained support and infrastructure development.
  

Together, we can build a future where women entrepreneurs are not the exception but the norm, driving innovation and prosperity across India.