On September 22 each year, American Business Women’s Day acknowledges the role of women in business and entrepreneurship. The day was first organised by the American Business Women’s Association in 1982 and was subsequently officially recognised by U.S. congressional proclamations in the 1980s, it is essentially a celebration of women’s economic contributions. However, its significance goes beyond the United States. In India, where more and more women are becoming involved in entrepreneurship, the event provides a chance to consider a broader issue: What effect does it have on an economy when more women are able to set up, own and expand businesses?
The answer is important because entrepreneurship involves more than just achieving personal financial independence. A successful business can create jobs, generate demand for suppliers, introduce new products and services, and contribute to economic activity, which is why women-run businesses play an important role in India’s growth story.
A GROWING FORCE IN THE INDIAN ECONOMY.
Indian women entrepreneurs are not any longer restricted to a small number of traditional industries, they are now setting up businesses in manufacturing, retail, technology, food, finance, services and the digital economy.
The latest figures from the government show this growth. The Ministry of Statistics and Programme Implementation’s Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025 states that the number of women-owned proprietary firms rose from 26.2 per cent in 2023–24 to 27 per cent in 2025. The survey also estimated that the unincorporated non-agricultural sector in India achieved a Gross Value Added (GVA) of 19.93 lakh crore rupees in 2025.
There are also a large number of women involved in the formal MSME ecosystem. According to the dashboard maintained by the Ministry of MSME, there were more than 3.63 crore female MSME registrations by September 23, 2026.
The importance of these figures lies in the fact that businesses do more than just make profits for their owners, they employ workers, buy inputs, pay taxes and help to boost production. The MSME sector in India as a whole accounts for about 30% of GDP and over 40% of exports, according to the International Finance Corporation.
It therefore follows that increasing women’s involvement in this area would have effects throughout the economy. The World Bank believes that eliminating the obstacles to women’s entrepreneurship in India could result in 25 million extra jobs and lead to a significant increase in GDP growth.
It doesn’t mean that all women’s enterprises lead to an increase in GDP. Instead, it shows the economic opportunities that arise when women who wish to set up and expand their businesses can gain access to the same opportunities, capital and markets which are needed for growth.
GOVERNMENT SUPPORT: FROM CREDIT TO CAPACITY BUILDING.
Seeing this potential, the Indian government has launched a number of programmes designed at reducing the obstacles which women entrepreneurs encounter.
A key initiative is the Pradhan Mantri Mudra Yojana (PMMY), which grants loans to micro enterprises without requiring any collateral. Under the scheme, loans of up to 20 lakh rupees are available through various categories, ranging from Shishu to Tarun Plus. According to government data, women received about 68% of MUDRA loans, equivalent to more than 35 crore loans amounting to 14.72 lakh crore rupees, as shown in the figures released in 2025.
The Stand-Up India Scheme, which was introduced in 2016, was intended to enable bank loans ranging from 10 lakh rupees to 1 crore rupees to be given to women and SC/ST entrepreneurs who are setting up greenfield enterprises. Over 200,000 loans having been approved under the scheme by March 2025 for women entrepreneurs.
The government has likewise promoted entrepreneurship by means of the Prime Minister’s Employment Generation Programme (PMEGP), offering women beneficiaries higher subsidies and requiring a smaller contribution from them. Over 3.57 lakh projects run by women entrepreneurs have received assistance since the programme was launched in 2008–09 up to December 2025.
The Women Entrepreneurship Platform (WEP), which was set up by NITI Aayog, is intended to link women with information, mentorship, funding, incubation, marketing and networking opportunities.
THE PROBLEM IS NOT A LACK OF POTENTIAL.
Even with this progress, women entrepreneurs still face major barriers.
Getting access to finance is still one of the major difficulties. A study supported by the World Bank points out that women’s rural enterprises which employ millions of people are not adequately served by formal finance, and another study mentioned by the World Bank estimated an unmet credit demand of 11.4 billion dollars among women-run MSMEs in India.
Women may also face problems relating to collateral, their networks, access to markets, digital skills and the social expectation that care giving should be given priority over their professional aspirations. The Economic Survey 2025–26 points out that structural obstacles such as limited mobility, a lack of affordable housing and inflexible working arrangements still have an impact on women’s economic participation.
A paradox arises here in India that has millions of women who are capable of generating economic value, but structural obstacles can stop their businesses from achieving their full potential.
FROM WOMEN IN BUSINESS TO WOMEN LED GROWTH.
The reason for supporting female entrepreneurship is therefore not merely about attaining gender representation. The benefits can be felt by employees, suppliers, consumers and communities when a woman sets up a business, and as the business grows so too can its economic impact.
The fact that India has made recent progress indicates that changes are taking place in the entrepreneurial environment. However, the next phase should aim not merely at increasing the number of businesses owned by women, but also at helping these businesses to survive, to formalise, to innovate and to grow.
Although American Business Women’s Day may have started in the United States, the main idea behind it has a very clear relevance to India: women are not just participants in the economy, they can also be the ones who create economic activity.
For India speaking, it is not merely a question of having representation. It is also an economic opportunity.
References :
1. International Finance Corporation. (2024). Small business, big impact: Empowering women SMEs for success.
2. Ministry of Finance, Government of India. (2025). Economic Survey 2024–25.
3. Ministry of Finance, Government of India. (2026). Economic Survey 2025–26.
4. Ministry of Micro, Small & Medium Enterprises, Government of India. (2026). MSME dashboard.
5. Ministry of Micro, Small & Medium Enterprises, Government of India. (2026). Annual report 2025–26.
6. Ministry of Statistics and Programme Implementation. (2026). Women-led enterprises rise as worker earnings improve: ASUSE 2025.
7. NITI Aayog. (2022). Decoding government support to women entrepreneurs in India: The anatomy of entrepreneurship support schemes.
8. Press Information Bureau, Government of India. (2025). Nari Shakti se Viksit Bharat: Women leading India’s economic transformation story.
9. World Bank. (2026). Gender.
10. World Bank. (2026). International Women’s Day 2026: Women who lead from the front.
11. Daily Pioneer
12. First American Bank
13. International Growth Centre
– Written & Edited by Avilasha Bakshi
