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Women Entrepreneurship in India: Obstacles and Opportunities
Dr. Shaniba M H
Al Ameen College, Edthala. Aluva, Ernakulam, Kerala, India
DOI: https://doi.org/10.51583/IJLTEMAS.2026.150500122
Received: 27 May 2026; Accepted: 02 June 2026; Published: 08 June 2026
ABSTRACT
Women Entrepreneurship (WE) in India has emerged as a significant contributor to economic growth and social
development. This research highlights WE in India and also focuses on the challenges and opportunities faced
by women entrepreneurs in India. The research discusses the current scenario of WE in India and reviews various
literature to gain insights into the topic.
The research incorporated the primary quantitative and secondary qualitative data collection methods to examine
the perception of various groups of individuals concerning WE and also determine the challenges and
opportunities faced by women entrepreneurs. The primary data is analysed using statistical analysis methods,
and the secondary data is analysed using thematic analysis.
The findings underscore the need for targeted interventions to empower women entrepreneurs, enabling them to
overcome obstacles and leverage opportunities for sustainable growth and development. Based on these findings,
the research has also provided actionable recommendations to boost women’s entrepreneurial activities in India.
Keywords: Women Entrepreneurship, India, Gender Barriers, Financial Access, Socio-Cultural Challenges,
Government Initiatives, Economic Growth, Gender Equality
INTRODUCTION
Women Entrepreneurship (WE) can be described as the management of business operations by a woman or a
group of women. Entrepreneurial activities are known to contribute to the economy's development and growth.
Similarly, women’s entrepreneurship also leads to the development and growth of society. It has gained
significant attention in recent years
1
. Women contribute to half of the population; hence, they should be
motivated to participate in economic activity. However, they face many challenges when participating in
economic activity. This research will examine the challenges and strengths of women entrepreneurs in India.
The research will also provide recommendations for various stakeholders to enhance entrepreneurial activities
among women in India.
Women Entrepreneurship in India: Current Scenario
The start-up companies in India are ranked third-largest worldwide and are steadily growing. Women
entrepreneurs play a notable role in the growth of start-up businesses in India. Due to increased educational
opportunities, accessibility of capital, and supportive regulatory policies for women entrepreneurs in India are
significantly growing. Women entrepreneurs are creating employment opportunities in India. According to
studies, women entrepreneurs have created job opportunities for around 27 million people in the country, notably
contributing to India’s growth and development. Approximately 15.7 million women-led enterprises are
established in India, constituting 22 per cent of the entire entrepreneurial sector
2
. Women entrepreneurship has
led to innovation and development in technologies in the country. A few successful women entrepreneurs in
India are Falguni Nayar, Kiran Mazumdar Shaw, Vandana Luthra, and Radhika Ghai Aggarwal.
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Figure 1: State-wise Women-led Entrepreneurs in India
(Source: NITI Aayog, 2022)
The figure depicts the top ten state-wise women-lend enterprises in India during the year 2022. According to the
figure, West Bengal has the highest number of women-led enterprises, constituting 23.42%, whereas Sikkim has
the lowest number of women-led enterprises, constituting 0.04%
3
. Despite growth in women’s entrepreneurial
activities, “Women Entrepreneurs” still face social and cultural barriers in India. The patriarchal mindset of the
country and gender discrimination are some barriers for women to undertake entrepreneurial activities
4
. These
problems are more visible, particularly for women from lower-income groups and rural areas.
Significance of the Study
This research highlights the present scenario in the WE sector in India and the gender disparities that women
restrict women from participating in economic activities. As already stated, women constitute half of the
country’s population. Encouraging women to participate in entrepreneurial activities will enhance their standard
of living as well as improve the country’s standard of living. This research study also highlights the opportunities
and challenges faced by women entrepreneurs in India, which can help to formulate strategies and
recommendations for various stakeholders such as financial institutions, government, and “Women
Entrepreneurs” to enhance women’s entrepreneurial activities in India.
Aim and Objectives of the Study
Aim
This research study aims to examine the challenges and strengths of women’s entrepreneurial activities in India
and provide actionable recommendations to enhance WE in India.
