Women in Entrepreneurship: Global and Indian Perspectives

Women are making significant strides in entrepreneurship worldwide. As of recent years, approximately 252 million women globally are entrepreneurs, and 153 million women are operating established businesses. The global average Total Entrepreneurial Activity (TEA) rate for women stands at around 10.2%.

1. North America- About 17.6% of women are engaged in early-stage entrepreneurial activity.

2. Latin America and the Caribbean- The rate is approximately 17.3%.

3. Europe and Central Asia- Women have a TEA rate of around 9.8%.

4. East Asia and the Pacific- The rate is about 8.9%.

5. Sub-Saharan Africa- One of the highest rates, with around 21.8% of women involved in entrepreneurship.

Funding

Globally, women-founded startups receive less venture capital funding compared to their male counterparts. For instance, in the U.S., women receive about 2.3% of the total venture capital funding. Women-led businesses are more likely to be self-funded or rely on personal networks for initial capital.

Challenges

Women entrepreneurs face significant barriers, including limited access to funding, societal and cultural norms, and fewer networking opportunities.

Women in Entrepreneurship in India

In India, the entrepreneurial landscape for women has been evolving rapidly. Approximately 14% of business establishments in India are owned by women, with the number of women entrepreneurs estimated to be around 8 million.

Challenges

Access to finance remains a significant barrier for women entrepreneurs in India. Many rely on personal savings and loans from family and friends. Cultural and societal norms often hinder women from pursuing entrepreneurial ventures, particularly in rural areas. Limited access to networks, mentorship, and markets also poses challenges.

Impact of Education and Training

Women with higher education levels and access to entrepreneurial training are more likely to start and sustain their businesses. Programs focused on skill development and financial literacy have shown positive impacts on empowering women to start their own businesses.

Economic Impact

Women entrepreneurs contribute significantly to India’s economy, with a potential to add up to $770 billion to India’s GDP by 2025 if gender parity in entrepreneurship is achieved. Women-owned businesses are instrumental in job creation and improving the economic status of families and communities.

Upcoming Initiative

The Global HR Community Community will be launching a global round table soon, focusing on developing women entrepreneurship through our platform. Watch this space for more details soon.