Market Drivers Enhancing The Growth Of Women Entrepreneurs in India

on Apr 04, 2024 | 7562 views

Written By: Resham Daswani

Did you know that an increasing number of women are taking the lead in India's fintech sector, which is helping to dispel gender stereotypes and give women more space in business? In this article, we will discuss the market factors which are driving the rapid growth of women entrepreneurs in India, what are some of the benefits of starting a business in India for women, ease factors that help women entrepreneurs grow in this highly competitive market and some of the best business ideas for women entrepreneurs in India. 

So get ready to dive into the effects and causes of this phenomenon.

Current Market Scenario For Women Entrepreneurs in India

Some 22–27 million people find work in India's 63 million micro, small, and medium-sized enterprises (MSME), 20% of which are run by women. The current rate of women entrepreneurship in India is so encouraging that experts predict the nation might soon see over 30 million women-owned businesses, creating 150–170 million employment opportunities.

These numbers highlight the fact that female entrepreneurs have a major impact on the job market in the country.

Here’s how women’s entrepreneurship contributes to the Indian Economy.

The Ministry of MSME's annual report shows 22.24% of women-owned businesses in rural areas and 18.42% in urban areas, contributing considerably to the national economy. Women entrepreneurs are satisfying market demands and creating enormous jobs, boosting 50% of India's start-up ecosystem.

A report found that women in rural India launched businesses to address unmet needs, and that female-owned startups had a 35% better return on investment (ROI) than male-owned startups.

Their duty to improve their family's living drives their success. India is also highly regarded for producing women entrepreneurs, with as many as 40% of them completing degrees in STEM fields.

Major factors which are helping ease the market growth for women entrepreneurs in India today.

  1. Initiatives by the Indian Government: To encourage more women to start their own businesses, the government of India has launched a number of programmes and projects. Programmes to improve one's skills, reduce borrowing costs, and other monetary incentives are all possibilities.
  2. Financial support tailored to women’s needs: Many organisations and financial institutions offer specialised services and products to women business owners. This may come with more advantageous conditions, such as reduced interest rates or loans that do not require collateral.
  3. Women-focused networking opportunities: Networking is essential for every entrepreneur, and groups and activities geared towards women entrepreneurs provide a nurturing atmosphere. Women can find role models, classmates, and romantic interests on these sites, which encourages them to work together and share their stories.
  4. Advanced use of online platforms: Women have found it much easier to launch their own enterprises thanks to the proliferation of digital platforms and technology, particularly in online retail and online service industries. Because of the internet's fair playing field, women can reach more people without spending a fortune at the outset.
  5. Changing Attitudes in Society: The public's perception of women in leadership roles in businesses has evolved throughout time. It is easier for women to start enterprises when society acknowledges and accepts women as entrepreneurs.
  6. Wide options of business models: For the sake of work-life balance, some female entrepreneurs may choose for more adaptable business plans. Some people find that working from home or having more flexible hours is the best option for them.

Despite the fact that these elements contribute to an atmosphere that is conducive to the success of female entrepreneurship in India, it is vital to acknowledge that there are still obstacles to overcome, such as discrimination based on gender, restricted utilisation of resources, and the expectations of society.

There needs to be sustained effort to make India's entrepreneurship ecosystem even more welcoming and helpful to women.

Challenges & Opportunities For Women Entrepreneurship in India

Despite advancements, women in India still encounter numerous obstacles while starting and running their own businesses. What are some of the most significant challenges?

Let us take a look.

  1. Stereotypes and Gender Bias: The access that women have to opportunities, financing, and support can be hindered by deeply ingrained gender biases and preconceptions that are prevalent in society. Having preconceived notions about the roles that women play can result in scepticism regarding their capabilities as company executives.
  2. Access to Financial Resources: It is not uncommon for women to face challenges when attempting to obtain financial backing for their businesses. Women may have a more difficult time obtaining loans or investing capital because they are discriminated against and do not have collateral. One such potential obstacle is a lack of knowledge regarding finances.
  3. Problems Associated with Networking: The development of professional networks is an essential component of a successful business. It may be difficult for women to gain access to networks, mentorship, and direction in many business situations because of the prevalence of male-dominated environments. The prospects for collaboration and mentoring may be affected as a result of this.
  4. Addressing Discrimination in the Market: There is a possibility that female entrepreneurs would experience discrimination in the market, which will hinder their capacity to access clients and possibilities. Gender bias can have an effect on business partnerships and interactions.
  5. Legal and Regulatory Issues: It can be difficult for businesses, including women, to navigate the complex regulatory systems and legal standards that they must comply with. For people who have limited means or experience, overcoming these obstacles may be an especially difficult task.