Objectives
● To identify the obstacles faced by women entrepreneurs in starting and growing their businesses in India
● To assess the opportunities for women entrepreneurs to overcome these obstacles in India
● To study the government policy recommendations to encourage women entrepreneurs
● To recommend suggestions for the advancement of WE in India
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REVIEW OF LITERATURE
Overview of Women Entrepreneurs in India
Women's entrepreneurship has gained attention in recent years. Entrepreneurs are a major contributor to
innovation, growth, and development. Similarly, Women entrepreneurs significantly contribute toward diverse
innovation, growth, and development. They enhance their standard of living as well as contribute toward the
household economy and ultimately contribute to the national economy
5
. Due to rapid digitalization and
globalization, India’s entrepreneurial sector has evolved and developed, particularly the women-led
entrepreneurial sector in India. Women from different backgrounds and income groups are actively participating
in these activities and promoting the cultural heritage of the country through cottage industries that include
handicrafts and food products
6
. Thus, encouraging women entrepreneurs is essential for the country’s
development.
Factors Affecting Women’s Entrepreneurial Activities
Several factors affect WE in India. Education and access to financial support are primary factors that affect
women entrepreneurs. Apart from these factors, opportunities and risks involved in businesses, the capability of
women entrepreneurs, and social capital also affect women’s perception of entrepreneurial activities. These
factors motivate women to undertake economic activities
7
. Women’s behavioural aspect also affects their
entrepreneurial activities. The BIG 5 Personality model analyses the characteristics of individuals. This model
helps to understand how qualities such as adaptability, openness, optimism, and cognitive feasibility affect the
intentions of women to participate in entrepreneurial activities.
Figure 2: Elements that Impact WE
(Source: Chhabra et al. 2020)
The above image shows various factors responsible for affecting women’s intention to undertake entrepreneurial
activities. According to the figure, both personal characteristics and market scenarios affect women’s
entrepreneurial decisions
8
. However, women entrepreneurs in India face severe challenges while undertaking
entrepreneurial activities. Barriers to accessing finances, resource scarcity, high competition, social restrictions,
and lack of management practices limit women entrepreneurs to enhance their business activities
9
. Hence, the
government and other institutions, such as financial institutions, are required to take appropriate policy measures
to encourage more women to participate in economic activities.
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Government Initiatives to Boost Women’s Entrepreneurship
The government of the nation has already undertaken several policies to support women entrepreneurs in India.
For instance, the government has taken the initiative under which women entrepreneurs can access credit without
providing collaterals. The government has taken major steps to assist micro, small, and medium-sized enterprises
(MSMEs) led by women and support them in their business activities. Furthermore, the government has initiated
several schemes to provide training and development to women entrepreneurs to enhance their business
management practices. The government has also created marketing hubs for women to promote their
businesses
10
. Despite these initiatives, women entrepreneurs still face barriers in Indian society to participate in
entrepreneurial activities.
Conceptual Framework
Figure 3: Conceptual Framework
(Source: Self-Developed)
Literature Gap
The existing research studies highlight the opportunities and obstacles of women entrepreneurs. However, there
is a gap in the literature in terms of providing country-specific recommendations for women’s entrepreneurial
activities. Stated differently, there are fewer studies providing strategies and suggestions to the government as
well as women entrepreneurs to boost their entrepreneurial activities.
METHODOLOGY
The utilization of methodology in research helps to analyse and gain insights into the topic. This research has
incorporated a Deductive Research Approach. This approach helps the research to analyse a larger population
and gain insights into it
11
. A Pragmatism Research Philosophy is used in this research. Pragmatism research
philosophy is used to develop hypotheses and address social issues
12
. The researcher has employed an
Explanatory Research Design in the research. This research design helps to understand the relationship among
various variables
13
. The Mixed Method has been incorporated into the research study to collect data that includes
both Primary Quantitative and Secondary Qualitative Data. The primary quantitative data is collected by
surveying 51 participants. A purposive sampling method is incorporated into the research. This sampling
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technique helps to gain insights from various groups regarding WE in India
14
. Women entrepreneurs, aspiring
women entrepreneurs, and participants from NGOs who are working on women’s empowerment are included in
the sample size of this research. The secondary qualitative data is collected from peer-reviewed journals, articles,
books, and reports to understand the obstacles and opportunities of women in India. The mixed method provides
a thorough knowledge of the topic
15
. The primary quantitative data has been analysed based on the gathered
responses on Google Form Pie Charts, and the secondary qualitative data is analysed through Thematic
Analysis. Hence, the chosen method has helped in gaining comprehensive insights into the topic.
Data Analysis
Results of Primary Analysis
Figure 4: Age of the Participants
(Source: Google form)
It can be seen from the upper graphical representation that most of the participants that are around 60.8% of the
participants belong to the 18 to 25 age group.
