India’s Women Entrepreneurs: 14% of MSMEs, yet only 10% access formal financing

By Vivek Dubey

CNBC-TV18.com

Published Jan 17, 2024

Women Entrepreneurs

14% of entrepreneurs in India are women, making up 20% of the 58.5 million MSMEs.

Source: State of India’s Livelihoods report by Access publication

Global Ranking

India ranks 57th out of 65 countries for women’s entrepreneurship.

Early Stage Involvement

Only 2.16% of women are involved in early-stage entrepreneurial activities in India.

Micro Businesses

99% of women-owned enterprises are single-person micro businesses.

Employment

Only 17% of women-owned enterprises have employed workers, with 95% operating with less than 6 workers.

Formal Financing

Formal financial institutions serve only 10% of the estimated 11.4 million women-owned MSMEs.

Informal Financing

90% of women entrepreneurs rely on informal financing sources.

Finance Requirements

Only 27% of total finance requirements for women-owned MSMEs in India are met through formal financing sources.

Startup Ecosystem

India is the world’s third-largest startup ecosystem, but women represent only 35% of employees in Indian startups.

Unicorn Founders

In 2021, only 5 out of 136 unicorn founders were women, down from 9% in 2018.