Empowering Women in Green Business

Recently, Union Minister Piyush Goyal has urged Indian start-ups to prioritise innovation. A key opportunity and challenge is to promote green innovation, especially in the context of climate change.

Rise of Green Enterprises

• About: Green enterprises, also known as green businesses, are organizations that prioritize environmental sustainability in their operations, products, and services. 
• Aim: They aim to minimize their impact on the environment, often by adopting eco-friendly practices and offering environmentally friendly goods and services.
• Economic and Environmental Synergy: Green enterprises are becoming a major economic force in India. They span sectors like the circular economy, bio-packaging, bamboo engineering, e-waste recycling, and battery manufacturing.
• Green Market Potential: A CEEW study shows that Odisha’s green economy alone has a market potential of $23 billion. This model can be scaled across India, driving economic growth and sustainability.

Barrier for Women in Green Enterprises

• Underrepresentation of Women: In 2024, only 18% of start-ups are women-led. This gap hampers the growth of the green economy and slows climate-resilient development.
• Dual Imperative: Empowering women in the green sector is both an issue of equity and efficiency. A robust women-led green start-up ecosystem is vital for a sustainable and prosperous India by 2047.
• Fundraising Challenges: Finance remains a key barrier for women-led green tech start-ups. Rashi Gupta, founder of Vision Mechatronics, faced gender bias in funding since 2015 — banks questioned the “man behind the scenes.”
• Perceived Risk: Investors perceive women as higher-risk borrowers, despite global data showing women are more reliable borrowers. Presence of a male co-founder significantly improves credit access for women entrepreneurs.
• Dependence on Self-financing: As per a 2014 MoSPI report, 79% of women entrepreneurs are self-financed; only 1.1% borrow from financial institutions. Indicates a major gap in institutional credit access for women.

Way Forward

• Policy Moves: The 2025 Union Budget proposed term loans up to ₹2 crore for first-time SC and ST women entrepreneurs. More such high-value credit schemes are required due to the capital-intensive nature of green tech.
• Simplified Access: Mahi Singh of Cancrie stressed the need to demystify and simplify scheme access. End-to-end online portals and transparency in processes can build trust in government lending.
• Private Sector Role: Banks and investment firms should earmark a percentage of portfolios for women-led green businesses. Annual reviews must report credit percentages to women entrepreneurs.
• Practical Guidance: Vanita Prasad of Revy Environmental Solutions emphasized the need for visible role models. Mentorship should be tangible, not tokenistic.
• More Platforms:  Platforms like BRICS Bootcamp and NITI Aayog’s Women Entrepreneurship Platform are useful. More CSR-backed bootcamps and partnerships (e.g., IIM-Bangalore & Goldman Sachs 10,000 Women) needed.
• Tech Opportunities for Women: Automation has opened doors for women in roles previously dominated by men. Sectors like renewable energy, biotech, and the circular economy need technology-trained women.
• Need of women in Engineering: Women constitute only 19.2% of engineers in India. Updated curricula and scholarships needed to attract more women to tech-intensive sectors.
• Scholarship Models: Initiatives like ‘Women of Mettle’ by Tata Steel support female engineers in manufacturing. Similar programs and dedicated funding from large corporations are crucial.

Conclusion

Tackling barriers in finance, mentorship, and technical education is essential. Women’s inclusion is not just equity; it’s critical for India’s green economy and sustainable development by 2047.