Figure 5: Education of the Participants
(Source: Google form)
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The education of the participants of this study is highlighted in the upper graph. It shows that 64.7% which is
the highest number of participants hold a master's degree.
Figure 6: Sector Operating by the Participants
(Source: Google form)
The maximum participants of in this study are 21.6% and 19.6% in Education Sectors and technological sectors.
11.8% of candidates are both in the healthcare sector and fashion sectors.
Figure 7: Government Scheme Supports Indian Women Entrepreneurs
(Source: Google form)
It can be seen that 52.9% and 29.4% of the candidates strongly agree and agree that government schemes help
women entrepreneurs in India.
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Figure 8: Digitalisation Helps Women Continue Their Business Rather Than Traditional
(Source: Google form)
Among 51 participants, most of them that is 54% of them agreed with the fact that digitalisation helps women
to continue their business beyond traditional industries and roles.
Figure 9: Women Entrepreneurs' Contribution in Economic Growth and Job Creation
(Source: Google form)
According to the upper pie chart, it shows that 52% of the candidates agreed that women entrepreneurs serve the
country a economic growth and job creation.
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Figure 10: Gender Bias Limits to Access Funding and Investment
(Source: Google form)
Most of the participants, around 60.8% strongly agree with this statement that gender bias limits the access the
women to investment and funding opportunities.
Figure 11: Mentorship Programs Empower Women Startup
(Source: Google form)
Some of the candidates that are 9.8% disagree with the fact that mentorship programs help to empower women’s
business start-ups. However. A huge number of participants that is 56.9% and 23.5% Strongly agree and agree
with this statement.
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Figure 12: Women Thrive in Various Industries
(Source: Google form)
Most of the participants, 56% agree that women thrive in several sectors such as technology, healthcare and
many others in India.
Figure 13: Changing Mindsets Encourage Women Leader
(Source: Google form)
The maximum number of participants, 50% and 26% strongly agree and agree that changing the mindset helps
to encourage women leaders.
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Figure 14: Societal Norms Discourage Women Leaders
(Source: Google form)
Societal Experience and the stereotypes mentality discourage women leaders and 60.8% that is most of the
participants ats strongly agree with this fact.
Figure 15: Women Drive Innovation and Leadership
(Source: Google form)
52.9% of the participants strongly agree that women improve innovation and leadership, especially in India.
Thematic Analysis
Challenges Faced by Women Entrepreneurs in India
Women in Indian society face severe barriers in sociocultural aspects. Indian society is dominated by men, due
to which women had to rely on men to gain permission to participate in entrepreneurial activities.
Conventionally, women were meant to stay and take care of their houses and were not allowed to participate in
decision-making activities
16
. Thus, due to this mindset, “Women Entrepreneurs” face problems in India.
Traditional financial institutions require collaterals to access credit. However, women do not possess such
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collaterals and hence face challenges while accessing credit. Moreover, complex loan application procedures
also make it difficult for women to access formal financial institutions.
Networking opportunities are necessary for any business to expand in the competitive market. However,
“Women Entrepreneurs” in India do not have such opportunities, particularly in rural areas
17
. These “Women
Entrepreneurs”, hence, fail to maintain their pace and expand their business operations in the competitive market.
Women in India lack education, particularly vocational education that can enhance their business management
practices. Moreover, women in rural areas lack basic education as well. Education, skill development, and
training are required for women to improve their entrepreneurial activities. “Women Entrepreneurs” also face
regulatory barriers since the government does not have appropriate policies to safeguard “Women
Entrepreneurs”.
Opportunities and Strengths of Women Entrepreneurs
Women entrepreneurs have innovative thinking and develop creative ideas that help them to expand their
businesses. These ideas help them to develop the latest technologies, products, and services. Women
entrepreneurs, unlike male entrepreneurs, show concern for the environment and society. They try to improve
society along with their businesses. Women entrepreneurs often create networks to help other women and
encourage them to participate in entrepreneurial activities
18
. Self-help groups (SHGs) and cooperative banks are
certain initiatives taken by Women Entrepreneurs to support and promote WE. They also address environmental
issues and adhere to environmental laws during their production activities.
WE also enables women to achieve economic independence, which enhances their self-esteem and confidence.
Moreover, women entrepreneurs have great adaptability and can adapt to any situation and crisis. They have
high resilience and institutions which they utilize to assess risks. “Women Entrepreneurs” also have high
dedication and commitment to their work and try to enhance their business activities
19
. Women also use their
prior working experience as a strength to enhance their present entrepreneurial activities.
