The glass ceiling is resilient. A recent paper presented at the National Council of Applied Economic Research that draws on World Bank and Periodic Labour Force Survey data showed that less than 1% of Indian women are entrepreneurs. This figure is much below the global estimate calculated on the basis of the country’s income level. Earlier this year, a survey conducted by a non-governmental organisation, while enumerating some of the hurdles that women entrepreneurs face, had also revealed that women-led enterprises constitute just 15.4% of India’s 58.5 million businesses. The primary challenge, as with any business, is funding. Gender biases make matters worse for women in this respect: between January 2022 and October 2024, just 16% of the total capital raised in the country for start-ups went to companies with female founders or co-founders. What is worse, 75% of investors admitted to assessing only one to three female-led start-ups per quarter as opposed to over 50 male-led ones. This means women entrepreneurs were written off even before they had a chance to present their ideas. There is also a rural-urban imbalance that must not go unnoticed. About 65% of all women-owned businesses in India are located in rural areas and operate in the micro, small and medium enterprises sector. This disparity may be due to the availability of cooperative welfare schemes to women in rural areas. However, studies have also shown that these women-led businesses are likely to remain cottage industries, which seldom receive financial support to scale up operations. All of this is confounding in light of the following finding. According to additional data from the World Bank, women-owned businesses in India generate an estimated eight million job opportunities, underscoring their substantial importance.
There are some obvious gaps that need to be filled to give women entrepreneurship a boost. First, a measly 7% of all state and Central schemes for entrepreneurs are tailored for women. Second, only 3% of state and 4% of Central schemes focus on crucial areas like market linkages and mentoring for women entrepreneurs. This can be the difference between starting a business and making a success of it. Government initiatives should actively connect women entrepreneurs with global markets, export opportunities and mentorship networks. Flexible loan products, collateral-free options and partnerships with e-commerce platforms to facilitate access to credit are other stepping stones that can help women entrepreneurs in India truly shatter the glass ceiling.