80% women entrepreneurs in rural India use social media for business purposes: Report

Nasscom Foundation in collaboration with LEAD at Krea University has launched a comprehensive report, “Digital Dividends: Understanding the Use of Social Commerce by Women Entrepreneurs in Rural India”.

The study explores challenges and opportunities for Rural Women Entrepreneurs (RWEs) in embracing digital tools and social commerce. It also offers actionable recommendations to support and scale their enterprises.

The report also showcases the transformative impact of technology on rural women-led businesses, particularly across agriculture and allied services, handlooms and handicrafts, and manufacturing, processing, and retailing.

According to a press statement, this study aims to examine the contemporary factors impacting women entrepreneurs, focusing on how technology—especially social commerce— can impact their business activities.

The report is based on a survey of 792 women entrepreneurs (15-60 yrs) from 24 districts across India, including 18 aspirational districts, representing a diverse demographic profile. Participants were surveyed to gain insights into their socioeconomic backgrounds, digital readiness, financial access, and social commerce usage.

Some key findings of the report are:

• 44% of respondents expressed satisfaction with social commerce's impact on their business due to factors like familiarity and simplicity with the social media interface, and avoidance of complexities related to GST.
• 71% of women found it instrumental in business growth and over 80% utilised it for business purposes. Despite this, only 17.6% use digital tools for managing customers and orders, indicating an opportunity for broader digital adoption to enhance operational efficiency.
• 83.2% of women entrepreneurs use social media primarily for maintaining customer relations. However, 82.3% still rely heavily on traditional offline sales methods due to factors like limited digital familiarity (23%) and inconsistent network availability (23.6%).
• Smartphones have become highly accessible among women doing businesses, with 79.5% of women owning their own devices and 20.5% accessing them through family members.
• Only 34.5% of women entrepreneurs are aware of government schemes for digital integration, presenting a vital opportunity to strengthen communication efforts and connect the remaining 65.5% with valuable resources, enabling greater growth and empowerment.

The report also suggests that digital upskilling programmes, accessible training centers, improved access to financial resources, and a holistic approach can enhance women entrepreneurial ventures and significantly boost the uptake of social commerce among RWEs.

It also highlights that streamlined business registration, improved access to financing, and targeted vocational training—especially in rural areas are essential steps.

Commenting on the findings, Rostow Ravanan, Director, Nasscom Foundation, said, “This report serves as a blueprint for stakeholders to help bridge the digital divide, ultimately strengthening local economies and advancing socio-economic equity for India’s rural women entrepreneurs.”

Sharon Buteau, Executive Director, LEAD at Krea University, said, “Today, a woman operating a crafts business from her home in rural India can showcase products to a vast and diverse clientele, transcending geographical barriers and minimising the role of intermediaries. However, we find that technology access is rarely neutral. Understanding these challenges is crucial for crafting strategies that empower and support women entrepreneurs in digital and social commerce.”