Women Entrepreneurship in India: Challenges and Contribution in Economic Growth

Abstract

Women entrepreneurs in India represent a rapidly growing but under-leveraged segment of the national economy. This study examines the dual role of women’s entrepreneurship: the obstacles that constrain women-led business formation and growth, and the contributions these ventures make to employment, income generation, innovation, and inclusive economic development. Drawing on a synthesis of contemporary literature, policy documents, and secondary datasets, the paper identifies structural and cultural barriers - limited access to formal finance, skills and training gaps, restrictive social norms, weak market linkages, and inadequate supportive infrastructure - that disproportionately affect women founders. Despite these constraints, evidence shows that women-led enterprises promote diversification of local economies, create resilient livelihoods, foster value-chain linkages in key sectors, and contribute to poverty reduction and gender-equitable growth. The analysis highlights how targeted interventions - improved access to credit and mentorship, gender-sensitive business support services, favourable regulatory reforms, and stronger networks - can unlock significant economic benefits. The paper concludes with policy recommendations for governments, financial institutions, and development agencies to scale enabling ecosystems that amplify the impact of women entrepreneurs, thereby strengthening India’s broader economic growth and social inclusion objectives.