– By Dolly Kumar
With India poised to become the growth engine of the world, women entrepreneurship has taken the centre stage. Across all industry verticals, women are proving their mettle by inspiring change and evolving as agents of empowerment and transformation. However, this presence has not materialized overnight and is a result of a hard-fought journey, with women breaking societal barriers and challenging grim statistics to accomplish this outstanding feat.
In 2021, women-owned businesses in the United States had a total of 38% of all businesses. But there’s good news – this number has been increasing steadily, all thanks to the collective efforts to support and empower women in the business world. In India, according to the National Sample Survey, women-owned businesses are growing faster than those owned by men. Their compound annual growth rate stands at an impressive 19.3%, while the general business landscape is at 14.4%. This upward trend shows that we’re making gradual but consistent progress towards gender equality in entrepreneurship.
In India, women’s involvement in entrepreneurship has been a tough journey, marked by discouraging numbers and microaggressions. According to the Sixth Economic Census conducted by the National Sample Survey Organisation, only 13.76% of businesses in India were led by women. The data also showed that most businesses run by women are small in scale, and approximately 79% of them are self-financed. This highlights a significant gender gap that has long held women back from fully realizing their entrepreneurial potential.
Contrarily, in the United States, women-led businesses brought in an impressive $1.9 trillion in revenue in 2020, showing how successful female entrepreneurs can be. However, despite this significant financial impact, women-owned businesses made up only 38% of all businesses in the United States in 2021. Shifting our focus to India, data from the National Sample Survey tells us that women-owned businesses are not only growing but are growing faster than businesses led by men. Women entrepreneurs are expanding at a rate of 19.3% each year, outpacing the 14.4% growth rate of businesses overall. This substantial growth highlights the great potential and resilience of women in the business world.
As we move towards a business era that is in arms with digitalization, women are utilising technology and taking centre stage emerging as chinks of light in this entrepreneurial portrait. The need for more funding and self-reliance creates significant avenues for investment in women-led enterprises along with empowerment opportunities for women entrepreneurs.
In this context, the best areas for investment are in helping women entrepreneurs learn new skills and connect with others in their field. The business world is always changing, so learning and adapting is essential.
By staying up to date with the latest developments, women business owners can become more successful and better meet the demands of their businesses. Networking is also crucial for women entrepreneurs. It can provide access to financial help, guidance, and business opportunities.
Networking helps entrepreneurs connect with experienced industry leaders, creating a supportive environment for aspiring women entrepreneurs. Studies have shown that women who actively seek mentorship are 30% more likely to succeed in their businesses compared to those who don’t.
It’s important to recognize that networking for women entrepreneurs goes beyond just business advantages. It should also aim to enhance personal knowledge and growth. Women often have a lot on their plate when running their businesses, so networking should offer more than just transactional benefits. A peer-to-peer networking platform should promote a well-rounded approach.
This collaborative atmosphere fosters innovation, resilience, and the sharing of best practices, motivating more women to enter entrepreneurship. With the right networking platforms to support and boost their entrepreneurial drive, women entrepreneurs have a great opportunity to redefine entrepreneurship. With the support of networking, they can bring hope and transformation, leaving behind discouraging statistics and creating a vibrant world of empowered entrepreneurship in India.
(Dolly Kumar is the Member EO Gurgaon and Co-Founder and Director of Cosmic Nutracos Solutions Private Limited.)
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