How new-age women entrepreneurs are leading the economic surge in 2022
Women entrepreneurs are gaining ground in India, and their contributions to national economic expansion and development are noticeable. The percentage of female entrepreneurs has increased significantly over time, particularly since globalisation in the 1990s.
Women entrepreneurs must be commended for increasing their use of new tech, increasing their investment projects, discovering a niche in the export economy, generating sizeable work opportunities for others, and leading the way for other women entrepreneurs in the organised sector.
Women entrepreneurs' roles and contributions to Indian economy
Women entrepreneurs in India associate primarily with micro, small, and medium enterprises due to specific push and pull variables that stimulate women to have an independent profession and compete on their legs.
According to a Bain & Company study, women currently own 13.5-15.7 million businesses in India, making up 20% of all businesses. Despite their relative size, these are predominantly business initiatives led by one person, which effectively employ an estimated 22 to 27 million individuals.
As per industry analysts, there has been a nine-fold spike in the volume of investors and a seven-fold rise in financing over the last five years and India is projected to have 150 unicorns by 2025. In such an atmosphere, women can further contribute to economic growth not only by enabling a medium of employment generation but as job applicants as well.
Why closing gender inequality essential for economic progress
Despite colossal findings that women-owned enterprises are profitable sectors with stronger brand commitment, wider income percentages, and equal reimbursement rates when compared to male-owned businesses, women continue to be adversely affected by restricted access to finance and mentorship assistance. Worse, many stereotypical assumptions common in male-dominated industries insinuate that women are less capable of performing highly specialized tasks, despite equal competence and academic prowess.
Additionally, women entrepreneurs face subtle biases on client queries and in meet-ups on a frequent basis. A large percentage of men use he/him as the default pronouns for customers, employees, and coworkers in these interactions. Adding to the bias, women are habitually patronised, ignored, or interrupted by their male colleagues or investors. It’s therefore important to normalise an extensive mix of female and male entrepreneurs to shatter stereotypes and foster gender-balanced entrepreneurialism. This is validated by the McKinsey Global Institute analysis which revealed that strengthening women’s equality could add $12 trillion to the global economy by 2025. In an optimal outcome that figure could rise to 28 trillion dollars.
Programmes and key initiatives to help women
At this stage, impactful measures must be driven by micro, small, and medium-sized business incubation institutions, various government developmental corporations, commercial banks, and even non-governmental organisations (NGOs) which include conducting frequent programmes, including Entrepreneurship Development Programmes (EDPs), to fulfill the requirements of potential female entrepreneurs who may lack appropriate learning skills and experience. Moreover, women-focused financing initiatives, such as tailored pitch days, can encourage female entrepreneurs to develop affiliation and trust with the investor community, as well as assist them in finding like-minded mentors.
While women entrepreneurs have displayed their potential, the truth stands that they are competent in facilitating far more than what they have already contributed. The presence of women in the entrepreneurial culture is better equipped to comprehend the broader requirements of their communities and to become the voice for those who are silenced. It is thus important to recognise and combat the potential bottlenecks which women entrepreneurs confront on a daily basis.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)
Edited by Rekha Balakrishnan