Therefore, to overcome these obstacles and make India a more welcoming place for female entrepreneurs, we need a concerted effort from the government, nonprofits that help businesses succeed, banks, and society at large.

To tear down obstacles and encourage equal opportunities for men and women in the landscape of entrepreneurship, ongoing efforts on the part of entrepreneurs are required.

Top 7 Business Ideas for Women Entrepreneurs in India

There is a plethora of opportunities for women entrepreneurs in India. Some of the most encouraging markets for women entrepreneurs are these:

Retailing and e-commerce: The expansion of online marketplaces has opened up new opportunities for women to sell goods and services online. Becoming a vendor on well-known platforms, opening an online store, or selling niche products all fall under this category.  All you need to do is.

  1. You can begin selling specialised products or handcrafted items through an online store.
  2. Build a marketplace for things that are sustainable and friendly to the environment. 

Health & Wellness: In India, the wellness and health sector is growing. Opportunities abound in the health and wellness industry, where one can teach yoga, sell health-related items, and provide fitness training. All you need to do is.

  1. Create a fitness studio or provide personal training services to your clients.
  2. Begin a blog or a YouTube channel where you discuss health and well-being.
  3. Create a mobile application that provides advice on health and fitness.

Apparel and Fashion Trends: Women business owners can take advantage of the booming fashion sector by venturing into the creation, production, or retail sale of clothing and accessories. Particularly alluring are niche markets as well as sustainable and ethical fashion.  All you need to do is.

  1. Select and sell one-of-a-kind clothing or accessories for the fashion industry.
  2. Sell clothes online which project the latest trends.

Services for Food and Catering: The food industry is ripe with opportunities for entrepreneurs looking to launch successful catering, home-based food service, or speciality food product businesses. This encompasses delving into exotic cuisines or accommodating particular nutritional needs.  All you need to do is.

  1. Start a catering company specialising on events and gatherings.
  2. Provide people or families that are busy with their lives with home-based cooking services.
  3. Establish an online marketplace for the sale of a specialised food item.

Services in Health and Beauty: Beauty parlours, wellness centres, beauty product distribution, and specialised beauty services are just a few of the many opportunities available to women entrepreneurs in the expansive wellness and beauty business.  All you need to do is.

  1. Start a spa or beauty salon that provides a variety of services.
  2. Promote and sell cosmetics and personal care items online.
  3. Make beauty treatments available on-demand for added convenience.

Consulting services: Consultant services can be offered by women who have extensive knowledge in a particular sector or profession. Business, human resources, financial, or speciality counsel could all fall under this category. All you need to do is.

  1. Establish a business consulting firm that focuses on serving particular sectors.
  2. You could provide services such as career advice or resume writing.
  3. Consultant services in the areas of finance and law are provided.

Skill Development: The establishment of coaching centres, tutoring facilities, or skill-based training programmes presents women with an opportunity to pursue education and skill development. Vocational training, language instruction, and computer science are all examples of what may fall under this category.  All you need to do is.

  1. Offer online tutoring services to help students with homework or test prep.
  2. Develop e-learning courses that focus on imparting certain skills or hobbies.
  3. Provide coaching services or language learning sessions.

Therefore, women entrepreneurs need to pick a business that suits their passions, abilities, and current market demands. Achieving success as an entrepreneur in India is possible for women if they network, seek out mentors, and keep up with industry news.

Entrepreneurial women in India have a lot of leeway to pursue possibilities that align with their interests, abilities, and the current state of the market. This article has listed a few of the business ideas that Indian women entrepreneurs can think about.

For more of the latest entrepreneurial ideas for women, reach out to our experts at FranchiseBazar.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.

 

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