Commerce Minister Piyush Goyal’s recent remarks on India’s startup innovation priorities have stirred debates within the entrepreneurial community.

Status of Women-Led Startups in India

• Recognised Startups: India has 1.6 lakh startups supported and recognised by the government. Over 73,000 startups (nearly half) have at least one woman director, highlighting growing gender inclusion.
• Global Standing: India ranks second only to the US in funding raised by women-founded tech startups, as per a Tracxn report. The country hosts approximately 7,000 women-led startups, accounting for 7.5% of all startups in India.

About Startups

• Definition: A startup is a newly established company, typically formed by a small team with limited resources to deliver innovative products or services.
• Scheme: The Startup India initiative (2016) has been pivotal in encouraging youth and women entrepreneurship.
• Types of Startups: According to Resurgent India, the main types of startups include Scalable Startups, Small Business Startups, Lifestyle Startups, Buyable Startups, Big Business Startups, and Social Startups.

Eligibility Criteria for Startups

• Age of the Entity:  Must be less than 10 years old from the date of incorporation.
• Type of Registration:  Should be registered as a Private Limited Company, Registered Partnership Firm, or LLP.
• Annual Turnover Limit:  Must not exceed ₹100 crore in any financial year since incorporation.
• Business Structure:  Should not be formed by splitting or reconstructing an existing business.
• Innovation and Scalability: Must work towards the development or improvement of a product, process, or service, and have a scalable business model with high potential for wealth and employment generation.

Government Initiatives to Empower Women Entrepreneurs

• Simplifying the Process: The Startup India Action Plan and Startup India: The Way Ahead Programme have simplified regulatory procedures, provided funding support, and encouraged strategic partnerships to promote a vibrant startup ecosystem.
• Capacity Building: The Startup India Capacity Development Programme for Women Entrepreneurs has conducted 24 workshops across 10 states, benefiting over 1,300 women through mentorship and business guidance.
• Government Funding Initiatives: Startup India Seed Fund Scheme (SISFS) provides early-stage capital to startups.
  • Funds of Funds for Startups (FFS) offers indirect funding support via venture capital firms. 
  • Credit Guarantee Scheme for Startups (CGSS) enables collateral-free loans for startups.
• Regulatory Ease: The government has eased compliance norms by allowing turnover relaxations, fast-tracking patent applications, and offering income tax exemptions. These reforms have especially benefited women-led startups in retail, edtech, and enterprise tech.

Women-Led Startups and Impact

• New-Age Sectors: Women entrepreneurs are making significant strides in B2C e-commerce, internet-first brands, and fashion technology, reflecting their growing influence in consumer-driven digital markets.
• Rise in Public Listings: While the number of acquisitions by women-led startups declined from 45 in 2021 to just 16 in 2024, there has been a rise in public listings.
• Notable IPOs in 2024: Five women-led startups went public in 2024:
  • MobiKwik
  • Usha Financial
  • Tunwal
  • Interiors and More
  • LawSikho
• Resurgence India Report:  According to Resurgence India, financial support, mentorship, and a sustainable entrepreneurial ecosystem are key enablers for women entrepreneurs.
• Supporting Factors: Additional enablers include: Education, Family Support, Self-Confidence, Skill Training, Marketing Assistance, Regulatory Exemptions, and Flexibility and Autonomy in business roles, which act as major motivators for women.
• Impact: Women’s financial independence through entrepreneurship can lead to Improved household decision-making power and a potential shift in traditional gender roles
• Double Burden: Studies show the double burden of work continues, domestic responsibilities remain unchanged for many women. The type of business (dynamic vs. necessity-driven) affects a woman’s social and familial status.

Current Landscape of Women Entrepreneurship in India

• Mastercard Index for Women Entrepreneurs (2021): India ranked 57th out of 65 countries, reflecting limited support and opportunities for women entrepreneurs.
• Global Entrepreneurship Research Association (2020): India’s entrepreneurial system is largely necessity-driven, indicating fewer opportunity-based ventures. 
  • Only 2.6% of the female adult population is engaged in entrepreneurial activities.
• Findings from MSME Annual Report 2023–24: 80% of enterprises in India are male-owned.
  • In urban areas, only 18.42% of enterprises are owned by women Women are more likely to own micro-enterprises than small or medium enterprises  → This reflects a gendered distribution of enterprise ownership in India
• Barriers: Women entrepreneurs face several challenges including lack of customer orders, domestic responsibilities, personal duties, supply chain disruptions, limited access to skilled workforce, and financial constraints.
• Female Labour Force Participation: Despite improvements, India still has one of the lowest female labour force participation rates globally
• Women Entrepreneurs as Employers: 71% of women entrepreneurs in India employ five or fewer people. With a more supportive ecosystem, women entrepreneurs have the potential to create more jobs and enhance economic growth.

Conclusion

While women-led startups are gaining visibility and support, broader issues such as gender disparity, resource access, and systemic challenges continue to limit women’s full participation in India’s entrepreneurial landscape. A holistic approach, combining policy, mentorship, and financial access, is essential to unlock the full potential of women entrepreneurs in India.

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