India's entrepreneurial landscape is undergoing a significant transformation, with women participation on the rise. Despite societal norms and challenges, the gender gap in entrepreneurship is steadily narrowing. Women are not only entrepreneurs but also policymakers, venture capitalists, authors, and academicians, contributing to India's multifaceted growth story. These visionary women are addressing critical gaps and providing innovative solutions across various industries. Their presence is breaking gender barriers and creating opportunities for others. Much can be seen in the increased diversity in the startup ecosystem, which is resulting in a more equitable business landscape.
Bridging the Digital Divide
In the digital age, where opportunities and challenges abound, bridging the digital divide is crucial. Women need the skills to thrive in today's digital economy, making upskilling a key priority. It empowers women with the understanding and ability to navigate the ever-evolving demands of the business world.
While urban areas have embraced technology, rural regions often lag behind. Initiatives that provide digital literacy training in remote areas can unlock new avenues for women to participate in the digital economy. One example of such an initiative is the Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA), which is aimed to usher in digital literacy in rural India.
The Indian government conducted three impact assessment studies for the PMGDISHA scheme, with the most recent one conducted by the Indian Institute of Public Administration (IIPA) in 2021. The IIPA's report concluded that PMGDISHA, as a digital literacy program, plays a crucial role in not only narrowing the digital divide in the country but also in catalyzing its transformation into a knowledge-based economy and society.
Upskilling is the cornerstone of empowerment in the digital age. It equips women with the knowledge and skills needed to succeed in a rapidly evolving business landscape. Entrepreneurship is not just about starting a business; it's about adapting to change, identifying opportunities, and continuously learning. Upskilling empowers women to take control of their future by understanding the ongoing demands of business in the digital era.
Access to Finance: Breaking Barriers
Access to finance is a critical driver of entrepreneurial success. Women-led businesses often face challenges in securing funding. Women in India rarely own property that could serve as collateral for start-up loans. As highlighted in a study conducted by the IMF titled “Closing Gender Gaps in India: Does Increasing Women’s Access to Finance Help?”, providing equal access to finance while promoting female entrepreneurship would raise GDP and reduce unemployment in India. It also noted a possible increase of 6.8 percent in GDP if India also simplified its notoriously complex labour market regulations and improved women’s skills. This will result in greater female entrepreneurial activity in the formal sector and greater job creation, which boosts female labour force participation and employment. Encouraging financial institutions to offer tailored products and services for women entrepreneurs can be a game-changer. Additionally, mentorship programs and networking opportunities can help women navigate the complexities of the financial landscape.
Creating an inclusive startup ecosystem is vital. Support networks, incubators, and accelerators that champion women entrepreneurs can foster innovation and growth. These platforms provide funding, mentorship, access to markets, and resources that empower women to scale their ventures. Collaboration between government, private sector, and civil society can nurture a thriving ecosystem.
Education and Policy Support
Education is the cornerstone of empowerment. Entrepreneurship education programs can equip women with the knowledge and skills needed to succeed in business. By integrating entrepreneurship into the curriculum and offering specialized courses, educational institutions can nurture the next generation of women entrepreneurs.
Driving change requires collaboration at all levels. Government policies that promote gender equality in entrepreneurship, such as providing incentives and reducing bureaucratic hurdles, can create a conducive environment. Corporations can also play a pivotal role by supporting women-owned businesses in their supply chains and procurement.
Conclusion
In conclusion, while India's entrepreneurial landscape is evolving and embracing diversity, there remains much work to be done in promoting and supporting women entrepreneurs. The 2018 Mastercard Index of Women Entrepreneurs ranked India 52nd out of 57 countries, highlighting the need for improvement in areas such as financial access, advancement opportunities, and ease of doing business for women. According to the Sixth Economic Census,
only around 14 percent of Indian women are business owners or managers, with the majority of these businesses being microenterprises and primarily self-funded.
Empowering entrepreneurs, especially women, goes beyond achieving gender equality; it serves as a fundamental driver of economic growth, innovation, and inclusivity. It is imperative that India continues its efforts to create an environment where every aspiring entrepreneur, regardless of gender, can thrive and contribute to the nation's prosperity. The path towards a more equitable and prosperous future for all entrepreneurs in India is a continuous journey, and collective efforts can help shape this promising path ahead.
Written by Dr. Maitreyee Nanda, Rahul Nair
Dr. Maitreyee Nanda is the Ex-Secretary, Aeronautical Research & Development Board, Defence Research and Development Organisation (DRDO). She is currently contributing as the Principal Advisor and Mentor at House of Startups India.
Rahul Nair is the Manager at House of Startups India and a Delhi-based lawyer who graduated from the National University of Advanced Legal Studies, Kochi.