Women-led Enterprises Driving Inclusive Growth in Rural India

By: WE Staff | Saturday, 9 May 2026

• Rural women are driving India’s inclusive economic growth through nano and micro enterprises
• Women-led businesses in India are expected to rise from 19 million to 45 million by 2047
• Lack of access to finance remains a major challenge for women entrepreneurs

According to a study published by Women's World Banking, rural India is beginning to see the emergence of women-owned businesses as key players within the economy as a result of their growth.

The research also demonstrates that female business ownership occurs more frequently in rural areas than in metropolitan ones. Specifically, women account for roughly 22% of total business ownership versus only 19% in urban centres.

There are approximately 73 million nano and micro employer businesses operating across the entire country with approximately 26% of these being run by women, which equates to approximately 19 million nano and micro business owners.

It stated, "Women-led nano and micro enterprises in rural India are crucial levers of inclusive economic growth".

Women-led businesses are anticipated to be a key component of India's long-term growth vision and will increase from 19.2 million to approximately 45 million by 2047.

"From 19.2 million today (ASUSE, 2023-24) to an estimated 45 million by 2047, women-led enterprises are set to become a central pillar of India's Viksit Bharat growth vision," the report stated.

Furthermore, there are approximately 9 million women-led businesses that are currently registered with the Udyam scheme, indicating continued progress towards formalising these businesses.

The report stated that women-owned enterprises operate across a wide range of sectors including home-based production units, grocery stores and service businesses, playing an important role in supporting household incomes and local economies.

In addition, the report also indicates that access to finance remains a significant barrier for women entrepreneurs.

The report also showed that women entrepreneurs face difficulties when it comes to accessing finance for their businesses.

According to the report, there are about 3.85 million women-led small and medium enterprises (SMEs) in India that are looking for financing, which creates an opportunity to finance these SMEs at a value of 75,028 crores (approximately $9.0 billion).

Of the total demand for financing, there is a large segment of the market for loans between ₹5-20 lakhs, which has a demand of ₹12,388 crores (approximately $1.49 billion).

The report states that women entrepreneurs are underfunded even as more women participate in business.

In addition to the need for financing, women entrepreneurs benefit from improvements in their skills, and the use of digital technology and the creation of strong business connections.

35% of women-owned MSMEs have a lack of access to credit, and 41% have said that the competition in their marketplace is one of the factors that is causing them to not grow their businesses.

The recommendations made by the report include developing stronger peer networks, making formalisation processes more accessible/less complicated, facilitating access to markets and providing investment opportunities for women entrepreneurs through developing digital tools that are designed to be inclusive.

The findings are derived from the EmpowerHer Programme targeting 100,000 women entrepreneurs affiliated with Self-Help Groups in Maharashtra, implemented via a partnership with the Maharashtra State Rural Livelihoods Mission.

Women’s World Banking collaborates with banks and policy makers to create financial products focusing on women who are currently or have been excluded from the formal financial system.