How women-led startups can benefit from government and agency support to grow and scale

In recent years, women entrepreneurs in India have emerged as pivotal contributors to economic growth, innovation, and societal transformation.

Despite their significant potential, women-led startups often encounter unique challenges, including limited access to funding, mentorship gaps, and systemic biases. Addressing these obstacles through targeted government policies and institutional support is essential to unlocking growth opportunities and fostering an inclusive startup ecosystem

The current landscape of women-led startups in India

Women entrepreneurs are making remarkable strides across various industries, from technology and healthcare to sustainable fashion and fintech. According to the Ministry of Micro, Small, and Medium Enterprises (MSME), women own approximately 20% of all proprietary MSMEs in India, employing over 22 million people. However, a 2023 NASSCOM report revealed that women-led startups receive just 7% of venture capital funding in the country, highlighting a significant funding disparity. Furthermore, a recent report by Bain and Co. and Google titled Women Entrepreneurship in India—Powering the economy with her suggests that women entrepreneurs in India have the potential to create up to 170 million jobs by 2030 if provided with the right support mechanisms.

Key challenges faced by women entrepreneurs

Funding gap: Women-led startups often struggle to secure venture capital due to gender biases and a lack of representation in investment circles. Many investors still perceive women entrepreneurs as high-risk, leading to an inequitable distribution of financial resources.

Limited access to mentorship and networks: Many women entrepreneurs lack exposure to the right mentorship and business networks that can provide strategic guidance and support.

Regulatory and structural barriers: Complex business regulations, lack of awareness of government schemes, and bureaucratic hurdles create additional obstacles for women entrepreneurs.

Government initiatives supporting women entrepreneurs

To create an enabling environment for women-led startups, the Indian government has implemented several initiatives:

Stand-Up India Scheme: Launched in 2016, this scheme facilitates bank loans between ₹10 lakh and ₹1 crore to at least one-woman borrower per bank branch for setting up a greenfield enterprise in manufacturing, services, or the trading sector.

Women Entrepreneurship Platform (WEP): An initiative by NITI Aayog, WEP serves as a unified access portal that brings together women from different regions to realize their entrepreneurial aspirations, providing resources, mentorship, and networking opportunities.

Institutional support and private sector initiatives

Beyond government schemes, various institutions and private organizations are contributing to the growth of women-led startups:

WE Hub: India's first state-led incubator for women entrepreneurs, based in Telangana, has raised ₹177 crore in funding, supporting over 6,000 startups and SMEs.

NSRCEL at IIM Bangalore: This incubation center has supported over 23,000 women entrepreneurs, created more than 2,000 jobs and incubating over 590 ventures.

Saha Fund: A venture capital fund dedicated to investing in women-led enterprises, promoting gender diversity and inclusion in the entrepreneurial ecosystem.

Kinara Capital's HerVikas Program: Launched in 2019, this program offers collateral-free business loans to women entrepreneurs, aiming to disburse significant funds to women-owned MSMEs.

Corporate initiatives such as Amazon Saheli and Facebook’s #SheMeansBusiness are also helping women entrepreneurs by providing visibility, training, and market access to scale their businesses.

Bridging the network gap

Enhancing access to professional networks is crucial for the success of women entrepreneurs. Initiatives like the Indian Women Institutional League (IWIL) provide platforms for women to connect, share experiences, and access resources. IWIL offers programs such as entrepreneurial workshops, incubation support, and technology development programmes to guide women entrepreneurs.

While significant progress has been made, sustained efforts are required to level the playing field for women entrepreneurs. Encouraging more women investors, integrating financial literacy programs, and ensuring the effective implementation of policies are key steps toward unlocking greater growth opportunities. Additionally, creating safer work environments is essential, as safety concerns can deter women from pursuing entrepreneurial ventures.

By fostering an ecosystem that supports women-led startups through comprehensive government policies and robust institutional support, India can drive economic progress and promote diversity, innovation, and inclusive growth in its entrepreneurial landscape.

(Santoshi Reddy is VP – Finance, Legal, and Compliance at T-Hub)

(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)