Policy and Support Initiatives of Government to Encourage Women Entrepreneurs
Government policies and initiatives should be strengthened to encourage women entrepreneurs in India. The
government has already taken various initiatives, such as collateral-free credit access and flexible loan
procedures for women in India since most women entrepreneurs do not have collaterals. The government has
also set up marketing hubs for women. However, women entrepreneurs still face barriers during their
entrepreneurial activities. The government should ensure more flexibility in financial institutions to provide them
with financial support. The government should also formulate policies for easy access to resources. Women
entrepreneurs often face obstacles and a scarcity of resources. Women entrepreneurs often face discrimination
at various levels of society
20
. Ensuring gender equality can reduce the gender gap, which will further reduce
discrimination and help women elevate their social position. Providing adequate collaboration and networking
chances can enhance their business operations. Furthermore, the government should also provide training and
skill development programs to educate women and improve their business and financial management practices.
Key Policy Recommendations to Encourage Women Entrepreneurship
Empowerment of women entrepreneurs is required to motivate women to participate in entrepreneurial activities.
Women often face discrimination, due to which they lack the motivation and willpower to participate in
economic activities. Providing appropriate financial services encourages women to participate and expand their
business operations. Furthermore, providing tax benefits and subsidies will also encourage WE. Increasing
microfinance options, self-help groups, and cooperative banking systems will boost women’s entrepreneurial
activities
21
. Moreover, enhancing social capital, networking, and collaborating opportunities will help women
entrepreneurs improve their business and financial management skills, which are crucial to sustaining in the
competitive market. Awareness programs, campaigns, workshops, and seminars will increase networking
opportunities as well as enhance the knowledge, skills, and experience of women entrepreneurs. Additionally,
providing training and skill development opportunities will motivate women to participate in entrepreneurial
activities.
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DISCUSSION
The primary quantitative and secondary qualitative analysis findings indicate the obstacles and strengths faced
by women entrepreneurs in India. According to the primary analysis finding, most respondents believed that
women lead to economic growth and the creation of jobs. They also believed that digitalization, government
support, and mentorship programs enhance their business activities and encourage more women to participate in
economic activities. However, most participants also believed that societal biases and gender discrimination
restrict them from accessing financial resources and participating in entrepreneurial activities. The secondary
analysis findings showed similar results. According to the secondary analysis, discrimination, sociocultural bias,
challenges in accessing financial resources, and lack of education are some obstacles faced by women
entrepreneurs in India. However, innovation, leadership, resilience, and adaptability strengthen WE. The Indian
government is required to take action to enhance WE in India.
CONCLUSION
This research highlighted the various obstacles and opportunities faced by women entrepreneurs in India. The
research provided an overview of the current situation of women entrepreneurs in India. The research also
incorporated peer-reviewed journals, articles, books, and reports to gain insights into factors affecting WE and
initiatives that the government has already undertaken to boost WE. The researcher utilized primary and
secondary data to analyse the data through statistical analysis methods and thematic analysis methods. These
analyses provided some actionable recommendations for the government and key stakeholders to enhance the
entrepreneurial activities of women in India.
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Appendix
Survey Questionnaire
1. What is your age?
18-25
26-35
36-45
2. What is your education qualification?
Primary
Secondary
Graduation
Masters
3. In which sector is your business primarily operating?
E-Commerce
Fashion
Education
Healthcare
Technology
Other
4. Do you think government schemes such as MUDRA loans support women entrepreneurs in India’s economy?
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
5. Do you believe Digitalization helps women entrepreneurs launch businesses beyond traditional industries and
roles?
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
6. Do you accept that women entrepreneurs significantly contribute to economic growth and job creation?
Strongly Disagree
Disagree
Neutral
Agree
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Strongly Agree
7. Do you think gender bias limits women entrepreneur’s access to funding and investment opportunities?
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
8. Do you believe business incubators and mentorship programs empower women entrepreneurs to succeed in
startups?
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
9. Do you accept that women-led enterprises are thriving in sectors such as technology, healthcare, and fashion?
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
10. Do you believe changing mindsets encourage more women to enter the entrepreneurial ecosystem?
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
11. Do you accept that societal expectations and stereotypes often discourage women from pursuing business
leadership roles?
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
12. Do you believe women entrepreneurs are driving innovation and leadership in various business sectors?
Strongly Disagree
Disagree
