Pahle Foundation Releases Report about Women in Indian MSMEs

By: WE staff | Wednesday, 15 October 2025

• Pahlé India Foundation (PIF) released a report on women in MSMEs
• The report is called "Enhancing Female Entrepreneurship and Employment in the MSME Sector"
• The goal is to create an equal and inclusive platform for women entrepreneurs

The Indian Pahlé India Foundation (PIF) released a report titled "Enhancing Female Entrepreneurship and Employment in the MSME Sector - A Gender Intentional, Multi-State Perspective".

The report includes practical recommendations on how women can be encouraged to participate in the Micro, Small and Medium Enterprises (MSME) sector and how the entrepreneurial ecosystem can be made more inclusive for women.

The research was conducted in six states of India—Chhattisgarh, Gujarat, Maharashtra, Odisha, Tamil Nadu, and Uttar Pradesh—applying a mixed-method approach combining qualitative and quantitative data to provide an overall picture of women's participation in the MSME sector.

In phase one, group interviews were undertaken with the women entrepreneurs and learning’s were drawn from these concerning their experience, challenges, and aspirations.

Phase two included a process of consultations with government representatives and other key ecosystem stakeholders in order to review the findings, respond to some of the challenges, and develop practical recommendations.

A two-stage, collective process ensured the recommendations developed from the study are grounded in the actual experiences of the women entrepreneurs and can support successful implementation of policy at both the state and national levels.

It identifies key challenges and opportunities facing women-owned MSMEs in India. More than 60 percent of women entrepreneurs confront financial constraints like constrained collateral, document complexity, and delays of up to six months on loans, leading to a credit gap worth almost INR 1.37 trillion on an annual basis.

Market access continues to be restricted even as social media and online mentorship facilitated business expansion, with numerous women continuing to remain devoid of formal networks and organized linkages.

Skill formation and digital illiteracy remain the weaknesses, where women fall behind men in internet usage, hence restricted from technological opportunities. Structural barriers due to inefficiencies in regulation and/or bureaucracy continue to be a barrier for scaling.

Delhi Chief-Minister Rekha Gupta announced a new government initiative providing up to ₹10 crore of collateral-free loans for women entrepreneurs and stressed the need for systems support. Experts called attention to the need for evidence-based, state-specific policies and interventions in capital, access to market, and skill development for women owned businesses that empower women and foster inclusive economic growth.